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.
Sydney beats Melbourne when it comes to millionaires: 1.3% of population is seriously loaded
SmartCompany reports that…
In Sydney, 1.3% of the population has US$1 million (A$1.114 million) or more in assets, once their primary residence is excluded.
That makes Sydney the world’s 12th most dense millionaire city. Melbourne is six places behind with 0.9% of the population meeting the same wealth threshold.
Together, 61.8% of Australia’s millionaires live in our two largest cities, with 37.8% living mainly in Sydney and another 24% in Melbourne.
The figures come from a report by global wealth consultancy New World Wealth, which found Geneva was the world’s leading city when it came to millionaires, with 5.9% of the population being seriously loaded.
In total aggregate numbers, London is home to the world’s most millionaires, with 339,200 calling the city home. This works out to 2.5% of the total population.
In the Asia-Pacific, Tokyo and Singapore lead the ranking, with 226,500 and 225,000 millionaires apiece respectively. Singapore has recently seen a flood of millionaires calling it home, like Australian mining speculator Nathan Tinkler and Facebook co-founder Eduardo Saverin. Such recent arrivals have helped make Singapore the most dense millionaire city outside Europe – 4.5% of the population there are millionaires.
There were no Middle Eastern or African cities in the top 30. However, New World Wealth notes Istanbul’s 35,000 millionaires mean it just missed out on a top-30 ranking. The highest-ranked African city was Johannesburg, with just over 23,000 millionaires.
The ranking shows that wealth remains concentrated in Europe and the United States. There were no less than seven US cities in the top 30, including second-placed New York. There were 10 European cities in the top 30, including two in Switzerland and three in Germany.
Property market outlook for 2014 | Buying at Auction | Getting into Property Development | Sell yourself or use an 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:
Monique Sasson from Wakelin Property Advisory tells us what her outlook is for the rest of 2014
Michael Teys explains why long term management contracts are not good for investors
Johanna Griggs from Better Homes and Gardens joins us with some news about how she develops 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.
Is Harry Dent Just A Snake Oil Salesman – Pete Wargent
Of course, it’s a load of old bunkum designed to sell books, and the same approach is applied to real estate, stocks, wages, bond prices, spending cycles and so on. A good read for a laugh, but no, I wouldn’t take it all too seriously
20 Tips to ensure you get your loan – Mark Bouris
Mark Bouris gave his 20 tips to ensure you get your loan in Property Observer. Here’s my favourites:
Show consistent savings: lenders want to see evidence of good financial management, rather than windfalls. Use a separate savings account to make regular deposits and few withdraws.
Have stable and consistent income: lenders are generally less comfortable lending to someone who has had numerous jobs or long gaps between employment.
If you do change jobs, stay in the same field and show increased income. Apply for your mortgage before changing employers or starting a business.
Understand your budget: lenders will want to know your gross income, and your financial and living expenses to gauge your disposable income.
Have a stable rental history and minimise moving houses or apartments.[sam id=41 codes=’true’]
Lower your limits on credit cards: every $1 of credit card limit stops you borrowing up to $5 of home loan. Reduce credit cards to one, and reduce that card’s limit to what you use. Pay-off and cancel the credit card if you can.
Know your credit report: most lenders credit-score you on the Veda system which shows your current and past credit activity. You can buy your Veda credit file at www.mycreditfile.com.au.
If you’re self-employed, get your taxes done before applying and make sure there’s no tax owing on your ATO account.
Reduce overheads: fancy car leases, big smart phone plans and cable TV charges can reduce your net income and affect your serviceability.
Don’t apply for too many mortgages. This affects your credit scoring.
Don’t lie to lenders, especially about other loans or credit cards.
10 Ugly Truths of Property Investing
Your Investment Property Magazine reports the ugly side of property investment
1. Vacancies are more common than experts admit
2. Maintenance costs can eat up your rental income
3. You could overpay
4. Tenants disproportionately have more rights than landlords
5. You could have a dodgy tenant
6. Your property could get flooded/burned
7. It can be difficult to sell your property
8. There is no guarantee your property will go up in value
9. Buying and selling properties is expensive
10. You could get sued by tenants
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: