Newsletter Issue 28

A lot has happened since our last correspondence with Christmas now behind us and the challenges of the new-year fully upon us.

When I returned from the holiday break I, like everyone else, was heavily impacted by the devastation caused by the tsunami disaster. I had also just read an article written by an academic regarding the wealth enjoyed by most Australians in comparison to the vast majority of our world's neighbours, and the impact that has on various ways we live and make choices and decisions.

I am probably not unusual in that I often feel guilty when I consider what I have materially, in relation to others in the world. It is often difficult to make sense of this, but one thing that seemed to clear my vision was seeing the huge generosity of the Australian people to the tsunami victims, not only in cash donations but many people were willing to give sacrificially of their time and expertise.

This does not fully satisfy the dilemma, but it brings some clarity to it. There is an old saying that it doesn't matter how much you have, its what you do with it that counts.

Each individual is responsible for his or her own response to this, but I must say I was more touched by the small children that gave all their pocket money than the big Corporations that gave millions - but that is not to belittle the generosity of the large Corporations, simply to put it in perspective.

Our randomly selected winner for a weekend away at Hobart's Grand Chancellor is Lynn and Annette Richards. Mr. and Mrs. Richards called in Peter Towns to appraise their home in 2002 and were thrilled when Peter told them of their win. Congratulations Lynn and Annette.

Police in Los Angeles had good luck with a robbery suspect who just couldn't control himself during a lineup. When detectives asked each man in the lineup to repeat the words, "Give me all your money or I'll shoot," the man shouted, "That's not what I said!"

A man spoke frantically into the phone, "My wife is pregnant and her contractions are only two minutes apart!". "Is this her first child?" the doctor asked. "No" the man shouted, "This is her husband!"

Actually taken from classified ads in newspapers:

• FREE YORKSHIRE TERRIER - 8 years old. Hateful little dog. Bites
• FREE PUPPIES - 1/2 Cocker Spaniel, 1/2 sneaky neighbour's dog
• FREE PUPPIES - Part German Shepherd, part stupid dog
• GERMAN SHEPHERD - 85 lbs. Neutered. Speaks German. Free
• FOUND, DIRTY WHITE DOG - Looks like a rat been out awhile, better be reward.
• NICE PARACHUTE - Never opened, used once
• JOINING NUDIST COLONY! Must sell washer and dryer $300
• FOR SALE BY OWNER - Complete set of Encyclopedia Britannica. 45 volumes. Excellent condition. $1,000 or best offer. No longer needed. Got married last month. Wife knows everything.

The last step (and possibly the happiest) in the process of buying and selling a home is "settlement". But what actually happens on settlement day? Settlement is the day when the property title (ownership documents) is transferred from the seller to the buyer with any necessary financial adjustments being made.

It is the day the buyer must pay for the property, which typically includes the agreed purchase price, plus the balance of any rates and taxes owed on the property on settlement, less any deposit paid by the purchaser.

On the day of settlement the purchaser will have to make up any difference between the amount borrowed and the amount required to complete the sale, out of their own funds and they may also have to pay their bank or mortgage provider any up front fees at this time.

The date on which settlement will take place is usually determined by the solicitors acting for the seller and buyer (not always the date on the contract). The solicitors are also responsible for ensuring that keys are passed from the seller to the buyer once settlement has occurred.

Once settlement occurs, the buyer (or their lender) holds the property title and they are free to move in to or lease the property . . . . and to open the champagne to celebrate!

New house designs have changed dramatically over the past 50 years. Many years ago home owners wanted separate formal living and dining areas and internal laundries. Today home owners (and buyers) are looking for more open, informal spaces and more luxury finishes.

If you look at the latest trend in house design there are several features that stand out as becoming essential in our homes today. The changes reflect our desire to see our homes as a true haven from the world and to spend more quality time at home with family and friends in an easy to maintain, informal setting.

The first room to be affected by these changing desires is the kitchen. New house designs are seeing kitchens which are not only places to cook, but a place to gather family and friends and to entertain. As a result kitchens are becoming larger, often to accommodate a dining table, or at a minimum are open to an adjacent eating area.

Finishes too are changing with more money being spent on good quality finishes including solid bench tops, side by side refrigerators and cabinets in luxurious timbers such as maple, cherry and birch.

Even in older homes undergoing renovation, people are choosing quality items to ensure the "wow factor" in their kitchens.

The second major house design change is in the living area. Like the kitchen, we see the living area as a place to gather, relax and interact with family and friends. As a result formal living rooms have become virtually non existent and in their place are casual, open plan living areas with high ceilings and plenty of natural light.

The third main change in new house design is the inclusion of a dedicated office space within the home. With more and more people now able to work at home part of the time the home office has become increasingly important. Home owners and buyers are looking for a dedicated home office space which is quiet and private but still within relative proximity to the kitchen and living area of the home. The most important features of the home office are ample built in bookshelves and a good natural light source.

In recent years, with continuing water shortages in many parts of the country and an increasing understanding of environmental issues, many new homes are now incorporating environmentally sustainable design elements such as rainwater tanks, insulation and solar power.

It will be interesting to see how house designs change in future years.

As I close this newsletter it is mid January and you will probably receive it in February. The new-year real estate market has started with a vengeance with strong enquiry and already good sales figures.

Buyers haven't forgotten however, the slowdown in the latter part of 2004 and are being cautious when making offers. Investors are operating on the notion that prices have dropped, but are being surprised when they have missed out on properties because their offers have been too low. It's a wait and see approach at the moment because the January - March market is always seasonally brisk no matter what the overall state of the market. This is due to transfers and a slight pent up demand from the Christmas break and other factors.

I have previously predicted a strong 2005 market and I still hold to that view. We will almost definitely see a moderate rise in interest rates which I do not believe will affect the market in Tasmania. It remains to be seen though, whether prices will continue to stabilise or rise moderately. My own view is that after the seasonal rush prices will continue to level and we will continue to experience the more balanced market of the latter part of 2004. Time will tell.

As always if you have any comments or questions do not hesitate to contact me.

Noel R. Towns
Managing Director