Thursday, October 19, 2017

The Male Midlife Crisis

OK, we all know that middle age can be stressful and that left untreated, it can kill you.

But what sorts of things are we stressing about?  dream-clock-time-business-man-life-motivation-happy-dream

And more importantly, what can we do about them?

If we don’t approach this phase of our lives the right way, we can easily descend into a downward spiral and become jaded and sceptical about life.

And that would be a huge mistake, because paradoxically, this period can herald significant life-altering changes for the better.

You see, beneath the struggle and complexity of midlife, there is a deep reservoir of experience, perspective, and knowledge – all of which we can leverage toward a dramatic reinvention.

I’d love to guide you along the trail, out of the forest and up the mountain towards your second act – your personal reinvention.

But to do that, we must first examine the terrain and identify some of the problems you might face.

It’s better to discuss them than allow them to throw you off course an into a gully somewhere.

What is it?

Often the target of jokes and clich├ęs, the male midlife crisis can be a distressing and prolonged experience.   


You realise you’ve reached the half way point and it dawns on you – perhaps quite dramatically – that time is running out.

Dreams remain unfulfilled, life isn’t what you’d hoped and pressures have never been higher.

You become super conscious of your mortality.

This can lead to stress, anxiety and often, serious depression.

The popular stereotype sees us frantically trying to regain some elements of our lost youth in ways that that are often embarrassing and foolish.

It typically begins in the early 40s and can last a few years or much more in some cases.

And although the transition doesn’t have to entail misfortune, for some men it develops into a fully-fledged crisis.Confused Man

It’s often prompted by a specific event, or the sudden sense of loss from a noticeable decline in youthfulness or the loss of past roles and responsibilities.

Grief can trigger it, through the loss of a loved one due to death or divorce.

Other common triggers include physical signs of ageing, loss of libido, unemployment, empty nest syndrome, or the burden of looking after both children and parents.

It’s more appropriate to link the midlife crisis to a psychological event, not simply a chronological one. So here are some relevant points taken from well-known studies:


According to D. Levinson (Season’s of a Man’s Life, 1978), the development of natural midlife in men brings out awareness of past unexpressed needs as well as elements of the self which that might manifest as a sense of something absent or wrong.


Problems frequently exhibited include irritability, impotence, fatigue, loss of sex drive, muscle and joint stiffness, weight gain, dry skin, night sweats, hair loss and a weak immune system. According to two surveys conducted on middle-aged Australian men, erectile dysfunction is a common condition. Confused

Another study in The Lancet, a British medical journal concluded that erectile dysfunction is a common problem that affects at least one in five men above 40 years, rising to about two in every three men over 70.

“Around 30% of the British male respondents revealed a noticeable change in behaviour when coming to terms with ageing, resulting in impulse purchases on motorbikes and sports cars, divorces and embracing atypical hobbies such as bungee jumping and skydiving. Some sought new wives or commissioned plastic surgery in an effort to recapture their youthfulness.” (Sheehy, 1998)

In this air of uncertainty, many of us are concerned about our fading athletic prowess (if we ever had any), physical strength and losing our jobs.

Other than that, we envy our empowered working wives and wish to connect better with our children.

Our preretirement anxieties and the whole subject of potency reappear time and again.

“Linear reasoning is prone to direct men to think they will be happy once they have achieved certain milestones.

However, when titles and material accomplishments fail to give joy and meaning at the midpoint of their lives, men become angry, confused, frustrated, and ashamed.

This trickles down to their performance at work with most engaging in self-destructive behaviours.” (Levinson, 1978)

We feel trapped in a lifestyle that we deem as limiting, which is stimulated by a heightened awareness of time running out.

We find ourselves in a life we consider inauthentic and empty.

“Most males feel pressure to get away and they may frantically grasp at any opportunity for pleasure and vitality. Sometimes their performance or sexual habits change and they become embarrassed to the extent of pulling away from any form of intimacy.” (The Joy, 2010)


The midlife transition can lead to growth or devastation. Ostrich Denial Change Motivation Head In The Sand Business Man Hide Fear Challenge 300x292

A crisis, or an unconscious development that compels change is created when a perceived dead-end is met head on.

Many of us will reassess our accomplishments relative to earlier dreams.

As a result, we’ll often make considerable changes in our career, finances, romantic relationships, work/life balance or physical appearance.

This anxiety over our achievements to date usually causes a period of depression that can be somewhat debilitating.

