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.
So enjoy for some weekend reading …and please forward to your friends by clicking the social link buttons on the left.
Six ways to get into the property market without a ‘really good job’
This Domain article highlights the necessary steps it takes to get into your own home without the ‘really good job’ that the treasurer says we must have.
Nicole Haddow moved back in with her parents in order to save for her first home.
It’s tough for my generation to get into the market, but it’s not impossible if you’re prepared to make a few sacrifices.
Here’s how I did it:
1. Give up your privacy
I moved home with my parents just before I turned 30 in 2013.
I know this is not a luxury that many people have and I’m lucky my parents were happy to take me in at 30.
2. Your social life will take a hit
I gave up a lot of things that 30-somethings might not be prepared to.
The list includes: brunch, taxis, expensive social events, new clothes, hair appointments and shouting rounds at the pub.
Nights out were often replaced with coffees and visiting friends at their house with a cheap bottle of wine under my arm.
3. Work all the time
Before I bought my home in February 2014 I had multiple sources of income.
I held a full-time job, supplemented my salary with freelance writing and I still do. I write on my weekends.
I have a great job. I’m fortunate that I enjoy the ways that I generate my income, but despite it being a good professional job, I couldn’t have saved the deposit, settled, or commenced the routine of mortgage payments, body corporate expenses, rates and living costs on a single income alone.
4. Don’t go to auctions
I looked for properties that were selling privately.
I also looked in January, when people selling are generally doing it because they have to.
Give spring a miss and wait until everyone’s relaxing on the beach to get a good buy.
5. Move out of town. Way out
I bought a two-bedroom apartment in Mordialloc, 22 kilometres out of Melbourne.
It’s a long way from my family and friends in the inner eastern suburbs and sometimes I felt isolated.
I made peace with the commute eventually.
6. Buy with your head, not your heart
I live in my apartment for now, but it could become an investment later.
If I have to rent it out and rent closer to the city I can.
It’s better to be in the market in my humble little abode than not at all.
Emotions vs Property Market | Borderless Investors | Finding good Tradies | Suburbs that are coming to Life | Properties with a Twist
Details of this week’s show:
- Margaret Lomas takes a look at the suburbs around Australia that are ‘coming to life’ in terms of future growth.
- Peter Spann explains what he looks for when he buys a property and how he identifies ones with a twist.
- Bryce Holdaway from Lifestyle’s Location, Location, Location Australia explains the benefits he sees in being what he calls a borderless investor.
- Carolyn Boyd from Domain who has been looking into the horror stories surrounding building contracts
- Michael Yardney has some great advice on how to avoid paying too much when you buy.
- Plus much more!
Appetite for construction!
2015 kicked off with the highest number of building approvals we have ever seen in Australia.Since the beginning of the year, things have pulled back a little, with the headline result declining twice in the past three months.
Nevertheless, on a rolling annual basis building approvals are as high as has ever been recorded in this country at more than 214,000.Units and apartments account for more than 98,000 approvals, also comfortably a record high.
Reserve Bank says Sydney real estate boom won’t derail rate cut prospect
The ABC reports on RBA comments that ‘booming Sydney housing prices alone would not derail another cut to interest rates’.
The RBA cut the cash rate in May to a new historic low of 2 per cent to stimulate a slowing national economy despite concerns it could fuel a property bubble in Sydney.
The RBA left rates on hold in June to assess information on economic and financial conditions, which was interpreted by analysts as a mild easing bias.
In previous public statements RBA officials, including Mr Stevens, have said that monetary policy is set for the whole economy and not only Sydney.
However, last week, RBA governor Glenn Stevens was surprisingly explicit in saying future rate cuts remained an option.
The “bubble” debate went to a new level a fortnight ago when the Treasury secretary John Fraser said there was “unequivocally” evidence of a bubble in Sydney.
But underscoring what it sees as the isolated nature of the housing boom, the RBA board observed there was “a relatively low stock” of dwellings for sale in Sydney and Melbourne which accounts for the short time properties were on the market.
Sydney property values growing twice as fast as Melbourne’s
The Adviser reports on new statistics that indicate the Sydney market is continuing to roar along – and that’s before the May rate cut is taken into account.
According to April statistics from online property portal Onthehouse Data, Sydney’s median house price reached $946,000 after growth of 15.1 per cent over the year and 3.8 per cent over the quarter.
The median unit price reached $629,000 following 12.2 per cent annual growth and 2.7 per cent quarterly growth.
Credit ratings agency Moody’s revealed in late May that 0.25 per cent rate cuts add about 0.6 per cent to NSW house prices, which means that last month’s rate cut might make May an even bigger month for price growth when the statistics are released.
Top 5 Luckiest Finds That Made People Rich
These lucky people all found stuff that made them rich!
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: