It is hard to keep up with what is happening with property
market at the moment. One week it is boom the next bust. So far
we've had interest rate rises, the less than exciting
fallout from the Henry tax review, two capital city markets 'on
fire' and more to come.
It seems that property investing is very newsworthy. In the
last 6 weeks I have provided expertise in BRW Magazine, Financial
Review, Australian Property Investor Magazine, Money Magazine and
Women's Health Magazine.
 As you can see at right, my 2 year old son Max
crashed the Women's Health photo shoot and ended up making it into
the magazine. And as for my new look, there is a lot to be said for
having a stylist, hair and makeup available to you, even if it did
take a few hours. Click
Here to
read the full article on the website.
This month:
- Rich Harvey from Property Buyer shares his
thoughts on what is driving the market;
- I share my thoughts on the boom about to hit
Brisbane; and
- Don't miss the fantastic property portfolio
spreadsheet in the InvestKit available only to newsletter readers.
Oh, and one more thing... I know you value the content you
have received from Investors Choice over the years, so now I've got
a proposition for you. You get a webinar customised just for you.
That's right, an opportunity for you to have a whole learning
session on a topic of your choice. Just let me know what you want
and I'll prepare it.
In exchange, you help me get the word out about my new
course, Step By
Step Property Success. I'd like you to
tell your network about it. See below for more info on how you can
help me with this and why your friends and colleagues will benefit
from attending.
If you are interested in how the game of Rugby is like
Property Investing read my BLOG at API magazine. http://www.apimagazine.com.au/blog/2010/05/are-you-playing-the-game-or-watching-from-the-sidelines/
Jane
InvestKit
Remember, as an Investor’s Choice newsletter subscriber you
also have exclusive access to the InvestKit containing easy to use
spreadsheets for researching and locating the right property.
If you haven’t yet looked inside the InvestKit to see what’s
on offer, don’t delay because you could be missing out on something
that will make a difference to your investment strategy.
Recent additions include:
- Property Investing
Portfolio Spreadsheet
This link is not active for those who are not members of the
newsletter.
I need your help (and there's something in it for
you)
Five years ago as a mining engineer, I was constantly
surprised how difficult it was for others to invest in property. I
already had a multimillion dollar property portfolio and naturally I
thought everyone else was putting their income to good use and
making it work for their future. How wrong I was! When I saw how
people who were earning phenomenal amounts of money were just
wasting it on 'instant gratification' I knew there was an
opportunity to help others benefit from what I had already
done.
I looked for a profession that would allow me to be able to
assist property investors every day in creating their own wealth. I
decided to become a broker with the core purpose of improving the knowledge of those I work
with to assist them in achieving their
goals.
A major part of this for me has been property education and I
have conducted many courses over those 5 years to rooms of 200
people and rooms of 5 people. Over this time I observed what worked
best for participants in terms of getting real value out of the
event.
For attendees to get the most out of the content and truly
get the concepts 'from mind to muscle' it is important to have no
more than 20 participants in the room. For this reason I have
deliberately said no to promoters who wanted me to charge $5,000,
cram 200-300 people in the room and then upsell to the next
DVD/CD/Book/Coaching Package etc. I could not do that and stay
true to the integrity of what I want to allow people to
gain.
With our new course, Step By Step Property
Success, Medine Simmons and I deliberately charge less than
our competitors and we strictly limit the number of attendees. As a
result, the feedback from particpants has been amazing. In fact,
some have spent years wanting to invest and for whatever reason had
not taken action. We find that nearly 50% of our graduates invest
within 6 weeks of finishing the course. Why? Because they now have
the confidence along with proven low-risk research and buying
techniques to do so.
So, what's the deal?
I know you've had results from your dealings with me at
Investors Choice, so you know I'm experienced, knowledgeable and
authentic ( not my words obviously but those from testimonials).
Well, now I've got a simple proposition for you:
You tell all
those who you know are interested in buying property (whether its
their first home or an investment), about the Step By Step Property
Success course by sending them the link to www.stepbysteppropertysuccess.com.au,
by retweeting my Tweets about the course and by spreading the word
to your LinkedIn and FaceBook networks.
And in return, I will run a webinar specifically for you.
That's right, I will answer any of your property investment
questions (and if I don't know the answer, I'll find an expert who
does).
Some topics you might want to consider:
- What to look for when checking Body Corporate
minutes
- When conducting inspections what do you look for
- What is cross collateralisation, and can it work for
me?
- How do I get money out of my own home to buy something
else?
- How can I stay on interest-only loans?
- Why do investors use interest-only loans over
P&I?
- Proven auction tips
You just let
me know what you want covered and I'll prepare something for you...
wow, how's that for a deal, your own customised webinar?
In
return, you let people know about Step By Step Property Success.
There are courses planned throughout Australia in the next 6 months,
so get out there and let them know. First off Adelaide and
Canberra in July, followed by Brisbane in August.
