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Property Investor Success Story

Sat, 12 Mar 2011 00:00:00 -0800

Perth will buck the trend

Mon, 24 Jan 2011 00:00:00 -0800

WHILE property prices ease across the country, economists are predicting Perth will buck the trend and return to a booming real estate market by mid-year.

For those eager to get into the property market, it seems that after years of seemingly unstoppable housing growth 2011 could be the year to secure a slice of the Great Australian Dream.

Perth could be the exception, with economists predicting prices will surge to 2006-2007 levels.

Last year the national housing market was still one of the strongest in the world with growth tracking at five per cent annually

Last month there were near across-the-board price falls in the capital cities, with the number of listings rising and auction clearance rates plummeting.

Continuous rate rises of 1.75 percentage points since October 2009 have bitten and buyers' attention late last year was diverted by the lengthy federal election and major sporting events.

Analysts predict the downward trend will gain momentum in coming months and negative consumer sentiment has already been heightened by the devastating Queensland floods.

2011 - it's a buyer's market

Most economists predict property prices will rise nationally for the year by a modest three per cent, with Sydney and Perth expected to record the strongest performances.

But real estate gems can still be found in any economic climate - even when there is a period of low growth forecast.

Potential buyers should seek out areas where the market has performed well in the medium to long term (three to five years), and for properties with high gross rental yields, short sale times and minimal vendor discounting.

RP DATA national research director Tim Lawless says conditions will see houses take longer to sell and buyers negotiating much harder than they have previously.

"For 2011, we are likely to see vendor expectations change as slower market conditions come into play," Mr Lawless says.

Hot spots

RP DATA research shows solid growth in suburbs 10km outside metropolitan areas, where real estate is more affordable. Middle-ring suburbs along major transport spines top its list of strong performers, indicating that buyers are rating both the price and commuting time high in their priorities.

Property analysts are also bullish on large regional towns where state governments have poured money into transport and infrastructure to try to decentralise population growth.

And while chatter about a housing bubble in 2011 has grown louder recently, experts say a property slump is overemphasised.

Australia Property Monitors senior economist Dr Andrew Wilson forecasts activity will be restrained in most markets early on but demand and price growth should resume by mid-year.

He says mining activity, strong employment, rising wages and a serious housing shortage that will get worse in 2011 will offset rising interest rates and declining affordability.

He also nominates Perth and Sydney as his capital city hotspots and the Illawarra coastal precinct in New South Wales as his regional pick.

"The Illawarra is investing in a lot of new coal mines given the problems that have occurred with the Queensland mines so we see it as a potential growth region for real estate," Dr Wilson says.

Head west

"Perth is a definite hot spot - there are always mining projects in the pipeline and the city has been flat for a couple of years. It tends to be a volatile market so the fact that it has flattened indicates it's ready to gather the momentum it had in 2006 and 2007.

"Perth should be back to levels of 8 to 10 per cent by the middle of the year."

Not surprisingly Dr Wilson says the flood crisis will deter buyers from Queensland.

"The floods will definitely impede on demand in Queensland and re-emphasise negative consumer sentiment nationally for a few months," he says.

However, the long-term outlook for the state's overall property market is positive, he says.

"I don't think real estate fundamentals will be affected and the market should start to develop some momentum by April.

"Obviously there will be an extreme shortage of rental properties in Brisbane, particularly houses, and that will put upward pressure on property prices not only in Brisbane but the Gold Coast and the Sunshine coast which are within commuting distance."

RP DATA is also optimistic that the flood crisis won't have a major impact on real estate prices in Brisbane, long term.

But the property research firm predicts that over the next five years homes further away from the river in low lying areas could lose as much as 10 per cent of their value.

For now RP Data expects that the floods will keep sellers on the sidelines as the clean-up becomes the focus.

Vacant land costs more in Perth: report

Wed, 19 Jan 2011 00:00:00 -0800

Perth's residential land market is the third most expensive in the nation, trailing only the Sunshine Coast and Sydney, according to the latest research by the Housing Industry Association and industry analysts RP Data.

But in terms of dollar value per square metre, vacant land in Perth is the most expensive in Australia, at $516/sqm, leading the most expensive market traditionally, Sydney, by $38/sqm.

The HIA-RPdata.com Residential Land Report for the September quarter 2010 showed Perth's median lot price at $245,000, well above the nation's median land value of $186,629.

Median land prices in WA grew 11.4 per cent on the previous quarter, and 8.9 per cent on the same quarter in 2009.

Two regional WA markets, south eastern and south western WA, were also among the top ten most expensive, with median lot prices of $166,000 and $165,000 respectively.

Over the year to 2010, median land values were up 5.2 per cent across Australia, while land sales in the September quarter were down 57 per cent on the corresponding quarter in 2009.

For more on this article go to WA Business News

REAL ESTATE INVESTMENT PHILOSOPHY

Mon, 17 Jan 2011 00:00:00 -0800

Your philosophy when it comes to purchasing successful investment real estate should be to look for the highest capital growth opportunities, combined with a good rental return to enable you to maintain repayments over the life of the investment.

The key driver behind the purchase of an investment property for your self is to create secure, passive income stream that can be used to support yourself into the future and into retirement.

According to government statistics conducted in the US, UK, most of Europe and Australia, most people in the western world spend 104 per cent of their earned income. The extra 4% generally comes from credit card debt and personal loans.

Having a "job" is the most inefficient source, or means of earning an income. In a job you can only earn money by way of exchanging your time for cash. That means that your earning potential is capped by how much time you are physically able to work, or ultimately by the number of hours in a week.

