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Times

THE IMPORTANCE OF YOUTH LEADERSHIP DEVELOPMENT TO YOUR COMPANY

May 13, 2019 by Reporter Leave a Comment

search fo jobs being active

Featured Photo © Pixabay

AGE DOESN’T NECESSARILY EQUAL SUCCESS

Traditionally most employers have equated age with wisdom and skills, and in the past, it was often the case that in order to get promoted you simply had to stick around with the same firm for long enough to make this happen. However, savvy businesses are catching on to the huge benefits that young leadership opportunities can bring to a company. Not only do young people inject motivation, energy and enthusiasm into a firm but they are often streets ahead in terms of technology and computing!

PERCEPTION OF YOUNG PEOPLE

Unfortunately, many young people get a bad press with gripes from older workers about their lack of a good work ethic. These include complaints such as their air of entitlement, that they don’t work hard enough and that they lack verbal and written communication skills. Of course, this is a huge generalization and ignores the fact that many young people are well educated, hard-working and are good team players with a great attitude.

WHAT DOES YOUTH LEADERSHIP DEVELOPMENT OFFER A BUSINESS?

Stereotypes of young people are being disproved time and time again as they show that they have a great deal to offer in the workplace, and these are just some of the key attributes they can bring:

They are on trend: they understand the culture we live in and can often interpret this much more effectively than an older person. This can enable a company to plug into emerging trends and themes.

They are very quick learners: they have the brainpower, youth and motivation to pick things up speedily and effectively.

They challenge the status quo: every business needs to evolve but it is easy to stagnate – with young people around they can shake things up and enable the growth of new ideas and techniques.

They are technologically adept: even though older people may have a raft of technological skills, the speed and understanding that young people bring into this sphere of business can be astounding.

They are the future: however well your firm operates you will need new blood – senior staff can’t go on forever so youth leadership development provides a legacy for the future of your business.

They have real enthusiasm: this can obviously be very infectious, especially for older workers who may have become very jaded and cynical – a young person’s outlook can put some zest back into your mission.

They are fun and inspiring: young people can give a different perspective on the world and can often liven up what may have become a dull and boring workplace environment.

GIVING YOUNG PEOPLE A CHANCE OF JOBS AND SKILLS

A number of organizations work with the Australian Government to provide life-enhancing skills and jobs for young people such as this jobactive services at yourtown.

Initiatives such as these enable eligible job seekers to be connected with suitable employers and enhance their experience and skills. This kind of job active services provision enables specialist support to businesses in terms of consultation about their needs, screening of potential candidates, and organizing interviews and subsidies to make the process as easy and economical as possible. Therefore if you haven’t considered the many benefits of employing a young person, now may be the time to take stock and re-energize your workforce with the many positive attributes this will bring.

About The Author:

Caroline Bird is a creative writer and digital marketer. She loves sharing her perspective, tips and how-tos related to home improvement, productivity, business, technology, and SEO through her writing. Connect with Caroline via @bCarolinebird12

Filed Under: Australia, Perth WA, Start Up, Sydney, Times, Victoria Tagged With: Business newspapers, Jobs

Outdoor Living & Furniture Trends 2016

January 20, 2016 by Reporter Leave a Comment

It goes without saying that Australians love spending time outdoors. As a result, outdoor living areas are now considered a crucial extension of the home, as more Aussies utilise the great weather all year round for entertaining close friends and family. Here we’ll discuss best practices to maintain the integrity of your home while creating that perfect outdoor area for you and your guests.

Seamless Flow

Although not a completely new idea, blending your indoor area with the outdoors is definitely gaining in popularity amongst Aussie homeowners. The idea is to create that seamless transition by choosing the right outdoor furniture, accessories and landscape to compliment the interior design and overall theme of your home. It’s important to try an enhance the connection between the two by fusing the natural beauty of the outdoor garden with the theme and comfort of your indoors.

