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May 2010

Discussing real estate over at Nestoria.com.au

by Chris on May 26, 2010
Discussing real estate over at Nestoria.com.au

Nestoria.com.auNestoria.com.au is the ‘new kid’ on the real estate block – they are a vertical search engine that has been launched not too long ago (March 2010) in Australia. Back home in the UK they are very popular (in fact I’ve read that they are the 4th most popular real estate search).

But with Domain.com and Realestate.com.au, why do we need Nestoria? What makes them different is that they are a search engine – not a portal. This means that you can expect to find property listings through them, which they aggregate from many different sources, including Domain.com. One thing you won’t find there is the real estate ads, so less distraction for you. The search is also supposed to be very convenient and fast and all the properties are pinpointed on the map.

Their front page looks very similar to Google, most of it is blank and there is just the search box in the middle. Type the name of the suburb you’re after in it, hit Enter – and there you go, lots of property listings on the left and the map is on the right. Nestoria also displays all the schools, shops, post offices etc on the map – a very handy feature, and of course you have full control over it and the ability to turn it on and off.

I’ve had the pleasure of meeting Kat, the person behind Nestoria blog, and the outcome of this was my interview – read it here. For someone who is mostly focused on the technology, rather than on real estate market, Kat asked me some interesting questions! Take for example this one:

“What would you say are the main problems facing people wanting to buy property in Australia at the moment?”

So if you’re interested to learn some more about Aussie real estate market – and about my take on it – head over to Nestoria blog. Happy reading!

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Australian Home Of The Year 2010

by Chris on May 24, 2010
Australian Home Of The Year 2010

Australian Home Of The Year 2010 If you could build the home of your dreams, what would it look like? Yes, I know it would be a nice home, but can you be more specific?

Don’t worry if you can’t answer this right off the bat. After all, people who design houses have lots of ideas running constantly through their heads, while the rest of us are more comfortable with choosing from existing designs rather than inventing new ones.

And here is a great design to consider: the winner of 2010 Australian Home Of The Year Award. This is the top award of the HIA-CSR Australian Housing Awards that Victoria’s Atkinson.Pontifex won on May 21st.

Australian Home Of The Year 2010

The home is built on an elevated seaside location with stunning 270-degree views of Port Phillip Bay. Oh my, could I ever get used to that!

Australian Home Of The Year 2010

Have a closer look at the interior:

Australian Home Of The Year 2010

The awesome kitchen:

Australian Home Of The Year 2010

The beautiful bathroom:

Australian Home Of The Year 2010

The judges said: “This house ticked all the boxes with a wonderful relationship to the outdoors, use of views, fits into the street-scape and neighbouring properties, together with excellent internal zoning and storage.

The home employs multiple sustainability measures including a thermal chimney; geo-thermal bore to heat the home and pool; a 20,000 litre water tank; Low E glass and sun controlled louvres. These features make this relatively large home highly efficient.”

Photos curtesy of Atkinson.Pontifex, Victoria. Thanks for the inspiration!

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Readers’ Questions – Tenancy problems

by Chris on May 19, 2010
Readers' Questions - Tenancy problems

Readers Questions Answered I get a lot of mail with questions from people who are looking for a solution to a difficult situation. Sometimes I have the answers straight away, other times I have to look for them and do some extensive research before I come up with an idea of something to try. Whenever I have the people’s permission, I share the problem and the potential solution on homeiown.com, hoping that it might help someone else out there.

Today I was asked by Andrew and Paula (not their real names), two tenants who found themselves in a very unpleasant situation:

“I’ve been renting a house in {Melbourne Suburb}, after we moved in the neighbor told us that drug addicts lived in the house prior to us, my wife and I were lost for words to what we have just been told.

We were gardening on a particular day and my wife come across syringes, we notified the agent about the find and questioned them in relation to previous tenants, this then became interesting as we received notices in the mail telling us that we have new agents managing our property, we have to date had 5 new agents.

A few days ago we decided to move furniture and rearrange our lounge room, I noticed my shoe got stuck to the carpet, as I moved my shoe I noticed the needle of a syringe embedded in the carpet thread.

