New Home Sales Slipped

Victoria, Australia - Housing industry has been contemplating on the sudden problems that the country is experiencing. The significant fall of June’s home or housing sales had dropped for the second month since previous months indicating a sudden rose of interest rates, and this had tremendously affected the home industry. After the Housing Industry Association conducted home builders’ activity report, it showed then that the new home sales status in June had slipped by 5.1 percent and had gone down since the sales of the new detached homes had fallen in a whopping 6.6 percent.

In Victoria, there was a massive fall of the detached homes for sale that are sold in the area, and by massive it was about 10 percent in June that it marks down so appallingly. Followed by a 6.4 percent fall in May looking back to the 5.1 percent that was recorded in the national drop.

One of the major problems that are being addressed is the shortage of land in which houses are being developed. This has been acknowledged by the housing industry association as a major discouragement for home seekers to build their new homes.

HIA chief economist Dr Harley Dale says, “Lack of readily available land and hefty infrastructure charges have combined with a chronic lack of development finance to put the brakes on sales and development activity”.

Furthermore, he reiterated that Victoria’s Parliament had recently acted on a legislation in widening the scope for urban land and to execute more development in these areas, however the federal government has been scarce in their funds thus causing an ongoing shortage of new dwellings.

“Concerted action is required to reduce the impact of regulation, development charging, and excessive taxation on the cost of new housing supply. Inaction means that Australia’s dwelling shortage will continue to increase, pushing up existing house prices and disadvantaging households seeking to purchase or rent a dwelling,” Dr Dale said.

Source: Herald Sun News

New Homes for Sale in Australia Increase Despite Rate Grows

From the recent news about the houses for sale in Australia has been released and stated that new home sales has been showed positive results in March despite the increase of interest rates including the scare of higher increase on home loan repayments that were expected to come this year. From the data recorded, the Housing Industry Association stated that the volume of new homes for sale in Australia grew up to 0.9 per cent in March following a 5.2 per cent fall in February.

''Rising rates have run headlong into pre-existing supply side obstacles related to land supply, planning delays, and distorting levels of taxation and charges applying to new housing,'' HIA chief economist Harley Dale said.

According to the Reserve Bank statement said that they already increased the interest rates almost five times now since October to 4.25 percent. They have been completed this in accordance to maintain and sustain the growth with the homes for sale industry.

In addition to this news most of the investors said that they will might experienced another increase with the interest rates as the meeting with the RBA held next week.

This week released from the statement of the government's National Housing Supply Council Report stated that they have been estimated a nearly 200,000 house shortfall this year alone.

Source: The Sydney Morning Herald News

Affordable and Luxury House and Land Packages

February 18, 2010 / DisplayHouses.com.au / Owning a house in Australia can be very beneficial. It is a very good investment because of Australian tax laws. Every time you buy a house, as long as it is in good condition, you are sure to increase its value. Having a house located in Australia can be extremely beneficial.

If you are looking to acquire a home in Australia, there are a few things you should consider. There are many different ways to acquire a house, so you will have to choose what is right for you. First, you should consider your budget. How much money are you willing to spend? Do you have the budget? Buying an already built house can work for you if you are a little short on cash. However, you should be very keen on the details. Make sure that the house is still in good condition to ensure that you will be able to raise its value even further. In this option, you cannot always be sure of the quality of the house. Also, second hand houses tend to have less value.

If you want more value for your home, you should opt to buy your own land. There are lots of land for sale courtesy of Home Builders Australia. If you choose this option, you will have to plan and design your own house. It will all depend on your vision of the house. This plan is the best if you have a little more money to spend.

If you are willing to invest more money on real estate, then you should opt for house and land packages. If you choose this option, you will be able to own your own land. Usually, you will have help with the contractors and builders of the house. This means you will have less hassle and you will be sure that the people building your homes are trained professionals.

Australia Needs to Build More Homes

According to Home Builder panels, Australia is not building enough new homes. So they agreed on the proposal of building more homes as the right way to make the housing price more affordable.

In recent years, Australian Housing has become among the most high-priced in the world. For an instance, the median Melbourne price increased by $100,000 in 2009 to more than $500,000.

Peter Jones of Master Home Builders Australia urged reform of "inefficient state and local government practices" as the way to lift the supply of new homes from about 130,000 now to about 200,000 per annum.

"Master Builders for some time has been calling on all governments to embrace a package of reforms including reform of developer charges, improved land release, better planning approval processes and the replacement of stamp duties with less distorting taxes," Mr Jones said.

Source: The Age