So pass the word around - follow me on Twitter and be my
friend on Facebook for links to webinars and useful information and
let your friends know.
Step By Step Property
Success Website:www.stepbysteppropertysuccess.com.au
Step By Step Twitter:
http://twitter.com/sbsps
Investors Choice
Twitter: http://twitter.com/Renoqueen
LinkedIn: Jane
Slack-Smith
FaceBook: http://www.facebook.com/jane.slacksmith
Brisbane to Boom
Economics group BIS Shrapnel recently
forecast there will be 15 per cent growth in Brisbane prices over
the next three years, or 5 per cent a year. It also forecast
growth of 12 per cent in Melbourne and 21 per cent in Sydney over
the next three years. However, figures from Residex show Sydney and
Melbourne prices have risen 13 per cent and 16 per cent respectively
in the last 12 months.
I believe that Brisbane will do double
what others are predicting; Brisbane will experience 10% pa growth
over the next 3 years. On the median Brisbane value of $469,000
according to Residex in March 2010 that means $155,000 of new value
that will be gained in the next 3 years
Furthermore the Brisbane market
generally lags the Sydney and Melbourne markets by 18 months, so
hold onto your hats because everything is out of kilter and this is
going to take off in the next month or two. Who knows what the Henry
Tax review will recommend but with the potential in increased taxes
on mining there will be lots of money to build quality
infrastructure. If you think that more people move to SE Qld than
inhabit Darwin each year then you know that housing will start to
become a priority.
But as we know, it's not just about
jumping into the market and buying the first property you see. It's
about buying with a clear set of criteria so you can maximise that
purchase and use it to build your wealth. So make sure you have the
fundamentals right.
What is driving the Property Market? Rich Harvey
The major buying groups currently driving the
market are upgraders and investors.
Consumer confidence has returned, employment markets are growing and
people are more confident to make property buying decisions.
With rising rents and stronger capital growth on the horizon,
investors are looking to put their money to work in property
investment while home buyers with improved equity are seeking to
upgrade their homes. and
Expats are also
making a major impression on the market. We have seen a
significant rise in the number of inquiries from expats and are
currently assisting buyers from the UK, South Africa, Singapore,
Hong Kong and the US. Many Aussie expats are watching our
property market with interest and realising the undersupply
situation will push prices higher.
Foreign investors
are becoming a major force in the property market with the majority
coming from Asian nations. We have assisted many clients from
Malaysia, Japan and China in recent months looking for investment
and new homes. With the relaxation of the Foreign Investment
Review Board (FIRB) requirements, foreign buyers are cashing in on
Australian property as a safe haven and some larger developers are
land banking sites for future development.
Baby boomers with
self managed super funds (SMSF) that have been hit with poor returns
from the GFC are looking for alternative investments in property for
less volatile returns. There are over 400,000 SMSFs and this figure
is growing daily. Investors can leverage into residential property
using instalment warrants to purchase investments. This type
of investment tends to be done by boomers aged over 45 with at least
$100k in their current fund.
First home buyers
are minority force in today's market compared to last year when the
generous government grants were stimulating the lower end of the
market.
According to property experts Residex, house
prices for each Australian capital city have risen strongly since
March 2009: Melbourne 17.7%, Sydney 13.5%, Adelaide 7.6%, Brisbane
4.9%, Darwin 10.1%, Perth 5.2% and Hobart 4.0%. Its also a similar
story for units.
Interest rates
are the big cloud on the horizon that will dampen demand and
influence property price growth. The Melbourne market has performed
very strongly in the last year and is likely to see some slowing in
the next 12 months. Sydney on the other hand, has had a sluggish
performance with percentage growth over the past 5 years but is
likely to see solid growth over the next few years. There is still a
lot of confidence left in the property market and it will take
several rate rises to see the effect of a dampening on demand over
the coming 6 months. Most economists predict we will see the
cash rate return to around 4.75% to 5.0% by
December.
While I’ve briefly covered some of the main
“groups” of buyers in the current market, one of the biggest drivers
of property prices is population growth and
migration. The article below looks at how Australia’s
population has swelled to 22 million and is expected to grow to over
37 million by 2050. We are currently not building enough
properties to house our population which means excess demand,
serious lack of supply and rising house prices and
rents.
Rich Harvey, Property Buyer
A final comment
If there
is any way the team at Investors Choice Mortgages can assist you,
regardless of how big or small your query, please let me know.
Until next time, I wish you prosperous investing and happy
house hunting.
Jane
PS: at Investors Choice we
believe in sharing our systems, information and resources. Our
website is continually updated to reflect any new information we
think you might find of benefit. Check out the website at
www.investorschoice.com.au
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Disclaimer: You should
always speak to a financial planner or accountant about your
particular circumstances, the hints mentioned here are for general
discussion only and do not relate to your particular
circumstances | 
