There are more interesting articles, commentaries and analyst reports on the Web every week than anyone could read in a month.
Each weekend I like to share some of the ones I’ve read during the week.
So pour yourself a mug of strong brew and get ready for some weekend reading ….and please forward to your friends by clicking a social link buttons on the left.
Gen Ys getting on property ladder early
GEN Y’s are jumping on the investment property ladder early and some of them already have multiple properties according to a Domain Consumer Insights Study.
The study also shows the number of generation Y Australians who own multiple properties – 16 per cent – is on par with the baby boomers and gen Xers.
… the difference in the lifestyles of gen Ys compared to their parents, including in terms of them not getting married and having children as early, may mean they’re in a better position to invest.
GENERATIONS IN THE INVESTMENT PROPERTY GAME:
* Average age of investment ownership – 34
* For gen Y it’s 25, gen X 35, baby boomers 45
* 16 % of gen Ys own two or more properties
* 17 % for gen X and baby boomers
How to win in a sellers’ market | Cosmetic reno tips | Getting started in property development | Researching | Dealing with banks and more…
- Michael Yardney explains the 3 critical property negotiating pressure points at work in every negotiation; either you are applying them to the other party or they are using them on you.
- Jane Slack-Smith runs through some quick cosmetic reno tips that will return high value.
- Josh Masters explains where you can go wrong when researching a market or a property.
- Nhan Nguyen has some very helpful tips for you to follow when you are starting out as a developer.
- Miriam Sandkuhler explains how having a view of the end tenant you want in an investment property has helped her.
- And Andrew Mirams digs deep and tells us some of his tips for dealing with the banks.
Australian property seen as hot destination for money laundering
The intergovernmental Financial Action Task Force suggests that Australia needs to tighten safeguards against money laundering in its booming property market, which has attracted Chinese funds with likely links to corruption.
Real estate agents and lawyers have been identified as a high money laundering risk in Australia, where regulations do not require them to report suspicious transactions.
The Paris-based group recommended that Australia widen its efforts, instead of only focusing on drugs, fraud and tax evasion.
“Australia is seen as an attractive destination for foreign proceeds, particularly corruption-related proceeds flowing into real estate, from the Asia-Pacific region,” FATF said in its year-long review of Australia.
Lawyers, accountants, real estate agents and precious stones dealers should demonstrate that they are refusing business on money laundering and terrorism financing grounds and they should be required to report suspicious transactions, the task force recommended.
Regional unemployment rises
In his daily blog regular Property Update blogger Pete Wargent explains that regional unemployment is rising causing another blow to regional property.
The “Rest of State” figures have been suggesting for some time that the numbers seeking employment have been increasing.
Notably the rise in unemployment has been more substantial in regional New South Wales and Queensland than has been the case in Victoria.
Mining jobs in decline
Drilling down to the regional level suggests that one of the key drivers of this trend has been the collapse in coal prices through what has been a terribly tough time for the bulk commodities index.
As at March 2015 the survey recorded 17,000 unemployed in the Hunter Valley (ex-Newcastle) up from very low levels in 2012 for a regional unemployment rate of 12.8 per cent.
In Queensland a number of regions have also recorded rising unemployment.
Even in the larger centres such as Mackay (8,900 unemployed for an unemployment rate of 9 per cent) and Townsville (11,400 unemployed for an unemployment rate of 9.2 per cent) the trend is up considerably since the mining investment boom passed its peak.
Conversely Queensland’s popular tourism regions appear to be thriving, the lower dollar helping to drive an impressive rebound in the sector.
Labor would reassess negative gearing
While Prime Minister Tony Abbott ruled out any changes to negative gearing, Labor’s Shadow Treasurer Chris Bowen has signaled a Labor government would wind it back.
Speaking at the National Press Club on Wednesday, Bowen said it would be “irresponsible to rule out going to the next election with changes to, for example, negative gearing.”
“I have said our principle will be:
1. Do not disadvantage people who have made investments in good faith under current rules.
2. Do not risk reducing the supply of new housing or, if possible, improve the situation with the supply of new housing’,” said Bowen.
But any negative gearing change would have to be prospective in its application and would not affect existing landlords.
Top 10 most common landlord insurance claims
There is one insurance claim in particular that poses a great financial risk to landlords, according to Terri Scheer Insurance.
53% of claims made by policy holders in the 2014-15 financial year were for loss of rental income.
Top 10 landlord insurance claims for 2014-15
- Loss of rent
- Malicious damage
- Water damage (contents)
- Legal liability
- Storm damage (building)
- Water damage (building)
- Theft (contents)
- Fusion (contents) – Provides cover if a motor in a household electrical machine or appliance needs to be repaired or replaced because the motor has burnt out by electric current at the property.
- Storm damage (contents)
- Impact damage (contents) – Provides cover if impact by motor vehicles or water craft, aircraft, space debris or satellites, falling trees or branches or TV antennae, satellite dishes or radio masts.
Weekend video: A Brief History of Credit Cards
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:
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