Saturday Summary – the most interesting property investment articles I’ve read this week (2013/08/24)

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.

Beware the mother of all housing booms

Normally conservative Robert Gottliebsen writes in Business Spectator:

If we are not very careful Australia is going to have the mother of all dwelling booms. What we are seeing is a three-pronged boost to prices.

First is a dramatic push to lift the demand for dwellings by banks offering cut mortgage rates thanks to Reserve Bank Governor Glenn Stevens.

But second, and just as importantly, there is reluctance by banks to fund new supply. In any commodity if you inflate demand and squeeze supply, prices go through the roof.

Thirdly taxpayers will subsidise the boom via a massive increase in the use of negative gearing via both personal and superannuation tax breaks.

He then warns…

Longer term, that will damage the economy and the Reserve Bank will have to take responsibility for pulling the price boom trigger. The market accepts further interest rate cuts but surely the Reserve Bank board members will now have second thoughts about future cuts.

 

Watch out for the Tax Man | How to cash flow negatively geared properties | Reno tips from Cherie Barber |Signs of a turning market

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

Details of this week’s show:
Ken Raiss from property specialist accountants – Chan & Naylor explains how to prepare yourself when being audited
Michael Yardney talks about cash flow and capital growth
Louis Christopher explains what plunged property listings means to property investors
Cherie Barber answers a questions about over-capitalising

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.

 

The Gold Coast is the Titanic of the Australian property industry

Terry Ryder writes in Property Observer:

A Queensland bureaucrat created a storm in a teacup in January when he made a joke about the Gold Coast property market while speaking at a Brisbane business function.

He asked: What’s the difference between herpes and the Gold Coast property market?

The answer: You can fix herpes.

Everyone should have laughed and moved on, but people who take themselves way too seriously got upset about it.

He explains that the Gold Coast has been one of Queensland’s worst performers over the past five years.

The Gold Coast is the Titanic of the Australian property industry. It’s a great lumbering top-heavy thing that many thought was unsinkable, but sink it most definitely did. Ambitious people have tried to raise it from the trough in which it rests, but without success. Some have tried to re-create it. But inevitably the Titanic of real estate sinks, weighed down by its own arrogant disregard for fundamentals.

He warns the cycle will repeat itself..

Now, just as the surplus looks like being soaked up, developers are at it again, hatching the plans that will create the next suffocating over-supply, aided and abetted by politicians who let their egos do their thinking for them.

And concludes with…

God help the Gold Coast and anyone who buys there.

 

New homes will cost $12 million in seventy years

Seventy years from now, we will all be millionaires, and homeowners can expect to pay an average of almost $12 million for new properties according to a report quoted in the Herald Sun

They also came up with some other interesting findings. DGCAssetManagement.com managing director David Garner said

“Many of our investors … want to know how to plan for their children’s future and what that future might look like financially. We used historical data to calculate compound annual growth rates, which we then applied over the next 70 years to 2083.

“We also adjusted for inflation, to provide a better comparison with today’s prices.”

[sam id=37 codes=’true’]The data projections found in 70 years people would live much longer, bread will cost about $34 a loaf and homeowners can expect to pay an average of almost $12 million for new properties.

Researchers also say that the average citizen will have access to a wide array of biotechnology implants and personal medical devices.

These could include fully artificial organs that never fail, bionic eyes and ears providing superman-like senses.

The 2080s will not be so bright for many animals, though, as lizards and polar bears will be extinct.

Spain, Italy and the Balkans will turn into desert nations, with climates like North Africa, and agriculture will suffer.

And in Star Trek style experiments in quantum entanglement, made possible by artificial intelligence and picotechnology, will provide major breakthroughs in travel.

By 2083, the future experts claim it will be possible to teleport macro-scale objects from one location to another.

 

The six psychological factors that make a really great leader. 

Want to lead others? Psyblog recently carried a great blog summarizing the factors that psychologists consistently find make a good leader.

Here’s what they said: are:

  • Decisiveness: good leaders make frequent decisions and stick with them. When there is uncertainty (and when isn’t there?) good leaders choose and take responsibility.

  • Competence: leaders should provide resources for their group. The headman in prehistoric times was often the best hunter in the group. Nowadays being competent often means having the knack of influencing others.

  • Integrity: leaders you can trust increase followers’ performance, satisfaction and commitment. Integrity breeds respect.

  • Vision: projecting a vision of the road ahead is vital, this gives people a common purpose and motivation to persevere. Without a vision, the followers are lost.

  • Modesty: the most effective leaders weren’t grand-standing show-offs; they were incredibly modest and humble.

  • Persistent: the leaders who transformed their organisations the most never gave up. That doesn’t mean they were inflexible, but that they never stopped pushing towards their goals.

 

Weekend funny video

I love magic so I really enjoyed this video…

A Dutch TV-show challenged magician Hans Klok and the “Divas of Magic” to do as many illusions as possible in 5 minutes.

 

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:

Why we’re entering a residential upturn – Michael Matusik

It’s all a matter of perspective – how much time do you have?

The latest property video from Kevin Turner | 21st August

This week’s property market trends | RPData

What’s going to happen to property after the election?

3 reasons to be cheerful about the future of property- Pete Wargent

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If you’re serious about property investment please join me and a group of property and tax experts at my upcoming Property Market and Economic Updates that I’ll be conducting in 4 states in August and September 2013

I will be presenting a heap of BRAND NEW content I haven’t discussed in public before. I guarantee there will be several things I reveal that you are not doing and you should be!

Click here now to get more details and reserve your seat.

Property & Econonomic Update

If you want to cut through all of the media hype, and all the contradictory predictions, and finally learn the truth (good and bad) about what is going to happen to the Australian property markets, this seminar is exactly for you…  Click here now to get more details and reserve your seat.

Michael Yardney

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About

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


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