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Media Release |
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Glenn Stevens backed on Property Risk but Money Not the Only Issue
Tuesday, 30 March 2010 12:58
Archicentre, the building advisory service of the Australian Institute of Architects today backed the warning of the Reserve Bank Governor, Glenn Stevens over excessive home loans, saying the hot property market had seen many investors and home buyers throw caution to the wind.
 David Hallett |
The average house price rise across all capital cities in 2009 was 13.6% according to the Australian Bureau of Statistics House Price Index figures. David Hallett of Archicentre said in a desperate bid to win a property, because of the lack of supply, some purchasers were signing up for properties without undertaking even basic checks on the property's condition. "The
end result of this is that people were ending up over committed
and facing
rising interest rates. When faults were found in the property
the situation
is compounded as they face the difficult situation of trying to
fund an
unbudgeted cost, which usually ends up being added to the
already over
extended mortgage." |
Archicentre 2009 / 2010 statistics compiled from pre-purchase home inspections in each State -
|
Damp |
Framing |
Illegal Building |
Pier / Stump Faults |
Timber Rot |
Cracking |
Electrical |
Roofing |
Water Supply | |
|
NSW |
47% |
24% |
29% |
18% |
36% |
40% |
31% |
37% |
9% |
|
VIC |
32% |
20% |
30% |
31% |
45% |
43% |
33% |
53% |
15% |
|
QLD |
32% |
16% |
22% |
22% |
33% |
20% |
21% |
31% |
8% |
|
SA |
46% |
15% |
32% |
4% |
36% |
48% |
31% |
37% |
8% |
|
WA |
30% |
15% |
21% |
11% |
20% |
36% |
19% |
30% |
12% |
|
TAS |
25% |
9% |
34% |
13% |
22% |
44% |
25% |
40% |
10% |
Mr Hallett said the hot property market has created sense of urgency for many people who are trying to beat the wave of property price rises and are forgetting the basics of sound research into the property before purchase, something they are likely to pay a hefty penalty for after signing the contract of sale.
Media Enquiries:
David Hallett of Archicentre Mobile: 0439 439 115
Ron
Smith Corporate
Media Communications (03) 9818 5700 Mobile: 0417 329 201