A survey conducted on 1,500 British men on behalf of, found that about 10% of the respondents suffered major bouts of depression as they accepted their mortality. (Emslie, 2009)


It’s always important to explore all avenues and ask for help when the need arises instead of suffering in silence. Life is precious, uncertain and problems can begin at any age.

It is also paramount to establish a balance between work and life. 36308275_l

“You shouldn’t succumb to the demands of the ‘always-on’ workplace by compromising your relationships or your personal life because you worry you might lose your job.

For a lot of men, it’s imperative to reduce working hours and spend ample time with family and friends.” (Gerzon, 1996)

I think this statement should go further; that time devoted to something you truly love, something you’re passionate about, is critical.

If your work genuinely satisfies that need, then great. But if it doesn’t, some of your ‘down time’ should be devoted to pursuing something that expresses who you are – something you can grow through and build incrementally over a long period of time.

“Create a distinction between self-identity and both family and societal expectations. For a healthy separation and development of an independent sense of self, adaptive risk-taking, and constrained rebellion should be facilitated.” (Levinson, 1978)

Instead of outward rebellion, life mastery and self-exploration are what’s required.

Self-perceptions internalised over the years need to be reviewed and constraints tested.

Prognosis (the good news!)

Millions of men who have been through this phase can testify that on the other end of the transition, there is a new perspective and intense satisfaction. PFImage

Acording to new research findings, happiness is U-shaped and the worst years in males tend be the early 40s.

There is a decrease in happiness towards the early 40s, following by an increase to a peak between ages 55 and 70.

At middle age, the burdens of life tend to be heaviest and are most often linked to work.

“Work/life balance is difficult to achieve because we tend to be working harder than ever. Time is also limited and financial resources stretched.” (Emslie, 2009)

At this point in their lives, you have the best ability to become the masters of your fate.

“Men need only open their mind to knowledge that will help them improve in their roles as fathers, husbands, and to be true to themselves with their own values and expression, be they influential, creative, spiritual or collaborative.” (Emslie, 2009)

The Glorious Upside

First of all, most of the things we worry about have solutions. Some are uncomfortable. Most are simpler than we think.

Indeed, many things that keep us awake at night can be solved by learning and then believing that we needn’t stay on this path.

We can reinvent our lives. interesting articles

You really can blaze your own trail.

And critically, despite the fact we cannot create a fully formed trail overnight, simply starting on the journey lifts the veil of darkness, removes the weight on our shoulders and reveals a light just ahead that will guide us down this new path.

Knowing you can change your life is everything.

So where do you begin?

Like all great journeys, we begin with the destination – the outcome.

How do you want your life to work?

Given the choice, the means and the power, what would your Tuesdays look like?

What will your time on this planet mean to you when it comes to a close?

You realise that time will come, right?

What burdens, distractions, time-wasting activities and mindless rubbish are you prepared to lose in support of your new life? chess-game-leader-investment-strategy-win-success-negotiate-300x235

Who will you serve?

What knowledge, gifts and passions will you share?

These questions are existential, yes.

They need to be answered, too.

Think about them in an honest and practical way.

All of them have tangible answers that are uniquely yours and will reveal themselves if you invest the time to give them considered thought.

For me, they became crystallised when I finally sat down and gave them an honest appraisal.

Here are some of the ideas I developed for myself.

  • Success for me is living authentically, doing work that matters to me, serving my family and having the time, the resources and the freedom to live fully and experience the magic of my brief time on earth.
  • When I do what I care about, that equals freedom. 31217695_l
  • Success is much more a state of being than an accomplishment.
  • Be present wherever I am.
  • Work hard but not too much.
  • Do just one thing at a time.
  • Live more with less and abandon the relentless pursuit of more.
  • Always think in terms of outcomes.
  • Allow myself to be happy.
  • Connect with family as often as possible.
  • Treat my body with respect.
  • Make a difference in people’s lives.

Your life is created by your thoughts because they form your beliefs and decision matrix, which informs your actions and your habits.

Most of the time we’re too busy to think clearly about these things, but now more than ever, you really should.

Reinventing your life involves deep questions, and they deserve serious contemplation and ultimately, your own set of unique answers.

from Property UpdateProperty Update

Vacancy Rates Steady in September for Most Cities

Data released by SQM Research this week has revealed the national residential vacancy rate was 2.2% in September 2017, with the number of vacancies Australia-wide at 72,955 – a slight rise on the month of August. 28803914_l

Hobart’s vacancy rate remained at the lowest level ever recorded by SQM at 0.4%.

