The following quotations were taken from resumes and cover letters from all over the country. With all the work and care that goes into writing these documents, it's funny, if unfortunate, when errors slip through to the final draft. Alas, such mistakes make exactly the wrong impression on exactly the wrong people.
1. "I am very detail-oreinted."
2. "I have a bachelorette degree in computers."
3. "Graduated in the top 66% of my class."
4. "I worked as a Corporate Lesion."
5. "Served as assistant sore manager."
6. "Married, eight children. Prefer frequent travel."
7. "Objective: To have my skills and ethics challenged on a daily basis."
8. "Special skills: Thyping."
9. "Special skills: Experienced with numerous office machines and can make great lattes."
10. "I can play well with others."
11. "I have exhaustive experience in manufacturing."
12. "Special skills: I've got a Ph.D. in human feelings."
13. "My contributions on product launches were based on dreams that I had."
14. "I eat computers for lunch."
15. "I have used lots of software appilcations."
16. "Objection: To utilize my skills in sales."
17. "Experience: Watered, groomed, and fed the family dog for years."
18. "Reason for leaving last job: Pushed aside so the vice president's girlfriend could steal my job."
19. "Previous experience: Self-employed -- a fiasco."
20. "I am a pit bull when it comes to analysis."
Friday, November 6, 2009
Signs of life in industrial market
The industrial property market looks to be steadily emerging from the economic doldrums, with sales totaling almost $250 million in Melbourne alone.
According to the latest report by CB Richard Ellis, sales totalled $249.1 million in the Victorian capital, most of which occurred in the late second and third quarter.
Research analyst Craig Olde said the late sales proved momentum was building in the market, with owner occupiers and private investors the main buyers.
Defying predictions earlier in the year, few grade A yields had been above 9 per cent.
“More recently, industry opinion was that yields might once again be sharpening back towards 8 per cent, however our survey results are yet to reflect this,'' Mr Olde said.
Three consecutive quarterly surveys had shown an average grade A warehouse yield of about 8.88 per cent, in line with industry opinion.
The sales volumes, although a far cry from the peaks of $1.6 billion recorded in 2006, are still better than expected given the current state of the financial markets.
According to the latest report by CB Richard Ellis, sales totalled $249.1 million in the Victorian capital, most of which occurred in the late second and third quarter.
Research analyst Craig Olde said the late sales proved momentum was building in the market, with owner occupiers and private investors the main buyers.
Defying predictions earlier in the year, few grade A yields had been above 9 per cent.
“More recently, industry opinion was that yields might once again be sharpening back towards 8 per cent, however our survey results are yet to reflect this,'' Mr Olde said.
Three consecutive quarterly surveys had shown an average grade A warehouse yield of about 8.88 per cent, in line with industry opinion.
The sales volumes, although a far cry from the peaks of $1.6 billion recorded in 2006, are still better than expected given the current state of the financial markets.
Rate rise won’t hurt housing demand
The Reserve Bank’s decision to raise rates for the second consecutive month should not make a large material difference to housing demand, the Housing Industry Association (HIA) has claimed.
According to HIA’s chief economist Harley Dale, figures show that sentiment towards buying new homes begins to falter when mortgage rates hit their 10 year average of 7.25 per cent.
Even with the latest rate rise, the variable rate on the average mortgage is still significantly below that mark, he said.
Similarly, the strength of the underlying demand stemming from the shortage of housing plus the population growth means the sector should be able to absorb another rate rise.
“It is widely regarded that rates will rise moderately over the next six to nine months and that’s at a time when we don’t have a lot of evidence of new home building recovery and nothing of the magnitude needed to bridge the housing gap,” Mr Dale said.
According to Mr Dale, the rising rates could further dampen supply and put pressure on affordability.
According to HIA’s chief economist Harley Dale, figures show that sentiment towards buying new homes begins to falter when mortgage rates hit their 10 year average of 7.25 per cent.
Even with the latest rate rise, the variable rate on the average mortgage is still significantly below that mark, he said.
Similarly, the strength of the underlying demand stemming from the shortage of housing plus the population growth means the sector should be able to absorb another rate rise.
“It is widely regarded that rates will rise moderately over the next six to nine months and that’s at a time when we don’t have a lot of evidence of new home building recovery and nothing of the magnitude needed to bridge the housing gap,” Mr Dale said.