Kos-Teak-Tables-New-599x435

Furniture Materials

As more Aussies opt for entertaining outside, modern outdoor furniture manufacturers are doing their best to develop new designs that meet our needs; both practically and aesthetically. It’s therefore no surprise that mixed material designs are growing in popularity as they enable a unique contrast, promoting a smoother dynamic blend, and therefore ensuring a smoother transition between your indoor and outdoor living area. Popular combinations include; resin and wood, iron and wood, or teak and stainless steel.

Tip: Materials like stone, wood and wicker – which give off a more natural vibe – go particularly well with vintage and eco inspired designs.

The mixed material approach truly offers greater flexibility, allowing people the freedom to experiment a little and roam from typical and exact matching styles, providing a diverse range of stylish alternatives for a seamless integration. As a result, this trend is firmly making its stance amongst Aussie homeowners around the nation.

Cloud-4-599x435

Accessories

Adding plants and other accessories is a simple way to make your outdoors feel homely and add that extra dimension of natural beauty, to further blur those lines between your indoor and outdoor space. By adding some visually appealing pots, a wall feature or even some artwork can have a dramatic impact on the overall feel of your space. With regards to outdoor furniture, adding a few colourful weather-resistant cushions here and there can cost-effectively breathe new life into existing furniture, meaning you don’t have to spend a fortune for noticeable impact.

1382421724_tribu-deco-580x435

This is post was brought to you by Cosh Living, Australia.

If you’re looking for the latest in modern furniture designs, inspired by the latest global trends, then be sure to contact one of the in-house specialists at Cosh Living at one of their beautifully presented stores around Australia.

For more info, please visit www.coshliving.com.au

Filed Under: Australian, Business, Times Tagged With: Buying a House, Furniture

Seeking workers compensation: factors to consider

July 27, 2015 by Reporter Leave a Comment

work safety and case lawyers

If you are injured at work, you may be able to receive compensation from WorkSafe. However, there are a number of factors to consider before submitting a claim. It is important to discuss these important considerations with a compensation lawyer, prior to completing a claim for compensation.

claim for work safety and injury lawyers

It is important to first consider the aims and purposes of workers’ compensation and whether these align with your specific intentions. Importantly, workers compensation is separate to an option of pursuing common law damages against an employer. Instead, the aim of the workers compensation scheme is to

● provide injured workers with financial support;

● provide injured workers with medical benefits and other forms of support;

● to achieve an early, safe and appropriate return to work for the injured employee.

1. Type of claim

It is important to first consider the type of claim you seek to make. The various work related injury claims include;

● Permanent impairment claims

● Psychological injury claims

● Work break and journey claims

The type of injury that you have and the claim that you seek to make, will have a significant impact on the considerations made prior to completing a workers compensation claim. For example, if you seek to make a claim for a permanent inability to resume your previous field of work, your specific workers compensation arrangements will not include considerations relating to your effective and early return to work.

2. Certificate of Capacity

The certificate of capacity is used by WorkSafe to help understand your capacity for work and the payments you are entitled to. Obtaining a Certificate of Capacity is an important factor to consider when seeking workers compensation, as it will be used to develop an injury management plan with you and your employer, and facilitate your recovery at work should you be able to return. It is important to ensure that your Certificate of Capacity is an accurate reflection by your nominated treating doctor of your capacity to complete some or all pre-injury duties, or whether you do not have the capacity to undertake employment in any form. The Certificate will dictate the number of hours and days per week you have the capacity to undertake employment, and if the doctor certifies that you do not have a current capacity for employment, will include an estimate of the time until you will regain working capacity.

3. Compensation: Loss of wages and expenses

Before applying for workers compensation, it is important to consider exactly what compensation you may be eligible to receive. This may include compensation for loss of wages, reasonable medical bills, travel expenses and other related expenses. Where you are required by your employer or a medical practitioner to travel from your home to a medical appointment or rehabilitation provider, you may be eligible to claim for the travel expenses incurred.

It is important to be aware of these potential avenues of compensation prior to applying for workers compensation, in order to ensure that you keep all relevant documents and receipts from the outset. A consultation with a lawyer can be useful in determining these possible areas of compensation, depending on your specific case.

