Taking care of basic maintenance tasks before you sell your home is a no-brainer, but a quick and not-too-costly renovation can add a lot of appeal for potential buyers, and may boost the final sale price.

1. Basics first Fix those little faults that you no longer notice – leaky taps, rusty gutters, broken window catches. They can make a huge difference to a buyer’s perception of value.

2. Landscape the garden A well-kept garden can create a low-maintenance feel before buyers even step inside.

3. Bring the outside in Opening living areas to the garden can be as simple as adding big bi-fold doors that create an inviting sense of flexibility.

4. Take the inside out The garden is a place to live: a barbecue area, deck, pergola or even a plunge pool all invite buyers to imagine their future lifestyle in your home.

5. Let the light in Brightening dark areas boosts a home’s appeal; you can install skylights quite economically, and swap solid doors in dark areas for glass-panelled ones.

6. Put some colour on it Fresh paint makes a home look ready to live in. Think carefully about colours, and maybe seek some interior design advice – although neutral colours present some people with a blank canvas, to others those spaces just seem bland.

7. A solid footing New carpets make a home feel new. Again, think carefully about colour. A step further? Look under the carpet – those timber floors will be lovely when sanded and sealed.

8. Green it Installing solar panels or a solar hot water system can add value for potential buyers, who will see future energy cost savings.

9. Bathroom fix A brand-new bathroom can cost a lot. Instead, think of replacing shower curtains with clear glass screens and installing new taps, a water-saving cistern and even a new toilet seat. Replace small tiles with big ones, and don’t forget to clean/renew the grout.

10. Add storage Buyers are looking for places to store their stuff – cupboards in the garage and in neutral spaces such as hallways are always welcome. A butler’s pantry in the kitchen is great, too.

Some simple and affordable renovation moves can make your home more desirable to buyers, potentially adding to the final sale price.

At Herron Todd White, they’ve jumped on the unique opportunity afforded by having offices filled to the brim with exceptionally talented professionals. They’ve put out the call to each and every hub and asked them to reveal their market predictions for 2018. This month’s emailed issue is bursting at its virtual seams with our experts’ opinions on how property will track in their patch – price sectors, suburbs and accommodation types all get coverage. And there’s nothing impotent about their predictions either. While others may fear to put pen to paper and tell you how it is, the team have toughened up. The calls they make in this month’s release will be revisited come year’s end where, in the December Month In Review, the crew will be asked to stand and deliver on how their predictions played out.

To read about what 2018 has in store for Brisbane & beyond, head to page 42.

At its meeting today, the Board decided to leave the cash rate unchanged at 1.50 per cent.

There was a broad-based pick-up in the global economy in 2017. A number of advanced economies are growing at an above-trend rate and unemployment rates are low. Growth has also picked up in the Asian economies, partly supported by increased international trade. The Chinese economy continues to grow solidly, with the authorities paying increased attention to the risks in the financial sector and the sustainability of growth.

The pick-up in the global economy has contributed to a rise in oil and other commodity prices over recent months. Even so, Australia's terms of trade are expected to decline over the next couple of years, but remain at a relatively high level.

Globally, inflation remains low, although higher commodity prices and tight labour markets are likely to see inflation increase over the next couple of years. Long-term bond yields have risen but are still low. As conditions have improved in the global economy, a number of central banks have withdrawn some monetary stimulus. Financial conditions remain expansionary, with credit spreads narrow.

The Bank's central forecast for the Australian economy is for GDP growth to pick up, to average a bit above 3 per cent over the next couple of years. The data over the summer have been consistent with this outlook. Business conditions are positive and the outlook for non-mining business investment has improved. Increased public infrastructure investment is also supporting the economy. One continuing source of uncertainty is the outlook for household consumption. Household incomes are growing slowly and debt levels are high.

Employment grew strongly over 2017 and the unemployment rate declined. Employment has been rising in all states and has been accompanied by a significant rise in labour force participation. The various forward-looking indicators continue to point to solid growth in employment over the period ahead, with a further gradual reduction in the unemployment rate expected. Notwithstanding the improving labour market, wage growth remains low. This is likely to continue for a while yet, although the stronger economy should see some lift in wage growth over time. There are reports that some employers are finding it more difficult to hire workers with the necessary skills.

Inflation is low, with both CPI and underlying inflation running a little below 2 per cent. Inflation is likely to remain low for some time, reflecting low growth in labour costs and strong competition in retailing. A gradual pick-up in inflation is, however, expected as the economy strengthens. The central forecast is for CPI inflation to be a bit above 2 per cent in 2018.

On a trade-weighted basis, the Australian dollar remains within the range that it has been in over the past two years. An appreciating exchange rate would be expected to result in a slower pick-up in economic activity and inflation than currently forecast.

Nationwide measures of housing prices are little changed over the past six months, with prices having recorded falls in some areas. In the eastern capital cities, a considerable additional supply of apartments is scheduled to come on stream over the next couple of years. To address the medium-term risks associated with high and rising household indebtedness, APRA introduced a number of supervisory measures. Tighter credit standards have also been helpful in containing the build-up of risk in household balance sheets.

The low level of interest rates is continuing to support the Australian economy. Further progress in reducing unemployment and having inflation return to target is expected, although this progress is likely to be gradual. Taking account of the available information, the Board judged that holding the stance of monetary policy unchanged at this meeting would be consistent with sustainable growth in the economy and achieving the inflation target over time.

QUEENSLAND’S property market is tipped to continue its solid performance through 2018 with predictions prices could grow faster than they did in 2017.

While southern capitals were expected to experience price drops, after a year of substantial growth, other capital cities, including Brisbane were more likely to experience positive conditions.

CoreLogic head of research Tim Lawless said an improved job market and an increase in migration meant price growth in Brisbane could potentially be higher in 2018. And he said regional Queensland markets, particularly those around mining regions, were also likely to improve as values bottomed out after a long and substantial decline. In many of those areas listings had started to drop and sales numbers had started to rise, which would lead to some gradual price gains. Ray White Queensland CEO Tony Warland said the start of 2018 would be strong for the property market. “November is always our best month for sales and the best quarter is always the three months to March, so it’s the best time to sell,’’ he said.

“If people didn’t sell the house by Christmas then they are on a mission to get their house sold and the kids into school as soon as possible in the new year.’’ He said the Brisbane market would fire back up by mid-January, although the Gold Coast and Sunshine Coast markets would be strong the whole time through Christmas and New Year.

Mr Warland described the Queensland market as much more “stable and confident than southern markets”.

“We see at least three to five people bidding at auctions in Brisbane and you can get a genuine picture of what the market confidence is, whereas in Sydney they get upset if they don’t have 15 to 20 people registered to bid, it’s so erratic.’’

Suburbs to watch in 2018 were Carina and West End, he said.

“After five years of solid price growth, Carina’s median price steadied in 2017, to be up just 0.5 per cent to $660,000. There were only 96 houses sold in Carina in 2017, compared to 136 the year before. We believe there to be good buying opportunities in Carina in 2018, as it’s sought-after for its good road infrastructure and quality schools. There’s lots of big blocks and development potential.’’

“West End will always be a good property decision as it sits in the Brisbane State High School catchment area but houses are in limited supply in West End. So buyers have to move quick as they often miss out,’’ he said.

Place CEO Damian Hackett said some pockets of the inner city had experienced double digit capital growth of up to nearly 15 per cent, in 2017 and he tipped steady growth to continue.

“Suburbs that are on the cusp of areas that boomed this year will increase in popularity and price, including Cannon Hill, Mount Gravatt East, Lutwyche, Kenmore and surrounds,” he said.

“These areas still offer affordability, easy access to the CBD, local amenities and great school catchments.’’

Mr Hackett predicted more favourable buying conditions for owner occupiers in 2018, particularly those looking to buy for less than $800,000 as a result of decreased competition from investors.

“Brisbane’s $3 million plus market has remained strong; stock has been limited this year, which has driven competition, along with interest from interstate and expats.

“And we expect to see that trend continue into the new year, with Brisbane presenting itself as an attractive place to live where you can still get more bang for your buck in luxury market.’’

Martin Hood, of RE/MAX Riverside, said 2018 would bring more stock and greater interstate migration which would lift demand.

A recent open for a Corinda property priced at $1 million attracted five serious buyers – all from interstate.

At the affordable end of the market, he said Forest Lake was going strong at the moment.

“I am actually selling a house at Forest Lake at the moment and the inquiry knocks me over,’’ he said.

“I think that people are trying to not overcommit, trying to keep where it is affordable and not get caught out.’’

LJ Hooker’s predictions report tips one of the big trends for property in 2018 will be that bitcoin transactions become more common.

“The rise in the popularity of crypto currencies, around the world, has inevitably reached Australian property markets. LJ Hooker has seen a number of listings this year where sellers have asked for, or accepted, Bitcoin as payment, or part payment, for their property,’’ it said.

It also said listing numbers would remain elevated through the start of the year as owners looked to cash in on recent strong price growth. “The rise in listings means more choice for all buyers in the market, however, first home buyers should be practically active as investor demand remains soft. One downside to having less investors in the market is that rents have the potential to rise, as rental availability falls and population growth continues.’’

Whether you’re after lower repayments or want to tap into the equity sitting in your home, refinancing can offer a world of benefits. Here are some things to be aware of so that you don’t find yourself hooked into a bad deal.

Don’t be fooled by the interest rate

Finding a lower interest rate doesn’t necessarily mean you’ve scored yourself a better deal. In fact, a product with more features may cost you a bit more in fees or interest, but could save you more in the long run. Including features such as an offset account will prove valuable as it will allow you to make larger repayments or put any extra cash against the loan. Products without this feature may charge a fee for early repayments.

Honeymoon rates are just that

Don’t be lured by offers with discounted introductory rates unless you’ve calculated the savings over the life of the loan. While a loan with a discounted interest rate seems a tempting offer, it’s only temporary. Once the introductory period is over, the interest will revert to a higher standard variable for the rest of the loan term. It may be more beneficial financially to negotiate a lower interest rate without an introductory discount.

Be aware of the fees

One of the main purposes of refinancing is to lighten the financial burden, however, that doesn’t mean that it’s not going to cost you. There are many fees involved, which may include discharge and application fees, a valuation fee, land registration fee, and mortgage insurance. You may also be subject to stamp duty depending on what state your property is located in. While these cannot be avoided, you have to ensure that the costs involved are not higher than the savings, to make the process worthwhile.

You don’t necessarily need to change lenders

A recent survey suggests consumers are inclined to switch lenders for lower interest rates. However, as competition is fierce, your broker may crunch the numbers and then start by negotiating a better deal with your current lender; threatening to take a better deal elsewhere may save you even more than leaving would.

While there are traps to avoid, a little expertise can take the stress out of refinancing to save you thousands, fund that renovation, or simply find a loan that suits your life a little better. If you wish discuss refinancing further contact one of the friendly advisers at Ladybird today.

Before you apply for a home loan with your partner, there are a few discussions that you need to have that go a little beyond what you may know already.

You’ve found someone you want to spend your life with (or a significant chunk of it, at least) – the hard part is over, right? Wrong. You know each other well enough to know whether or not you each blow the budget every month, but you probably don’t know each other’s complete credit history. So, before you buy a property together, there are plenty of discussions you need to have. Here are three of them.

Have they defaulted on any payments?

He or she might be relatively debt free now, but has this always been the case? One bad mark on a credit file, such as a late car payment or a default on a credit card, will change the approach you need to take when applying for finance.

It doesn’t mean you can’t secure finance, but it may mean you need to apply to a specialist lender for an alt-doc loan.

That savings balance, where has it come from?

If your partner has savings towards a deposit, that’s fantastic. But the balance is only one part of the equation that lenders consider.

If he or she has managed to build up those savings over a good period of time, making regular contributions and managing their savings well, lenders will consider this a positive indication of an ability to make repayments regularly.

If, however, the savings are the result of a redundancy payout, a gift from family or backing a good horse, they are still helpful as a deposit, but don’t indicate that ability to make repayments.

Again, this is not the end of the world. You’ll be in a better position than you would without that balance, but may need expert help to put your application in the best light.

If we did get into trouble, how would you want to handle it?

You must plan for every eventuality, even one you think is not likely. Having said that, this discussion isn’t so much about having a solid plan in place for the worst, as seeing how your partner would deal with difficulty.

If one of you lost your job, or you had unexpected bills that seemed overwhelming, would they try to struggle through, not wanting to talk about it with you or with your credit advisor, and potentially default on the loan? Or would they tackle it head on by visiting your advisor or lender with you to make a plan to get through it without defaulting?