According to Mr Dale, the rising rates could further dampen supply and put pressure on affordability.
Wednesday, November 4, 2009
Liberty optimistic despite profit drop
Liberty financial has posted a 4 per cent fall in net profit to $35 million, but the non-bank lender has said it is still cautiously optimistic about the outlook as it diversifies its operating income.
The non-bank lender has recently moved into new areas of business to offset the effects of the global financial crisis.
According to the company’s managing director Sherman Ma, Liberty has branched into invoice finance, car loans and auto dealer floor plan financing.
Traditionally, the non-bank lender draws approximately 50 per cent of its revenue from residential mortgages.
But since the onset of the global financial crisis, Liberty’s loan book fell from $3.2 billion to $2.5 billion, a drop Mr Ma attributes to less demand and higher provisions.
Mr Ma said the company’s ability to diversify had acted as a buffer to the downturn.
“We will continue our operational discipline and retain our profits, and expect that as the economy improves we will be particularly well positioned to increase our activities,” he said.
The non-bank lender has recently moved into new areas of business to offset the effects of the global financial crisis.
According to the company’s managing director Sherman Ma, Liberty has branched into invoice finance, car loans and auto dealer floor plan financing.
Traditionally, the non-bank lender draws approximately 50 per cent of its revenue from residential mortgages.
But since the onset of the global financial crisis, Liberty’s loan book fell from $3.2 billion to $2.5 billion, a drop Mr Ma attributes to less demand and higher provisions.
Mr Ma said the company’s ability to diversify had acted as a buffer to the downturn.
“We will continue our operational discipline and retain our profits, and expect that as the economy improves we will be particularly well positioned to increase our activities,” he said.
Westpac profit down
Westpac has reported an 11 per cent drop in its net profit for the year ended 30 September 2009.
According to the bank’s full year results, released this morning, pro forma cash earnings were also down 8 per cent to $4,627 million.
But despite the drop in profits, Westpac’s chief executive officer Gail Kelly said the group had managed to achieve a sound financial performance in what had been a very challenging year.
“We have remained strong in uncertain times by being well capitalised, well funded and well
provisioned,” Ms Kelly said.
The bank did manage to grow its mortgage book by 17 per cent, highlighting the continuing strength of its retail franchise.
Ms Kelly said the bank’s average funding costs were expected to increase further as the competition for retail deposits remain, and as wholesale funding is sourced at a cost well above pre-crisis levels.
“In addition, as government fiscal support begins to be scaled back and interest rates move upwards from their very low emergency settings, ongoing caution is likely to be applied to consumer and business budgets,” Ms Kelly said.
“Against this backdrop, however, The Westpac Group enters the 2010 financial year with solid business momentum, with a strengthened balance sheet and excellent provisioning cover.”
According to the bank’s full year results, released this morning, pro forma cash earnings were also down 8 per cent to $4,627 million.
But despite the drop in profits, Westpac’s chief executive officer Gail Kelly said the group had managed to achieve a sound financial performance in what had been a very challenging year.
“We have remained strong in uncertain times by being well capitalised, well funded and well
provisioned,” Ms Kelly said.
The bank did manage to grow its mortgage book by 17 per cent, highlighting the continuing strength of its retail franchise.
Ms Kelly said the bank’s average funding costs were expected to increase further as the competition for retail deposits remain, and as wholesale funding is sourced at a cost well above pre-crisis levels.
“In addition, as government fiscal support begins to be scaled back and interest rates move upwards from their very low emergency settings, ongoing caution is likely to be applied to consumer and business budgets,” Ms Kelly said.
“Against this backdrop, however, The Westpac Group enters the 2010 financial year with solid business momentum, with a strengthened balance sheet and excellent provisioning cover.”
Big four act on rate rise
The nation’s big four banks have wasted no time in passing on the Reserve Bank’s 25 basis point increase.
ANZ was the first of the majors to move, raising its variable mortgage rate within 10 minutes of Reserve Bank’s announcement.
ANZ’s acting chief executive in Australia, Graham Hodges, also warned that the bank might yet have to lift the price of lending outside the official rate cycle.
He said there is currently “considerable pressure on mortgage margins”.
“If sustained over time, there will be commercial pressure to pass the additional costs on,” Mr Hodges said.