In the bigger cities, vacancies rose in Sydney to 13,114 in September, up from 12,760 in August, giving a vacancy rate of 2.1%.

That compares to 2.0% the previous month.

In Melbourne, the vacancy rate rose to 1.9% with 9,713 rental properties available, increasing from 1.7% in August, helping to alleviate an ongoing shortage of rental properties in that city.

Key Points

  • Nationally, vacancies rose in September to 72,955, recording a vacancy rate of 2.2%, steady from 2.2% in August.
  • Perth recorded the highest vacancy rate of the capital cities at 4.5% in September, but down from 5.0% a year ago.
  • Hobart recorded the lowest vacancy rate of 0.4%, a record low and down from 0.6% a year earlier.
  • Adelaide’s vacancy rate was 1.6%, steady over the month but down from 2.0% a year earlier.
City September 2016 Vacancies Vacancy Rate August 2017 Vacancies Vacancy Rate September 2017 Vacancies Vacancy Rate
Adelaide  3,377 2.0%  2,738 1.6%  2,787 1.6%
Perth  10,463 5.0%  9,832 4.6%  9,735 4.5%
Melbourne  9,804 2.0%  8,767 1.7%  9,713 1.9%
Brisbane  9,921 2.9%  10,893 3.1%  11,185 3.2%
Canberra  610 1.1%  608 1.0%  591 1.0%
Sydney  10,906 1.8%  12,760 2.0%  13,114 2.1%
Darwin  902 3.1%  768 2.5%  822 2.7%
Hobart  162 0.6%  100 0.4%  102 0.4%
National  75,412 2.4%  71,540 2.2%  72,955 2.2%

Hobart’s vacancy rate sat at 0.4%, steady from last month and the lowest on record since SQM started recording data in 2005.

In Canberra, the vacancy rate was steady at 1.0%. 


Elsewhere, the vacancy rose in Perth fell to 4.5% from 4.6% in August, the highest of any capital city, while Adelaide’s vacancy rate was steady at 1.6%, but down from 2% a year earlier.

Darwin’s vacancy rate rose to 2.7% from 2.5% from a month earlier.

Vacancy rates in Darwin are down from 3.1% a year earlier.

The vacancy numbers would give some slight relief to home seekers in Sydney and Melbourne, though those in Hobart and Canberra faced ongoing tight rental conditions and higher rents.

In Hobart, the rental situation remains very difficult, with just 102 properties available for rent in September, giving rise to the record low vacancy rate of just 0.4%.

Elsewhere the rental markets remained largely unchanged from the previous month.

Going forward we expect some seasonal rises, particularly once the university year wraps up.

Asking Rents

Capital city asking rents over the month to 12 October rose 0.2% to $550 a week for houses, to be up 1.9% over the year.

Unit asking rents were steady at $438 a week, though up 1.9% over the year. map australia

Asking house rents in Hobart and Canberra jumped from a year earlier, to be up 7.5% and 8.7%, respectively.

Monthly rises for Canberra were strong at 2.4%.

Asking rents for units jumped 3.3% from a year earlier in Canberra and were up 8.1% in Hobart, adding to rent unaffordability in that city.

In contrast, asking rents for houses moderated slightly in Sydney to be up 1.8% over the year and were up by 0.7% over the month.

The asking rent for a three-bedroom house in Sydney is now the highest in the nation at $738 while for units it stands at $521.

Asking rents for units were up 2.0% over the year.


Annually, asking rents for houses moderated also in Melbourne, up 0.2% over the month and 4.9% over the year to October 12.

Unit asking rents rose 4.3% over the year but fell 1.1% over the month.

The asking rent for a three-bedroom house in Melbourne now sits at $509 and for units it sits at $395. In Perth and Darwin, asking rents are still falling due to the mining downturn.

from Property UpdateProperty Update

Wednesday, October 18, 2017

How to get a business loan

Today’s work environment is much different than in years gone by – and it’s mainly due to technology.

Not only are there new occupations being created almost daily, our global society means that it’s easier to connect with millions of potential customers than ever before. Istock 460149887 300x279

This new world we live in has resulted in more Australians deciding to start their own businesses.

Now, regardless of the sector you want to work in, there is one thing that everyone generally needs to set up their own business – money!

