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It is becoming more common for generation Y to move to inner city or CBD areas and purchase properties using their family’s home equity, according to founder of Sydney-based Dream Design Do, buyer's agent Zaki Ameer.
“Upon finishing their studies, young adults find that their place of employment is located in the CBD, as well as all the amenities they want to access, such as nightlife, entertainment, and retail offerings,” says Ameer.
“In Sydney, these locations are typically the eastern suburbs and the inner city, and in Brisbane its Newstead and Fortitude Valley.”
“Property is priced way outside of capabilities of the salary of a career starter, so purchasing a property in the desired location of these Gen Y’s is impossible.”
This is forcing young people to draw on their family home equity which is becoming one of the easiest pathways for young people to tap into the property market, said Ameer.
“In many cases, the family home is already paid for, which creates substantial security when applying for the loan”.
“Provided the youngster is gainfully employed, purchasing in the area where it’s all happening is right within his/her foreseeable future.”
According to Ameer this option was not possible for past generations. The parents of today are likely to work longer and are not keen on downsizing or moving to a retirement complex for some years.
“Their parents do not see themselves as old, and therefore are in no hurry to sell the family home. They don’t want to live among retired people or senior citizens, and more than likely are perfectly happy in the family home surrounded by families and young people.”
Ameer said parents could use their children’s move to the city as an investment opportunity.
However, if parents aren’t in a position to draw down on their equity another option is renting which Ameer says is costly but manageable.
If renting is also too expensive and they are still keen to enter the property market, they may purchase a property in a cheaper area, and then work on building equity on that property so that they can buy in their target area in the future.
According to Ameer, another option is taking up employment in a different city where property and living cost is cheaper.
“In their 20s, they probably do not have a lot of personal responsibilities, and are more easily able to relocate,” he said.
“They will see it as an adventure; to work and live in another state than where they grew up, and also often take the opportunity to establish themselves when they are there, by purchasing property that is now affordable for them.”
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Young buyers leveraging family home equity to afford inner city purchases: Buyer's agent

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Quantity surveyors Washington Brown are warning investors not to get carried away with that holiday feeling this summer.
Over the holiday period many investors can fall into the romance of owning their own private get away. But Washington Brown says to tread carefully.
Holiday properties can be an enticing investment. Victoria’s coastal town of <a href="/news">Torquay</a> has a median house price of $617,000 and a median rental price of $400 per week, according to Core Logic RP Data.
Washington Brown says when buying a property, the ‘we have got to have it and we will make it work’ compulsion is natural. After purchase costs such as renovations and furnishing can build up and before you know it, you may have spent over $1 million on your new holiday property.
Quantity surveyor and depreciation expert Tyron Hyde says that there are way around spending a lot of time and money on holiday properties.
“Holiday houses can be depreciated if they are rented out to a third party,” said Hyde.
This stops you from staying at the house whenever you want.
“As long as it’s available for rent most of the year you can block out a two week period over Christmas and claim the depreciation pro rata,” Hyde said.
“You are still entitled to that deduction regardless of how many weeks the property is actually rented out as long as it was available for the full 50 weeks.”
“I’m seeing many clients buy holiday homes at close to, or less than the construction cost and if you furnish your holiday home, you’ll magnify the deductions.”
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Beware the summer holiday home investment: Washington Brown

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Every year body corporates have to deal with property damage as a result of schoolies, and mitigating these damages is proving to be difficult.
This year Strata Match has received a flood of calls from apartment owners on what restrictions they can place on schoolies to prevent damages. Whatever preventatives they use, Strata Match warns that it must be lawful and applies to all tenants under the Body Corporate and Community Management Act 1997.
The Act states if a lot may be used for residential purposes, the by-laws cannot limit and confine the type of residential use.
This means that different by-laws cannot be made for schoolies if they aren’t imposed on other residents. For example imposing a minimum stay to prevent schoolies from actually renting a unit is unlawful.
Strata Match says the Act also prevents the body corporate from taking action, such as locking balcony doors. However, they do have control over things such as time restraints on the use of amenities, and whether or not glass, music or alcohol is allowed.
Although, if these changes are made they cannot be subject to schoolies week nor can they be exclusive to schoolies goers.
As stated by Fair Trading, all guests should be treated the same way. Any rule or condition that you impose should apply to all guests and should be compulsory for the whole year. This is the same with the bond price. 
 