4. Weekly Compensation

If you are unable to perform your normal job, an important factor to consider is applying for weekly compensation payments. These compensation payments are based on the injured worker’s pre-injury weekly earnings. It is important to consider when applying for weekly compensation, that the formula for calculating the compensation will change over time and will be affected by how long you have been in receipt of compensation.

5. Retaining your pre-injury position

It is important to consider, in the cases of temporary injury, whether you seek to retain your pre-injury position once you are deemed capable of returning to work. Under the law, your employer must retain your pre-injury position for one year from the day you are entitled to receive weekly compensation payments.

These factors are important to take into consideration before seeking workers compensation. Seeking advice from a compensation lawyer can help ensure you understand each step of the process involved in a workers compensation claim.

Bio: Laura Costello is in her third year of a Bachelor of Law/International Relations at Latrobe University. She is passionate about the law, the power of social media, and the ability to translate her knowledge of both common and complex legal topics to readers across a variety of mediums, in a way that is easy to understand.

Filed Under: Australian, Times Tagged With: Claim, Compensation, Lawyers, Safety

What’s the cause of the drop of the Australian dollar?

February 26, 2015 by Reporter Leave a Comment

The Australian dollar is dropping – but why?

forex finance and australian dollar

If you’ve been keeping abreast of the news over the last few months, you’ll be familiar with the various headlines detailing the drop of the Australian dollar. But with so many voices arguing the different reasons for the dollar’s decline, it can get complicated trying to understand where this trouble started. That’s why we’ve taken a simple look at the key reasons behind the dollar’s fall – and the effect each one has had on the Aussie economy.

After a successful few years, ‘the wheels are finally beginning to fall off the Australian dollar’ warned Matt Simpson, a senior markets analyst for ThinkForex. It’s safe to say that this seems to be true, and the reasoning isn’t singular in nature, but instead an unusual mixture of events – not all of them in our hands.

At home the mining boom has unfortunately faltered, with iron prices depressed further by China’s troubles – but more on that later. It could be argued that as the mining investment hit its peak in 2012, this downturn was a long time coming, and responsibility falls towards our own dependence on the industry.

As the mining boom weakens and small mining towns pay the price, the housing market proved itself to be the only sector able to take its place. This intense focus and dependence on one area has left the housing market susceptible to a property bubble, fit to burst. Indeed, the new challenge faced by the Reserve Bank involves adequately stimulating the economy whilst keeping the problematic property bubble in check.

Domestic problems aren’t, however, the sole cause behind the drop in value for the Australian dollar. Instead, we should cast an eye to the world stage, where growth (and lack thereof) in overseas territories has impacted upon the AUD.

As previously mentioned, China’s own troubles have brought down the prices of iron ore, further weakening the mining industry in Australia. As a plan to limit pollution ahead of 2014’s APEC convention, China oversaw the temporary closure of several steel mills – which is why we saw the price of iron ore drop to its lowest in five years during the tail end of last year. Furthermore, China’s own growth is reportedly the weakest it’s been for twenty-four years; being our main trade partner, this isn’t good news for domestic finances.

But negative changes in China aren’t the only overseas factor dropping the value of the dollar. As you would expect from arguably the most powerful country in the world, recent strengthening of the greenback has benefited the States, with a knock on effect for several other countries, such as Canada and Australia. With plans to raise interest rates next on the agenda for the US Congress, the growth of the US economy could come at a price for smaller nations.

As this collection of circumstances continues to drop the value of the dollar, confidence levels also continue to drop, making the plight of the dollar all the more frightening. Whereas once it was seen as a safe investment with high returns and low risk, recent troubles have forced investors to seek an alternative elsewhere, further damaging the currency’s value. Instead, it’s reported that investors look to the Yen, buying from Japan and seeking the benefits in the US.