Whether you’re working from home or setting up a small retail shop in a high street somewhere, you’ll need some capital behind you to get started.

And sometimes you just don’t have the necessary savings to make your business dream become a reality.

Thankfully, banks understand that many small business owners need a financial helping hand when they start out and have developed loan products to suit.

This article will outline how to get a business loan as well as loan requirements and features that you’ll need to consider.

What is a business loan? 


A business loan can provide you with the funds to set up your business, but of course, it will have to be repaid with interest.

A business loan can be used to pay for expenses such as:

  • Business equipment or software
  • The supply of Stock
  • Staff wages or advertising expenses in the early stages of your small business
  • The purchase or leasing of premises for your business.

Like other types of loans, a business loan can generally be secured by the property that you’re buying, or by your principal place of residence.

Business loan requirements

Before you apply for a business loan you will need to establish a number of factors, including the loan amount, as well as other features such as a business plan and a cash flow forecast for the business.

Of course, already having a line of credit to assist with set up will help. 2017 08 08 09.10.28

However, business loan requirements are a little different to other more standard loan products, and that’s because a bank is often lending you funds to finance your business idea.

That means that you’ll need to have a solid business plan behind you before you approach a lender.

Banks will assess your application based on the usual attributes such as your credit and savings history, as well as any assets you already own.

But lenders will also determine whether your business venture will be profitable enough to repay the money that you’re borrowing.

And this is where a good cash flow forecast with assumptions that are realistic and measured will further assist you.

Going cap in hand to the bank with a vague idea about setting up an ice cream van somewhere in Australia won’t get you very far in the any lending environment.

Rather, if you have a detailed business plan, including start-up, equipment, staffing and product costs as well as realistic projections of revenue, then a bank is more likely to look on your application favourably and you’ll be scooping ice cream before you can say cookies and cream! protect-umbrella-portfolio-saving-money-coin-insurance-rainy-day

During the assessment of your application, another business loan requirement will be an understanding of your risk profile.

As a general rule, lenders look for:

  • The level and nature of your security (what you’re offering to give them if you can’t repay the loan)
  • Your ability to make regular loan repayments (cash flow risk)
  • Your ability to repay the debt (business risk), including any other debts you might already have such as personal or home loans
  • The applicant’s character and ability to meet or exceed the targets that the plans and forecasts
  • The owner’s creditworthiness

Getting a business loan

Once you’ve developed a comprehensive business plan, what are the mechanics of getting a business loan?

While banks are in the business of lending money to business, they are also relatively risk-averse institutions. Financial Debt 300x200

This is especially true if the applicant has:

  • Little business history
  • A lack of security to secure the business loan
  • Poor credit history
  • The proposed business is highly seasonal which can significantly impact cash flow and the ability to regularly make loan repayments
  • Inadequate planning, market research or financial acumen.

That’s why it’s so important to access expert advice before you apply for a business loan.

You really want to have your best foot forward before approaching a lender for a business loan.

Other elements to consider in the process of getting a business loan include:

  • Establishing the best loan term for your business – such as five or 10 years. Clearly, the longer loan period, the more interest you will have to repay but this will reduce your cash flow whilst you are setting up. Often, loan terms will be tied to businesses lease terms of the premises they are setting up in. tick
  • Handling cash flow considerations – such as how you will keep the business liquid during periods of lower turnover due to seasonal or other factors. A way to maintain cash flow is through using a facility such as a line of credit, which you can repay once cash flow improves.
  • Thinking about whether you want your business loan to attract a variable or fixed interest rate.
  • Considering what sort of security you will put forward to secure the business loan. This can include assets such as residential or commercial real estate or other business resources. Unsecured business loans may be possible, however, they will generally attract higher interest rates due to the increased risk perceived by the bank.
  • Finally, you will need to understand all of the fees associated with your preferred business loan. These can include one-off fees such as establishment/application fees, exit/discharge fees and early termination fees, or regular fees such as service fees or line/credit advance fees.

from Property UpdateProperty Update

Property development guide part 11 – Tackling the red tape

In the following article, Bryce Yardney, Property Development Specialist at Metropole, explains how you might tackle the hurdles and requirements to get your development underway. architect plan engineer build construction

One of the biggest hurdles faced by any property developer – whether a seasoned veteran or a green beginner – is the bureaucratic maze known as the planning permit or development approval process.

