There are more interesting 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 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.
Foreign Investors double their volume of new property investment
The Herald Sun reports that foreign investors got the green light to double their stake in new residential development in Victoria last financial year, new analysis reveals.
The Residential Development Council estimates foreign buyers were given approval to buy $9.3 billion worth of new property, up from $4.22 billion.
However, the property research group’s executive director, Nick Proud, said not all approvals translated to sales and the figures were more a reflection of growing overseas interest in Victorian property.
The council’s estimates are based on the Foreign Investment Review Board March data covering a range of developments from single to multi-unit dwellings.
“What we are seeing with the doubling of the approvals is the doubling of the interest in residential real estate in Victoria in one year,” he said.
He said the numbers were especially skewed by figures for off-the-plan approvals, with permission to sell to foreign buyers counted regardless of whether the sales were made.
What could stop this property cycle? | Succeeding in today’s market | Smart property management | How to find a good selling agent
Another great Real Estate Talk show produced by Kevin Turner. If you don’t already subscribe to this excellent weekly Internet based radio show.
In this week’s show:
Bryce Holdaway is along to talk about how he and Veronica are helping people achieve their property goals
I give reasons why the market may fail
We tell you how to find a good selling agent and much more
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.
Where are jobs being added?
I will have to adjust the y axis on my chart as New South Wales jobs growth recorded a huge leap of more than 45,000 in August and adding well over a quarter of a million persons employed in the last five years.
By way of contrast, the South Australian economy has not added 45,000 jobs in more than half a decade. Note Western Australia holding up surprisingly well!
Don’t be lured by land spruikers
In his regular Herald Sun Column, the Barefoot Investor Scott Pape, warned readers of the concept of taking options for land banking.
The readers question was:
Have you heard of a strategy called land banking? It involves buying an option on a parcel of land. In seven years’ time we have the option to buy or sell it, and make capital gains.
There are no interest charges or ongoing fees. What we are buying is an option to buy the land, which costs $40,000. It’s being promoted by a property investment firm.
My husband is keen, but I am sceptical. What do you think?
Scott’s answer was:
I need to be very careful here, and ensure that you don’t misconstrue what I’m about to say.
I think it’s a giant, steaming, dog turd of a deal. The next time your husband mentions this “opportunity” I want you to take this newspaper, roll it up, and smack him over the noggin repeatedly until he says, “I promise I will keep our hard-earned money away from property spruikers”.
The mob behind this have reportedly been selling options on paddocks around my home town of Bendigo.
Before that they were reportedly selling land bank options around Shepparton — though that particular development has reportedly gone into liquidation, with about two-thirds of the $4.8 million in “option” fees being unaccounted for.
Sydney’s Rental Vacancies Set To Surge due to oversupply.
Your Investor Property magazine reports that despite a new report by Real Estate Institute of NSW showing a dip in Sydney’s rental vacancy rate by 0.2% to 1.8%, the overall trend is still on the way up.
REINSW president Malcolm Gunning said that inner Sydney vacancy rates declined by 0.2% to 1.8%, while the outer suburbs slipped by 0.1% to 1.8%.
However, the middle suburbs bucked the trend with a rise of 0.2% to 2.1%.
Gunning said the market actually hit the lowest point in March this year with a vacancy rate of 1.4%.
In the five months since, vacancy rates have been tracking upwards.
This meant that the latest data showing a decline could be considered a slight glitch, Gunning continued.
“Availability will continue to improve as more properties enter the marketplace as a result of the construction boom in Sydney.”
Weekend video: Breathtaking Walk on Sky High Statue
Watch the powerful images of workers, working at an altitude of 30 metres, as they restore the lightening damaged statue of Christ the Redeemer, one of the symbols of Rio de Janeiro.
Blogs you may have missed this week:
If you didn’t have a chance to read my daily blog, here’s a list of some of the blogs you missed this week: