Call for business access to credit
The Real Estate Institute of Australia is concerned with the delays in finance approval times and the significant increase in finance declines for business loans. President David Airey said these had a negative impact on those looking to expand their small business. An Australian Chamber of Commerce and Industry study from January to March found 22.9% of respondents felt changes in bank lending criteria would negatively affect their expansion plans for 2009-10. The Reserve Bank of Australia also noted that business borrowing was declining as companies postponed their investment plans and sought to reduce leverage in an environment of tighter lending standards. Since last August, the variable interest rate for housing has decreased by 43% while for small business overdrafts it has only decreased by 24%. The REIA has met with the Australian Bankers Association to discuss a range of issues including access to and the volume of credit available to small business, aggressive fees and charges on long-term existing clients and the poor understanding of discreet small business sectors like real estate.

Buyers want contemporary homes
The REIQ sales volume report has found contemporary properties close to all the mod cons were the most popular with southeast homebuyers last year. And across the State, it was the variety of homes - from contemporary to those ripe for renovation - on offer, and the availability of stock, that most appealed to buyers. "In each major region of Queensland, buyers are looking for the best possible position - within a budget," REIQ chairman Peter McGrath said. "The most popular suburbs usually provide plenty of affordable or mid-range properties and are close to amenities such as shopping centres, entertainment precincts or schools. These characteristics never really change whether someone is buying a house or a unit." Brisbane's Forest Lake was again the most popular suburb in Queensland with preliminary sales of 532 over the year, followed by Buderim in the Sunshine Coast with 491 sales and Kirwan, southwest of Townsville with 417 preliminary sales. Unit buyers are obviously still adhering to the immortal words of location, location, location with Surfers Paradise (1,136 unit sales), Southport (687) and Brisbane City (660) taking out the top three spots for unit or townhouse sales in 2008.

First-home owners to the rescue
First-home buyers are having a positive impact on the property market following the increase in the first-home owner grant plus the abolition of stamp duty. Applications and payments of the grant soared in Queensland over the last quarter of 2008 with December figures double those recorded in August. Stamp duty cuts came into affect in September helping to boost applications by 25%. Queensland Treasurer Andrew Fraser said that no stamp or mortgage duty for homes under $500,000, low interest rates and a $14,000 or $21,000 grant were proving very enticing for potential first-home buyers. The Australian Bureau of Statistics also noted movement in the first-home buyer market. The ABS Housing Finance Report for November, released in January 2009, saw first-home owner finance commitments increase from 19.5% of the market in October to 23.6% in November.

Foreign real estate investors face changes
The Federal Government has announced changes to the administration of real estate purchases by foreign investors. To be introduced in early 2009, the changes will streamline the process and reduce the costs for foreign residents and businesses purchasing real estate in Australia. REIA President Noel Dyett welcomed the review and said the changes would have a postive impact on the housing market. The proposed changes will include short-term accommodation and differentiate between residential and commercial transactions, the purchase of blocks of land by non-resident foreigners and the purchase of established houses by foreign companies for Australian-based staff and temporary residents. The upper limit of $300,000 which has previously been in place for student visa holders will also be removed.

REIQ announces award finalists

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