Oftentimes, those dipping their toes in the unknown waters of property development become disheartened at this stage of their preparation as their application to the local authority sits gathering dust, unheeded in some town planner’s in-tray for what can seem like a lifetime.

Furthermore, the fact that town planning legislation is constantly changing and can be difficult to navigate sees many budding developers simply throw in the towel and admit defeat as they become entangled in reams of red tape.

In this instalment of our series on property development, I will walk you through the planning permit process, shedding much needed light on where you should seek professional help and how you can best deal with councils and town planners in order to get your project from a concept on paper to a property you can profit from.

Building regulations and planning approval – what’s the difference?

Planning and building permits are often confused, but in fact they are relatively simple to distinguish.

Planning or development approval is concerned with appearance and impact on the environment, street and neighbourhood and to get the green light, you will need your architect or designer to produce plans of your proposal to submit to the local council in order for them to decide whether they are acceptable.

Whereas building permits or approvals are to do with the standard of construction and it is at this stage that the Council needs to ensure your development meets all of the local building code regulations. 


Therefore, once planning permission is approved a more detailed set of plans are drawn up and engineering calculations are carried out in order to complete a set of “working drawings.”

These drawings, technical specifications and calculations for the structure of your proposed development are then sent to either the local council or a private building surveyor (or private certifier) to ensure they comply with the Australian Building Standards.

In Victoria you obtain a building permit while in NSW you apply for a construction certificate.

Construction of a new dwelling cannot legally be carried out until a building permit has been issued by a building surveyor, who will make certain that the buildings comply with the building regulations.

The building surveyor has to confirm that a planning permit has been issued for the proposed development if necessary and that the proposed building permit is consistent with the planning permit.

He must ensure that the builder contracted to complete your development is registered and carries appropriate insurance and that adequate documentation has been prepared to correctly construct the building to comply with the relevant building codes.

The permit also requires that the key stages of work are independently inspected by the building surveyor and the project is constructed and completed correctly.

This process can be long and requires a lot of patience as the building surveyor often sends back a checklist of questions or requests for further information and sometimes the drawings have to be amended and resubmitted.

Once you have obtained a building permit you can commence construction straight away or begin anytime within two years, as the permit remains valid for this period of time.

In most cases you will require a further permit for the subdivision, which subdivides one lot of land into smaller parcels for each dwelling. This plan of subdivision also calls for a planning permit from the local council that will eventually be lodged in the titles office to obtain separate titles.

The Development Application (DA)/Planning Permit (PP) process

Obtaining council approval

The state government establishes planning policies for housing which are in turn implemented by local councils.

These policies have a number of goals, including:

  • Satisfying economic targets
  • Satisfying environmental objectives
  • Satisfying social needs

Generally these policies aim to: 9943550 - business man hand made policy word buttons on green grass meadow

  • Provide space for new housing and support the planned growth of the population.
  • Increase housing density, especially around existing infrastructure such as transport nodes, railway stations and shopping facilities.
  • Reuse land where possible.
  • Protect the amenity of the area and neighbours including heritage overlays.

This means that construction of new dwellings, demolition of old dwellings, subdivisions and change of use of dwellings all must have local council approval, which typically involves preparing and lodging a number of documents for their consideration.

In Victoria this process is known as a planning application, while in many other states the documents are called a development application; from which you will hopefully receive a town planning permit in Victoria or development consent in other states.

Each state and territory has its own planning laws and each council follows its own procedures for assessing applications and granting development approvals, so it would be a mistake to assume the rules and terminologies will be the same from council to council.

That’s why it’s important to visit the local council town planning officer of the municipality in which you want to do your development early on in the piece to find out their specific requirements and avoid hassles down the track.

The planning process

The planning process goes something like this; once your architect has finished the town planning drawings you will need to lodge these with the local council, together with a development application and all relevant supplementary plans construction

In due course you will receive written notification from council acknowledging that your application has been lodged and at this time you will be advised which planning officer has been assigned to assess your application.

Eventually – and this is the part that can seem like an eternity – the council planning officer will review your application and make a preliminary assessment.

At this point they will study the plans for your development against their Town Planning Regulations, checking to make sure that your proposal fits the usage they have planned for the area and that it will fit into the overall strategic design they have for meeting the needs of the local community.

Don’t be surprised to find that you are asked to supply more details at this stage, as they almost always require further information and may suggest it is necessary to make design modifications to your proposal.