Before you start looking for a home to share with the love of your life, an appointment with a LadyBird credit advisor can help you iron out the details and secure the finance that suits both of you.

A new baby completely changes your life. Are you also prepared for how a new baby might affect your chances of buying a home? Here are some things to consider before you submit your application. When a lender assesses your home loan application, they look at your income, assets, debts and expenses before deciding whether they think you can make the repayments. Those figures are likely to change when you have your first child. That means your eligibility for a home loan could also change.Changes to your income A lender needs to know that your income will cover your mortgage repayments, even while someone’s taking time off work to be a new mum or dad. If you’re the primary carer and you plan to leave employment temporarily or indefinitely, the loss of your income will affect your household income. When you’re applying for a loan and planning to take an employment break, you may need a letter from your employer confirming your return-to-work income. Both parents may be eligible for parental leave. In many cases the parental leave pay will be lower than your regular income. To get an idea of what your new income will be, figure out how much parental leave you plan to take. Also speak to your employer to find out whether they offer any additional entitlements. A financial planner will be able to discuss your personal situation, including any tax benefits you might qualify for. Cost of raising a child When you calculate your expenses, you’ll need to factor in the cost of raising your child. As a guide, a University of Canberra study estimated that low income ($1,160/week) families spend on average 7.4% of their earnings to raise a child aged 0–4, whereas high income ($4,984/ week) families on average spend 4.6%. Whatever your income, when you have a child your ongoing expenses will go up. This means you’ll have less money to make home loan repayments, so the amount you’ll be able to borrow may be less.Cost of the loan Before deciding on a home loan product, research the likely cost of the loan and the size of the repayments. Many lenders, brokers and real estate websites have free tools and calculators. The following items will affect your repayments: • The amount you borrow. • The length of the loan; the average home loan is 25–30 years. • The interest rate. • Whether the interest rate is fixed, variable or combined.Your financial commitments A mortgage is a financial commitment – and so is a baby. When you’re preparing to take on both at the same time, it’s a good idea to look at the whole picture. First, assess your current financial situation by pulling together information about your income and expenses, including any existing loans. What repayments can you afford? Then, using this information, adjust the amounts to reflect your income and expenses after having your child. What does that do to your home loan repayments? Although raising a child will be an added expense, you may find that you can reduce your discretionary costs – such as dinners and holidays. Depending on how much you can reduce, this may even give you about the same financial capacity. Or perhaps you can still afford to service a mortgage but may not be able to borrow as much as you first thought. You’ll need to decide whether a mortgage is a worthwhile debt, given that your household income and expenses will change when your baby comes along. Do you want to start a family now, or do you want to build a nest? An informed decision might make both possible if you understand the financial changes a child will bring. To discuss your home loan options, contact your LadyBird Home Loans mortgage broker.

The Silly Season is well & truly upon us! As we near the end of 2017, we would like to thank-you for your on-going support. From all of us here at LadyBird we wish you a Merry Christmas & a very happy New Year.

Welcome to the final Month In Review for 2017.

It’s been quite a year for markets across the country with shifts in domestic politics and the economy all playing their part, along with events on the world stage.

As in previous years, December is the time to look back on property markets throughout the nation and give detailed summary of how they performed. The Herron Todd White offices occupy a unique position – we have experts who work at the coalface each day, so you know their assessment of the property sector is both timely and relevant.

For our residential team, December is also an opportunity to look back at the predictions they made at the beginning of the year, and tell everyone how they fared. All in all, our valuers demonstrated an exceptional grasp of their markets.

To read more about Brisbane's performance during the year that was, head to page 43.

At its meeting today, the Board decided to leave the cash rate unchanged at 1.50 per cent.

Conditions in the global economy have improved over 2017. Labour markets have tightened and further above-trend growth is expected in a number of advanced economies, although uncertainties remain. Growth in the Chinese economy continues to be supported by increased spending on infrastructure and property construction, although financial conditions have tightened somewhat as the authorities address the medium-term risks from high debt levels. Australia's terms of trade are expected to decline in the period ahead but remain at relatively high levels.

Wage growth remains low in most countries, as does core inflation. In a number of economies there has been some withdrawal of monetary stimulus, although financial conditions remain quite expansionary. Equity markets have been strong, credit spreads have narrowed over the course of the year and volatility in financial markets is low. Long-term bond yields remain low, notwithstanding the improvement in the global economy.

Recent data suggest that the Australian economy grew at around its trend rate over the year to the September quarter. The central forecast is for GDP growth to average around 3 per cent over the next few years. Business conditions are positive and capacity utilisation has increased. The outlook for non-mining business investment has improved further, with the forward-looking indicators being more positive than they have been for some time. Increased public infrastructure investment is also supporting the economy. One continuing source of uncertainty is the outlook for household consumption. Household incomes are growing slowly and debt levels are high.

Employment growth has been strong over 2017 and the unemployment rate has declined. Employment has been rising in all states and has been accompanied by a rise in labour force participation. The various forward-looking indicators continue to point to solid growth in employment over the period ahead. There are reports that some employers are finding it more difficult to hire workers with the necessary skills. However, wage growth remains low. This is likely to continue for a while yet, although the stronger conditions in the labour market should see some lift in wage growth over time.

Inflation remains low, with both CPI and underlying inflation running a little below 2 per cent. The Bank's central forecast remains for inflation to pick up gradually as the economy strengthens.

The Australian dollar remains within the range that it has been in over the past two years. An appreciating exchange rate would be expected to result in a slower pick-up in economic activity and inflation than currently forecast.

Growth in housing debt has been outpacing the slow growth in household income for some time. To address the medium-term risks associated with high and rising household indebtedness, APRA has introduced a number of supervisory measures. Credit standards have been tightened in a way that has reduced the risk profile of borrowers. Nationwide measures of housing prices are little changed over the past six months, with conditions having eased in Sydney. In the eastern capital cities, a considerable additional supply of apartments is scheduled to come on stream over the next couple of years. Rent increases remain low in most cities.

The low level of interest rates is continuing to support the Australian economy. Taking account of the available information, the Board judged that holding the stance of monetary policy unchanged at this meeting would be consistent with sustainable growth in the economy and achieving the inflation target over time.

Whether you’re affected by fluctuating interest rates or or by a change in your personal circumstances, the pressure of maintaining regular mortgage loan repayments can be overwhelming at times. Here is some information to help you understand the available alternatives.

What to do before it gets worse If you’re about to miss a mortgage payment or already have, rest assured there is help available. Taking a big breath and raising the issue with your lender is the best thing you can do – in fact, the earlier you do that, the more options your lender will have to assist you.

Failing to resolve the situation may force the lender into taking action against you. This can include:

- Fees being applied.

- A higher default interest rate on missed payments.

- Taking recovery action on your home loan, forcing a property sale.

- Enforcement charges, plus court and legal costs.

A two-way relationship

Your lender will want to help you maintain your mortgage. One option is to give your lender a hardship notice. It looks like this:

- First, you contact your lender to explain the situation, which may require a person-to-person meeting at their office.

- Before the meeting, consider what options are available and define a ‘plan of attack’. This will show the lender that you’re proactively searching for an answer. After all, people are more likely to want to help you if they can see you’re trying to help yourself.

- Whatever plan you decide on, you can give your lender a hardship notice orally or in writing that you are unable to meet your obligations – your lender can guide you in this.

- Your lender has 21 days from receiving your hardship notice to ask you for any further information it requires. If it does not require further information, it has 21 days from receiving your hardship notice to decide whether or not it will agree to change your loan.

- Depending on your situation, the lender may come back with a scenario to ease payments for the short term, increasing them later. This may escalate your overall loan costs, but you will maintain your home and mortgage, and will be better off in the long run.

- Your lender must give you a notice as to whether or not it agrees with to change your loan following a hardship notice. If the lender does not agree, it must give you reasons why.

Lenders do have an obligation to consider your request, so don’t think that it’s a lost cause. If the lender will not assist you, you may be able to make a complaint to an external dispute resolution scheme of which your lender is a member. Your lender can give you details of how to contact that scheme.

Helpful support

Believe it or not, you’re not on your own – every month there are mortgage holders having issues with making payments, and just as there are legal rights for home buyers, there are also legal services for mortgage holders.

Perhaps there are also other financial issues, or bills, that also need attention, in which case free advice is available from the Financial Counseling hotline on 1800 007 007.

Albeit a difficult and somewhat embarrassing issue, you can speak to your mortgage broker about your loan issues. They will explain your options, suggest a plan, and work with you to minimise worries and achieve a resolution.

Sure, you shouldn’t judge a book by its cover, but a scrappy yard can be an instant turn-off to potential home buyers, even if the house is a dream on the inside. We’ve pulled together some savvy landscaping tips to make sure your home is picture perfect for when you’re ready to sell.

The first thing to keep in mind when revamping your garden is that it has to appear well presented and easy to maintain. People want to enjoy the outdoor space, not feel like it’s a burden.

Freshen up

If your garden is in reasonable shape but just needs a little spruce up, start with the basics. Mow the lawn and trim the edges, or even lay new lawn if necessary. Get rid of any dead plants, and throw out those stacks of plastic pots that mysteriously seem to pile up around the yard. Have a good weeding session, plant some fresh colour and lay some neutral-coloured mulch for a neat look.

Consider some outdoor lighting to lend a warm glow to your garden – it adds atmosphere and illumination for potential buyers who might only be able to do a drive-by after dark. It also gives people a glimpse into what it might be like to enjoy an evening soirée in their maybe-home.

Know your limits

If you’ve got a green vision but a terminal black thumb, invest in a professional landscape gardener who can bring some interesting ideas and impressive finishes to the table. You can also speak with someone at your local garden centre for advice on plants that will suit your garden.

Style it right

Make sure your garden design syncs up with your target market. It’s probably not wise to put a swing set in a tiny courtyard of a one-bedroom apartment. Conversely, you might want to transform the garden of a three-bedroom house into something that can function as a fun, outdoor space for the whole family.

Even without a large area to play with, you can still bring life to the outside of your property. Pots of bright flowering plants can give an entrance a visual lift – plus you can take them with you when you move.

Keep it functional

Yes, a garden or outdoor space is a place to relax, and yes, it should be visually appealing. But remember, it’s also a place to hang washing, store the garbage bins, maybe park the car, and even house a kennel. Don’t worry – there are ways of addressing these issues without the result being dull and utilitarian. If you’re short on space, install a retractable clothes line. If you can’t tuck your bins out of sight, a low screen with a climbing plant like a passionflower can provide a multifunctional piece of greenery.

Problem-solving plants

Address your property’s shortfalls such as nearby neighbours or busy roads by planting out your garden. While the plants may not initially create a full visual barrier, or any significant sound improvement, the perceived improvement from a buyer’s point of view will be worth it.

Home buyers are buying a home – not just a house – so make your exterior as appealing as your interior. Not only will you capture a potential buyer quicker (and out of hours – you don’t need a key to see the front garden), but you just may land a better end result.

This is the second last Month In Review for 2017 and the team thought it was about time we discuss a key component of property investment – rental markets. Across the nation, landlords must keep track of rental demand and supply. While most will have a property manager to keep their holding in line, smart property owners need to have a comprehensive understanding of how rents are tracking – or risk long term vacancy with no income. Herron Todd White have taken advantage of comprehensive networks to provide a detailed view of rental demand, rent levels, vacancy rates and property supply so you can stay up to date. With the end of the year almost upon us, the commercial team has taken the opportunity to prepare a wrap on industrial markets for 2017. Their professionals discuss how they’ve moved, what’s surprised them and the big moments that helped shape the industrial property sector over the past 12 months. Please enjoy the November edition of Month In Review. For those in Brisbane head to page 42 to read more about our local rental market.

At its meeting today, the Board decided to leave the cash rate unchanged at 1.50 per cent.

Conditions in the global economy are continuing to improve. Labour markets have tightened and further above-trend growth is expected in a number of advanced economies, although uncertainties remain. Growth in the Chinese economy is being supported by increased spending on infrastructure and property construction, with the high level of debt continuing to present a medium-term risk. Australia's terms of trade are expected to decline in the period ahead but remain at relatively high levels.

Wage growth remains low in most countries, as does core inflation. Headline inflation rates are generally lower than at the start of the year, largely reflecting the earlier decline in oil prices. In the United States, the Federal Reserve has started the process of balance sheet normalisation and expects to increase interest rates further. In a number of other major advanced economies, monetary policy has become a bit less accommodative. Equity markets have been strong, credit spreads have narrowed and volatility in financial markets remains low.

