Each Saturday morning I like to share some of the interesting property investment articles I’ve read during the week.
I’ve put them here all in the one place for your easy reading.
Enjoy your weekend….and please forward to your friends by clicking a social link button on the left.
Property investors being duped into buying overpriced off-the-plan apartments by scam artists
According to Terry Ryder property investors are being duped into buying overpriced apartments off the plan by “advisers” who earn kickbacks – as much as $35,000 per sale – from developers.
He suggests accountants, financial planners, real estate agents, and marketers masquerading as buyers’ agents and other so-called advisers are all in on the scam.
When a response to this widespread problem was sought from the Queensland Fair Trading Minister Jarrod Bleijie, his reply was: “This is not an issue that has been raised with us by the real estate industry.”
According to this article key elements of the industry – developers, real estate agents and marketing companies – are all benefiting from the rip-off of property consumers.
A warning for all unit owners
Another great show Property Uncut show produced by Kevin Turner. If you don’t already subscribe to this excellent weekly Internet based radio show.
This week he has a heap of great guests:
- Michael Teys lays out the facts regarding a decision made by the Supreme Court of NSW last month about the important ramifications for unit owners in defective buildings Australia wide.
- Ken Raiss looks at how business owners can protect themselves when using business assets to purchase property. He has the solution that carries lots of benefits.
- Louis Christopher from SQM Research tells us some incredible news that has come out of the recent Census figures in relation to rental incomes around Australia.
- This weeks case study comes from Colleen and Nathan a young Sydney couple with a growing family, small property portfolio now – but a plan to have 10 properties in the next 6 years. Hear about the steps they are taking under the guidance of Margaret Lomas, the challenges they have already faced and what they have learnt from those experiences.
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.
Renters can’t afford their comfort zones
An analysis of newly released census data by The AustralianFinancial Review shows rents are soaring in every capital city as too many people compete for too few properties.
Outside mining towns, rents are climbing fastest in capital city areas once considered more affordable and less desirable as tenants search further afield for cheaper homes.
House prices soared in the early noughties and rents are catching up, although gross rental returns are still about 3 per cent nationally, which is historically low.
Pervasive fears about whether Australia’s housing market is overvalued are causing many to shelve their buying plans and rent instead.
This interesting article has a great interactive table where you can look up the rental growth in any suburb around Australia.
John McGrath gives his views on the recent encouraging property price gains
In a recent article on Swizer industry heavyweight John McGrath gave his views on the recently reported property price gains and how apartment prices are catching up to home prices
He sais: We saw some encouraging results from independent researchers, RP Data-Rismark for the month of June, which is typically a seasonally slower month, making the results even more significant.
There was a 2% rise in dwelling values (houses and apartments combined) in Perth and Canberra and a stand-out 2.7% rise in Hobart. In Sydney, Brisbane and Melbourne, there was a 1% gain. That might not sound like much, but if we had a 1% monthly gain all year, that would equate to a 12% annual increase in property values which is an extremely healthy rate of gain.
Here are the median property prices for each capital city, according to RP Data-Rismark.
Sydney Houses $616,000 Apartments $477,000
Melbourne Houses $517,500 Apartments $430,000
Perth Houses $475,000 Apartments $405,000
Canberra Houses $520,000 Apartments $408,000
Brisbane Houses $435,000 Apartments $365,000
Adelaide Houses $383,250 Apartments $318,750
Hobart Houses $356,500 Apartments $279,000
Darwin Houses $510,000 Apartments $419,250
Notice how close some median apartment prices are to the median house prices?
There may be a significant gap in Sydney, but look at Adelaide – you can buy a house for a mere $64,500 more than an apartment. In Perth, the difference between houses and apartments is just $70,000. In Melbourne, it’s $87,500.
Property Glut hitting Melbourne Market with record number of properties for sale
Melbourne has the largest and fastest-growing stock of available housing in Australia, which is likely to put further pressure on house prices in the city.
In June, Melbourne’s residential listings grew at a monthly rate of 6.1 per cent – almost four times the national average – and recorded a yearly jump of 27.7 per cent, more than 27 times Sydney’s annual growth of 1 per cent.
Melbourne now has 55,293 unsold homes and apartments, according to today’s report, published by independent property researcher, SQM Research.
The New Boom
This article in the Wall Street Journal highlights what is likely to be one of the most significant trends to happen in the next decade or two..
Energy analysts now anticipate that America will halve its reliance on Middle East oil by the end of this decade and could end it completely by 2035 due to declining demand and the rapid growth of new petroleum sources in the Western Hemisphere.
The change achieves a long-sought goal of U.S. policy-making: to draw more oil from nearby, stable sources and less from a volatile region half a world away.
Whereas at one point there were real and serious concerns about the ability to maintain sustainable access of supplies to the United States if there were disruptions in the Middle East, that has changed.