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Jack of all trades

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I am often asked why is it you offer so many services and dont just focus on one?

Although it appears that we offer

Investment Analysis

Finance

Planning Consulting

Building Designs

Depreciation Estimates

Builder Broker

Real Estate Sales

House & Land Packages

In actual fact in my eyes it is just property development.

In the world of property development if you miss just one of these items out it can turn a profitable development project in to a nightmare.

In the past i have seen the impact that can happen if the process isnt managed with a coordinated approach with the same goal in mind.

Too often the developer will deal with their Financier, Planner, Surveyor, Conveyancer and Real Estate Agent without a collective approach only to find out too late that these parties may not be acting with the same objectives or having all the pieces of the puzzle.

 

It is vital when considering developing a property that a clear coordinated strategy is adopted very early on before any money is spent. 

 

Unfortunately property development can be very unforgiving when poor choices are made early on and once that choice is made the project must continue on to the end regardless of whether the project is profitable or not.


Housing construction worst in a decade

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South Australia's builders had previously built between 10,500 and 12,000 homes per year. For the next couple of years it is expected that building will not be much more than 9,000 homes per annum

South Australian housing starts for 2011 represented a fall of 19.5% on the figure for 2010.

Of more concern is that in the 3 months leading up to January 2012 seasonally adjusted approvals were down 35% compared to the same period the previous year.

If building approvals are anything to go by we can expect tough conditions for the years ahead for the South Australian new home building industry.

However the future isnt inevitable particularly if interest rates continue to drop as predicted and the state government makes the predicted reforms to the cost of new homes.


Housing shortage of 230,000 homes

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In a report released by the HIA Economics group entitled Housing to 2020 it stated that we have a aggregate shortage of housing totalling 230,000. But what does that really mean? Surely we cant have a shortage of housing if prices are going down?

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It you take the year 2010-2011 as an example the number of dwellings completed were 154,400. The HIA estimates that the underlying demographic demand for new dwellings in this year was 167,000. Thus they say that there is a 12,600 dwelling shortfall.?

If we aggregate all these shortfalls over 10 years then we get the shortage of nearly 230,000.

So what is the underlying demographic demand?

Essentially it is the measure of the number of dwellings required to satisfy a growing population. This attempts to determine the total number of potential households in a given region based on a number of demographic, social and economic factors such as the natural population growth, net overseas migration and the number of people living under one roof.

It is important to understand that prices are made up of both the demand and supply of properties as well as people perceptions of the relative value of properties.

In the long run demand and supply will determine the final price in the market however in the short run it is peoples perceptions which determine the market price.?

As such we can see falls in property prices when people perceive that property prices are overvalued, however as these perceptions aren't?realized?the underlying shortage of supply will have a greater impact and prices will start to rise.


Driveway safety for toddlers

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There have been 85 deaths in children aged 0-5 years old between 2000 and 2010. Recent statistics in Queensland has shown that nearly 3 children per week - 150 per year - are run over, and in the past 5 years on average four die as a result of their injuries. Something is being done about this.

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There is a proposal in place to amend the Building Code of Australia to help prevent future deaths by placing requirements on the internal access door between the garage and living space to include

????????? a solid inward swinging door

????????? the door handle at a minimum of 1500mm above floor level

????????? the door to have a self closer

????????? an electronic isolation cut off switch to be installed between the automatic garage door and the internal access door

Proposed urban planning guidelines include

????????? fencing of driveways and making a safe play area for kids

????????? clear space at front fence lines to see kids on footpaths when reversing


Confidence improves in Regional South Australia

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South Australia's regional housing market has started to show signs of growth after years in the duldrums.

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According to new data from the Real Estate Institute of Australia (REISA) the latest quarterly data shows median house prices in regional SA have risen to $259,000 during the first 3 months of 2012. This represents an increase of 3.6%.

The town showing the greatest increase is Port Augusta where property prices have risen to an median of $246,000 up by 42%.

REISA's CEO Greg Troughton said 'increased mining activity and more water in the Murray River are helping confidence return to the market'.

As the predicted mining boom leads closer to?fruition it is likely that we would expect that the property markets in SA's regions will continue to improve well into the future.?