The Bank's forecasts for growth in the Australian economy are largely unchanged. The central forecast is for GDP growth to pick up and to average around 3 per cent over the next few years. Business conditions are positive and capacity utilisation has increased. The outlook for non-mining business investment has improved, with the forward-looking indicators being more positive than they have been for some time. Increased public infrastructure investment is also supporting the economy. One continuing source of uncertainty is the outlook for household consumption. Household incomes are growing slowly and debt levels are high.

The labour market has continued to strengthen. Employment has been rising in all states and has been accompanied by a rise in labour force participation. The various forward-looking indicators continue to point to solid growth in employment over the period ahead. The unemployment rate is expected to decline gradually from its current level of 5½ per cent. Wage growth remains low. This is likely to continue for a while yet, although the stronger conditions in the labour market should see some lift in wage growth over time.

Inflation remains low, with both CPI and underlying inflation running a little below 2 per cent. In underlying terms, inflation is likely to remain low for some time, reflecting the slow growth in labour costs and increased competitive pressures, especially in retailing. CPI inflation is being boosted by higher prices for tobacco and electricity. The Bank's central forecast remains for inflation to pick up gradually as the economy strengthens.

The Australian dollar has appreciated since mid year, partly reflecting a lower US dollar. The higher exchange rate is expected to contribute to continued subdued price pressures in the economy. It is also weighing on the outlook for output and employment. An appreciating exchange rate would be expected to result in a slower pick-up in economic activity and inflation than currently forecast.

Growth in housing debt has been outpacing the slow growth in household income for some time. To address the medium-term risks associated with high and rising household indebtedness, APRA has introduced a number of supervisory measures. Credit standards have been tightened in a way that has reduced the risk profile of borrowers. Housing market conditions have eased further in Sydney. In most cities, housing prices have shown little change over recent months, although they are still increasing in Melbourne. In the eastern capital cities, a considerable additional supply of apartments is scheduled to come on stream over the next couple of years. Rent increases remain low in most cities.

The low level of interest rates is continuing to support the Australian economy. Taking account of the available information, the Board judged that holding the stance of monetary policy unchanged at this meeting would be consistent with sustainable growth in the economy and achieving the inflation target over time.

When you’re selling your house, the key to a successful open for inspection is to make potential buyers feel comfortable. You want to show your property’s best side, and allow people to see themselves living in their new home. We’ve put together some handy tips to help increase your property’s attractiveness on inspection day.

Put on a good face Potential buyers will be inspecting your house from the moment it’s listed. They’ll drive by to check out the neighbourhood and see how things look from the outside – so this is the moment to make a good first impression.

Tidy the front garden, keep the verandah clear, hide the garbage bins and remove junk mail from your letterbox. You can add planters with colourful flowers to the verandah if you don’t already have them.

Remember to keep the external lights on at night, and make sure the front of the house – the face it presents to the world – is clean, freshly painted and well maintained: no sagging gutters, clogged downpipes or broken external blinds and shutters.

Clean until it hurts Your house needs to sparkle and shine in every room (including the kitchen). Keep the sink clear of dirty dishes, put fresh (or even new) towels in the bathroom, make the beds and polish all tabletops, dressers and bureaus.

It can help to empty the dishwasher and keep the fridge clean and orderly – potential buyers might look in there, too.

Cut the clutter Put away anything that isn’t essential to everyday living; take piles of magazines off the coffee table, clear away mail from the sideboard or wherever you keep it, and organise desks and tabletops.

Also remove knick-knacks and other personal items that might be on display, although don’t strip the place bare. It still needs to look like someone’s home.

Tone down the quirk The purple beanbag? The kitsch op-shop vases? Your furniture says a lot about you, but too much personality can crowd out a potential buyer, so put the really ‘you’ items away during inspections. Buyers need room to project their own personalities onto your home.

Let the light in (and the smells out) Swap dark, heavy window coverings for lighter blinds and curtains, and open them up to let natural light in. Also, consider repainting darker rooms in light, neutral colours.

Give your house a good airing before each open for inspection. Smells that you might not even notice, from cooking, pets or smoking, for instance, can be quite off-putting for others.

People can be sensitive to all types of smells, so while subtle floral or oil diffuser aromas are good, don’t overdo it with the ‘nice’ scents, either. The aromas of baking bread and freshly brewed coffee are attractive and homely – but are hard to organise if you’re not around.

Make yourself scarce Buyers need to feel like the home is almost theirs – having the current owners hanging around can make them feel like they’re intruding. It may also discourage people from telling the agent what they really think about the home – an important source of market intelligence.

Oh – and take the dog with you. Not everyone likes pets, some people are scared of dogs, and a roaming pooch will get in the way.

Presenting your property in the best possible light can improve your chances of a sale. With a bit of preparation, some elbow grease and attention to the finer details, your home will be ready to make its best impression on potential buyers.

In Australia, there are a number of ways to structure your home loan repayments. Finding the best option may save you time and money on your mortgage. Here is some information to help you choose the repayment structure that works best for you.

Variable rate loans

Variable interest rate loans are all about flexibility. Essentially, with a variable rate loan, the interest rate moves up or down as the market moves. This means your loan repayments may also change month-to-month.

If the interest rate drops, then your repayments may drop as well. However, in the event of an interest rate rise, your repayments could also increase.

Many variable rate loans come with additional features, which can reduce the amount of interest paid over the life of the loan. For example, a variable rate loan with a 100% offset arrangement links your loan account to your savings account. Any funds held in your savings account are offset against the borrowed amount, reducing the interest you have to pay.

Many variable rate loans offer flexibility in terms of increased payments, allowing you to pay off your loan faster if you have additional funds available.

Fixed rate loans

A fixed rate loan is one where the interest rate is fixed for a limited period, and immune from any movements in the market. The most popular choices are three and five-year fixed interest loans, although options ranging from one to ten years are available.

Fixed rate loans allow you to make steady, regular repayments. They’re great for borrowers on strict budgets, or if you’re entering into a mortgage at a time when interest rates are likely to rise.

In the event of a drop in interest rates, being locked into a fixed rate may mean your repayments are higher than they otherwise would be. It’s also worth noting that breaking a fixed rate loan can potentially cost thousands of dollars in fees.

Additionally, many banks will charge you a fee for making extra payments towards the loan during the period it has been fixed.

Split rate loans – a foot in each camp

A split rate loan is when you break your mortgage into two loans – one with a fixed rate and one with a variable rate.

It’s something of an ‘each-way bet’. A split loan offers borrowers protection from rate rises (with the fixed portion of the loan) alongside the advantage of rate drops (with the variable portion of the loan).

Most banks will allow you to split your loans from the outset, without having to pay for two separate loan applications.

Choosing the right kind of loan depends on your personal situation, earning capacity and long-term goals for your property. Speaking with a mortgage broker can help you to figure out the best way forward, and could help you save money along the way.

We’re into October and forgive the cliché, but it feels like the year is flying by. Our property markets are proving dynamic as we venture towards the end of 2017. Numbers show Sydney and Melbourne are running at a slower pace while Hobart has proved to be a shining star, based on its latest results around capital gains.

In the same way our markets continue to shift, so too, our housing evolves. Given how varied landscapes, economic bases and population demand are across this country, it’s no wonder housing is also a mixed bag. The team have taken the time to tackle the evolution, and future, of housing in their service areas.

Anyone interested in the office sector won’t want to miss the commercial contribution this month. They're providing one of the most comprehensive and up-to-date conversations on office rentals available anywhere – and it’s all localised. This is a ‘must have’ issue if you’re operating in this space.

Please enjoy the October 2017 edition of Month In Review. Head to page 38 to read about Brisbane's future direction.

At its meeting today, the Board decided to leave the cash rate unchanged at 1.50 per cent.

Conditions in the global economy have improved. Labour markets have tightened and above-trend growth is expected in a number of advanced economies, although uncertainties remain. Growth in the Chinese economy is being supported by increased spending on infrastructure and property construction, with the high level of debt continuing to present a medium-term risk. Australia's terms of trade are expected to decline in the period ahead but remain at relatively high levels.

Wage growth remains low in most countries, as does core inflation. Headline inflation rates are generally lower than at the start of the year, largely reflecting the earlier decline in oil prices. In the United States, the Federal Reserve has indicated that it will begin the process of balance sheet normalisation in October and that it expects to increase interest rates further. In the other major economies, there is no longer an expectation of additional monetary easing. Financial markets have been functioning effectively and volatility remains low.

The Australian economy expanded by 0.8 per cent in the June quarter. This outcome and other recent data are consistent with the Bank's expectation that growth in the Australian economy will gradually pick up over the coming year.

Over recent months there have been more consistent signs that non-mining business investment is picking up. A consolidation of this trend would be a welcome development. Business conditions as reported in surveys are at a high level and capacity utilisation has risen. A large pipeline of infrastructure investment is also supporting the outlook. Against this, slow growth in real wages and high levels of household debt are likely to constrain growth in household spending.

Employment has continued to grow strongly over recent months. Employment has increased in all states and has been accompanied by a rise in labour force participation. The various forward-looking indicators point to solid growth in employment over the period ahead, although the unemployment rate is expected to decline only gradually over the next couple of years.

Wage growth remains low. This is likely to continue for a while yet, although the stronger conditions in the labour market should see some lift in wage growth over time. Inflation also remains low and is expected to pick up gradually as the economy strengthens.

The Australian dollar has appreciated since mid year, partly reflecting a lower US dollar. The higher exchange rate is expected to contribute to continued subdued price pressures in the economy. It is also weighing on the outlook for output and employment. An appreciating exchange rate would be expected to result in a slower pick-up in economic activity and inflation than currently forecast.

Growth in housing debt has been outpacing the slow growth in household incomes for some time. To address the medium-term risks associated with high and rising household indebtedness, APRA has introduced a number of supervisory measures. Following some tightening in credit conditions, growth in borrowing by investors has slowed a little recently. In the housing market, conditions continue to vary considerably around the country. Housing prices have been rising briskly in some markets, while in others they have been declining. In Sydney, where prices have increased significantly, there have been further signs that conditions are easing. In the eastern capital cities, a considerable additional supply of apartments is scheduled to come on stream over the next couple of years. Rent increases remain low in most cities.

The low level of interest rates is continuing to support the Australian economy. Taking account of the available information, the Board judged that holding the stance of monetary policy unchanged at this meeting would be consistent with sustainable growth in the economy and achieving the inflation target over time.

Worried about your kids not mastering the skills to manage their finances as adults? These tips for parents will help children develop good financial sense from a young age.

Most parents want their children to achieve the Australian dream of home ownership. The good news is that parents can actually play a key role in making this happen by teaching their kids the basics of finance and instilling good behaviours that will last a lifetime.

1. Starting from a young age

Children are sponges when it comes to learning, which is why starting their financial tuition from a young age makes perfect sense. Even in their earliest years, taking them shopping and paying for items with cash can allow children to quickly learn the basics of commerce and money handling. When they’re at the right age, get them involved by counting the money together. It should be fun and educational.

2. Saving, budgeting and spending

As children get older, parents can explain to them the concepts of saving and budgeting. This will help them understand how to save for something they really want. Involve them in opening a savings account in their name, and making regular deposits with their pocket money. Most importantly, recommend they have a savings goal in mind and explain how their balance will grow over time.

It’s also a good idea to talk about budgeting, because invariably they will be spending money at some point. A good strategy is to take them on a ‘financial tour’ of your home, showing them what particular things cost, including invisible items such as electricity. Show them the bills you receive for each, and detail how you budget for them from your own income.

3. The miracle of compound interest

Depositing money into a savings account is one thing, but explaining how that money can earn interest on its interest is one of the most powerful financial tools children can learn.

4. Allowances and jobs

Part of the saving process for children typically starts with them receiving pocket money, but rather than just giving them money it’s better for parents to encourage their children to get a casual job once they’re of an appropriate age. This is one way of instilling a good work ethic that can be carried forward into adulthood.

5. Financial transparency and investments

Older children, in their mid to late teens, can further improve their financial literacy by learning about more complex products and through practical experience. This can include teaching them about residential mortgages and how they work, and perhaps showing them data on how property prices have risen over time.

It’s also good to explain how financial markets operate, including how interest rates are set and why it’s important to shop around for the best deals. Their education may even involve following shares or investments in fixed interest products such as bonds. The more they learn, the more their confidence and experience will grow.

