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.
“Solid” Sydney property market the strongest capital city performer: APM
Property Observer quoted the latest Australian Property Monitors report which believes Sydney can look forward to a positive property market in 2013.
There are 28,000 properties listed for sale in Sydney, nearly 17% less than a year ago and approximately 13% lower than the long-term trend.
Furthermore, the average discount required to sell a Sydney property fell from 6.3% a year ago to 5.8% as of February 2013, below its long-term average of 6.5%.
Average days on market in Sydney increased marginally from 94 days a year ago to 95 days as of February 2013 – the long-term average is 82 days.
“Sydney has certainly been the strongest performer of all the major capital city markets,” says APM senior economist Dr Andrew Wilson.
APM has Sydney house prices up 1.5% over the three months to January with a median price of $658,000 and units up 1.7% to a median of $474,000.
Wilson says Sydney is being driven by high rents and a generally solid housing market, which “continues to drive forward and motor on as a leader of capital city house market performance”.
How will this property cycle be different?
Another great Real Estate Talk show produced by Kevin Turner. If you don’t already subscribe to this excellent weekly Internet based radio show.
In this week’s show:
Michael Matusik gives his thoughts on how the property market will be different this time
Terry Ryder sees and explains a changing property market
Rob Balanda answers a listeners question on ‘rent to buy’ schemes
Julia Hartman explains and warns about some of the traps unwary investors fall into
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.
Melbourne property hovers over knife edge
Fears that property prices in Melbourne will fall in the face of a rampant oversupply of new properties show no signs of being put to rest according to Your Investment Property Magazine
After months of being told that the Melbourne property market faces a flood of new properties coming onto the market, the question for most investors is no longer if an oversupply exists, but where.
I’m quoted in this article as saying:
“Now is a time to be very selective in what you buy. While there are some good buying opportunities, there are also a lot of secondary properties on the market right now.
More expensive properties have suffered the most and more recently the first home buyer segment of the market has slumped due to faltering buyer interest [and oversupply]… There is also no doubt that Melbourne has been in the slump stage of the property cycle for the last few years, plagued by an oversupply of house and land packages in the northern and western suburbs and an abundance of new apartments coming onto the market.”
Caught short: housing sceptics proved wrong
Economist Chris Joey has a dig at the property doomsayers in his blog at the Australian Financial Review. He says:
The predictable recovery in the price of Australia’s $4 trillion housing market has been brisk. But is it a boom? And what can we expect going forward? Finally, what happened to those prominent housing sceptics who garnered so much air-time prophesying apocalyptic price falls?
He then has a go at these property pessimists:
What about the housing hysterics? Since the GFC, I and a few others waged battles with the bears who dominated airwaves with predictions of cataclysmic price declines. It’s bizarre because I was often described as bullish even though I forecast modest price falls in 2008 and 2011, and consistently argued that capital gains would be constrained by incomes. The bullish label arguably reveals much more about the person projecting it.
The most high-profile proponent of housing Armageddon, Steve Keen, was put to the sword by a hard-nosed adversary in the form of economist Rory Robertson. A bet lost with Robertson saw Keen walk all the way from Canberra to the top of Mount Kosciuszko wearing a T-shirt with the message: “Ask me why I was hopelessly wrong on house prices.”
In the second half of 2010 Boston fund manager Jeremy Grantham of GMO triggered a tsunami of media attention when he claimed that Australia’s housing market was overvalued by 42 per cent and a simmering “time bomb”.
“You cannot possibly miss it,” Grantham exclaimed.
“The price of housing typically trades about 3.5 times family income and in a bubble it goes to 6 or 7.5. Australia is having one now. You are at near 7.5 times family income . . . which suggests you are twice the size you should be. Sooner or later, rates will go up and the game is over.”
In November 2010 I challenged Grantham to put merely 1 per cent, or $100 million, of GMO’s funds where his mouth was and short the Australian housing market. The Wall Street Journal picked up the yarn.
A name change for the City of Sale?
WELLINGTON Shire Council is considering changing the name of Sale because it is too problematic to Google according to The Gippsland Times
A ‘Sale’ Google yields 4,010,000,000 results, most of them not related to the city in Gippsland. Council is looking at a range of possible names and is also seeking public input through a competition.
“They are considering names like Flooding Creek (Sale’s original name) and as well as Scottsville, Esso-BHP Billton Water’s Edge City (or WEC, subject to sponsorship), Maffra South and Wurruk East.”
What do you think it should be called?
9 Things Extraordinary People Say Every Day
Want to make a huge difference in someone’s life? According to Inc.com. here are things you should say every day to your employees, colleagues, family members, friends, and everyone you care about:
1. Here’s what I’m thinking.
You’re in charge, but that doesn’t mean you’re smarter, savvier, or more insightful than everyone else. Back up your statements and decisions. Give reasons. Justify with logic, not with position or authority.
2. I was wrong
When you’re wrong, say you’re wrong. You won’t lose respect–you’ll gain it.
3. That was awesome.
No one gets enough praise. No one. Pick someone–pick anyone–who does or did something well and say, “Wow, that was great how you…”
The people around you will love you for it–and you’ll like yourself a little better, too.
4. You’re welcome.
Don’t let thanks, congratulations, or praise be all about you. Make it about the other person, too.
4. Can you help me?
When you need help, regardless of the type of help you need or the person you need it from, just say, sincerely and humbly, “Can you help me?”
5. I’m sorry.
We all make mistakes. Say you’re sorry.
But never follow an apology with a disclaimer like “But I was really mad, because…” or “But I did think you were…” or any statement that in any way places even the smallest amount of blame back on the other person.
6. Can you show me?
Advice is temporary; knowledge is forever. Knowing what to do helps, but knowing how or why to do it means everything.
7. Let me give you a hand.
Many people see asking for help as a sign of weakness. So, many people hesitate to ask for help. But everyone needs help.
8. I love you.
No, not at work, but everywhere you mean it–and every time you feel it.
Sometimes the best thing to say is nothing. If you’re upset, frustrated, or angry, stay quiet. You may think venting will make you feel better, but it never does.
Read the full article here.
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:
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