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Schoolies making it harder for body corporates to protect themselves

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Kulangoor’s big cow has been officially handed over to new owners for the first time in 14 years.
The icon is among the 150 ‘BIG’ things scattered across Australia that make up some of the country's most loved attractions, from the Big Banana in Coffs Harbour to the big boxing crocodile at Humpty Doo.
The spotlight has been thrown on the Big Cow with its sale being confirmed earlier in the week.
ONE Agency Noosa principal Grant Baker said a successful marketing campaign was the driving force behind the sale.
“The team at ONE Agency Noosa has worked diligently to create an outcome where both buyers and sellers are happy,” Grant said.
The property was first designed as the Country World tourist attraction. It had a working dairy farm with Ayrshire cows. Visitors could learn firsthand how dairy farms were run.
The property was last sold in 2000 and was run as The Outdoor Centre for years. Owners then transformed it into the Nambour Regional Training Centre.
Since then the training centre has been leasing out its facilities to companies across Australia. Tenants include marines and mining and disability industries.  
Over the past 14 years the big cow has became synonymous with the property. Sculpted by Hugh Anderson, who also did the big bulls at Rockhampton, the big cow is an exact replica of an Ayrshire cow, only seven times bigger.
The big cow also became home to Sunshine Coast’s first sea and air rescue helicopter, with the old helipad on site.
The complex has 70 parking spaces and has easy access off and on the Bruce Highway. 
Picture: Stuart Edwards/<a class="mw-mmv-license" href="https://www.propertyobserver.com.au/https://creativecommons.org/licenses/by-sa/3.0" target="_blank" style="line-height: 1.3em;">CC BY-SA 3.0</a>.
 
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Queensland’s Big Cow icon sold after owners decide to moo-ve on

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A new online partnership has formed between reiwa.com and houseandland.com.
Reiwa.com unveiled the ‘House &amp; Land’ section last month following the announcement of the joint venture.
The new addition to the re-launched website will assist investors looking online for new-build packages.
Chief executive officer at REIWA Neville Pozzi says: “This new initiative helps us deliver on our promise to be the number one destination for everything WA real estate, providing buyers who are looking to build with a one-stop solution.”
The House &amp; Land feature gives access to the top land estates, building designs and vacant land. It also has a patented ‘matching’ technology for buyers who are looking to build. The application will find what block will match their house.
Director of houseandland.com.au Mark Shearer said: “It helps bridge the disconnect for consumers between house and land by simplifying the overall difficulty in creating a package.”
“Users can now view a comprehensive list of building designs from over 30 builder brands in WA removing the need to spend weekends driving all  over the state looking for the perfect fit.”
The website is set for more features in the years to come.
“We are really excited to be partnering with houseland.com.au. This is a space in real estate we haven’t traditionally had much involvement in, so it’s opening doors for us to engage with new segments of the market and get them on board,” said executive manager of reiwa.com Lisa Ravlich.
  
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REIWA partner with listings website for new online feature

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The results from the CoreLogic RP Data and Nine Rewards survey reveals increasing home buyer confidence in the housing market, according to Property Week.
The September quarter showed 66% of people surveyed thought it was a good time to buy property, even as home prices continue to rise in capital cities.
The results reflect a drop from the June quarter, where 71% said it was a good time to buy.
“Most respondents still felt as if it is a good time to buy property, although with the current growth period having run for so long, it isn’t a surprise to see a slight fall in the proportion of respondents who think now is a good time to buy,” said Cameron Kusher RP Data’s senior research analyst.
The survey showed varied results between states and even differences within states themselves.
State by state results on the percent of keen buyers.:
<ul>
<li>Tasmania- 100%</li>
<li>South Australia (outside of Adelaide)- 80%</li>
<li>Queensland (outside of Brisbane)- 79.1%</li>
<li>Western Australia (outside of Perth)- 75.9%</li>
<li>Brisbane- 73%</li>
<li>Perth- 69%</li>
<li>Adelaide- 68.3%</li>
<li>Victoria (outside of Melbourne)- 66.7%</li>
<li>ACT- 65%</li>
<li>Melbourne- 64.5%</li>
<li>New South Wales (outside of Sydney)- 63.3%</li>
<li>Northern Territory- 60%</li>
<li>Sydney- 52.8%</li>
</ul>
Source:  CoreLogic RP Data and Nine Rewards survey
The survey also asked if Australia’s housing market was vulnerable to a significant correction.
68% of people surveyed believed there may be a correction, the highest reading the survey has received. 
Property prices continue to rise throughout Australia. Apart from Perth, price growth was experienced in all capitals in the September quarter.
The national figure shows 68% of people think the market is vulnerable to a significant price correction.
“Interestingly, respondents from areas where values have seen minimal growth over recent years were most inclined to think a significant correction was a possibility,” the report said.
Percent who think the housing market is vulnerable to a significant correction in values:
<ul>
<li>South Australia (outside of Adelaide)- 85%</li>
<li>New South Wales (outside of Sydney)- 74.4%</li>
<li>Brisbane- $70.8%</li>
<li>Tasmania- 70%</li>
<li>Western Australia (outside of Perth)- 69%</li>
<li>Sydney- 68.6%</li>
<li>Melbourne- 67.3%</li>
<li>Victoria (outside of Melbourne)- 65.1%</li>
<li>ACT- 65%</li>
<li>Queensland (outside of Brisbane)- 64.8%</li>
<li>Perth- 62%</li>
<li>Adelaide- 61.7%</li>
<li>Northern Territory- 60%</li>
</ul>
Source: CoreLogic RP Data and Nine Rewards survey 
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Home buyer confidence remains high as 68% believe price correction ahead