Being transparent and providing financial advice gained from your own experience will be invaluable to your children. Start from a young age, and continue the education process for as long as you can. Over time, involve them in what you do so they can build their own financial foundations for the future.

If you’re considering helping your adult child buy a home, talk to one of our experienced home loan specialists about the options available to you.

It’s all too easy to rack up debt – credit cards, HECS, car loans – and may seem all too hard to pay it off. Debt can also have a big impact on how much money you can borrow for a home loan, so reducing your debt is essential when you set out to buy your first home.

Here are seven steps you can take towards minimising your debt and moving into the property market.

1. Work out how much you’re spending Create a spreadsheet and track your expenses for a month – record everything so you can see where your money is going. You may be spending much more than you think on some things – more than you can really afford.

2. Decide where you can cut back With a clear idea of how much you spend each month, you can figure out how much you really need to spend, and where you can cut back. That second coffee every day could be costing you $20 a week – that’s $1,000 a year. Buying your lunch rather than bringing it could cost you $2,500 a year. Buying one less bottle of wine a week could save you another $1,200 a year. With a bit of commitment, you can rein in your spending and have more money to repay debt.

3. Make a budget The only way to get on top of your credit cards is to stop using them. Make a budget for the money you need to spend each week or fortnight, based on how much money is coming in and what your necessary expenses are, and stick to it.

Calculate how much is left over after you’ve paid for the necessities, then figure out how much you want for discretionary spending and how much you can put towards repaying debt. Also, put money into a contingency fund to cover unexpected expenses such as car repairs that could bust your budget and cause you to reach for the credit card.

4. Prioritise your debt Work out how much money you actually owe on credit cards and loans – you may not realise how much it is. When you know how much debt you’re in, you can think more realistically about repaying it.

You need to pay at least the minimum amount due on all credit cards each month to avoid going backwards and in some cases being charged fees and penalties. But by paying only the minimum, you may never get the cards paid off; you need to pay more to make progress.

Consider:

paying high interest credit cards and loans first to save on interestpaying smaller debts first to give you the sense that you’re getting ahead, and that paying off debt is possible.

5. Make a repayment plan Armed with your budget and having worked out your debt priorities, you can plan which debts you will pay off over what period of time. Having a plan will increase your sense of control over your debt; sticking to it will increase your sense of achievement.

6. Set goals and celebrate them The thought of paying off all your debt may seem daunting, so breaking it down into milestones will help you see the way ahead. Set goals such as paying off 10%, then paying off 25% and so on.

Remember to celebrate each time you reach a milestone – buy yourself lunch or go to a movie as a small reward for your achievement.

7. Stick to the plan – and ride out the setbacks Keep going with your repayment plan. If you miss a payment because of an unforeseen expense, stay positive. Avoid feeling demoralised or derailed by looking forward to the next debt milestone – you can get there.

Property market performance has been a bit “more of the same” across a number of Australian centres this year. Sydney and Melbourne have continued to lead the way, although there have been some recent measures suggesting a slowdown is due. Meanwhile, other capitals and regionals have been a mixed bag of performance.

This month, Herron Todd White have delved into the homeowner sector of their service areas, taking a look at demographics, price movements and future direction. In the commercial section, an analysis of retail rents has been conducted by the team with views on how they’re tracking and what it means for retail property values. Please enjoy the September 2017 edition of Month In Review. Head to page 42 to read about Brisbane's future direction.

At its meeting today, the Board decided to leave the cash rate unchanged at 1.50 per cent.

Conditions in the global economy are continuing to improve. Labour markets have tightened further and above-trend growth is expected in a number of advanced economies, although uncertainties remain. Growth in the Chinese economy is being supported by increased spending on infrastructure and property construction, with the high level of debt continuing to present a medium-term risk. Commodity prices have risen recently, although Australia's terms of trade are still expected to decline over coming years.

Wage growth remains low in most countries, as does core inflation. Headline inflation rates have declined recently, largely reflecting the earlier decline in oil prices. In the United States, the Federal Reserve expects to increase interest rates further and there is no longer an expectation of additional monetary easing in other major economies. Financial markets have been functioning effectively and volatility remains low.

The recent data have been consistent with the Bank's expectation that growth in the Australian economy will gradually pick up over the coming year. The decline in mining investment will soon run its course. The outlook for non-mining investment has improved recently and reported business conditions are at a high level. Residential construction activity remains at a high level, but little further growth is expected. Retail sales have picked up recently, although slow growth in real wages and high levels of household debt are likely to constrain future growth in spending.

Employment growth has been stronger over recent months and has increased in all states. The various forward-looking indicators point to solid growth in employment over the period ahead. The unemployment rate is expected to decline a little over the next couple of years.

Wage growth remains low. This is likely to continue for a while yet, although stronger conditions in the labour market should see some lift in wages growth over time. Inflation also remains low and is expected to pick up gradually as the economy strengthens.

The Australian dollar has appreciated over recent months, partly reflecting a lower US dollar. The higher exchange rate is expected to contribute to the subdued price pressures in the economy. It is also weighing on the outlook for output and employment. An appreciating exchange rate would be expected to result in a slower pick-up in economic activity and inflation than currently forecast.

Conditions in the housing market continue to vary considerably around the country. Housing prices have been rising briskly in some markets, although there are signs that conditions are easing, especially in Sydney. In some other markets, prices are declining. In the eastern capital cities, a considerable additional supply of apartments is scheduled to come on stream over the next couple of years. Rent increases remain low in most cities. Investors in residential property are facing higher interest rates. There has also been some tightening of credit conditions following supervisory measures to address the risks associated with high and rising levels of household indebtedness. Growth in housing debt has been outpacing the slow growth in household incomes.

The low level of interest rates is continuing to support the Australian economy. Taking account of the available information, the Board judged that holding the stance of monetary policy unchanged at this meeting would be consistent with sustainable growth in the economy and achieving the inflation target over time.

It’s often said that Australians are more likely to divorce their spouse than switch banks. But with plenty of competition in the home loan sector, refinancing can be a good move.

There are a number of reasons why you might want to refinance: you can consolidate debt from high-interest credit cards into a home loan with a lower rate of interest; you can release cash from your home loan equity for other major purchases; or you might want to simply save on your repayments by moving to a loan with a lower interest rate.

What’s my rate?

If you aren’t 100% sure exactly much you’re paying, how can you find a better deal?

Luckily, finding out your interest rate can be as simple as logging on to your bank’s online banking portal and checking the account information for your home loan.

What do I need?

Make a shopping list of the features you want in a new loan. These might include: · Variable rate or fixed rate: a fixed rate gives you more certainty over the longer term; a variable rate can save you money when the market is down, but it fluctuates with the market and in the past has been as high as 18 per cent. · Offset account: cash in hand can be offset against your loan balance until you need to spend it, potentially saving interest. · Line of credit: if you have a lot of equity in your house, a lender might be prepared to offer you a useful line of credit secured against the property. · Repayment flexibility: repaying a loan fortnightly rather than monthly can save thousands. There are 26 fortnights in a year, but only 12 (not 13) calendar months, so you pay the principal off quicker (and therefore pay less interest) when you make fortnightly repayments. · Ability to pay the loan out early with minimal penalty.What’s on offer? A LadyBird broker will be able to help you choose the type of loan you want, how much you want to borrow and what extra features you need, then compare loans from many different lenders, with information on interest rates and fees and charges. This can help you weigh up the costs and benefits of each loan. They’ll do all the legwork for you, providing you with a list of solutions that cater to your particular financial needs, getting rid of any confusion and hassles throughout the process.

Check out the costs of getting out – and getting in If you took out your loan before 30 June 2011, the lender might be able to charge you an exit fee for terminating early. And if you’re on a fixed rate mortgage, you might have to pay a break fee.There may also be establishment fees for the new mortgages you’re considering, and you may find yourself paying higher ongoing fees, sometimes called administration fees. Some lenders also charge a fee each time you redraw on your loan. Speaking to a broker provides a clear advantage.

At the end of the day, a LadyBird Broker is able to guide you through the entire refinancing process, from start to finish. They have in-depth knowledge and understanding of mortgages, and will help you get the best possible outcome.

Congratulations! You’ve just bought a property at auction. Before you can move in, there are some things you need to do. Remember, it’s always recommended to seek legal advice when purchasing a property.

Sale contract and deposit

There’s no cooling-off period when you buy at auction, so you can’t change your mind after you put in the winning bid.

The next steps are governed by state and territory legislation, but are largely the same nationwide – however please ensure you are aware of the requirements in your state or territory . In NSW, for example, Fair Trading NSW states you’ll need to immediately sign the contract and pay the deposit (normally 10%). The selling agent will have already set the conditions of payment, and a bank cheque is generally acceptable.

In all states and territories, the deposit is held in trust until settlement. In Victoria, for example, Consumer Affairs Victoria explains that the deposit must be held by the seller’s estate agent, conveyancer or legal practitioner in a trust account until the settlement date. If the vendor doesn’t have an agent they must either give the deposit to their solicitor or conveyancer, or put it in a special-purpose bank account in both of your names.

Legal checks

Your solicitor or conveyancer will need to conduct legal checks on the property. After this, they’ll confirm the settlement date with the seller’s lawyer. When this date comes around, you’ll need to pay the balance of the purchase price.

Finance approval

If you have mortgage pre-approval, you’ll need to get formal approval. This process can take three to five days. Your lender will value the property before approving your loan, so make sure you don’t bid above market value.

Mortgage contract

When your mortgage application is approved, your lender will send you a letter of offer and mortgage contract to sign. The National Consumer Credit Protection Act states that lenders must outline any fees and charges in a pre-contractual statement. They must also send an information statement explaining your rights and obligations.

This legislation applies nationwide, but numerous state and territory resources offer easy-to-understand explanations of the rules. For example, the South Australian government’s property and land websiteexplains that all credit contracts must contain various details, including:

· the amount you’re borrowing

· annual percentage interest rates

· how interest will be calculated and when it will be changed

· credit fees and other charges, and commissions (if applicable)

· how you’ll be told of any contractual changes

· how often you’ll receive

Your conveyancer should read the paperwork before you sign. Don’t delay, as all mortgage contracts have a lapse date.

Settlement

The final inspection will often be on settlement day, or during the week before settlement. This gives you the chance to make sure everything’s as described in the sale contract.

Your conveyancer should conduct final checks, such as ensuring that any existing mortgage on the property is paid off and that any caveats are removed. They will also need to get the transfer of land document from your state or territory’s titles office and prepare it for settlement. On settlement day, the document is signed by the buyer and seller, and witnessed.

At the agreed settlement date and time, your lender and conveyancer will hand over the relevant documents and final payment to the selling agent. You and the seller don’t need to be there. Your conveyancer will then ensure the transfer of land and mortgage are registered with the title office.

Your conveyancer will let you know when the settlement has successfully been registered. You’re then free to pick up the keys from the real estate agent.

For more information about buying a property at auction, contact a LadyBird Mortgage Broker.

There’s no denying that websites like Airbnb and Stayz have turned the holiday accommodation industry on its head. Anyone with a property, or even just a room to spare, can potentially make some handy cash from this new segment of the travel market.

If you’re thinking of buying an investment property with the express purpose of listing it as a short-term rental, here are some things to keep in mind.

Ask first, rent later Before you buy an investment property and sign on with a third party like Airbnb, make sure your planned short-term rentals will be legal. Check that your listing doesn’t breach any home owners’ association or body corporate rules and that you’re complying with applicable zoning laws.

The laws around hosting paying guests vary greatly from city to city, and between local governments. In some cities, landlords are required to obtain permits and licences. As there is such variance in laws and requirements, do your legal research thoroughly or your plans might have to do a swift 180.

You’re the agent When you rent through a third-party website, you’re doing the work that a real estate agent would normally do – advertising the property, responding to emails, coordinating bookings and payments, arranging cleaning and maintenance. It’s not a set-and-forget investment.

The upside is that you’ll have more flexibility. For instance, you might choose to adjust the rental price to respond to the market – when demand is high, there’s an opportunity to increase your price. Alternately, you may only want to rent out the property when you’re not using it for your own holidays.

Not all insurance is created equal You will, of course, want to protect your property and its contents while you’re renting it out. Consult an insurance broker about this, as regular home and contents insurance doesn’t cover you for paying guests. You may need landlord insurance if you’re not going to use the property yourself during downtime, or you may need a combined policy.