All of these requests will be formally sent to you in writing.

While you are required to provide any further information to council as directed, you have the freedom to choose whether you adopt or ignore their suggested modifications to your project design.

Of course playing hard ball and refusing to budge at all could create some hassles for you down the track, but if it means compromising the marketability of your end product you need to carefully weigh up the pros and cons of taking council’s ideas on board. 25924140_l

Once the council has received all of the information they require, the application is advertised; generally a notice is displayed on the site and written notices are sent to adjoining property owners and any other parties that may be affected by your proposal.

This notice usually gives those notified 14 days to view the plans at the council and lodge any objections.

Council is required to consider any objections that are based on legitimate planning issues, however in my experience most objections from neighbours are based more on emotional grounds or private issues.

While the council states that the people notified have 14 days to lodge an objection, in reality council can accept objections up until the date they make a final decision.

Once the notification sign has been erected on your property for the required period it is removed and the applicant must sign a statutory declaration to verify the sign was erected on the site for a period of 14 days.

To assist the council town planning officer to make a decision on your application, it is also referred to various authorities and internal departments of the council. Where relevant to your application these could include;

  • Council engineering department who would consider any drainage issues planning town map council development build construction
  • Council traffic department
  • Council arborist to assess the development’s affect on any local vegetation
  • Water and sewerage authorities
  • Road authorities like Vic Roads

Once the council receives responses from these authorities and the advertising period is over, the town planners are able to make a decision on your planning application.

Where objections have been lodged, some councils will conduct a preliminary conference with the applicant and the objectors to attempt to resolve any issues.

The council town planning officer will then assess the proposal and prepare a report making a recommendation to council in respect of the application.

The council officer’s report is made either to a council delegate, usually being the team leader of development approvals, or sometimes directly to a council meeting.

At this point, the council delegate or the council will make one of the following decisions;


If the application is approved, either a notice of decision to grant a planning permit will be issued where an application has received objections; or a straightforward planning permit (tickdevelopment approval) will be issued where there were no objections.

Sometimes these permits may contain conditions to be met by the developer.

Where a notice of decision is issued, objectors have 21 days in which to lodge an appeal against the decision.

In Victoria this is done at VCAT and in New South Wales it’s NCAT. If the objectors do not lodge an appeal within this time then a planning permit is issued.


Where an application is refused the applicant has 60 days to lodge an appeal to VCAT (in Victoria), or the relevant state regulatory body against the council’s decision.

In Part 12 of our ongoing series on property development, I will be looking at how a town planning consultant can help you navigate the DA process and the most effective way to deal with Councils.

If you want to learn more about the property development process you may be interested in How To Get Started in Property Development

You may also be interested in reading our Team Series or check out our graphic guide to the Property Development Process.

from Property UpdateProperty Update

Pipeline of Housing Stock Has Peaked but Pending Supply Remains Well Above Long Term Average Levels

Building activity data for the June 2017 quarter was published by the Australian Bureau of Statistics earlier this week.

The data contains additional insight to the housing construction sector, tracking quarterly dwelling commencements, completions and counts of dwellings under construction.

The data is showing a softening in commencements as approvals have slowed but still heightened levels of completions and dwellings under construction.

Dwelling commencements

Over the June 2017 quarter, seasonally adjusted data showed that 28,087 new houses and 24,380 new units commenced construction nationally.   map australia

The number of houses commenced was 3.3% higher over the quarter but -7.1% lower than a year earlier while unit commencements were down -0.8% over the quarter and -6.6% lower over the year.

Year-on-year new house commencements were lower in each state and territory, recorded at: -3.5% in NSW, -7.2% in Vic, -3.1% in Qld, -10.6% in SA, -12.2% in WA, -7.0% in Tas, -29.1% in NT and -37.9% in ACT.

Year-on-year new unit commencements were higher in NSW (3.3%), Vic (3.2%), SA (35.0%) and Tas (153.1%) and they were lower in Qld (-30.4%), WA (-40.5%), NT (-40.9%) and ACT (-17.7%).

Commencements for houses picked up over the quarter but are lower across all regions over the year.

Meanwhile unit commencements are trending lower in most states and territories with notable exception of NSW, Vic and Tas.  

NSW and Vic have been home to the two strongest housing markets over recent years (Sydney and Melbourne) and are seeing the largest increases in population fuelling housing demand.