“The right thing to do at this point in the economic cycle is for us to absorb the additional funding costs and pass on only the amount of today’s official increase.”
ANZ and Westpac will now offer a 6.31 per cent standard variable rate, while CBA and NAB offer a slightly more competitive 6.24 per cent.
St George matched the rate increases of the big four, lifting its variable rate by 25 basis points.
Overall borrowers can expect to pay an extra $40 per month on an average $250,000 household mortgage as a result of yesterday’s rate hikes.
ANZ was the first of the majors to move, raising its variable mortgage rate within 10 minutes of Reserve Bank’s announcement.
ANZ’s acting chief executive in Australia, Graham Hodges, also warned that the bank might yet have to lift the price of lending outside the official rate cycle.
He said there is currently “considerable pressure on mortgage margins”.
“If sustained over time, there will be commercial pressure to pass the additional costs on,” Mr Hodges said.
“The right thing to do at this point in the economic cycle is for us to absorb the additional funding costs and pass on only the amount of today’s official increase.”
ANZ and Westpac will now offer a 6.31 per cent standard variable rate, while CBA and NAB offer a slightly more competitive 6.24 per cent.
St George matched the rate increases of the big four, lifting its variable rate by 25 basis points.
Overall borrowers can expect to pay an extra $40 per month on an average $250,000 household mortgage as a result of yesterday’s rate hikes.
MFAA CEO slams rate rise scaremongering
MFAA chief executive Phil Naylor has dismissed industry reports that warn another rate rise will double the number of people who default on their loans.
According to Mr Naylor, the MFAA’s mid-year survey of 974 homebuyers found that only 26.5 per cent of respondents expected rates to fall further over the next three years, suggesting that borrowers had realistic expectations about future rate rises.
“The survey found 83.6 per cent of respondents were easily making their loan repayments - up from 76 per cent six months earlier,” Mr Naylor said.
“Some industry figures are warning a rate rise will almost double the number of people who default on their loans, but the evidence suggests this is exaggerated. And in any case the percentage of defaulters is less than half a percent of all mortgage holders.”
While Mr Naylor confirmed that some borrowers may have difficulty adjusting to their higher repayments, any increase in interest rates by the Reserve Bank suggests the economy is strengthening and should be seen as good news.
“Mortgage rates cannot stay at historic lows forever. There is good news in a rate rise as well as bad,” he said.
According to Mr Naylor, the MFAA’s mid-year survey of 974 homebuyers found that only 26.5 per cent of respondents expected rates to fall further over the next three years, suggesting that borrowers had realistic expectations about future rate rises.
“The survey found 83.6 per cent of respondents were easily making their loan repayments - up from 76 per cent six months earlier,” Mr Naylor said.
“Some industry figures are warning a rate rise will almost double the number of people who default on their loans, but the evidence suggests this is exaggerated. And in any case the percentage of defaulters is less than half a percent of all mortgage holders.”
While Mr Naylor confirmed that some borrowers may have difficulty adjusting to their higher repayments, any increase in interest rates by the Reserve Bank suggests the economy is strengthening and should be seen as good news.
“Mortgage rates cannot stay at historic lows forever. There is good news in a rate rise as well as bad,” he said.
House prices continue to climb
The Australian Bureau of Statistics Index of established house prices has risen for the second consecutive quarter, suggesting the property market is continuing to thrive.
The housing Industry Association’s (HIA) chief economist Dr Harley Dale said the price increase was a positive sign for the industry.
“Increasing signs of life in the real estate market this year has helped boost consumer confidence and spending and has been a component of Australia’s economic out-performance,” he said.
“As we head towards 2010 we need a keen focus on lifting new home construction to an extent that removes unnecessary upward pressure on home prices.
“A recovery in new residential construction is underway, but there is a very real risk that costly delays in planning approvals and land shortages will combine to blunt the magnitude of that recovery.”
The weighted average capital city established house price index increased by 4.2 per cent in the September 2009 quarter to be 6.2 higher when compared to the same period last year.
The established house price index increased by 4.3 per cent in Sydney, 4.7 per cent in Melbourne, 4.4 per cent in Brisbane, 1.7 per cent in Adelaide, 4.5 per cent in Perth, 1.8 per cent in Hobart, 3.4 per cent in Darwin, and 4.3 per cent in Canberra.