Two days ago we had our 6 monthly inspection, in conversation I mentioned our ordeal with the agent and we suggested that we might replace the carpet because of what we found and also mentioned that what would of happened if we were not wearing shoes even worse if it happened to our children or our friends or their children, the agent remarked you would be replacing the carpet at your own expense. We also mentioned to the new agent that we questioned the landlord about the previous tenants and they admitted to us that they were in fact drug addicts and were forced out due to unpaid rent.

Have you any advice?”

Here’s what I said:

There is a set of minimum standards that apply to rental accommodation. A description of these standards can be found here, in a document released by Victorian Government in November 2009.

Section 2, page 9 of this document deals with Building Provisions – in other words building standards enforced by local council. Here is what is says below Health and Amenity:

The Building Act 1993 empowers local councils to take enforcement action in relation to buildings to ensure compliance with these standards. This includes the power to make a building notice or order against a building that is unfit for occupation or is a danger to health, safety or life, regardless of time of construction.

I think your case clearly falls under “danger to health” category.

The same document, Section 1, has a paragraph on Urgent Repairs. Urgent repairs is something that requires a 14-day notice to the landlord, and they then must reimburse a tenant for the repairs (up to $1000). Here is what’s included in urgent repairs (quoting from the same document):

Under the RTA, “urgent repairs” means:

  • A burst water service
  • A blocked or broken lavatory service
  • A serious roof leak
  • A gas leak
  • A dangerous electrical fault
  • Flooding or serious flood damage
  • Serious storm or fire damage
  • A failure or breakdown of any owner supplied essential service or appliance provided for hot water, water, cooking, heating or laundering
  • A failure or breakdown of the gas, electricity or water supply
  • An appliance, fitting or fixture provided by the rooming house owner that uses or supplies water and that is malfunctioning in a way that results or will result in a substantial amount of water being wasted
  • Any fault or damage that makes the house unsafe or insecure
  • A serious fault in a lift or staircase

The bullet point in bold describes your situation. With needles stuck in the carpet and a known history of drug-addicts living there before you, the carpet is unsafe, especially with kids around.

You could write a letter to your estate agent and the landlord, send it via registered post, attach this document with relevant paragraphs highlighted and explain that you are going to involve the local council and file a complaint under Building Act 1993 and that you have the right to replace the carpet as urgent repairs and they will be liable for the costs. Should they refuse to pay then you can take them to the VCAT. I think that after such letter they will learn that you know your rights and will go along with this.

One more thing worth doing is a call to Consumer Affairs Victoria, they have a department that deals with rental properties. Listen to their advice – they are very experienced in solving tenancy disputes.

P.S. I am not a lawyer and the article above does not constitute legal advice. This is, however, what I would have done in similar situation – based on the official guidelines that I read and listening to my common sense.

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Are you sick of salespeople door knocking your home?

by Chris on May 14, 2010
Are you sick of salespeople door knocking your home?

Do not knock sticker If your answer to the question in my headline is yes, then you will be happy to hear the news. There is a way you can stop sales people from bothering you after work, when you are cooking dinner, settling your kids to sleep, or (finally!) sitting down to read a book on the couch, after a day’s work.

Remember when “Do not call” register was introduced? Well, now there’s a “Do not knock” campaign that can help you limit, if not completely eliminate, door-to-door sales.

“A man’s home is his castle” is not just a saying. It is enough to affix a “Do Not Knock” sticker to your front door (which you can get from Consumer Action here) to warn traveling sales people that they are breaking the law if they dare knock on your door.

Those of you sick of door-to-door sales yet too busy to put a sticker on the door will be happy to know that there will be changes to hours when sales people can and can not knock on your door.

Right now sales people can knock seven days a week, 9am to 8pm. After the new laws come into effect, we get a whole day off, on Sunday, and the rest of the weekdays they can’t bother us after 6pm (or 5pm if it’s Saturday!)

I do realize that sales people are just doing their job. But the rest of us are just living our lives. I can’t speak for everyone else, but my own selfish nature doesn’t take it well when strangers intrude on that hard-earned free time that I get to spend with my family.

