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Weekend Reads – Must read articles from the last 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.

The weekend will be over before you know it, so enjoy some weekend reading…and please forward to your friends by clicking the social link buttons.

Melbourne house prices: Buyers willing to trade off and live near once-unglamorous train lines

As housing prices continue to feel like a plague for most Melbournians, it would seem that no one is going unscathed, even the wealthiest buyers have been forced into compromise.

According to an article an Domain.com.au millionaire property buyers, have stretched themselves far beyond their limits simply to live next to a train station.

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Soaring inner-city house prices mean even Melbourne’s millionaires need to accept a major compromise, with some stretching themselves hundreds of thousands of dollars above their limits to secure homes just metres away from train lines.

With a median price of $1.52 million for a house in the inner city — a massive 87.7 per cent jump over the past five years, according to the Domain Group — home buyers are increasingly adjusting their expectations.

Three weeks ago, four bidders competed at auction for a renovated five-bedroom house, metres away from the tracks in Balaclava.

The weatherboard at 37 Blenheim Street sold for $2.5 million to a family, who paid almost $300,000 above reserve.

Agent Gary Peer said some properties traditionally considered to be B-grade — homes on main roads and on train lines — were not anymore.suburb melbourne city invest area location

People living in inner-city areas such as Prahran, Caulfield and St Kilda accepted they were not going into little quiet retreats and they were part of the cosmopolitan buzz, he said.

“There is an appetite from people to live on train lines, it’s not as quickly dismissed as it once was,” Mr Peer said.

“The fact is that any inner-city living is now going to be affected by development because there’s no longer the luxury of people having large allotments with private gardens and nothing overlooking.

“It’s almost like yesterday’s rarity unless you go into the outer suburbs of Melbourne.”

Mr Peer said properties next to train tracks would still be relatively cheaper, but the discount was now smaller.melbourne city park happy peace victoria garden

In Caulfield North, a four-bedroom house opposite the train line at 127 Normanby Road sold for about $2.63 million in after-auction negotiations in February.

Marshall White’s Andrew Hayne said a property’s value was influenced by many other variables such as proximity to schools, transport, shops and parks.

With noise being one of the main concerns with living close to the tracks, some architects are becoming more creative in their design.

The “Rail House” in Northcote’s Westgarth precinct is a two-year-old house, designed by Clare Cousins Architects, abutting a railway line and pedestrian crossing.

Read the full article here

Do we really want housing to be more affordable? + Benefits of investing with a friend + The ‘cubby house’ syndrome

Another great Real Estate Talk show produced by Kevin Turner. 

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Michael Yardney asks if we really want houses to be more affordable? And looks at the consequences.

Brad Beer explains how the Budget changed the investment landscape.

Pete Wargent says regional ares that areas set to grow.

Kylie Davis discusses why the great Aussie dream is fading.

Helen Collier-Kogtevs looks at the real affects of negative gearing – not just the ‘bus word’ phenomenon.

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

Asking prices soaring in Melbourne

Prices in Melbourne continue to be a hot topic – and it would seem there’s no show of a slowdown.

This Blog by Pete Wargent shows the statistics behind the results.

Melbourne rips

On the back of some very strong auction results, Melbourne asking prices are on an absolute tear.

Over the past three years median asking prices for houses in the Victorian capital have now increased by 43 per cent, exceeding the gains even in Sydney (42 per cent).

pwweekend

Source: SQM Research

Read the full article here

Millennials’ property woes: cutting coffee, avo won’t buy a home

Despite what all the ‘critics and ‘experts’ may say – it looks like the jury has finally reached a verdict in the case of brunch versus the housing market.

The conclusion?

An article in The Australian shows that cutting brunch will not bring millenians any closer to buying their first property – particularly in the inner suburbs.

Ever since my fellow columnist Bernard Salt suggested millennials must give up smashed avocado if they want to buy a house, many people may think first-home buyers should suck it up and make some sacrifices if they want to enter the market. coffee, cafe

The question is, are all those $19 smashed avo breakfasts and $4 lattes actually stopping you from being able to afford to buy a home?

In almost every suburb in our capital cities it’s cheaper to rent than buy, even if we assume people are walking around with the minimum 20 per cent deposit in their back pockets.