All in all, there’s no one single reason for the dollar’s recent decline in value – Australia is instead at the mercy of an unfortunate collection of events, caught between domestic matters and the affairs of other nations. Although the often predicted scenario of recession in 2015 seems likely, it is worth remembering that the economy is in constant flux; although some of the AUD’s allure has inevitably faded following recent troubles, we can be sure that its value won’t stay low forever. In fact, we’d bet our last dollar on it.

About The Author

Rachel Maher is a financial content writer from Western Australia, she writes for Fairgofinance.net.au

Filed Under: Finance, Times Tagged With: Forex, Trading

5 Ways the Medical Profession can Save Money and be Better at Business

October 9, 2014 by Reporter Leave a Comment

We are constantly hearing in the media about the woeful state of the NHS and how there is a shortage of doctors, nurses etc. and how the pot is nearly empty. Anyone who works in the medical profession will tell you about the waste that exists within the NHS and they all have their ideas of how money could be saved and be spent where it is most needed. We have considered this carefully and here are our suggestions for 5 ways in which the medical profession can save money.

healthcare doctor

Training

You forget just how many careers exist within the medical profession. Those ‘behind the scenes’ staff who by their very presence keep the profession going. Take porters for example, hospitals would grind to a halt without these trusty stalwarts and they, like all the rest, often have to undergo training. Employing online training rather than sending them off the a classroom for hours on end will not only save money but cause a lot less hassle logistically. To keep the necessary quota in place and paying others overtime to ensure this would save an awful lot of money over the course of a year.

Food

Everyone complains about hospital food and quite frankly who can blame them. Rather than buy in fresh food and cook it many hospitals are now buying in readymade meals which the nursing staff heat up in microwaves on the ward. This is taking the nurses away from their essential duties and what use is a processed meal completely lacking in any kind of vitamins and nutrition to patients recovering from illnesses or surgery?

Too many chiefs

This isn’t a problem restricted to the NHS obviously, but the term too many chiefs and not enough Indians is certainly relevant when referring to the modern medical profession. With modern technology there is no need for so many supervisors and managers. In days gone by there was a matron, the sisters and the nurses, the matron have now been replaced by several managers who sit in offices all day juggling numbers. How can this be cost effective or be in the best interests of the patients? The simple fact is that there are far too many people in the NHS sitting behind desks instead of being involved in actual healthcare. They command bigger wages than those on the front line and invariably get a golden handshake on retiring, unlike those life savers beneath them who have to manage on the pension they have paid into during the time they have spent working for the NHS.

Supplies

There are very few companies who supply medical essential such as gloves and other disposable items so they charge through the nose for it. Why are there over 77 types of different disposable gloves? Surely you only need a few; latex and non-latex etc. All those managers sitting trying to juggle figures would be best off shopping around to save money on these supplies. Every business knows that sticking with the same supplier rather than shopping around costs more and as today’s medical profession is very much a business they should be taking a leaf out of other’s books and doing the same.

Drugs

Apart from the shocking stat that £150m worth of drugs are wasted every year this again boils down to suppliers. As with everything else there are suppliers the NHS use which cost the earth but plenty more who could supply them cheaper if they shopped around. A paracetamol is a paracetamol at the end of the day, so why pay £2 a pack when a supermarket can sell them for less than £1 and still make a profit?

So, as is clear to see there are numerous ways that the medical industry can cut down and saveon costs.

Filed Under: Report, Times Tagged With: Healthcare

Selfies goes viral with oscars

March 5, 2014 by Reporter Leave a Comment

Well most certainly this selfie  has pretty much won an oscar in the online world due to going viral and becoming humongous’ly popular , as many people would vouch for.

oscar winning selfie 1

 

selfie of 2014

 

the oscar world famous selfie

This wasnt the first  time a celebrity selfie went viral  as  we can  see from this selfie  with Obama ,  British Prime Minister David Cameron and Denmark’s Prime Minister Helle Thorning Schmidt

obama uk prime minister selfie

They are also many other me too amusing selfies

 

Pope Francis Takes a Selfie (http://parade.condenast.com/)

Have you ever snapped a selfie only to hurriedly delete if before anyone else sees it? It’s OK. We’re all guilty of it.

