Saturday Summary – the most interesting property investment articles I’ve read this week (2013/11/30)

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.

Boom towns ready for slow death

Your Investment Property Magazine reports that  skyhigh property prices and the grim quality of life in many Queensland mining towns have forced changes in the way mining companies accommodate their workers, with disastrous consequences for investors

With rents and property values plummeting, YIP explains:

One could put the sharp drops down to an oversupply of houses on the market – there has certainly been a lot of building activity in these areas – but, according to Hotspotting director Terry Ryder, the real culprit is the mining companies.[sam id=37 codes=’true’]

Ryder says that many of the big mining houses have been in cost cutting mode and have turned to a growing pool of fly-in, fly-out (FIFO) workers and drive-in, drive-out (DIDO) workers. These workers are choosing to bypass the towns that surround the mines they work in; commuting from another location they deem more “desirable” to live in.

Mining companies have also warmed up to the concept of mining camps – areas where the companies provide nearby, temporary houses for their staff who work the mines.

“FIFO and miners’ camps were once the exception. Now they’re the norm,” says Ryder. “We’re moving towards a situation where everyone working on a new mine will be on a FIFO roster and no one will live in the local town.”

For mine if you’re interested in investing in a mining town, invest in Brisbane – the biggest mining town in Australia. It’s at a great stage in the property cycle for investors, having finally turned the corner and now enjoying capital growth.

 

Margaret Lomas’ growth drivers | Should you invest with friends or family? | Chris Gray’s Renovation tips

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:
Margaret Lomas from Destiny Financial Solutions shares her growth driver strategy with us
Chris Gray talks about the experience he has gained from successfully renovating and developing property
Louis Christopher tells us that the level of residential property listings around the nation has risen minimally
Rob Balanda tells us the best and worst property investment advice he has been given

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.

Property Investors – set your sights on Queensland

Property columnist Terry Ryder writes in Property Observer:

I have no doubt that Brisbane will be the big improver among the capital city markets in 2014. And, in terms of the states and territories, Queensland is where investors should be concentrating.

Brisbane ranked well down the list of capital cities for house price growth this year. Data for the end of the September quarter had Brisbane fifth (ABS House Price Indexes), sixth (RP Data Home Value Index) and seventh (APM’s House Price Report), depending on whose figures you prefer.

Brisbane has lagged Sydney, Perth, Melbourne and Darwin in house price growth because of a triple whammy of events. As well as the national downturn that hit after 2010, there were the 2011 floods and later the extensive jobs and spending reductions by the state government.

As 2013 has worn on, there has been gradually improving evidence of recovery in the Brisbane market. The ABS recorded a 4.1% rise in the Brisbane House Price Index in the 12 months to the end of September. I expect growth to build as we get into 2014.

 

Pete Wargent’s take on population growth

Regular Property Update blogger Pete Wargent explains why he only invests in our big capital cities:

The Sydney Morning Herald explores further the new population projections in this article today here.

People often ask me why I prefer the idea of investing for the long term in large cities like Sydney (and London) and where possible prefer to steer clear of cheaper alternatives such as South Australia, Tasmania, and regional NSW and Victoria.

Well, the article is pretty much self-explanatory:

australias cities present and future

“By 2060, the bureau estimates, Melbourne will have 8.5 million people, twice as many as now.

By then Sydney would have 8.4 million, an increase of 80 per cent from now.

Perth would more than double to 5.5 million people, and Brisbane to 4.8 million. Both cities would be bigger than Sydney is now. Melbourne would overtake Sydney in 2053.

Those four cities, the migrant magnets of Australia, would add 14 million of the 18.4 million extra people envisaged by 2060.

The rest of Queensland would add 2 million, the ACT would double to almost 750,000, but in much of the rest of Australia – South Australia, Tasmania, and regional NSW and Victoria – population growth will either reverse or slow to minimal levels by 2050.”

 

It’s not nasty foreign buyers pushing up our property pricess – Michael Matusik

Property analyst Michael Matusik, writes that it’s not nasty foreigners who are buying up our properties pushing prices out of reach of us poor locals.

Xenophobia rules.  Buyers are rushing in from overseas.  Heaps more are coming from interstate.  Locals are being beaten at the post by out-of-state buyers.

Really? Hmmm, the statistics show quite a different story.

Eight out of ten (83%) residential properties sold in Queensland over the last 12 months were purchased by locals. One in ten (11%) was bought by an interstate buyer & just 6% were purchased by someone living overseas.

Overseas buying varies considerably across the state, with Brisbane attracting the most interest with 11% of its property selling overseas last year.  The Gold Coast attracted an 8% overseas market share, whilst many of the major regions sold between 5% & 8% of their homes (including apartments & townhouses) to overseas buyers during the 12 months ending September 2013.

 

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:

5 interesting examples of irrational ways of thinking about money

This week’s property market trends | RPData

[Video] Property Market Update – Louis Christopher

South East Queensland property market finally enters growth phase – Michael Matusik

[Video] The latest property news with Kevin Turner | 27th November

Australian Property Market Update – ANZ Bank – 25th November 2013

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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


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