Real estate accounting can be rather complex if you are managing properties for a client because you are dealing with large amounts of money on a regular basis. Well managed accounting system can make all the difference. Mistakes or erroneous entries could cost the client a lot of money. For an accountant working in the real estate industry, chartered accountant insurance is very important to cover professional risks.
According to a global investment bank, Australia’s world record housing boom is officially over. Home prices in Sydney have fallen for the second month in a row. UBS economists informed their clients that a persistent and sharp slowdown is unfolding to end 55 years of unprecedented growth that resulted into home values soaring by as much as 6500%.
In capital cities, home prices have continued to slow down on a quarterly basis. Everything is being weighed down by lending requirements that have tightened for property investors and banks raising home loan rates. Based on figures from property data group Carelogic, in Sydney, home prices fell by 0.6% over the quarter and down by 0.5% over the month.
In Melbourne, market prices have remained resilient with home prices up by 0.5% for the month but for Darwin and Perth, home prices were down by 4.4% and 0.7% respectively over the last quarter. Home prices have remained flat nationally over the month but edged up by 0.4% over the last 3 months to October 31.
UBS was previously cautious of the property market and has made the forecast that Australia’s annual home price growth will moderate from the solid double digits to 7% by January 2017. UBS also predicted that prices will fall further by 0.3% in 2018. The cooling is happening more quickly than expected with the recent weakness in auction clearance rates and the anaemic growth over the last 5 months.
One of the important aspects in risk management is chartered accountant insurance to provide protection against professional risks. Even with the minimum required insurance for accounting professionals, there are other unique risks that be encountered which require additional coverage that best suits the needs.