 

Justin bieber

(businessinsider.com)

Filed Under: 2014, Australia, Technology, Times, World Tagged With: Selfie

A Look at the Gambling Industry in Australia

February 13, 2014 by Reporter Leave a Comment

crown-casino

For all the restrictions that some parts of the world put on gambling, the Land Down Under has stood apart from the pack by having the highest percentage of citizens who actively gamble at some 80%. Gambling had a quasi-legal standing in the country prior to the 1950s, but in the 1970s the first fully-legal casinos began dotting up all around the country. The government warmed to the gambling revolution when they saw tax revenues from gaming spike twenty-fold by the early 1990s; today at least ten percent of provincial revenue comes from the gambling industry. Overall, the Economist reports that the industry is a $20 billion windfall, with two out of every three dollars in revenue generated from online poker machines or “pokies.”

Size And Scale

For all the pomp and reputation that Las Vegas enjoys, in terms of sheer gambling quantity it’s got nothing on the major Australian cities. The Australian capital of Sydney boasts mega-gambling facilities that are half a dozen times the size of a football field. In fact, there’s more slot machines per capita in New South Wales than there are in Nevada. The Crown Entertainment Complex in Melbourne is the largest in the entire southern hemisphere. An ample opportunity to test their luck has made gambling Australia’s sin of choice: it brings in more revenue than alcohol sales annually.

Sports Betting

What makes your favorite rugby team’s next win better than winning a few dollars on the side? That’s the attitude that spurs major bets on big games, and since a 2008 High Court decision that allows bookmakers to operate across state boundaries, there’s been a gold rush for fans and gamers alike to try to reap the rewards of on-field success. There are a few limits on the gaming — for instance, you can bet on whether or not Cricket Australia wins a test against South Africa and by how many runs at betsafe.com , but bets on how many players will wear sunglasses have been struck down. The amount of revenue that the leagues themselves get from gaming (a cut believed to be around 5%) is rumored to have kept the NRL afloat; had the NBL introduced pokies at the arena it may have reversed its demise. Look no further than the Melbourne Cup, which pulls in half a billion dollars from gambling, accounting for nearly three percent of the annual gaming revenue in all Australia.

The Future Of Betting

Although it’s a good time to get involved in betting in Australia, the current craze may only be the beginning. The introduction of Internet gaming may spur a second revolution in gambling Down Under, since they have the upper hand in competing with gambling sites in Europe and the Caribbean. Since Australian law allows casinos to market their services outside the country, they can pull in foreign money from gamblers on the other side of the world who want to chance a roulette ball or a blackjack card without ever needing to leave their home. It’s anyone’s guess how much foreign money might come into Australia thanks to online gaming, but it may dwarf the $1300 gambled annually by each Aussie.

Filed Under: Australia, Business, Times Tagged With: Casino, Gambling, Pokies

Rat disguised as lamb meat sold in china

May 6, 2013 by Reporter Leave a Comment

In a new  meat scandal  after the UK horse meat scandal china has been rocked with a incident where  rat meat has been used instead of lamb.

According to  Indian newspaper  NDTV that has reported on this incident

A criminal ring in china was accused of taking meat from rats and foxes and selling it as lamb in china  the country’s latest food safety scandal.

china food scandal rat meat scandal uk

http://w3.xs.edu.ph

63 people were supposedly  involved in this food scandal  in which  they ran an operation in Shanghai and the coastal city of Wuxi that bought fox, mink, rat and other meat that had not been tested for quality and safety, processed it with additives like gelatin and passed it off as lamb.

Guess whih is fake lamb?

Ref: http://www.tealeafnation.com/ via weibo

The top one is fake

This fake meat scandal in china has embarrassed the Chinese government once again. China has  food scandals before with – milk contaminated with an industrial chemical to the use of industrial dyes in eggs  and other similar scandals.