Meanwhile, dwelling values in Tasmania’s largest city (Hobart) are rising at the fastest rate of any capital city while stock levels are very low so it seems a supply response is occurring.

Dwelling completions

Seasonally adjusted data nationally shows that over the June quarter there were 28,251 houses and 25,090 units completed nationally.   


Interestingly these figures are fairly closely aligned to commencements so what was completed was effectively replaced as having started construction.

Over the quarter, new house completions were down -1.2% and new unit completions were -10.2% lower.

Year-on-year new house completions were -9.0% lower and new unit completions were down -5.2%.

State and territory data which isn’t seasonally adjusted shows that year-on-year, new house completions rose in NSW (8.6%), Qld (18.3%) and ACT (73.3%) while completions were lower in Vic (-12.8%), SA (-3.7%), WA (-45.3%), Tas (-29.8%) and NT (-44.2%).

New unit completions increased over the year in Vic (11.1%), Qld (13.7%) and ACT (29.6%) and were lower in NSW (-20.4%), SA (-41.6%), WA (-22.3%), Tas (-40.0%) and NT (-69.9%)

Completions remain at high levels however, they have eased back a little.

Given that there remains a high volume of stock under construction (as we will analyse shortly) it’s anticipated that completions are likely to remain elevated for some time.

Dwellings under construction

At the end of the June 2017 quarter, there were 216,242 dwellings under construction nationally.   Istock 544325854

Although the number of dwellings under construction is down from its historic high of 224,314 in September 2016, it is still at an extremely elevated level.

As a comparison, the long-term average number of dwellings under construction at the end of a quarter is 106,774 and even over the past 10 years the average has been recorded at 153,545.

In June 2017, there were 62,409 new houses and 151,510 new units under construction nationally.

Again, both are well above the long-run averages of 48,329 and 38,964 respectively.

Looking at the data across the states, at the end of the quarter the number of new houses under construction was recorded at: 17,845 in NSW, 21,401 in Vic, 8,605 in Qld, 4,726 in SA, 7,669 in WA, 1,227 in Tas, 276 in NT and 660 in ACT.

By comparison, the long-term average number of houses under construction across the states is recorded at: 13,566 in NSW, 15,186 in Vic, 7,250 in Qld, 3,681 in SA, 7,455 in WA, 1,548 in Tas, 544 in NT and 938 in ACT.

All states and territories except for Tas, NT and ACT currently have more new houses under construction than the long-term average.

The number of new units under construction is where there is generally a substantial deviation from the long-term average.  

Across the states, at the end of the June 2017 quarter the number of new units under construction was recorded at: 64,470 in NSW, 43,240 in Vic, 27,420 in Qld, 4,230 in SA, 6,360 in WA, 391 in Tas, 495 in NT and 4,904 in ACT.   construction

Tas is the only state or territory with fewer new units currently under construction than its long-term average which is recorded at 431.

Across the remaining states, the long term average number of new units under construction is: 17,162 in NSW, 10,854 in Vic, 7,897 in Qld, 1,955 in SA, 3,382 in WA, 445 in NT and 1,235 in ACT.

The current number of new units under construction in NSW (+276%), Vic (+298%), Qld (+247%), SA (+116%) and ACT (+297%) is well in excess of double the long-term average.

The volume of new housing stock under construction remains at dizzying heights, albeit not quite as high as a few quarters ago.

The surge in stock under construction is being driven by units which by nature take longer to build and deliver more stock in a single project than houses.

Interestingly, the number of units under construction has slowed in Vic and Qld but continues to climb in NSW.

This is probably to do with the fact that many property purchasers in NSW can simply no longer afford houses (particularly in Sydney) so units become their only housing purchase option.


Although dwelling approvals have eased from their record high levels, over recent months they have been fairly steady.  Melbourne, Australia

They seem to have settled at a level which is well above long-term average levels.

While this means that commencements won’t be as strong going forward they are likely to remain high relative to historic levels.  

There is a significant number of new dwellings (particularly units) under construction which means that completions are likely to remain elevated for some time.

Once they do fall we would expect them to stabilise at a level well above the long-term average.

With the national population increasing rapidly, these people need to be housed so although housing construction is unlikely to remain as strong as it has been recently, we do expect that a substantial volume of housing construction is likely to continue to take place.

from Property UpdateProperty Update

What’s Your Money Mindset?

Were your parents good with money?