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Darwin property prices may have fallen over the September quarter, according to CoreLogic RP Data, but one local agent believes the market is well placed to come roaring back in 2015.
In the three months to 31 October, Core Logic RP Data information shows a 1.7% drop in the Darwin median price.
The large amount off the plan settlements has deterred buyers and investors form the market, according to general manager of Raine and Horne Darwin, Glen Grantham.
But, Grantham says the underlying fundamentals are strong and the market won’t spike until the middle of 2015.
“We have an election in late 2015 and already the NT government is starting to make announcements that will drive stronger business activity and consumer confidence,” he said.
One of the major upcoming announcements is the tender for the North East Gas Interconnector, a gas pipeline linking the Northern Territory with the east coast gas grid.
Grantham says the smart buyers will get in early and find some bargains before the market starts to generate strong growth.
“The smart money is currently buying properties in inner CBD suburbs such as <a href="/news">Stuart Park</a> and <a href="/news">The Gardens</a>,” he said.
“In The Gardens, entry-level, two-bedroom apartments start from $450,000, which are generating weekly rents of $550. This is a very healthy 6.4% gross yield, with the prospect of decent growth to come.”
<a href="/news">Woolner</a>, with a current median unit price of $620,000,<a href="/news"> </a>is another market which Grantham says is due for a spike.
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Darwin property prices fall, but rebound could be on the cards

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Smart Blocks, a company focused on improving the energy efficiency of apartment buildings, has received the Contribution to Sustainability Award for a Community Organisation at this year's Melbourne Awards.
Smart Blocks was created in partnership with Strata Community Australia (SCA), City of Sydney, City of Melbourne, Owners Corporation Network of Australia and Green Strata, and received funding from the Department of Industry as a part of the Energy Efficiency Information Grants Program.
Smart Blocks provides an online toolkit that gives owners and managers the steps needed to save energy on their apartment blocks common areas. The toolkit allows users to register their building, build a business case, identify the projects that will improve their energy efficiency, and prepare a case for implementation.
There are several projects on offer which include, lighting upgrades, heating and cooling, ventilation and solar options.
According to Smart Blocks, residents of high or medium density blocks use 25% more energy than those in detached dwellings with up to 50% of this energy usage coming from coming common areas such as hallways, car parks and swimming pools.
SCA's chief executive officer Kim Henshaw said that strata communities in Melbourne that use the smart blocks projects will reap big savings.
"It can often be hard to make energy efficient changes in residential strata buildings for many reasons such as the frustration of trying to retrofit an old building with new power saving technologies, the difficulties of collective decision-making and the complexity of navigating codes and by-laws,” said Henshaw.
“Smart Blocks takes care of these challenges, providing a clear and easy way for owners and managers to create a more sustainable and energy efficient building," says Henshaw.
Henshaw believes these kinds of initiatives are perfect for the changing residential landscape in, with nearly a quarter of the population living in strata dwellings and the figures continuing to grow every year.
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National energy efficiency program recognised with sustainability award

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New home building in NSW is tipped to top the 50,000 in 2015, according to a report from the Housing Industry Association (HIA).
The predictions, in the spring 2014 edition of the HIA’s New South Wales Outlook, come off the back of a strong 2014, where dwelling commencements are expected to have increased by 9.5%, following a 31.7% rise in 2013. The HIA says a further growth of 4.5% is expected in 2015, bringing commencements up to 50,800.
“We have been pleasantly surprised by the performance of new home building in NSW, with activity on track to exceed initial expectation over the next 12 months,” said HIA executive director, NSW, David Bare.
“NSW’s $7.9 billion home renovations market is likely to reap the rewards of robust dwelling price growth and record low interest rates.
“Activity on this side of the market has fallen steadily over the past decade but the recovery currently underway is likely to lift activity by a cumulative 25 percent or so.”
Home renovations in the state are also expected to increase in 2014 and 2015 by 8% and 3.9%, respectively. In two years the HIA believes home renovation to reach $8.43 billion.
Bare says that despite the improved levels of new home building, the NSW government still needs to open up more land for residential use and create a simpler planning regime. 
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Oliver Wisniewski

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