Here’s 3 minutes of good news property reading, and then you can get on with your weekend…
A moment with Mike….
According to Dale Carnegie, “Inaction breeds doubt & fear. Action breeds confidence & courage. If you want to conquer fear, do not sit home & think about it. Go out & get busy.”
Well, this might explain why there was stuff-all traffic on the road over the Easter break – most seemed to sit at home. And not only did we do that…we sulked as well. We also saw consumer confidence (as measured by Westpac & the Melbourne Institute) fall over recent weeks.
Now, there might be some excuses for our collective slump, as the survey period was April 2-7 & the Cyprus concerns late last month & decline in share markets last week could have given consumers a reason to pause after a rather exuberant start to the year.
But I think that is all too high-brow – we just aren’t getting on with it.
Interestingly, the Westpac/Melbourne Institute’s “good time to buy a dwelling” index – despite the general April confidence decline – is at its highest level in three years, up 25% on this time last year.
Yet buyers are still sitting on the hands.
Waiting for what? Lower interest rates? A federal election? Leprechauns with a pot of gold or the granting of three wishes?
I have made a pledge this year – enough with the excuses. The GFC is done & dusted. There is business out there – and yes, we have had to make big changes regarding what we do in order to fit in with market demand (& some readers don’t like it), but such is life. I will bet you my bottom dollar that Leprechauns continue to make shoes regardless of the weather.
I am confident; I am smiling, although not all the way to the bank.
PS – For what it is worth, I am a Dale Carnegie graduate & qualified trainer. Looks like the Dale Carnegie Institute will allow anyone in.
1. Population increasing
We are growing – recent stats indicate a buoyant population growth, up 382k over the past year and the highest throughout Australia since mid-2009.
Net overseas migration is the major contributor – previously having doubled from around 120k pa over the past eight years, to a peak of 252k in 2009.
The attraction? Australia’s job market. Overseas observers see our mid-5% unemployment rate as favourable – just look at current EU and UK conditions. Jobs growth averaging 2% pa here is in sharp contrast to many OECD economies.
The education sector is also playing a role, with the numbers of international tertiary students starting to build once again.
2. Vendor confidence up
At a national capital city level, vendors have appeared to lift asking prices by 1.3% in spite of falls in most capitals.
Asking prices for units were up across most capital cities, with large rises in Sydney (+3.4%), Perth (+2.3%) and Hobart (+4.8%).
3. If you build it, will they come? – Inc.com
Here are three simple steps to see if there is a market for your new product or service:
- Google AdWords – do a Google search to locate the goods/service – if advertisements come up, then you know potential competitors are paying to advertise…which means there is a market. As to its size…the more adverts, it is likely the larger the market.
- Price points – research prices of the potential competition to understand whether you will be able to compete in the industry.
- Distinguish your goods and services – you know who your competition would be, and their price points; now work out how you will win over their customers. What will make you more than just another face in the crowd?
Michael is the director of independent property advisory Matusik Property Insights and writes the Matusik Missive which is free, however, reprinting, republication or distribution of any portion of this material, or inclusion on any website, is strictly prohibited without the written permission of Matusik Property Insights and may incur a charge.