WEEKEND READS: Catch up on the most interesting articles I’ve read this week

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.

3 Risks You Can’t Ignore This Year

We may not yet be in a bubble on the verge of bursting, but investors would be wise to monitor the following risks to their portfolio, Nila Sweeney writes in Your Investment Property magazine.

Property prices overshooting

The IMF warned that “a prolonged period of rapid price growth could give rise to expectations-driven, self-reinforcing demand dynamics and price overshooting”.golden dice

This means that if the current rally in property prices is simply fuelled by buyer exuberance without fundamental support, then it could result in unsustainable growth.

Rapid interest rate hike

Economists are predicting the Reserve Bank will raise interest rates towards the end of this year or early next year and some are worried that the RBA may hike in rapid succession.

Borrowers who have extended themselves might find it difficult to service their loans and the higher interest rates could bring forth a rise in mortgage delinquency.

Massive building boom

There’s no question that there have been some overbuilding in some parts of Australia, specifically in mining towns and in some cities like Melbourne, the Gold Coast and Sunshine Coasts.

However, in general, the building construction is still well below demographic demand and it has been falling for a number of years.


Suburb gentrification | 7 ways to bleed the banks dry | Deposits on contracts | Successful renovators | Handover | What does ‘flipping’ mean?

Another great Real Estate Talk show produced by Kevin Turner.

This week you can hear:

  • Cherie Barber talk about why some renovators become hugely successful
  •  Michael Yardney details the 7 ways to bleed the banks dry.
  • Garth Brown answers questions about deposits on contracts.
  • Peter Koilizos says suburb gentrification is the new term for a hot spot
  • Shannon Davis explain what flipping is and how it stacks up against other strategies like buy and hold.

If you don’t already subscribe to this excellent weekly Internet based radio show do so now by clicking here.

Land values escalate on lower volumes

Pete Wargent recently reported on the land values jump in Q1.

Ultimately dwelling prices are partly a derivative of the value of the land which sits underneath.

And capital city land values in particular are roaring higher.

The Housing Industry Association (HIA) released its latest land price data for Q1 2015 in conjunction with CoreLogic-RP Data.

It showed that land prices jumped another 4.1 per cent higher in the March 2015 quarter.

Nationally residential lot values have increased by around 19 per cent over the past 5 years.

On a national basis lot values increased by 4.1 per cent over the March quarter to be 8.2 per cent higher year-on-year.

We already saw from the 2014 figures that the increases have been driven almost exclusively by capital city rather than regional markets (where there is considerably less pressure on land values).

10 Surprising Things Financially Successful People Do Differently

Lifehack.org recently published an article about the habits of the financially successful.

We see footage of Donald Trump on TV, or watch movies like “The Wolf of Wall Street” and think being financially successful means living a gluttonous life of excess at the expense of the impoverished.

This may be true for a few, but for many financially successful people, their success is only part of the story.

Here are 10 surprising things financially successful people do differently:rich poor wealth income gap

1. They surround themselves with positive people and do not waste time on negativity

It is interesting to note that 67% of wealthy people watch one hour or less of TV every day, and only 6% watch reality shows.

2. They make sacrifices at first

The financially successful will accept a reduction in income, drive a cheap used car, and downsize their house when they’re first starting out.

They then take the money they save and invest it or re-invest it in something that will make them more money down the road.

3. They don’t waste time complaining

If something bad happens, they change course, learn from it, or look for a way to use it to their advantage.

4. They make paying off debt and saving money a priority

They know that “When one is bound by debt, he has no choice but to stay in a miserable job, location or house against his own will.”

5. They don’t blame the government or economy for their situation

Instead, they take full responsibility for themselves and their actions, and believe they are in charge of their own futures.

6. They focus on long-term financial goals

Instead of just making money and spending it, they take the time to create financial plans which enable them to reach long-term goals, and then they stick to those plans.

7. They don’t assume they already know everything

86% of wealthy people love to read and believe in lifelong education.

88% of them read educational or work-related material for 30 minutes or more each day.

63% listen to audio books as they commute to and from work.

8. They offer services or create things of value

They don’t just consume what other people have produced.

9. They do more than show up at the office, do their jobs, and go home

They seek out ways to go above and beyond the call of duty, even if they are wage earners in a 9-5 job.

44% of financially successful people wake up three hours before work starts.

10. They are more excited about the process of creation than the money they make

It’s not that they don’t care about making money, but money isn’t their top priority.

The financially successful get satisfaction from making their clients and customers happy.

Defects are the biggest concern for Australian apartment owners: report

Domain reports on a study that found poor building quality and problems with construction are the top concerns of owners and others in the apartment sector.

The national survey on strata-titled property conducted by Queensland’s Griffith University, and shown exclusively to Domain, revealed that the unit owners questioned by the author, Professor Christopher Guilding, named building defects as their No. 1 challenge.

It was also identified as the most important issue for strata lawyers, and in the top five by resident building managers.

As a result, Professor Guilding, of the Griffith Business School, is calling for a federal government inquiry about the issue.

Businessman Examining Wall

One apartment owner in the survey claimed that poor building quality and defects in the strata sector are endemic across Australia, and could even be life-threatening.

The survey asked 20 members of different groups within the strata sector to identify, and elaborate upon, what they see as the most significant challenges confronting strata title living and management.

Strata lawyers also came out strongly on the side of apartment owners, saying in the survey that remediation of defects is the single biggest problem in apartment living today, and likely to become bigger still as buildings age.

They also named as a major setback last year’s High Court ruling in a two-year case over building defects in a multi-million dollar apartment complex in Sydney’s Chatswood that the owners corporation of serviced apartments could not sue the builder, Brookfield Multiplex, to recover the cost of fixing alleged defects in common areas.

The other top five issues identified by apartment owners included poor strata title management, low-quality executive committees of owners corporations or body corporates, the vested interests of developers in new developments and weak laws and their enforcement.

Weekend Video: 10 stupid lottery winners

Whether they spent it all in one place, or made a series of bad decisions, these people had the world and financial stability in the palm of their hands, before they let it slip between their fingers.

Blogs you may have missed this week:

Improve your investment borrowing power

10 Ways to Spend Your Way Into Poverty

The Melbourne Property Market – 29 Investor Tips

Know which properties to avoid

How to future proof your career 

Want more of this type of information?


Michael is a director of Metropole Property Strategists who create wealth for their clients through independent, unbiased property advice and advocacy. He's 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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