Some people might think that Airbnb will protect them, however Airbnb’s Host Guarantee is not insurance. Ensure you properly read up on all the terms and conditions so you’re 100% aware of what’s required of you.

Income vs expenditure An investment property provides the opportunity to boost your income, whether you rent to holiday-makers or longer-term tenants. However, if you do go with the short-term option, owner costs might only be deductible during the percentage of the year the property is available to be rented.

A short-term rental means a higher tenant turnover. You’ll therefore need to budget for when the property is vacant, particularly during off-peak times, so you can manage any cash-flow disruptions.

Holiday rentals are usually fully furnished, which means you may need to spend some money before you even start advertising. As with any business, big-ticket items should be depreciated over time. Talk to your accountant about creating a depreciation schedule for items such as furniture and whitegoods.

While there are many benefits to ‘rentvesting’, these particular short-term rental markets are volatile – the laws aren’t always clear and they’re changing regularly. It’s important to do your homework, and to understand your rights and responsibilities. For more information about buying an investment property, contact a LadyBird Home Loans Mortgage Broker.

As we move into the second half of the year it’s been interesting to track our market’s movements. The property industry’s success is hinged to our economy and legislation, and one area that seems to be getting its fair share of attention is the investor sector. With finance becoming harder to come by, and a tightening of the legislation around foreign investors, the team at Herron Todd White thought it time to discuss the effect of investors on our markets. This is a collation of professional views on how investors operate around the country, and how much we rely on them. In the commercial section, they discuss industrial rents, so those in the sector can stay ahead.

Head to page 33 to read about Brisbane's investment market.

At its meeting today, the Board decided to leave the cash rate unchanged at 1.50 per cent.

Conditions in the global economy are continuing to improve. Labour markets have tightened further and above-trend growth is expected in a number of advanced economies, although uncertainties remain. Growth in the Chinese economy has picked up a little and is being supported by increased spending on infrastructure and property construction, with the high level of debt continuing to present a medium-term risk. Commodity prices have generally risen recently, although Australia's terms of trade are still expected to decline over the period ahead.

Wage growth remains subdued in most countries, as does core inflation. Headline inflation rates have declined recently, largely reflecting the earlier decline in oil prices. In the United States, the Federal Reserve expects to increase interest rates further and there is no longer an expectation of additional monetary easing in other major economies. Financial markets have been functioning effectively and volatility remains low.

The Bank's forecasts for the Australian economy are largely unchanged. Over the next couple of years, the central forecast is for the economy to grow at an annual rate of around 3 per cent. The transition to lower levels of mining investment following the mining investment boom is almost complete, with some large LNG projects now close to completion. Business conditions have improved and capacity utilisation has increased. Some pick-up in non-mining business investment is expected. The current high level of residential construction is forecast to be maintained for some time, before gradually easing. One source of uncertainty for the domestic economy is the outlook for consumption. Retail sales have picked up recently, but slow growth in real wages and high levels of household debt are likely to constrain growth in spending.

Employment growth has been stronger over recent months, and has increased in all states. The various forward-looking indicators point to continued growth in employment over the period ahead. The unemployment rate is expected to decline a little over the next couple of years. Against this, however, wage growth remains low and this is likely to continue for a while yet.

The recent inflation data were broadly as the Bank expected. Both CPI inflation and measures of underlying inflation are running at a little under 2 per cent. Inflation is expected to pick up gradually as the economy strengthens. Higher prices for electricity and tobacco are expected to boost CPI inflation. A factor working in the other direction is increased competition from new entrants in the retail industry.

The Australian dollar has appreciated recently, partly reflecting a lower US dollar. The higher exchange rate is expected to contribute to subdued price pressures in the economy. It is also weighing on the outlook for output and employment. An appreciating exchange rate would be expected to result in a slower pick-up in economic activity and inflation than currently forecast.

Conditions in the housing market vary considerably around the country. Housing prices have been rising briskly in some markets, although there are some signs that these conditions are starting to ease. In some other markets, prices are declining. In the eastern capital cities, a considerable additional supply of apartments is scheduled to come on stream over the next couple of years. Rent increases remain low in most cities. Investors in residential property are facing higher interest rates. There has also been some tightening of credit conditions following recent supervisory measures to address the risks associated with high and rising levels of household indebtedness. Growth in housing debt has been outpacing the slow growth in household incomes.

The low level of interest rates is continuing to support the Australian economy. Taking account of the available information, the Board judged that holding the stance of monetary policy unchanged at this meeting would be consistent with sustainable growth in the economy and achieving the inflation target over time.

1. Do you know the risks? When buying an apartment, unit or house off the plan, you’re purchasing a promise. You can’t step into the future and inspect the property you’re buying. Thoroughly investigate what the finished product will look like and explore the risks with your broker.2. Does your contract limit the risks? The contract should be comprehensive, covering everything from price, completion date and your legal rights, to conditions such as: • whether you can on-sell the property before it’s completed • what happens to your deposit if the building doesn’t go ahead • what happens if completion is delayed It’s important to obtain legal advice before entering into any contract.3. Who is the builder or developer? Before you’re committed to buy, it’s important to know your builder is reputable. Visit the building company’s website and check out past projects or visit any display homes. Use online forums to find company reviews. You should also consider how much input you will have during the construction phase. Can you make site visits during construction? Can you make changes to the finishes and select the appliances? Can the builder make changes without telling you?4. Are you eligible for government grants and concessions? One of the best things about buying off the plan is owning a shiny new place. Another perk is the potential of government grants and concessions for off-the-plan buyers. Check eligibility with your state or territory duties office.5. Are you financially ready to buy off the plan? You’ll usually need a deposit to secure the property with the balance payable upon settlement. Because of the longer waiting period between exchange of contracts and settlement, those requiring loan pre-approval should check that approval can be obtained earlier while the project is being completed. While there are some risks when buying off the plan, being prepared, asking the right questions and talking to your LadyBird mortgage broker about finances can help you to enjoy the benefits of a brand-new home.

When it’s time to renovate, everyone wants to save money. It’s fine to be hands-on for some tasks, but there are a few projects that are definitely not DIY friendly. Here’s a guide to what you may want to do yourself and what you should leave to the professionals.

What to do yourselfPainting

A fresh coat of paint can give you a strong return on your renovation dollar. Painting is a job almost anyone can take on themselves, although it can be messier and more time-consuming than you might imagine.

The key to a successful paint finish lies in the preparation. Take the time to clean, sand and tape as necessary. Also, choose the right paint for the job and invest in good-quality equipment. Don’t skimp on brushes and rollers – a professional job looks professional because they use the right tools.

Handy hint: a water-based paint can help make the clean-up more bearable.

Paving

You can lift the appearance of your home’s outdoor areas with new paving. Laying bricks or square pavers is a simple task, although you do need to set aside enough time to complete each step properly.

Paving is a multi-step process, from preparing the pathway and cement through to laying the pavers. Try consulting one of the numerous online paving tutorials, or visit your local hardware store for advice.

Flooring

If your home has wooden flooring, you can bring it to life with a sand and polish. Hardware and equipment-hire stores rent out machines for home use. However, achieving a perfect finish is trickier than it looks. If you’re not confident on the tools, another DIY approach is to lay your own floating floor, or even stick down self-adhesive vinyl floor planks or tiles.

What to leave to the experts

Electrical and plumbing

Undertaking electrical or plumbing works can be illegal and potentially life-threatening if you’re not a qualified tradesperson. If electrical and plumbing works aren’t done by a professional, you’re risking personal harm, and exposing your home and family to the risk of fire or flood damage. Leave this to the experts.

Asbestos removal

Prior to 1987, asbestos was commonly used in Australian home construction. If your home was built or renovated before this date, there’s a strong chance it could contain asbestos.

Even minor home maintenance tasks such as drilling a hole into a wall or installing a light fitting can create a health risk by causing asbestos fibres to become airborne. Always engage a licensed asbestos assessor and remover to handle any asbestos concerns at your property.

Roof repairs

Many a DIY renovator has regretted the decision to try to repair their own roof. Falls from ladders are a common cause of injury. During 2011–12, 1,294 men (78%) and 374 women (22%) were hospitalised in Australia as a result of a fall on or from a ladder, and 62 per cent of these injuries happened in or around the home.

A DIY approach can be friendly on the wallet, but there are some jobs simply not worth tackling – your safety is far more important. If you’re considering home renovations, contact LadyBird Home Loans first to find out how much you can borrow.

We’ve just clicked over the half-way mark of the year and the markets are looking interesting. A shift in interstate migration and general market expectations, as well as a drop in auction clearance rates, may finally indicate the hot Sydney market is starting to take a breath. Each year Herron Todd White asks their residential team where they would spend a ‘lazy’ $500,000 - the theme paints an extraordinary picture on how markets move. In this issue, you’ll find there are a number of areas beyond the major capitals that might be worth further research. For commercial investors, they've taken a look at the office sector, and specifically, the affordable end of the price range. Happy EOFY and enjoy this month’s issue.

Head topage 39, to see which Brisbane suburbs you can purchase in for a 'lazy' $500,000.

At its meeting today, the Board decided to leave the cash rate unchanged at 1.50 per cent.

The broad-based pick-up in the global economy is continuing. Labour markets have tightened further in many countries and forecasts for global growth have been revised up since last year.

Above-trend growth is expected in a number of advanced economies, although uncertainties remain. In China, growth is being supported by increased spending on infrastructure and property construction, with the high level of debt continuing to present a medium-term risk. The rise in commodity prices over the past year has boosted Australia's national income.

Headline inflation rates, having moved higher over the past year, have declined recently in response to lower oil prices. Wage growth remains subdued in most countries, as does core inflation. Further increases in US interest rates are expected and there is no longer an expectation of additional monetary easing in other major economies. Financial markets have been functioning effectively and volatility has been low.

As expected, GDP growth slowed in the March quarter, partly reflecting temporary factors. The Australian economy is expected to strengthen gradually, with the transition to lower levels of mining investment following the mining investment boom almost complete. Business conditions have improved and capacity utilisation has increased. Business investment has picked up in those parts of the country not directly affected by the decline in mining investment. At the same time, consumption growth remains subdued, reflecting slow growth in real wages and high levels of household debt.

Indicators of the labour market remain mixed. Employment growth has been stronger over recent months. The various forward-looking indicators point to continued growth in employment over the period ahead. Wage growth remains low, however, and this is likely to continue for a while yet. Inflation is expected to increase gradually as the economy strengthens.

The outlook continues to be supported by the low level of interest rates. The depreciation of the exchange rate since 2013 has also assisted the economy in its transition following the mining investment boom. An appreciating exchange rate would complicate this adjustment.

Conditions in the housing market vary considerably around the country. Housing prices have been rising briskly in some markets, although there are some signs that these conditions are starting to ease. In some other markets, prices are declining. In the eastern capital cities, a considerable additional supply of apartments is scheduled to come on stream over the next couple of years. Rent increases are the slowest for two decades. Growth in housing debt has outpaced the slow growth in household incomes. The recent supervisory measures should help address the risks associated with high and rising levels of household indebtedness. Lenders have also announced increases in mortgage rates for investor and interest-only loans.

Taking account of the available information, the Board judged that holding the stance of monetary policy unchanged at this meeting would be consistent with sustainable growth in the economy and achieving the inflation target over time.

The real estate market can be tough for young adults, but as a parent you may be able to lend a helping hand. We tell you how.

1. Parent-to-child loan

A parent-to-child loan is when a parent lends their child money. This is a formal, legally binding arrangement, administered by an independent third party. At the start of the loan period, both parties agree to terms including repayment amounts, a schedule and a process to manage defaults.

Benefits: You can set generous terms for your child, but your assets, savings and credit rating are somewhat protected as you are not the borrower.Drawbacks: There are legal implications for your child if they have a spouse and the relationship breaks down, in that the spouse could try to claim some of the loan proceeds as an asset of the relationship to which they are entitled. There are also tax considerations for both parties.

2. Family guarantee

If your child doesn’t have enough security for a mortgage, you could provide a family guarantee. This is where you use some of the equity in your own home as part of the security. For example, your equity might cover 20% of the security, and your child’s new property would be the other 80%. It’s also known as a guarantor loan.

This can be a temporary arrangement until your child has paid down the loan to an acceptable level.

Benefits: You have the option of guaranteeing only a portion of the loan.Drawbacks: If your child defaults, your assets are at risk.

3. Becoming a co-applicant

You can help your child secure a loan if you sign on as a co-applicant. This means you’re equally as responsible as your child for meeting repayments. The lender will consider your assets in its borrower’s assessment.