The weighted average index for project homes across Australia’s eight capital cities increased by 1.3 per cent in September.
The housing Industry Association’s (HIA) chief economist Dr Harley Dale said the price increase was a positive sign for the industry.
“Increasing signs of life in the real estate market this year has helped boost consumer confidence and spending and has been a component of Australia’s economic out-performance,” he said.
“As we head towards 2010 we need a keen focus on lifting new home construction to an extent that removes unnecessary upward pressure on home prices.
“A recovery in new residential construction is underway, but there is a very real risk that costly delays in planning approvals and land shortages will combine to blunt the magnitude of that recovery.”
The weighted average capital city established house price index increased by 4.2 per cent in the September 2009 quarter to be 6.2 higher when compared to the same period last year.
The established house price index increased by 4.3 per cent in Sydney, 4.7 per cent in Melbourne, 4.4 per cent in Brisbane, 1.7 per cent in Adelaide, 4.5 per cent in Perth, 1.8 per cent in Hobart, 3.4 per cent in Darwin, and 4.3 per cent in Canberra.
The weighted average index for project homes across Australia’s eight capital cities increased by 1.3 per cent in September.
Tuesday, November 3, 2009
Agents slam hokey journalism
Real estate agents have slammed an article in the Daily Telegraph that says those in the real estate profession are the most likely to cheat on their partners.
According to the daily, a survey conducted by online dating agency Redhotpie found 68 per cent of real estate workers had admitted to cheating on their spouse or loved one.
The survey of nearly 5,000 Australians also revealed that more men admitted cheating then women, but more men say they would forgive their partners.
A number of estate agents branded the survey as being ‘unwarranted’, ‘lacking credibility’ and ‘disappointing’.
“We cop enough flak in this industry without having to deal with reports such as these,” one agent said.
Real Estate Institute of Australia president David Airey said he thought the article was a joke.
“This is a case of a journalist with too much time on their hands,” he said.
Speaking tongue in cheek, Mr Airey mused: “but perhaps this is one way agents can build their listings".
According to the daily, a survey conducted by online dating agency Redhotpie found 68 per cent of real estate workers had admitted to cheating on their spouse or loved one.
The survey of nearly 5,000 Australians also revealed that more men admitted cheating then women, but more men say they would forgive their partners.
A number of estate agents branded the survey as being ‘unwarranted’, ‘lacking credibility’ and ‘disappointing’.
“We cop enough flak in this industry without having to deal with reports such as these,” one agent said.
Real Estate Institute of Australia president David Airey said he thought the article was a joke.
“This is a case of a journalist with too much time on their hands,” he said.
Speaking tongue in cheek, Mr Airey mused: “but perhaps this is one way agents can build their listings".
FHB activity to continue: RAMS
Friday, 30 October 2009
Regardless of the scaling back of the FHOG, first home buyers are still active in the market, research from RAMS has found.
According to the mortgage provider’s First Home Buyers’ Pulse Check, less than 40 per cent of potential first home buyers will actively try and purchase a property before the FHOG boost ends on 31 December 2009.
RAMS head of brand and marketing Lynne Wyatt said the boost to the grant was inevitably a catalyst and an enabler for many Australians to get a foot on the ladder but healthy demand from first home buyers is expected to continue for the rest of the year and well in to the next.
“We believe that in 2010 between fifteen and twenty per cent of our customers will continue to be first home buyers,” Ms Wyatt said.
According to the Pulse Check, there is real resilience amongst first home buyers and the majority will still look to buy even if interest rates continue to increase.
“In the first Pulse Check report, released in April 2009, seven out of 10 first home seekers said they had been influenced to look for their first home by the FHOG boost. The findings of the second survey indicate that the FHOG is not as influential as it was earlier this year,” Ms Wyatt said.
Regardless of the scaling back of the FHOG, first home buyers are still active in the market, research from RAMS has found.
According to the mortgage provider’s First Home Buyers’ Pulse Check, less than 40 per cent of potential first home buyers will actively try and purchase a property before the FHOG boost ends on 31 December 2009.
RAMS head of brand and marketing Lynne Wyatt said the boost to the grant was inevitably a catalyst and an enabler for many Australians to get a foot on the ladder but healthy demand from first home buyers is expected to continue for the rest of the year and well in to the next.
“We believe that in 2010 between fifteen and twenty per cent of our customers will continue to be first home buyers,” Ms Wyatt said.
According to the Pulse Check, there is real resilience amongst first home buyers and the majority will still look to buy even if interest rates continue to increase.
“In the first Pulse Check report, released in April 2009, seven out of 10 first home seekers said they had been influenced to look for their first home by the FHOG boost. The findings of the second survey indicate that the FHOG is not as influential as it was earlier this year,” Ms Wyatt said.
Top 10 boom towns revealed
Western Australia’s resource towns of Port Hedland and Karratha are set for a property boom, according to a real estate researcher.
Real estate forecaster Terry Ryder identified 10 key regional areas that are expected to enjoy a boom in prices.
In his "National top 10 Boom Town Hotspots" report Mr Ryder recommends investing in the cities of Bunbury in WA and Newcastle in New South Wales.
Also on the list was Ceduna in South Australia, Gladtsone in Queensland, Geraldton in WA, Portland in Victoria and Orange in New South Wales.
While most of the towns are located in some of Australia’s resource hotspots, Mr Ryder warned investors to be wary of spending their money in ‘pure mining towns’.
"While investors who get in early can make big capital gains, most mining towns exist in a bubble, which can burst if demand for resources drops, the local mine closes or housing demand falls away after construction of a major project is completed," Mr Ryder said in a statement.
According to Mr Ryder, investors would be more likely to benefit from investing in areas that are strategically located near regional centres that are set to benefit from major projects in the short term.
Real estate forecaster Terry Ryder identified 10 key regional areas that are expected to enjoy a boom in prices.
In his "National top 10 Boom Town Hotspots" report Mr Ryder recommends investing in the cities of Bunbury in WA and Newcastle in New South Wales.
Also on the list was Ceduna in South Australia, Gladtsone in Queensland, Geraldton in WA, Portland in Victoria and Orange in New South Wales.
While most of the towns are located in some of Australia’s resource hotspots, Mr Ryder warned investors to be wary of spending their money in ‘pure mining towns’.
"While investors who get in early can make big capital gains, most mining towns exist in a bubble, which can burst if demand for resources drops, the local mine closes or housing demand falls away after construction of a major project is completed," Mr Ryder said in a statement.
According to Mr Ryder, investors would be more likely to benefit from investing in areas that are strategically located near regional centres that are set to benefit from major projects in the short term.
Cross-selling gathers pace: survey
More than 70 per cent of all brokers cross-sell other products when offering residential mortgages, a new broker poll has revealed.
According to Mortgage Business’ latest straw poll, of the 300 brokers surveyed 210 cross-sell whereas 90 do not.
Joel De Shannon from Australian Independent Investment Solutions (AIIS) advocates the strong business case for cross-selling, saying he offers his clients insurance with every mortgage written.
“At AIIS we are trying to provide holistic advice and become a bit of a one-stop-shop to our customers,” Mr De Shannon told Mortgage Business.
“I find clients get more value out of your services if you can offer them more than a residential mortgage.”
According to Mr De Shannon, cross-selling has added value to his clients and his hip pocket.
“While you will see a return on your investment, I think brokers need to branch into cross-selling as a way to add value to their clients rather than their own income,” he said.
Phillip Edwards from Australian Mortgage Brokers is another broker who sees benefit in cross-selling.
“If you can offer more than transactional, residential mortgage broking, you will make your clients stickier and help keep them loyal to your business,” he told Mortgage Business.
According to Mortgage Business’ latest straw poll, of the 300 brokers surveyed 210 cross-sell whereas 90 do not.
Joel De Shannon from Australian Independent Investment Solutions (AIIS) advocates the strong business case for cross-selling, saying he offers his clients insurance with every mortgage written.
“At AIIS we are trying to provide holistic advice and become a bit of a one-stop-shop to our customers,” Mr De Shannon told Mortgage Business.
“I find clients get more value out of your services if you can offer them more than a residential mortgage.”
According to Mr De Shannon, cross-selling has added value to his clients and his hip pocket.
“While you will see a return on your investment, I think brokers need to branch into cross-selling as a way to add value to their clients rather than their own income,” he said.
