Saturday Summary – the most interesting property investment articles I’ve read this week (2013/07/13)

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.

Surging Sydney to lead “uneven” recovery in residential property market over next three years: BIS Shrapnel

Property Observer recently quoted BIS Shrapnel’s forecasts for our property markets for the next 3 years. They suggested:

The Sydney median house price is expected to rise by an average of more than 6% per annum over the next three years leading an uneven recovery in the residential property market, according to new forecasts from BIS Shrapnel.

Sydney median house prices are expected to rise 19% between now and June 2016 – from an estimate of $670,000 as of June 2013 to $795,000 in three years’ time.

Gains will be modest to begin with, but then are expected to pick-up from around June 2014 onwards driven by a “sizeable deficiency” in new dwellings to meet demand as well as improved affordability as interest rates remain low.

The other strong gains will come from the resource states with Brisbane (up 17% to $513,000), Perth (up 15% to $600,000) and Darwin (up 10% to $655,000).

However in these three markets, the strongest growth is expected over the next 12 months and is then expected to taper off “as the pipeline of current investment in resource projects is increasingly worked through, with unemployment beginning to rise and migration and population growth slowing”.

Melbourne prices are expected to rise just 5% over the next three years with small gains for Adelaide, Hobart and Canberra with these markets impacted by weaker local economies and the supply of new housing almost in balance with demand.

 

Auction tactics for a hot market | 1 in 5 Gen Y’s could be in financial stress | Tax tips | A valuers perspective

Another great Real Estate Talk show produced by Kevin Turner. If you haven’t already, subscribe to this excellent weekly Internet based radio show.

Details of this week’s show:
Find out what deductions to claim in your tax return with property tax expert, Ken Raiss
Michael Matusik talks about first home buyers- where have they gone?
Kevin Turner talks about auction strategies and more with this week’s guests.

You should definitely subscribe to this weekly audio program. Click here. It’s free and you can listen on the go on your smartphone, iPad etc.

 

Advice driven by commissions is the next Storm-in-waiting in real estate

Brisbane based Simon Pressley suggests that property investors can get themselves into all sorts of strife by listening to so called advisors who have a vested interest in the properties they suggest to their clients .

He gives some great advice:

1. Be wary of anyone promoting brand new property. A property developer can include any number of middle-men and load all their kick-backs into the purchase price of a new build, but it’s physically impossible for this to happen when an investor is buying an established property from a private individual.

2. Remember that qualifications as an accountant (tax), mortgage broker (loans), and financial planner (managed funds) should not be confused with qualifications as an accredited property investment advisor.

3. Ask to see proof of your advisor’s qualifications as an accredited property investment advisor with one or both of the industry associations, PIPA or PIAA.

4. Ask them how they make their money. Even if they disclose the rebates they receive, ask yourself why the property they’re pushing (conveniently) happens to be the right one for you when there are 9.3 million properties to buy in Australia.

 

What will Sydney look like in 2050?

The Sydney Morning Herald recently took a peak into the future as to how Sydney could look in 20250. The city’s population is forecast to reach 7.5 million by mid-century, 3.2 million more than now.

[sam id=34 codes=’true’]We’ll live closer to each other, we’ll connect in digital spaces as much as in person, and we’ll stick closer to home. Instead of battling the traffic we’ll enjoy seamless journeys on multiple linked modes of transport.

We’ll harbour-hop from village to village on vessels big and small. The most spectacular central business district in the Asia-Pacific region will be home to less of the city’s big-business activity but more of its residents.

Sydney will be a more Asian-looking city, in the faces of its people and the bustling diversity of its streets where people live, shop and work.

The forces that have held sway over Sydney’s development this past century – car ownership, the aspiration for a quarter-acre block, space-greedy manufacturing on the perimeter – are losing their grip.

New forces – smaller families, a low-carbon economy, digital connectivity, an ageing population, knowledge-based work, globalism – are shaping the city of the future.

Mid-century, Sydney could be the exchange powerhouse for ideas and business in south-east Asia, eclipsing rivals such as Singapore, Kuala Lumpur and Tokyo, says the dean of the faculty of built environment at the University of NSW, Alec Tzannes.

Where will all these new people live?

“There is no question that density and agglomeration are the basis of economic productivity,” says the chief executive of the Committee for Sydney, Tim Williams. With higher-density living in the inner and many outer suburbs already, it’s the “middle ring” – around areas such as Strathfield, Hurstville and Ryde – where “much of the new housing action of the next few decades” will occur, Williams predicts.

 

Aussies gamble on auction clearance rates

Aussie punters can now gamble on weekly auction clearance rates, after online betting website Sportsbet opened a new ‘novelty’ option.

Property enthusiasts can vote on three categories, what they think clearance rates will be in the Sydney and Melbourne markets, and which capital city will have the best clearance rate.

Novelty trading and marketing expert at Sportsbet Will Byrne told Real Estate Business the introduction of the auction clearance rates was due to the huge discussion around it.

“Now we’re seeing more coverage about the auction clearance rates,” he said. “The focus is around Melbourne, but Sydney had a record last weekend, making a topical debate amongst everyday life that we thought we might as well get involved in conversation,” he said.

“It’s good to give the public an opportunity to actually have their say, especially if they plan on partaking in an auction on the weekend. It makes it a little more exciting for them to see how it’s going to turn out.”

Mr Byrne said the topic had received a good response and that it had been welcomed by people from within the industry because it put more attention on it.

This is the first time that Sportsbet had allowed people to vote on auction clearance rates. At the start of the year, the betting site gambled on the topic of housing prices and whether they would increase or decrease.

 

Blogs you may have missed this week:

If you didn’t have a chance to read my daily blog, here’s a list of the blogs you missed this week:

Are low interest rates working?- Pete Wargent

VIDEO – The property market is reviving, what could ramp it and what can stall it? – Louis Christopher

Why aren’t dwelling values increasing at the same pace as the last growth cycle?- Tim Lawless

Property development guide part 8 – Increasing your chance of success & managing risk

Congratulations – Australia ranked ‘happiest’ nation again

A Matter of Trust

[post_ender]



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Michael is a director of Metropole Property Strategists who create wealth for their clients through independent, unbiased property advice and advocacy. He's been once agin been voted Australia's leading property investment adviser and his opinions are regularly featured in the media. Visit Metropole.com.au


'Saturday Summary – the most interesting property investment articles I’ve read this week (2013/07/13)' have 1 comment

  1. July 14, 2013 @ 2:06 am Orlando Payne

    “From an investment property point of view, the majority of investors are offshore or Asian investors. There are still local investors, but by and large the majority participating in the inner city apartment boom are offshore or from the Asian groups.

    Reply


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