There are a few options spread throughout Australia in the less desirable suburbs, but the reality is, you would need to give up a lot to afford to buy the home you’re currently renting.

The situation is worst in Sydney, where there are no suburbs where rents are higher than mortgage repayments — again assuming you actually have that deposit.

In Sydney, Merrylands West is the suburb where you would need to give up the least to buy rather than rent. architecture-1836070_1920

The average amount you would need to pay in addition to what you are already paying in rent to cover your mortgage is about $44 a week — just give up 11 lattes a week and you’re there.

You better move fast though; apartment prices are only increasing.

No wonder millennials and first-home buyers looking to get into the market are so disheartened.

Giving up a daily coffee to afford your mortgage repayments isn’t a big deal, but factor in the deposit and it starts to look like you have to give up your entire lifestyle.

A much more challenging scenario.

Despite the difficulties associated with getting into the market, buying a home to live in is a good idea from an investment perspective. avocado-829092_1920

This is not because I think prices will increase indefinitely — realistically, no one knows where the property market will be in five years’ time — but because in general, people are not good at saving and a home loan forces you to invest in an asset.

The other reason is because, as an older person, being a renter in Australia is tough.

Like all renters, there is no certainty as to how long you can stay in your home.

If the owner decides to sell, an owner-occupier may decide to move in.

Read the full article here

Financial Review Rich List 2017 top 20 worth $100 billion

It’s that time of the year again – The annual Financial Review Rich List had been revealed.

This article in the Sydney Morning Herald takes a closer look at the top 20 players on the list.

The 20 wealthiest Australians are worth a cool $100.7 billion combined, the 2017 Financial Review Rich List reveals.

Anthony Pratt tops the Rich List with record personal wealth of $12.6 billion and is one of three billionaires worth more than $10 billion – a first in the list’s 34-Anthony Pratt is one of three $10 billion-plus level Rich Listers in 2017.year history.

Mr Pratt is joined on the $10 billion-plus level by both Harry Triguboff and Gina Rinehart, worth $11.45 billion and $10.41 billion combined.

Mr Pratt, the head of the Visy Industries cardboard box manufacturing and recycling empire in Australia and Pratt Industries in the United States, tops the list for the first time since 2009.

His wealth, and that of Mr Triguboff and Mrs Rinehart rose a combined $7.5 billion thanks to Mr Pratt’s continued success in the US, Mr Triguboff’s domination of the Sydney apartments market and the rising iron ore price for Mrs Rinehart.

“Money is a great scoreboard of success, or one of them,” Mr Pratt told The Australian Financial Review when discussing his ascent to the number one position.

“It’s a great honour and I feel very fortunate that I’m in a position that I can build a business.”

Mr Triguboff, who was number one on the list last year, said Mr Pratt deserved to top the list.

“He is doing a very good job and I am very impressed with him,” the property magnate said.

Westfield supremo Frank Lowy is fourth on the list with $8.26 billion wealth, the same level as last year, while Glencore chief executive Ivan Glasenberg is fifth at $6.85 billion.

While he lives in Switzerland, Mr Glasenberg has Australian citizenship after working for the resources trading giant in Australia as the head of Glencore’s Asian coal commodity division in the 1980s. rich money wealthy million billion gold dollar bank vault save deposit buy invest

There are a record 60 billionaires on the Rich List this year, including Fortescue Metals Group chairman Andrew Forrest, who announced a huge $400 million donation earlier this week.

Mr Forrest is sixth on the list with $6.84 billion wealth, ahead of Melbourne shopping centre magnate John Gandel at $6.1 billion at number seven.

Eighth is Hong-Kong based Hui Wang Mau, who holds most of his wealth in the Hong Kong-listed Shimao Property Group but has Australian citizenship after studying for an MBA at the University of South Australia in the early 1990s. His fortune is $6 billion.

Rounding out the top 10 is Crown Resorts director and major shareholder James Packer, who has $4.75 billion wealth that is now mostly held in Crown shares, and Perth billionaire Stan Perron.

Click here for the full article

Weekend Videos: 7 Simple Tips To Reduce Your STRESS Right Now



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About

Michael is a director of Metropole Property Strategists who help their clients grow, protect and pass on their wealth through independent, unbiased property advice and advocacy. He's once again 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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