Were they bad with money? mind set rich money lesson think motivational learn teach money

Was money a source of stress or anxiety during your childhood? Did your parents fight over money?

Was money always hard to come by growing up? Was one parent in charge of making money? Was one parent in charge of spending money?

We all have a money mindset.

This money mindset, or money blueprint, is generally forged during childhood.

What is your money mindset?

  • Savings Mindset – Are you programmed to save money?
  • Spending Mindset – Are you programmed to spend money?
  • Earning Mindset – Are you programmed to make money?
  • Security Mindset – Are you programmed to protect what money you have?
  • Freedom Mindset – Are you programmed to see money as the path to freedom?
  • Anxiety Mindset – Are you programmed to see money as a source of stress and anxiety?
  • Negative Mindset – Are you programmed to see the pursuit or accumulation of money as a negative, bad or evil thing?
  • Positive Mindset – Are you programmed to see the pursuit or accumulation of money as positive, good or noble thing?

All changes in habits, thinking, behavior and emotions start with awareness.

Awareness is the starting point for all changes in our lives. 


Most are hopelessly unaware of the habits, thinking, behaviors and the emotions which shape their financial lives.

Until you first become aware, there is no hope for change and your life will remain unchanged.

Your financial problems are sourced to your mindset.

Once you become aware of your money mindset and the source of your money mindset (typically parents), only than change is possible.

Your money mindset can be an anchor, dragging your down into the financial abyss or it can be a rocket ship that allows you to soar to great heights.

You were not put on this planet to struggle financially.

All of your financial struggles are man-made.

They are the product of your money mindset.

Changing your money mindset is the key to financial freedom.

from Property UpdateProperty Update

There’s reasons for optimism with the: Housing Boom and Bust Report

Australia’s housing market will likely record moderate dwelling price rises in 2018, which will beat a slower rate than the price gains in 2017, led by a slowdown in Sydney.

graph of the housing

SQM Research’s base case forecast is for capital city dwelling prices to rise between 4% to 8% in 2018, which would represent a fall from a growth rate of approximately 8.5% over the past 12 months to 30 September 2017.

The rate of property price increases will be slower in 2018, predominantly due to a slowdown in the Sydney housing market, which should continue into the first half of the year.

Melbourne’s property market will also lose some momentum, however, this will only be a relatively modest slowdown, according to predictions in our Housing Boom and Bust Report.

Offsetting a slowdown in Melbourne and Sydney will be first-year property market recoveries for Perth and Darwin and an ongoing real estate boom in Hobart’s property market, which is set to record the highest level of accelerated price growth of any capital city next year at between 8% to 13%.
Boom and Bust report


Source: Christopher’s Housing Boom and Bust Report 2017

Brisbane’s property market will experience slightly stronger gains than those posted in 2017, with property prices forecast to rise between 3% to 7%. 


However, the persistent overhang of surplus property listings will hold back property in that city from a faster rate of inflation.

The base case for all capital cities forecasts assumes no changes in interest rates next year, a stable exchange rate and the existing restrictions by APRA on investment lending to remain in place.

Through the actions of APRA earlier this year, a possible deeper housing correction in Sydney and Melbourne has been averted, for now.

Accelerated population growth rates in Melbourne and Sydney have enabled the cities to avoid severe property downturns.

On the flipside, housing affordability will likely continue to deteriorate in 2018 with growth in property prices still outpacing wages growth.

The authorities were right to take action earlier this year to restrict investing lending by banks.

Failure to have taken action would have resulted in out-of-control Sydney and Melbourne housing markets, where additional aggressive monetary policy may well have triggered a large fall in dwelling prices in 2018. Economic growthmarket

APRA’s action, which came earlier than I had expected, has meant that the Sydney housing market is cooling sooner than expected.

That has meant our Sydney forecast for this year of price growth of 11% to 16% will not be reached and a more moderate 6% to 8% increase in prices can be anticipated for 2017.

Our Sydney forecast for 2018 is for a 4% to 8% increase in prices whereby Sydney will record a soft market in the first half of the year, but property prices will start to recover in the second half as the banks will likely increase investment lending once again.

There have been reports of banks investment lending ratios being under the maximum thresholds allowed, so we can expect a rise next year as banks increase investment lending up to this limit.

Hobart’s property market is expected to remain the fastest growing city in 2018, with the combination of a fast economy and housing supply shortages likely to ensure the second year running of double digit price rises for that city.

from Property UpdateProperty Update