Real Estate Investing Advice & Strategies From Experts You Can Trust
There are more property investment articles, commentaries and analyst reports on the Web every week than anyone could read in a month. Each Saturday morning I like to share some of the interesting ones I’ve read during the week.
Enjoy your weekend…and please forward to your friends by clicking a social link buttons on the left.
No surprises that the cash rate stayed on hold in December at 2.50%.
But what for next year?
We’ve had some interesting developments today on the debt ceiling in Australia, and in particular some interesting news in the National Accounts.
GDP growth for the quarter came in at a somewhat disappointing 0.6% q/q and 2.3% y/y.
The RP Data-Rismark Home Value Index results for November were released earlier this week. The results showed that capital city home values increased by 0.1% over the month and are now 8.0% higher over the past year.
Sydney has recorded the largest annual values growth (12.5%) followed by: Perth (8.9%) and Melbourne (6.6%). All other capital cities have recorded annual value growth of less than 3.0% with values falling by -1.4% in Hobart.
Bursting with excitement, she told me ‘I’ve just bought ten hectares of land for each of my five grandchildren!’
‘How very thoughtful – what did that set you back?’ I asked.
‘Just $20 a hectare, and each block has unbelievable views!’
This seemed an incredible bargain, so I asked her, ‘Wow! Where did you find such a fantastic investment?’
‘On the moon.’ she replied.
It was true.
Apartments or houses – which make a better property investment? And why chose one type of property over the other?
Today I’d like to make the case for investing in medium density dwellings, and I’d like to start with a little story to illustrate why.
Where I grew up in Sheffield in northern England we lived in a bail hostel for young offenders as that’s where my Dad worked.
The suburb was Norfolk Park known for its many high rise tower blocks. But after my old man had worked at the hostel for some time we moved out 10km of the city to suburbia and lived in a 3 bedroom brick house.
In good times, it’s easy to become complacent when choosing an investment property. The media’s full of hype, prices are skyrocketing, and people are in a scramble to buy.
It’s not unusual in times such as these to think that anything you touch will turn to gold.
But it’s not until things get a bit rocky that the market really starts to sort out the wheat from the chaff. Properties that never had the right fundamentals get hit hard, while the rest calmly weather the storm.
With the market turning upwards once again, I’m sure many of you are contemplating acquiring an investment property. If you are, learn from the mistakes many others made in the last boom and purchase wisely.
You must always remember that not every property is the same. In fact, the potential for growth in each property can vary quite dramatically.
Let me explain…
Figures released by SQM Research reveal that the level of residential property listings around the nation rose substantially during the month of November, with national stock levels increasing by 6.3% and coming to a total of 369,057.
Year on year, stock is still down marginally, revealing a -2.4% decrease on a national level since November 2012.
SQM Research has observed that there are certain factors which need to be taken into account in regards to this monthly rise; firstly that there were five weekends during the month of November, rather than the usual four, and secondly – the issue of seasonality.
The self discipline that you have displayed over the last 15 years and your self education about property strategies has seen you grow a property portfolio of ten properties over that time through the establishment of three separate companies acting as trustees for three different family trusts. You now have a property portfolio worth close to $2M.
The Melbourne property market’s strength over the last year or two has confounded many property pundits.
Despite some areas of oversupply (like in the CBD apartment market and house and land packages in the outer suburbs) property values throughout most suburbs of Melbourne just keep increasing.
In fact Melbourne dwelling prices have increased by 7.8% in the last year according to RPData.
Sure Melbourne was voted the world’s most liveable city for the third time in a row, but there’s more to it than that.
You see…Melbourne is bursting at the seams with the largest growth of any Australian city over the five years
It’s the time of year where were the economists look forward and make their predictions for the year ahead.
Of course when you look back at the forecasts they made 12 months ago, many were way off the mark. However, Dr Shane Oliver
Head of Investment Strategy and Chief Economist at AMP Capital has a pretty good track record, so I was interested to read his latest insights
Here’s what he had to say…
Welcome to Property Investment Update. If you are interested in creating wealth through property investment - browse our site to get tips and strategies you can trust from Australia's leading real estate investment, tax, property development and finance experts. To keep up to date with regular market updates, please click here.
Get property investment updates on your terms:
Explore our property finance & tax related books, CDs and DVds.