After a baby food scandal rocked the country , Adulterating baby food so that it severely lacks nutrition is also punishable as a crime under the guidelines. Negligent government food inspectors are also targeted for criminal punishment. Many people have resorted  to buying baby products from the internet and overseas

Filed Under: 2013, China, Times, World Tagged With: Chinese, Horse Meat, Meat scandal, NDTV, News Australia, Newspapers

Australia’s best hotels for corporate meetings and conferences

May 2, 2013 by Reporter Leave a Comment

Whether you’re a businessman, public servant or representative of an organisation, one task that will come up every so often is arranging a conference for both internal and external figures. It’s a task that usually eats a large amount of one’s time as organisers find information on a range of hotels and other meeting spots before checking them against myriad attributes. Fortunately, however, top hotels for conferences exist in every major Australian city, meaning it is not impossible for you to impress colleagues and stakeholders with your choice of hotel.

australian heritage hotels

An Australian heritage Hotel

Hotel Lindrum, a Melbourne hotel situated in the heart of the city, provides a classy, yet value-for-money option, which is great for those organising a meeting or conference on behalf of a small business. The Lindrum’s Australian Room offers a cosy but highly professional setting for meetings of up to ten people. At $400 for a full day or $280 for a half day, and with a tailor-made menu for meetings offering food and beverage options from $15 per person, a corporate meeting in the Australian Room can boost a small business’ clout without eating its hard earned profits.

The Sebel Pier One in Sydney has breathtaking waterfront views that will charm even the fussiest of conference guests. Overlooking Sydney Harbour, Pier One’s main conference venue is able to fit 440 guests, which makes it a great choice for large conferences of a high-level and prestigious nature. Alternatively, Sebel Pier One has seven smaller conference rooms, allowing for an elegant, yet more intimate atmosphere for corporate small business meetings. While it is on the expensive side, the highly sophisticated atmosphere and the first-rate views make Pier One an excellent choice.

The Crowne Plaza Canberra is in a central location close to the National Convention Centre, giving guests easy access to any large functions occurring there. The Plaza has six meeting rooms which cater for conferences and corporate meetings with few or many guests. Its largest room, The Glebe, fits up to 50 guests in a meeting setting while the smallest room in the Crowne, Pods 1, fits up to 17. Such diversity of rooms in a prime location gives Crowne Plaza something to offer for large and small businesses alike.

The Crowne Plaza in Canberra is not the only one excellent for conferences; Adelaide’s Crowne Plaza also offers outstanding facilities for those in Australia’s south. Like its Canberra counterpart, Adelaide’s Crowne Plaza has a diverse array of meeting rooms, with seven being offered by the hotel. Along with luxury, the Plaza’s state of the art technology in its function rooms is its major strongpoint. The Hindmarsh Ballroom, for instance, includes a built-in data projector and screen which has been deemed as the “latest in technical facilities” by the hotel.

When it comes to size, Brisbane’s Pullman Hotel is unrivalled in the Queensland capital. Located in the centre of the city, the Pullman has the capacity to fit up to 1000 people in its largest ball room, an easy fit for even the largest of corporate functions. For smaller corporate meetings, the hotel also has two boardrooms. On top of all this, the Pullman Hotel also boasts the 50-seater King George Room, which overlooks Brisbane’s King George Square, giving it character for those hosting a conference with a sophisticated touch.

Over in the country’s west, the Duxton Hotel in Perth is an attractive hotel venue for conferences given its five-star facilities and location near the Swan River in the city centre. With nine meeting rooms, ranging from a function floor on the Lower Lobby Level and the six-seater Duxton 5 meeting room, the hotel appeals to those hosting large and small conferences and meetings. The Duxton Hotel is located on St Georges Terrace, which has public transport connections to Perth’s Domestic Airport, making it a great choice if catering to interstate guests.

In Australia’s north, the Vibe Hotel Darwin Waterfront offers four flexible conference and meeting rooms within walking distance of Darwin’s Central Business District. The Vibe is situated in the recently developed Waterfront precinct, which contains many top alfresco restaurants and entertainment areas. Vibe Hotel is also 20 kilometres from Darwin Airport, making it a great hotel to hold a conference if attendees are flying in from elsewhere.

