Interest rates can fall ‘a lot further’ without housing bubble risk: Harry Triguboff
By Larry Schlesinger
Meriton boss Harry Triguboff says there is room for the Reserve Bank to cut the cash rate by a lot more to help struggling property markets that have not been boosted by recent monetary policy easing.
Triguboff told Business Spectator’s Robert Gottliebsen that rate cuts had boosted the Sydney and Melbourne property markets, but he said markets like Queensland and the NSW central coast are still down around 20%.
“Think of these areas. They must rise. They need to rise desperately. We cannot have a country where only 20% of the properties go up and 60% go down while 20% are static.
“The interest rates have a lot further to go down without any fear of bubble,” said Triguboff.
Triguboff pointed to the example of the UK, where the current cash rate is 0.5% (since March 2009), but the country has not had a housing bubble due to cautious lending practices.
Meriton has no apartment projects on the NSW central coast, but has some of its biggest apartment projects are in Brisbane and on the Gold Coast.
Meriton’s biggest project is the 81-storey Infinity residential tower in Brisbane, which is due for completion in late 2013.
According to the latest Midwood Report, Meriton has sold 287 of the 548 units at Infinity, with plans to keep 259 as serviced apartments – a growing component of the Meriton business.
Earlier this year Meriton completed the 74-floor Soleil, also in the Brisbane CBD. Of the 414 apartments, only 33 remain unsold.
On the Gold Coast Meriton is building Brighton on Broadwater at Southport, with all 216 apartments in Portia (stage E) sold out, according to theMidwood Report.
However the report also notes that Regatta (stage C) is not proceeding.
The most September RP-Data Rismark index shows Brisbane-Gold Coast apartment prices down 4.6% year-on-year to a median of $370,000.
The August Residex regional report shows Central Coast house prices up 2.19% year-on-year with a median value of $375,500.
From: Linda [mailto:firstname.lastname@example.org]
Sent: Thursday, 11 October 2012 3:48 PM
Negative review website could hurt good PMs
2322 people have read this article
|Thursday, 11 October 2012|
A new rental property review website that only allows consumers to post negative comments has come under fire from industry professionals.
The website, dontrentme.com.au, allows a consumer to locate an address that they have tenanted and write a review about their experience with the landlord and property manager. The consumer can also rank the property out of five ‘negative’ stars.
According to Leighton Walters, business development manager at True Property, the website lacks credibility as it only allows for negative posts.
“I think it will have nothing but a negative impact on the industry because it doesn’t reveal any positive aspects of an agent,” he told Real Estate Business.
“It is going to give tenants an unwarranted reason to not rent properties and it will discriminate against owners who do actually maintain their homes.
“There is nothing stopping an upset tenant or one of your competitors going on there and posting something that is completely untrue.”
But according to website creator Anthony Ziebell, dontrentme.com.au is an “online movement” that will help make the rental market a more honest and even place.
“We want to make sure there is an understanding that the website and its community has been put together in order to make all things equal and fair,” he told Real Estate Business.
“Bad agents and landlords probably have a reason for concern, much like the agent who recently wasbanned for five years in Melbourne.
“Just like any other crooks, bad agents should have [reason] to be concerned and those who are honest agents have no reason for concern.”
However Tim McKibbin, CEO of the Real Estate Institute of NSW (REINSW), said the creator of the website has done themselves an injustice by not allowing for both negative and positive comments on the site.
“Firstly, these sorts of sites are going to be offered to consumers. We already see that in a number of other industries including travel, with the very successful TripAdvisor.com,” he toldReal Estate Business.
“I think they do themselves an injustice because they are not showing both stories. If they wanted to provide a genuine opportunity for consumers to draw attention to property managers then they need to have space for both negative and positive comments because it adds credibility to the entire site.”
Mr Ziebell said that there were no plans to allow agents an area to respond to comments about their properties or services.
“If evidence of falsification is provided and is by our opinion reasonable, we will remove a false review,” he said.
“It is our plan in the future to collect enough data that we can offer data analysis to good agents, so that agency directors can ensure that the good practices they implement inside their businesses are followed through by their agents.
“This data will also assist good agencies in avoiding known, bad landlords.”
Mr Walters is calling for the site to be taken down.
“This website will add nothing to our profession. It brings down good property managers that devote their lives to our industry and our career,” he said.
“It undermines the whole profession and I call for it to be taken down.”
Linda and Carlos Debello
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