Phillip Edwards from Australian Mortgage Brokers is another broker who sees benefit in cross-selling.
“If you can offer more than transactional, residential mortgage broking, you will make your clients stickier and help keep them loyal to your business,” he told Mortgage Business.
RAMS awarded 5 star accolade
RAMS Home Loans’ Basic and Easy Start three year introductory variable rate home loans have been awarded a five star rating from Canstar Cannex for outstanding value.
The mortgage provider’s head of product Joanne Reid said obtaining a five star rating for the two variable home loan products was a significant achievement.
Canstar Cannex researches and rates over 1,500 home loans from 115 lenders, and awards the top 5 per cent five star status.
Only the top five per cent of all home loans researched received the prestigious five star status.
The mortgage provider’s head of product Joanne Reid said obtaining a five star rating for the two variable home loan products was a significant achievement.
Canstar Cannex researches and rates over 1,500 home loans from 115 lenders, and awards the top 5 per cent five star status.
Only the top five per cent of all home loans researched received the prestigious five star status.
REIV to crack down on misleading advertising
The Real Estate Institute of Victoria (REIV) plans to introduce a new code of conduct for agents that will prohibit them from using misleading advertising methods including the phrases ‘price plus’ and ‘in excess of'.
Under the new code agents would be required to advertise a property with a single price, a price range of up to 15per cent or publish no price at all.
While the rules will only apply to REIV members, those who go against the code of conduct could face hefty fines and/or expulsion from the Institute.
A spokesperson from the REIV told Real Estate Business that the vast majority of agents do the right thing when it comes to pricing.
“While there are always one or two exceptions to the rule, we developed this code not to weed out the dodgy agents but to benefit consumers and help them make the right choice when it comes to buying their property,” the spokesperson said.
According to a spot audit conducted by Consumer Affairs Victoria, only 5 per cent of all problems associated with real estate agents involve pricing issues.
The proposed code is expected to be submitted to the Australian Competition and Consumer Commission for review and authorisation this week, a process that could take upwards of six months.
Affected parties will be given the chance to speak out for or against the proposed changes.
Under the new code agents would be required to advertise a property with a single price, a price range of up to 15per cent or publish no price at all.
While the rules will only apply to REIV members, those who go against the code of conduct could face hefty fines and/or expulsion from the Institute.
A spokesperson from the REIV told Real Estate Business that the vast majority of agents do the right thing when it comes to pricing.
“While there are always one or two exceptions to the rule, we developed this code not to weed out the dodgy agents but to benefit consumers and help them make the right choice when it comes to buying their property,” the spokesperson said.
According to a spot audit conducted by Consumer Affairs Victoria, only 5 per cent of all problems associated with real estate agents involve pricing issues.
The proposed code is expected to be submitted to the Australian Competition and Consumer Commission for review and authorisation this week, a process that could take upwards of six months.
Affected parties will be given the chance to speak out for or against the proposed changes.
CPI increases in September quarter
The consumer price index (CPI) has increased by 1 per cent over the September 2009 quarter, fueling speculation that the Reserve Bank will raise rates by 50 basis points at the November Board meeting.
But Housing Industry Association (HIA) senior economist Ben Phillips said the moderately higher than expected CPI does not provide the Reserve Bank with a reason to hike interest rates.
“Such a result is hardly a sign of inflation running out of control. Large interest rate hikes should be viewed as both unnecessary and dangerous and will likely dampen the much needed housing recovery, especially rental investment, across the country,” Mr Phillips said.
“Supply side constraints are continuing to place undue pressure on housing rents and home values, especially but not solely in Australia’s capital cities. Reducing the obstacles to boosting Australia’s housing supply is a fundamental policy challenge.”
But Housing Industry Association (HIA) senior economist Ben Phillips said the moderately higher than expected CPI does not provide the Reserve Bank with a reason to hike interest rates.
“Such a result is hardly a sign of inflation running out of control. Large interest rate hikes should be viewed as both unnecessary and dangerous and will likely dampen the much needed housing recovery, especially rental investment, across the country,” Mr Phillips said.
“Supply side constraints are continuing to place undue pressure on housing rents and home values, especially but not solely in Australia’s capital cities. Reducing the obstacles to boosting Australia’s housing supply is a fundamental policy challenge.”
Subscribe to:
Posts (Atom)