Australia boasts some of the best hotels for conferences and corporate meetings. Hotels in every major city in the country contain conference rooms to cater for both small and large conferences as well as professional atmospheres for even the highest-level of meetings. With central, easily accessible locations and state of the art technological facilities in these venues, a business can easily consider flying into a new location for the annual company conference or function.

Carla C. Burton is a self-employed Travel and Hospitality writer with a BBA in Business Administration from Bond University.  Although a Gold Coast native, Carla moved to Melbourne in 2008 to further her writing career in the Travel industry.  Carla has become a top contributor to many Travel blogs world-wide and thoroughly enjoys the freedom that self-employment has provided her.  To find out more about Carla or to follow her other posts, follow her on Twitter @CarlaCBurton.

Filed Under: 2013, Australia, Entertainment, Gpost, NT, Perth WA, Sydney, Times, Victoria, WA Tagged With: Australian Hotels, Hotel accomodation, Tourism

Housing price growth in Australia is over

May 1, 2013 by Reporter Leave a Comment

Price rises in the Australian housing market have slowed, according to new reports, and they won’t show any signs of picking up again in the near future.

home loans and mortgage

In an important speech to the Citibank Property Conference in Sydney last week, the Australian Reserve Bank’s head of financial stability Luci Ellis said that home prices in Australia are likely to grow more slowly than they have for the past 30 years.

She stated that “trend housing price growth will be slower in future than in the previous 30 years”, and is unlikely to rise rapidly again.

House prices are definitely rising – but not “booming”

 

These new statements from the Reserve Bank come just a month after the latest RP Data-“Rismark Home Value Index” showed that capital city house prices rose by 2.8 per cent on average in the March quarter of 2013 – the strongest quarterly result in almost three years. According to The Australian, this slow rise can also be seen in both the Australian Bureau of Statistics’ established house price index, which rose by 2.1 per cent, and its consumer price index, which rose by 2.2 per cent throughout 2012.

However, RP Data research director Tim Lawless admitted that we are unlikely to see such growth rates continue throughout the year, with growth likely to normalise over the coming months.

What’s to blame for the slowdown in housing price growth?

 

In the late 1990s and early 2000s, the low-inflation targets imposed by the RBA meant that consumers could borrow around twice as much as they previously had been able to. This in turn contributed to the huge rise in home prices and housing price problems in australia  that was observed during this period, both in absolute terms and relative to consumer income.

However, now that this inflation-targeting period is over, housing prices are believed to have leveled off to a “new normal”, according to Dr Ellis.

What does this mean for potential homebuyers or investors?

 

Those scoping out new home loans for a home or investment property may be wondering what this latest news means for them, and the answer may not be such a positive one. In her speech, Dr Ellis suggested that these slower growth trends in housing prices meant that total returns on rental properties would fall, and that today’s homebuyers would most likely not receive the same capital gain on the family house as the previous generation did.

The Reserve Bank also warned that a slow housing market may see more periods where house prices actually fall, meaning that both purchasers and financial institutions should be cautious of borrowing or loaning a high percentage of the purchase price of a new home. This is so borrowers can try to avoid a situation in which their outstanding loan is larger than the actual value of their home – or what’s known as negative equity. The RBA is also opposed to banks lowering their lending standards to try and incentivise borrowers and boost loan growth and profits.

 

While a downturn is possible, there’s a low possibility of a property price crash

 

Those worried about the property market ‘crashing’ shouldn’t be – it’s unlikely that the price of property will crash any time in the near future, even though the RBA says that a downturn is possible. Ellis said that the RBA was “pretty sure that the boom we saw in the early 2000s managed to end with a fizzle, not a bust. So we don’t expect a sharp reversal from a starting point described by the situation we face now.”

Those interested can read Luci Ellis’s full speech here.

Filed Under: 2013, Australia, Banks, Property, Rates, Real Estate, Times Tagged With: Home loans, Price rises, RBA

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