Saturday Summary – the most interesting property investment articles I’ve read this week (2013/11/09)

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.

This is not a property boom. That was property boom!

Peter Koulizos cautions property bubblers not be alarmed in API Magazine’s blog. He says:

I understand that any increase in property prices is something to get excited about, especially when you consider we’ve seen property prices drop in recent times. But many of them must have short memories.

Even if you just consider the Sydney residential market, which is the best-performing capital city over the past year, it’s nowhere near the dizzy heights that property markets have seen before.

The latest figures from RP Data show that over the past year, property prices in the major capital cities have risen by the following:

Sydney – 10.5 per cent

Melbourne – 7.0 per cent

Brisbane – 1.3 per cent

Adelaide – 0.3 per cent

Perth – 7.6 per cent

The table below is taken from Australian Bureau of Statistics data and illustrates annual increases in home prices. I’ve used the time period from 1986 to 2005 as this included two property booms in most states.

graph 1

He concludes:

If you’re a property owner, it’s no doubt great to have seen property prices increase in all the major capital cities over the past year. I’m sure there will be many property booms in the future just as there have been in the past but we’re certainly not experiencing boom times at the moment.

 

Property research | Buying before auction | Dutch auctions | Negotiating tips | Choosing a 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.

Details of this week’s show:
Mark Armstrong
gives some advice on what to do when a property you’re keeping an eye on may not make it to the auction date.
Rob Balanda explains what a dutch auction is and how gazumping can catch you as a buyer
Nhan Nguyen – shares his top negotiation tips
Tim Lawless from RP Data helps you make an informed decision before entering the property market
Tom Panos shares his knowledge about how to pick the best agent to sell your property

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.

 

Gen Y are the nation’s best savers:

SmartCompany quote a RaboDirect suvey:

They may be thought of as lazy and entitled, but Gen Y have proven to be the nation’s best savers, and the experts say they’re not surprised.

Twenty-nine per cent of Gen Y saves a “regular amount” each month, in contrast to only 19% of Baby Boomers and 25% of Gen X, according to the first instalment of RaboDirect’s 2013 National Savings and Debt Barometer.[sam id=37 codes=’true’]

Overall, 24% of Australians were able to maintain consistent savings each month.

The number of Gen Ys saving increased to 62% when including those who save inconsistent amounts each month, compared to 54% of Gen X-ers and 51% of Baby Boomers.

Steady saving was viewed by RaboDirect as the best way to achieve financial success, but 31% of Australians were more prone to saving money on occasion, but not managing to put money aside on a monthly basis.

 

Sydney buying conditions frustrate investors

Your Investment Property Magazine report that if you’re considering investing in the Sydney property market you’ll be struggling to find good stock:

Herron Todd White’s Kim Quick says there’s currently a distinct lack of listings as properties are quickly snapped up as soon as they come on the market.

“The single biggest factor affecting the market across all metropolitan suburbs is the lack of available stock,” she says.

The consensus from both agents and prospective buyers is that there is simply not enough property for sale at present, she continues. “Because of this shortness in supply, when properties do come on the market we are seeing some very positive sale prices.”

This anecdotal evidence is backed up by a recent report by RP Data which found that listing numbers in Sydney are about 28% lower than a year ago. This comes as sales activity jumps 30% over the same period – creating a perfect storm for price growth.

However, Sydney’s undersupply situation is likely to be improved in the future with a significant increase in new homes being built around Sydney. Over the 12 months to September, construction of new homes jumped 35%. This represented a 10 year high, according the state government.

 

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:

This week’s property market trends | RPData

Latest property news video with Kevin Turner | 6th November

[Video] Interest rates are steady but mixed signals for what’s ahead in property

Will the number of properties for sale match market demand? Louis Christopher

Buy and hold may not be cool, but it’s very effective- Pete Wargent

Enemies Can Help

[post_ender]



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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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