Benefits: Your child can obtain a loan with a low income.Drawbacks: If your child stops making repayments, you’re responsible for making them. If you can’t make the repayments, it will affect your credit rating.

4. Gift

When you give your child money but don’t expect it to be repaid, it’s considered a gift. You may need to sign a statement to say it’s a gift, not a loan.

Benefits: You can provide financial help, possibly without the legal, tax or financial implications of a formal arrangement.Drawbacks: If your child has a spouse and their relationship breaks down, the former partner could make a claim for the property.

5. Assistance in kind

If you’re risk averse, consider providing assistance in kind; that is, covering some of the expenses that come along with buying a property. You could pay for services such as a property survey or conveyancing fees, or help with stamp duty.

Benefits: You can give practical financial assistance.Drawbacks: The amount of money you provide may be more than what your child ends up spending. For example, you might want to contribute $20,000 but the services cost $15,000. In this case, the rest of the amount is subject to the terms of a gift or loan.

Make sure you’re well informed about your options when giving or lending money so you can remain in the best position to help your child become a home owner. You can contact a LadyBird credit advistor to discuss the right financial arrangement for your family.

When people buy property together, particularly if it’s with a partner or spouse, they often register the title in both people’s names – especially if they’re going to live in the property.

But other arrangements are possible, several friends might opt to own individual shares in a property, for example, or a couple might choose to have only one of their names on an investment property title. The following information provides you with a good starting point to help you on your way. Also tax legislation and other Australian laws governing property ownership and investment are complex, so seek proper legal and financial advice before entering into any arrangement.

Joint-ownership titles

The two main types of joint-ownership titles in Australia are joint tenancy and tenancy in common.

Joint tenants own the whole property together. If one of them dies, ownership passes to the surviving tenant or tenants, you can’t sell or transfer your ‘share’ in a joint tenancy. This is the most common arrangement when a couple owns a family home.

Tenants in common own individual shares in a property, and those shares do not have to be equal. Shares in a common tenancy can be transferred to someone else. When one tenant dies, their shares pass to their heirs if they have a will.

Legal liabilities

Tenancy in common is a useful arrangement when a group of people want to buy property together. Each tenant can own a share proportionate to how much money they’ve contributed, and can sell or otherwise dispose of their share as they wish (unless the tenants have entered into a prior agreement that prohibits this).

Tenants in common can take out individual loans to finance the purchase of their share of a property, with each tenant repaying their own loan. However, tenants in common are “jointly and severally” responsible for all the loans – if one tenant falls behind in their payments, the other tenants are responsible for those payments. You should also be aware that a lender could force the sale of the property to recover money owed by one tenant.

One person’s name on the title

When you’re buying an investment property with a spouse or partner, there could be tax and other advantages to putting the title in only one person’s name.

Capital gains tax is payable when you sell a property that is not your family home, such as an investment property. Tax on capital gains is calculated as part of your annual income in the year the gain is realised. If the property is in the name of the partner who has low or no income, less tax could be payable than if the income from the capital gain was shared with the partner with a higher income.

Future borrowing

If you already have an investment property, a lender will take into account both the income from the property and the loan you’ve taken out to buy it when assessing how much they can lend you.

If you own a share in a property as tenant in common, a lender will count the whole debt on the property as your liability – not just your share of it. This could in turn decrease the amount of money they’re willing to lend you. (There are however some lenders that offer a solution to this).

Renovating a property can be a sound path to success as long as you approach it with a level head, a keen eye for numbers and a sharp pencil. The strategy has also gained popularity for other reasons. If you desire an awesome pad in a great location but lack the ready dough to buy your dream palace upon the hill, a renovation project could help get your foot on the ladder. A well-positioned fixer-upper is a terrific opportunity to become one of the haves – when you’re forearmed ith the right information, that is. This month, Herron Todd White thought it high time they tackled renovation potential in suburbs across the nation on an office-by-office basis. The team are ready to take on the renovation challenge and let you know what types of homes make the grade for reno potential and where they are. Of course, sound advice should come with balance, so the guys and gals have also laid bare their opinion on what to avoid when considering how to transform your blood sweat and tears into sweet, sweet equity.

Head to page 40 to find out which Brisbane suburbs are pipped to earn you the best return on your renovations.

At its meeting today, the Board decided to leave the cash rate unchanged at 1.50 per cent.

The broad-based pick-up in the global economy is continuing. Labour markets have tightened further in many countries and forecasts for global growth have been revised up since last year. Above-trend growth is expected in a number of advanced economies, although uncertainties remain.

In China, growth is being supported by increased spending on infrastructure and property construction, with the high level of debt continuing to present a medium-term risk. Commodity prices are generally higher than they were a year ago, providing a boost to Australia's national income. The prices of iron ore and coal, however, have declined over recent months as expected, unwinding some of the earlier increases.

Headline inflation rates in most countries have moved higher over the past year, partly reflecting the higher commodity prices. Core inflation remains low, as do long-term bond yields. Further increases in US interest rates are expected over the year ahead and there is no longer an expectation of additional monetary easing in other major economies. Financial markets have been functioning effectively.

Domestically, the transition to lower levels of mining investment following the mining investment boom is almost complete. Business conditions have improved and capacity utilisation has increased. Business investment has picked up in those parts of the country not directly affected by the decline in mining investment. Year-ended GDP growth is expected to have slowed in the March quarter, reflecting the quarter-to-quarter variation in the growth figures. Looking forward, economic growth is still expected to increase gradually over the next couple of years to a little above 3 per cent.

Indicators of the labour market remain mixed. Employment growth has been stronger over recent months, although growth in total hours worked remains weak. The various forward-looking indicators point to continued growth in employment over the period ahead. Wage growth remains low and this is likely to continue for a while yet. Inflation is expected to increase gradually as the economy strengthens. Slow growth in real wages is restraining growth in household consumption.

The outlook continues to be supported by the low level of interest rates. The depreciation of the exchange rate since 2013 has also assisted the economy in its transition following the mining investment boom. An appreciating exchange rate would complicate this adjustment.

Conditions in the housing market vary considerably around the country. Prices have been rising briskly in some markets, although there are some signs that these conditions are starting to ease. In other markets, prices are declining. In the eastern capital cities, a considerable additional supply of apartments is scheduled to come on stream over the next couple of years. Rent increases are the slowest for two decades. Growth in housing debt has outpaced the slow growth in household incomes. The recent supervisory measures should help address the risks associated with high and rising levels of indebtedness. Lenders have also announced increases in mortgage rates, particularly those paid by investors and on interest-only loans.

Taking account of the available information, the Board judged that holding the stance of monetary policy unchanged at this meeting would be consistent with sustainable growth in the economy and achieving the inflation target over time.

Looking for ways to pay off your mortgage in record time? Whether you’re a seasoned investor or buying your first home, an offset loan can help you reduce interest payments, save on tax and pay your mortgage off years ahead of schedule.

What is an offset loan?

With an offset loan (also called an offset account, interest offset account, mortgage offset account or offset home loan) the borrower takes out a home loan and opens a linked savings or transaction account. The balance in the savings account is then ‘offset’ daily against the home loan.

How an offset loan works

With an offset loan, instead of receiving interest on your savings account each month, the account balance is offset against your home loan, reducing the amount of interest you pay over the life of the loan.

For example, if you have $20,000 in your offset account and $400,000 owing on your mortgage, the interest on your home loan is calculated on $380,000 instead of $400,000.

While your repayments remain the same, you’re paying less interest, which means you will be paying off more of the principal. If you can maintain a significant savings balance you can potentially pay off your mortgage years earlier than with another type of loan.

Getting maximum benefit from an offset loan

Because your mortgage interest is calculated daily, many borrowers have their salary paid into an offset account, immediately reducing the interest payable on the home loan. You can still access the money in your offset account online or with an ATM card, but because every dollar is saving you interest, it makes sense to keep the offset account balance as high as possible.

Another tactic is to use a credit card to cover monthly expenses so you can maintain the maximum amount in your offset account. At the end of the month, simply pay off your credit card with the money in your offset account. The danger is if you’re not a disciplined spender you may end up incurring interest charges and cancelling out the savings benefit.

What you need to know about offset loans

An offset account is identical to any other savings account with a bank card and online access, so you can withdraw your money at any timeIn most cases the offset is tax free (but do consult your tax accountant)Most offset accounts are offered with variable rate loans, however some lenders offer offset accounts on fixed rate loans, too.

The upshot?

Many borrowers could benefit from having an offset account, particularly if you plan on refinancing or moving home in the near future. It’s worth talking to LadyBird Home Loans to find out more about the best option for your circumstances.

As a home owner or property investor, you may have heard the term ‘overcapitalising’. But what exactly is it and why is it considered bad?

While adding a new deck or kitchen can increase the value and enjoyment of your property, overcapitalising can end up costing you more than you planned. Here’s a closer look at what overcapitalisation is, why it’s bad, and how you can avoid it and still increase the value of your property.

What is overcapitalising?

Simply put, overcapitalisation is when the cost of a home improvement is more than the value it adds to your property.

For example, if you buy a property for $500,000 and spend $100,000 on a new outdoor kitchen area with timber decking and fancy landscaping, it doesn’t automatically increase the property’s value to $600,000. If similar properties in your neighbourhood are selling for a maximum of $525,000, your eye-popping improvements are unlikely to increase the selling price beyond this – meaning you have overcapitalised.

Why should overcapitalisation be avoided?

Aussies love investing in their homes. However, keep in mind that while certain renovations can increase the value of your home, there is an upper limit on what properties are worth at any given time. If you find yourself in a situation where you have to sell an overcapitalised property on short notice, you could find yourself losing out on your investment.

Increase the value of your property without overcapitalising

While overcapitalising is never a good idea, there’s no question that the right renovations can significantly add value to a property. Some areas where home improvements can make a big difference include:

new curtains or blindsa fresh coat of paint inside and outupdating light fittings with modern fixturesrenovating an old kitchen or bathroomrefinishing floors and replacing carpetsadding a carport or garage.

When it comes to renovations, the key is to increase the kerb appeal without exceeding your budget. Consider your neighbourhood and the types of features that buyers or renters are likely to be looking for, and be willing to set your personal preferences aside. While you may enjoy having a beautifully landscaped yard or pool, the next person living in the house may not. In other words, it pays to be practical.

A good rule of thumb

In general terms, you’ll probably avoid overcapitalising if you keep the cost of your renovations to less than 10% of the value of your home. The less you need to invest in your home to give it that wow factor, the more you can expect to get back when it’s time to sell. And always keep a close eye on the sale price of similar properties in your area.

With many people continuing to depend on property investments to meet their financial goals, it’s important to make sure you have the right information and tools on your side. Talk to your LadyBird HomeLoans credit advisor about how to unlock the full potential of your home or investment property with a renovation.

We’re approaching mid-year, the weather is cooling and, as at time of writing, our federal budget is about to be released – weather, time and politics – all agents of change.

It’s with this backdrop that we discuss the factors that drive change in our markets across Australia.

If you have a market of interest and you want to stay ahead of the things that move property prices, then we have the answers for you. Our commercial team have also provided detailed, local assessments of entry level industrial investment around the nation. Industrial property is often the first purchase for anyone wanting to step into commercial investment, so our team’s thoughts will prove invaluable to new players. Head to page 37 to read about Brisbane's future property changes & what to expect.

At its meeting today, the Board decided to leave the cash rate unchanged at 1.50 per cent.

There has been a broad-based pick-up in the global economy since last year. Labour markets have tightened further in many countries and forecasts for global growth have been revised up. Above-trend growth is expected in a number of advanced economies, although uncertainties remain. In China, growth is being supported by increased spending on infrastructure and property construction, with the high level of debt continuing to present a medium-term risk. The improvement in the global economy has contributed to higher commodity prices, which are providing a significant boost to Australia’s national income. Australia’s terms of trade have increased, although some reversal of this is occurring.

Headline inflation rates have moved higher in most countries, partly reflecting the higher commodity prices. Core inflation remains low. Long-term bond yields are higher than last year, although in a historical context they remain low. Interest rates have increased in the United States and there is no longer an expectation of additional monetary easing in other major economies. Financial markets have been functioning effectively.

The Bank’s forecasts for the Australian economy are little changed. Growth is expected to increase gradually over the next couple of years to a little above 3 per cent. The economy is continuing its transition following the end of the mining investment boom, with the drag from the decline in mining investment coming to an end and exports of resources picking up. Growth in consumption is expected to remain moderate and broadly in line with incomes. Non-mining investment remains low as a share of GDP and a stronger pick-up would be welcome.

Indicators of the labour market remain mixed. The unemployment rate has moved a little higher over recent months, but employment growth has been a little stronger. The various forward-looking indicators still point to continued growth in employment over the period ahead. The unemployment rate is expected to decline gradually over time. Wage growth remains slow and this is likely to remain the case for a while yet.

The outlook continues to be supported by the low level of interest rates. Lenders have announced increases in mortgage rates, particularly those paid by investors and on interest-only loans. The depreciation of the exchange rate since 2013 has also assisted the economy in its transition following the mining investment boom. An appreciating exchange rate would complicate this adjustment.

Inflation picked up to above 2 per cent in the March quarter in line with the Bank’s expectations. In underlying terms, inflation is running at around 1¾ per cent, a little higher than last year. A gradual further increase in underlying inflation is expected as the economy strengthens.

Conditions in the housing market continue to vary considerably around the country. Prices have been rising briskly in some markets and declining in others. In the eastern capital cities, a considerable additional supply of apartments is scheduled to come on stream over the next couple of years. Rent increases are the slowest for two decades. Growth in housing debt has outpaced the slow growth in household incomes. The recently announced supervisory measures should help address the risks associated with high and rising levels of indebtedness.

Taking account of the available information, the Board judged that holding the stance of monetary policy unchanged at this meeting would be consistent with sustainable growth in the economy and achieving the inflation target over time.

Renovating while expecting: canny timing or a serious case of total insanity? Understand the pros and cons and then decide if is this the right move for you.

It’s all in the timing

Your timeline is crucial – both of them. What’s the deadline for delivery of your reno and what’s your other delivery date?

Before you choose your reno dates, take into account what you’ll need to work around. For instance, it’s easier to live without a kitchen in summer – think salads, barbecues and picnics – but you may need to be more flexible as tradies often take summer holidays.

Also consider the climate where you live. Renovating through the rainy months is hard enough, especially if you’re in the southern states or a tropical wet season, but being pregnant during winter in a house with no heating could push you to breaking point.

Don’t try to do everything at once. Think about which tasks can wait until you have the time and energy for them. For some mothers-to-be, especially those who have been working full time, the last few weeks of pregnancy (which might be the first few weeks of maternity leave) could present a good window of time to choose lighting, door handles, tiles and so on.

Now or never?

You might be keen to have everything perfect before the big day, but it’s important to take a wider view. Work doesn’t have to stop when the baby arrives. Living in the state of mild (or major) chaos that renovating imposes is probably still easier with a brand new bub than with a curious, mobile toddler.

Instead of rushing things, you could plan to get the job finished before the baby is six months old. Just think about the work in a logical order. For a big reno, it might be wise to tackle the kitchen first – it’s the biggest and messiest job, and probably easier to manage while you’re still pregnant, or when bub is sleeping lots (hopefully!) and not yet on solids.

Plan for downtime

Renovations can be hectic, even more so if they’re happening while your family is growing. It’s important to plan for some downtime, so you’re not on the go 24/7. Here are some tips that may assist:

o be organised – make a list of everything you want to source, supply or choose yourself (whether it’s for the house or the little one!), and create a realistic schedule for when you can do it;

o preserve one livable area in your home where you can retreat, relax and escape from dust, mess and builders; and

o have a bolthole for when it gets too messy, too loud or simply too much. Parents, friends, whoever – arrange a haven you can run to. It can be a sanity (and relationship) saver.

Of course, if you can hand your renovation over and rent elsewhere while the work is happening, that’s much easier. Just ensure you have a super-organised builder with their own tradespeople, so you’re not left juggling plumbers and sparkies from afar.

Keep safe

If you’re staying at home for the duration, or going the DIY route, take care that you don’t do anything to put your baby at risk. Here are some things to consider:

o be wary of prolonged exposure to paint fumes, and be sure to avoid lead-based paint;

o avoid thinners, varnishes, lacquer and any kind of spraying

o mould can be dangerous to foetal development – if you come across any, leave the area and call an expert.

How will you cope?

Some families live through a baby/reno combo without any issues, others would never recommend it. Ultimately, it comes down to how you’ll cope with the situation. How do you deal with stress? What’s your tolerance for chaos, mess and having strange loud people in your personal space?

While pregnancy and a new baby are certainly exciting, it’s rarely plain sailing, so some resilience will certainly come in handy.

For expecting parents with a renovation project, lots can come down to attitude and focus. If you can endure short-term discomfort by focusing on longer-term gain, you’ll come out the other side with a fantastic new pad and a gorgeous baby.

Then your new life can really begin.

It feels like things are moving fast this year. As you receive this, we’ll be waving away the first quarter of 2017 and thinking about the lead up into the end of the financial year. Last year is well behind us and property buyers are making their presence known in markets throughout the nation. Given 2017 is now well underway, Herron Todd White thought it prime time to take a look at which markets are really firing around Australia. Details about big performers in each location makes for compelling reading when you’re about to decide on your next investment. In the commercial realm, they’ve provided details on what you can expect from office markets throughout 2017. It’s a very useful guide for the rest of this year in the office space. Head to page 41 to read about Brisbane's best investment locations.

At its meeting today, the Board decided to leave the cash rate unchanged at 1.50 per cent.

Conditions in the global economy have improved over recent months. Both global trade and industrial production have picked up. Labour markets have tightened in many countries. Above-trend growth is expected in a number of advanced economies, although uncertainties remain. In China, growth is being supported by higher spending on infrastructure and property construction. This composition of growth and the rapid increase in borrowing mean that the medium-term risks to Chinese growth remain. The improvement in the global economy has contributed to higher commodity prices, which are providing a significant boost to Australia’s national income.

Headline inflation rates have moved higher in most countries, partly reflecting the higher commodity prices. Core inflation remains low. Long-term bond yields are higher than last year, although in a historical context they remain low. Interest rates have increased in the United States and there is no longer an expectation of additional monetary easing in other major economies. Financial markets have been functioning effectively.

The Australian economy is continuing its transition following the end of the mining investment boom. Recent data are consistent with ongoing moderate growth. Most measures of business confidence are at, or above, average and non-mining business investment has risen over the past year. At the same time, some indicators of conditions in the labour market have softened recently. In particular, the unemployment rate has moved a little higher and employment growth is modest. The various forward-looking indicators still point to continued growth in employment over the period ahead. Wage growth remains slow.

The outlook continues to be supported by the low level of interest rates. Lenders have recently announced increases in mortgage rates, particularly those paid by investors. Financial institutions remain in a good position to lend. The depreciation of the exchange rate since 2013 has also assisted the economy in its transition following the mining investment boom. An appreciating exchange rate would complicate this adjustment.

Inflation remains quite low. Headline inflation is expected to pick up over the course of 2017 to be above 2 per cent. The rise in underlying inflation is expected to be a bit more gradual with growth in labour costs remaining subdued.

Conditions in the housing market continue to vary considerably around the country. In some markets, conditions are strong and prices are rising briskly. In other markets, prices are declining. In the eastern capital cities, a considerable additional supply of apartments is scheduled to come on stream over the next couple of years. Growth in rents is the slowest for two decades.Growth in household borrowing, largely to purchase housing, continues to outpace growth in household income. By reinforcing strong lending standards, the recently announced supervisory measures should help address the risks associated with high and rising levels of indebtedness. Lenders need to ensure that the serviceability metrics that they use are appropriate for current conditions. A reduced reliance on interest-only housing loans in the Australian market would also be a positive development.Taking account of the available information, the Board judged that holding the stance of monetary policy unchanged at this meeting would be consistent with sustainable growth in the economy and achieving the inflation target over time.

Auctions are competitive and stressful for most bidders. Here are six smart strategies that could improve your chances of winning.

1. Don’t show your hand

Revealing your maximum bid limit to the agent before the auction could encourage them to push you a little further. For example, during the auction the agent might indicate you’re close to meeting the vendor’s expectations, to try to persuade you to bid above your limit. It’s in their interest because they’re usually earning a commission based on the sale price.

2. Ask if the reserve has been met

Bids must reach the vendor’s reserve price before the property is officially ‘on the market’ and then sold to the highest bidder. If the property doesn’t meet the reserve it will be ‘passed in’.

The reserve price is usually set on the day of the auction, or the day before. The auctioneer often doesn’t know the reserve until just before the auction begins, and they don’t have to reveal it to bidders – but you can still ask.

If you discover the reserve, you can wait to bid until it’s reached. This tactic might even persuade the vendor to lower the reserve during the auction if they’re not getting enough bids.

If you’re the highest bidder for a passed-in property, you may be invited to negotiate with the selling agent. Be wary of high-pressure sales tactics here, and remember that cooling-off periods don’t apply to contracts signed on auction day.

3. Ask questions (but know the rules)

You can talk to the auctioneer during the auction to find out information that may be helpful in winning. For example, Consumer Affairs Victoria says you can ask the auctioneer a ‘reasonable’ number of questions, and you can ask them to identify who has made a bid. You can also ask whether the property is ‘on the market’ yet (has it met the reserve price?). Be visible and within earshot of the auctioneer to avoid miscommunication.

Make sure you know the rules, as it’s illegal to disrupt an auction. The auction rules are generally made available at least 30 minutes before the auction, and the auctioneer should also announce the rules before bidding starts.

4. Bid like a pro

Bid with confidence and state the full price to let your rivals know you’re serious. A confident call of ‘$500,500’ (as opposed to a quiet ‘500’) will remind the room of how much is at stake.

You can also try ‘knockout’ bids and offer well above the last bid or the auctioneer’s suggested figure, to intimidate less-confident buyers. If bids are being made quickly you might want to try to slow things down by bidding in smaller increments than the auctioneer suggests.

Pre-auction tip: Ask the selling agent how many people have requested property reports. This will give you an idea of the number of serious bidders.

5. Employ a professional

You can enlist a buyer’s agent (also called a buyer’s advocate) to bid for you. They’ll have no emotional attachment to the property and should only bid what they believe it’s worth (within your limit). They should also have plenty of auction experience and know the tricks of the trade. The Real Estate Buyer’s Agents Association of Australia offers some tips for choosing a buyer’s agent.

You could also ask a friend or family member with auction experience to bid for you. But remember that you’re the one who has to pay, even if they win by exceeding your limit.

6. Be prepared to cut your losses

Accept property reports and legal fees as sunk costs that are part of the auction process. You’re better off spending a few hundred dollars checking a property than bidding hundreds of thousands without doing the pre-auction groundwork. On auction day, if you hit your limit, walk away to avoid temptation.

Auctions can be challenging, especially when there are emotions involved. Sensible, practical strategies can give you the best chance of being the last person standing – or at least stop you from overcommitting – on auction day.

Is a spare bedroom, second bathroom or ensuite a must? Will everyone be safe or comfortable climbing stairs? Does your dog need space to roam? Be realistic about the features you can’t live without.

Floor plan and room sizes Walk around the property to get a sense of how one room flows into the next. Check whether the rooms are the right size and shape for your existing furniture and appliances. If not, are you prepared to splash out on replacements? The rooms should also be practical. For example, does the kitchen layout suit your needs? Is there enough space for a dining table?Orientation and natural light Check where the property’s windows are, and whether trees or nearby buildings will block out sunlight. If the lights are on, switch them off to get a feel for the natural light. The inspection may have been timed to maximise natural light.

Neighbours Consider whether neighbours can see directly into the property. It's also worth checking whether they've lodged any development plans with the council. Walk around the block to see how well other properties in the area are maintained, and to listen for noisy pets.

Parking If there’s off-street parking, are there enough spaces? Check local parking restrictions, and how much a resident's or visitor’s parking permit costs. Consider how hard it would be to find on-street parking at peak times.

Heating, cooling and ventilation If the property has heating or air conditioning systems, check that they work, how old they are and if they’ve been recently serviced. Keep in mind that high ceilings can make it difficult (and expensive) to heat a room. Ventilation is especially important in kitchens and bathrooms, so test the extractor fans.

Water

Check whether the water pressure’s up to scratch, especially in the shower. Can you get the rightmix of warmth and pressure, or will it cost you to change this? Consider whether the hot waterheater is big enough for your family's needs. And don’t be afraid to flush the toilets.StorageDo the built-in wardrobes suit your needs? If there aren’t any, will the bedroom be large enough fora freestanding wardrobe? If there’s a garage, check that it's big enough for your car and any otheritems you’d like to store.

Fixtures and fittings

Are there enough power points? Are they in convenient locations? Check behind the furniture,because they may be hidden. If the house has blinds, curtains, flyscreens, light fittings or other fixed features, they should ideally be clean and in good working order.

Noise

Common walls, floors and ceilings can be a real issue, as can communal areas such as stairwells.Consider how well-insulated the property is, how well-fitted the doors and windows are, andwhether there's carpet or double glazing. Traffic, shared courtyards and nearby schools andsporting grounds are all potential sources of noise.

Garden upkeep

Outdoor maintenance can be hard work. Do you have the time or money to mow the lawn, weed the flower beds or clean the pool?

Security

Will you need to install or repair security doors? If the property has a shared entrance, check whether the main door locks and if the other owners and tenants generally keep it closed. A building inspection covers the property’s structure, but there many other things to consider.

Check for what’s important to you, so you can make the best home-buying decision. 1 / 2

Property, housing and construction continue to be centre-stage discussion among the public and politicians. Interest rates and changes to the tax system are always up for debate, but one element of Australian real estate that gets almost universal agreement is lack of affordability. With so much of the nation’s property trading in the big centres of Melbourne and Sydney, you’d be forgiven for thinking all Australian property is a single market priced beyond the means of every first timer, which plainly isn’t true. Given Herron Todd White’s unique and extraordinary coverage of Australia, we thought it time to discuss exactly what affordable property looks like in markets throughout the nation – and there are surprises among these pages. In addition, it’s time for our year-ahead assessment of the retail sector. Our experts are ready to provide details on exactly how they think their retail markets will progress throughout the rest of 2017.

Click hereto view the March 2017 edition. Skip to page 40 to read more about growth in the Queensland market.

At its meeting today, the Board decided to leave the cash rate unchanged at 1.50 per cent.

Conditions in the global economy have continued to improve over recent months. Business and consumer confidence have both picked up. Above-trend growth is expected in a number of advanced economies, although uncertainties remain. In China, growth is being supported by higher spending on infrastructure and property construction. This composition of growth and the rapid increase in borrowing mean that the medium-term risks to Chinese growth remain. The improvement in the global economy has contributed to higher commodity prices, which are providing a significant boost to Australia's national income.

Headline inflation rates have moved higher in most countries, partly reflecting the higher commodity prices. Long-term bond yields are higher than last year, although in a historical context they remain low. Interest rates are expected to increase further in the United States and there is no longer an expectation of additional monetary easing in other major economies. Financial markets have been functioning effectively and stock markets have mostly risen.

The Australian economy is continuing its transition following the end of the mining investment boom, expanding by around 2½ per cent in 2016. Exports have risen strongly and non-mining business investment has risen over the past year. Most measures of business and consumer confidence are at, or above, average. Consumption growth was stronger towards the end of the year, although growth in household income remains low.

The outlook continues to be supported by the low level of interest rates. Financial institutions remain in a good position to lend. The depreciation of the exchange rate since 2013 has also assisted the economy in its transition following the mining investment boom. An appreciating exchange rate would complicate this adjustment.

Labour market indicators continue to be mixed and there is considerable variation in employment outcomes across the country. The unemployment rate has been steady at around 5¾ per cent over the past year, with employment growth concentrated in part-time jobs. The forward-looking indicators point to continued expansion in employment over the period ahead.

Inflation remains quite low. With growth in labour costs remaining subdued, underlying inflation is likely to stay low for some time. Headline inflation is expected to pick up over the course of 2017 to be above 2 per cent, with the rise in underlying inflation expected to be a bit more gradual.

Conditions in the housing market vary considerably around the country. In some markets, conditions are strong and prices are rising briskly. In other markets, prices are declining. In the eastern capital cities, a considerable additional supply of apartments is scheduled to come on stream over the next couple of years. Growth in rents is the slowest for two decades. Borrowing for housing by investors has picked up over recent months. Supervisory measures have contributed to some strengthening of lending standards.

Taking account of the available information the Board judged that holding the stance of policy unchanged at this meeting would be consistent with sustainable growth in the economy and achieving the inflation target over time.

The real estate market can be tough for young adults, but as a parent you may be able to lend a helping hand. We tell you how.

1. Parent-to-child loan

A parent-to-child loan is when a parent lends their child money. This is a formal, legally binding arrangement, administered by an independent third party. At the start of the loan period, both parties agree to terms including repayment amounts, a schedule and a process to manage defaults.

Benefits: You can set generous terms for your child, but your assets, savings and credit rating are somewhat protected as you are not the borrower.Drawbacks: There are legal implications for your child if they have a spouse and the relationship breaks down, in that the spouse could try to claim some of the loan proceeds as an asset of the relationship to which they are entitled. There are also tax considerations for both parties.

2. Family guarantee

If your child doesn’t have enough security for a mortgage, you could provide a family guarantee. This is where you use some of the equity in your own home as part of the security. For example, your equity might cover 20% of the security, and your child’s new property would be the other 80%. It’s also known as a guarantor loan.

This can be a temporary arrangement until your child has paid down the loan to an acceptable level.

Benefits: You have the option of guaranteeing only a portion of the loan.Drawbacks: If your child defaults, your assets are at risk.

3. Becoming a co-applicant

You can help your child secure a loan if you sign on as a co-applicant. This means you’re equally as responsible as your child for meeting repayments. The lender will consider your assets in its borrower’s assessment.

Benefits: Your child can obtain a loan with a low income.Drawbacks: If your child stops making repayments, you’re responsible for making them. If you can’t make the repayments, it will affect your credit rating.

4. Gift

When you give your child money but don’t expect it to be repaid, it’s considered a gift. You may need to sign a statement to say it’s a gift, not a loan.

Benefits: You can provide financial help, possibly without the legal, tax or financial implications of a formal arrangement.Drawbacks: If your child has a spouse and their relationship breaks down, the former partner could make a claim for the property.

5. Assistance in kind

If you’re risk averse, consider providing assistance in kind; that is, covering some of the expenses that come along with buying a property. You could pay for services such as a property survey or conveyancing fees, or help with stamp duty.

Benefits: You can give practical financial assistance.Drawbacks: The amount of money you provide may be more than what your child ends up spending. For example, you might want to contribute $20,000 but the services cost $15,000. In this case, the rest of the amount is subject to the terms of a gift or loan.

Make sure you’re well informed about your options when giving or lending money so you can remain in the best position to help your child become a home owner. You can contact your mortgage broker to discuss the right financial arrangement for your family.

When your investment property lies vacant for even a short time, your earnings can take a big hit. So how do you get the best out of your property in a competitive market?

Here are some tips to make your property stand out from the pack.

What tenants want

Property managers and agents know that many tenants judge properties based on the property size, the state of the kitchen, air conditioning, and storage options.

It’s possible to add or fix some of these things by renovating, but beware of overcapitalising. Don’t spend more on improvements than you can realistically recoup by asking a higher rental price.

Maximise your floor plan

Obviously the number of bedrooms in a rental property is important. If your property has the potential, consider minor renovations to convert a large existing room into an additional bedroom – not only will you open up your property to a bigger market, you can expect a higher rental rate, too.

Even in small apartments, a second bathroom (or half-bathroom) is becoming an expected feature. But remember to do the maths on expected returns, as this can be an expensive renovation.

If you have outdoor space, make it as functional as possible. Simple improvements like adding paving or a covered area can conjure up an additional outdoor living space.

Add-ons to add value

If you can’t add rooms, there are other ways to boost your market appeal. Tenants always value storage space – if you can install built-in wardrobes, that’s an easy tick.

Another wishlist item is undercover parking, especially in parking-poor inner-city areas. If you have a driveway, you can easily create a budget-friendly shelter with a shade sail.

Energy-efficient dishwashers, air conditioners and heaters all tick tenant boxes. And if you can stretch to quality fittings and fixtures, you’ll broaden your appeal to a desirable, higher-income market.

A lick of paint works wonders

A paint job is magic for reviving and brightening tired interiors. Go with satin or semi-gloss to make scuffs and marks easier to deal with, and make sure you keep your colour scheme neutral – you want to appeal to the masses. You might think lime-green walls are the business, but a large percentage of the rental market won’t share your enthusiasm.

Sweat the little things

Work on what the Americans call ‘kerb appeal’ – the first impression potential tenants will get when they arrive for inspection. Clean the front entrance, mow the lawn, weed the garden and take out the rubbish. If there are broken windows, door handles or light fittings, fix or replace them.

And clean, clean, clean! It’s a real-estate truism that kitchens and bathrooms sell properties, so make sure yours are impeccable – scrub all surfaces and appliances, and don’t forget fans and light fittings.

Get your team in place

To ensure you’ll get your property in front of the greatest number of renters, find a good property manager. Don’t skimp on professional photography – all your competitors will have it and their poky little places will look like enormous palaces. Whatever the reality is, you want everyone in the market to inspect your property, to maximise your chances of attracting the best tenant.

Once you’ve got a good tenant, the best thing you can do to ensure steady returns on your investment is to keep them happy! Make sure your property manager knows your goal is to keep your best tenants for the long term

Last year was eventful, but our economy and property markets are yet to fully deal with the fallout. Some are predicting upward pressure on interest rates and the ability of owners (particularly those who are overextended) to deal with this. Affordability in our big capitals was also a robust discussion among commentators, as was the potential oversupply of investor stock. The impacts of last year will flow into 2017, but given the varied nature of property markets across Australia, it’s best to seek advice from local experts who know their areas inside and out. Fortunately, that’s exactly what we have here at Herron Todd White. Enjoy our annual Year Ahead issue and we look forward to providing you with the best advice for your property decisions in the coming year.

Click here to view the February 2017 edition. Skip to page 40 to read more about growth in the Queensland market.

At its meeting today, the Board decided to leave the cash rate unchanged at 1.50 per cent.

Conditions in the global economy have improved over recent months. Business and consumer confidence have both picked up. Above-trend growth is expected in a number of advanced economies, although uncertainties remain. In China, growth was stronger over the second half of 2016, supported by higher spending on infrastructure and property construction. This composition of growth and the rapid increase in borrowing mean that the medium-term risks to Chinese growth remain. The improvement in the global economy has contributed to higher commodity prices, which are providing a boost to Australia's national income.

Headline inflation rates have moved higher in most countries, partly reflecting the higher commodity prices. Long-term bond yields have also moved higher, although in a historical context they remain low. Interest rates have increased in the United States and there is no longer an expectation of further monetary easing in other major economies. Financial markets have been functioning effectively and stock markets have mostly risen.

In Australia, the economy is continuing its transition following the end of the mining investment boom. GDP was weaker than expected in the September quarter, largely reflecting temporary factors. A return to reasonable growth is expected in the December quarter.

The Bank's central scenario remains for economic growth to be around 3 per cent over the next couple of years. Growth will be boosted by further increases in resource exports and by the period of declining mining investment coming to an end. Consumption growth is expected to pick up from recent outcomes, but to remain moderate. Some further pick-up in non-mining business investment is also expected.

The outlook continues to be supported by the low level of interest rates. Financial institutions remain in a position to lend. The depreciation of the exchange rate since 2013 has also assisted the economy in its transition following the mining investment boom. An appreciating exchange rate would complicate this adjustment.

Labour market indicators continue to be mixed and there is considerable variation in employment outcomes across the country. The unemployment rate has moved a little higher recently, but growth in full-time employment turned positive late in 2016. The forward-looking indicators point to continued expansion in employment over the period ahead.

Inflation remains quite low. The December quarter outcome was as expected, with both headline and underlying inflation of around 1½ per cent. The Bank's inflation forecasts are largely unchanged. The continuing subdued growth in labour costs means that inflation is expected to remain low for some time. Headline inflation is expected to pick up over the course of 2017 to be above 2 per cent, with the rise in underlying inflation expected to be a bit more gradual.

Conditions in the housing market vary considerably around the country. In some markets, conditions have strengthened further and prices are rising briskly. In other markets, prices are declining. In the eastern capital cities, a considerable additional supply of apartments is scheduled to come on stream over the next couple of years. Growth in rents is the slowest for a couple of decades. Borrowing for housing has picked up a little, with stronger demand by investors. With leverage increasing, supervisory measures have strengthened lending standards and some lenders are taking a more cautious attitude to lending in certain segments.

Taking account of the available information, and having eased monetary policy in 2016, the Board judged that holding the stance of policy unchanged at this meeting would be consistent with sustainable growth in the economy and achieving the inflation target over time.