So the new laws get a big YAY from me! How about you?

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How iPhone can help make your house-hunting easier

by Chris on May 10, 2010
How iPhone can help make your house-hunting easier

iPhone Home Buying AppThese days it seems like the world and his monkey is determined to make the stressed home-buyers happier. Just a couple of weeks ago Realestate.com.au came up with this huge makeover for their website, and now I find out about the Commonwealth Bank’s latest invention, that is all about helping people find and buy a home quicker and easier.

Oh, and they wouldn’t mind lending you some money, while they’re at it.

But sarcastic jokes aside, this new iPhone app by Commonwealth Bank does look promising. It’s based on what they call an “augmented reality technology”, and the way I understand it, it is “augmented” because the app takes the reality – the address of the property you’re standing in front of, when you point and shoot your iPhone camera at it ( via geo-positioning), and then adds to it some information you would need to make your property decision.

That information can be the current property listings in the same area, so you get to see what’s listed for sale, what the price range is and a 5 recently sold houses in the same area, similar to the property you’re standing next to, with sale prices. No longer will your iPhone be a mere camera to take photos at inspections.

It also will have the ability to switch to a bird’s eye view to show all properties matching the search criteria at once, save a house in Favorites, send to a friend and more.

This new app should eliminate the need to open up a website (such as realestate.com.au or domain.com.au), do a search for that specific address, and then begin navigating your way through the other listings in that area. Which basically is a fair bit of work, especially on an iPhone, which (with all due respect) is not as convenient as a computer with a large screen, a mouse and a keyboard. Plus, when you’re inspecting, often you are in a rush to get to the other properties on time and one quick look at the information this app will provide can save you about 5-10 minutes per property – looks like a worthwhile piece of software to check out.

In fact, this app should be just as good as realestate.com.au itself , because Commonwealth partnered with them and with rpdata.com to develop this new digital wonder of technology.

The word from Commonwealth Bank is that this app will become available in June this year, when Apple approves and adds it to the Apple Store – for free download!

And for the iPhone junkies amongst us, who can’t wait, here’s a teaser – click below to watch a short video about this new cool virtual reality iPhone app, or if you’re reading this in your email, click here.

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Another interest rates rise and how it translates into our money

by Chris on May 4, 2010
Another interest rates rise and how it translates into our money

Interest Rates RiseToday RBA has lifted the interest rates again, for the 6th consecutive time. I didn’t mention any of the previous rate rises on Homeiown (why bother when the mainstream media is covering it well anyway), but this time is different.

What is so different about it?

Well, firstly, this interest rates rise will push the Standard Variable Rate above the 10 years average, and this is kind of big deal. The 10 years average is 7.5% and after today’s RBA decision the new Standard Variable Rate goes up above that number. Of course all the banks are quick to pass that on.

Percentages, percentages… look all too small and insignificant, aren’t they?

How about a real life example. Take a typical 30 year housing loan of $300,000. Today, with the same loan, you would be paying $317 more a month compared to September last year.

You know what, forget September last year, and compare it to last month. From May on, assuming that interest rates are not going anywhere (which is probably unreasonable) you will be paying $51 a month more, that’s $612 a year. Which means that average first home buyer is now around $600 a year poorer.

“Today’s rate rise is tough for families and small businesses”, Federal Treasurer Wayne Swan admits, and as a consolation reminds us that the rates are still significantly lower than they were at their peak. What a joke. Let’s just hope that that we all get a pay rise to cover this extra expense – otherwise it could just wipe out that holiday we were planning off the calendar.

Ironic, isn’t it.

First we get stung by forever rising housing prices. Then, after we’ve paid whatever it takes to secure ourselves a home and got into a mortgage for the next 30 years, they say that the rise in house prices pushes inflation up and that deserves another interest rates rise. So there we are, having overpaid for the house, we now have to overpay for the mortgage as well.

And renters amongst us are in no better situation – they don’t even own an “asset” that appreciates with the housing market, but are paying higher rents because their landlords with mortgages are passing on the difference in their mortgage repayments.

What are higher interest rates doing to your family budget?

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