Can You Achieve Wealth In Real Estate

Fri, 14 Jan 2011 00:00:00 -0800

by MANUEL JARDIM

The answer to that is an emphatic "YES!"

Let's face it, there are plenty of "doomsayers" who give vague generalisations about "tough times". In recent newspapers is has also stated that housing prices are dropping and some people are getting kicked out of their homes by the banks.

Well, out of negativity comes opportunity. Let's consider the FACTS:

* mortgage rates are near their LOWEST in 45 years
* industry reports maintain that Australia has a housing shortage of 150,000 homes
* average Australian rentals increased over 8% in the past two years coupled with a softening in house prices...cheaper properties fetching higher returns...you do the maths!

You also might want to consider the question, "If not now, then when?" When things "pick up"? When the time's just right?

Let's face it, there never has been a time when everything was "right"...and there never will be, that's just life.

But what we can say for sure is that the conditions mentioned above will not be around forever...now IS THE time to invest... If not now... Can you afford to wait again and for what?

And what about interest rates? What would happen if they skyrocket?

People have memories of the 1980s when interest rates went as high as 18%. This is highly unlikely to happen again as the banks have been de-regulated since this time and rates are market driven.

With rates at their current low levels most understand that some rises are inevitable. What you're not told by the media hype is that when interest rates rise, so do rents.

What you must be aware of is your ability to maintain repayments if interest rates increase. So it's essential, that you do your homework and clearly identify what level of commitment you can maintain.

PLUS, with any investment property comes the likely benefit of tax savings. If there is negative gearing, then YES you will get tax savings. But you do need to appeciate that every investors' situation is different.

So... can you achieve wealth in real estate. Yes you can through good planning and management.

Identify leverage in your life & how you can do it bette

Mon, 10 Jan 2011 00:00:00 -0800

Maximum Leverage

Alone, you are without leverage. You have to rely on your own knowledge, your own experience, your own money, your own resources. This is the long, slow way to wealth. Eventually, your resources run out. You become discouraged. You quit.

Your first form of leverage is to acquire a mentor. Your mentor has tackled this mountain before you. Your mentor knows the terrain, the challenges, the pitfalls. Your mentor knows what to do. More important, your mentor knows what NOT to do. This is the first shortcut-avoiding lost time and money in trying to correct rookie mistakes. Your mentor also knows the shortcuts, the time-savers, the little tricks. You need a mentor.

Your second form of leverage is to acquire a team. Together, you all achieve more, faster, easier. You can spot one another's blind spots. You can encourage discouraged team members. They can encourage you when you're down. They fill in the gaps in your skill sets. They can be strong where you're weak. As a team, you all run faster. A 4/by/4 relay team runs the mile about two seconds faster than the individual runner. If you want speed, you need a team.

Your third form of leverage is a network. Each team member knows at least 100 valuable contacts. A team of 6, therefore, knows 600 people. If each of these people knows 100 valuable contacts, then you have access to 60,000 valuable contacts. But these numbers are deceiving. It has been calculated that the value of a network is the square of the number of people in it. If you immediate network consists of 600 people, then your ultimate reach is 600 times 600, or 360,000 valuable contacts. Obviously, a one-person team is not enough. You need the power of a network. In that network, there are several key contacts - people who control huge networks of people. A key contact has "make it happen" power. One word from this key contact and things happen. The value of a large network is the increased probability of finding the key contact. Remember, all it takes is ONE key contact.

Your fourth form of leverage is the Infinite Network. There is a spiritual connection that links it all up. This is the realm of coincidence, serendipity, chance, a twist of fate. Tapping into the Infinite Network is the ultimate form of leverage.

Your fifth form of leverage is the use of tools and skills. Millionaires use the tools of wealth - computers, the Internet, e-mail - for fast communications, fast calculations, fast decisions. If you want a speedy result, you need instant information.

Your sixth form of leverage is systems. Every millionaire has systematized, streamlined, and organized the processes of wealth. The most efficient form of information transfer is to learn your mentor's system and follow it - whether you've chosen real estate, the stock market, business, or the Internet. Learn the system.

When the combined force of mentors, teams, networks, Infinite Networks, tools, and systems is applied to a strong, long lever, miracles can happen in minutes.

This week, caretaker PM Julia Gillard was successful in forming a minority government

Mon, 13 Sep 2010 00:00:00 -0700

This week, caretaker PM Julia Gillard was successful in forming
a minority government after two country independents agreed to
support it 17 days after the Federal election delivered a hung
parliament. The other country independent, Bob Katter, pledged
his support to the Liberal-National Party (LNP) coalition,
although he has not tied himself down with regard to voting on
different policies.
The ALP can count on 76 votes in the 150 seat House of
Representatives comprising a rainbow coalition of 72 ALP seats,
1 Green and three independents. The Green and three
independents have provided limited but differing conditions
under which they would support a no confidence motion in the
new government, so this will no doubt be an area of uncertainty
going forward.
The formation of a Labor minority government is a mixed bag for
markets. The minority Government will keep the amended
mining tax, which is a little negative for the AUD. Offsetting this,
we now have certainty of who the Government is.
As far as we know, the new Government remains committed to
achieving Budget surplus by 2012/13. That said, we are awaiting
details of the rural and regional support package which looks to
have been the price of the two rural independents supporting the
ALP. In particular, it's size and how it will be funded in the
budget. The National Broadband Network will be built. There will
also be a tax summit (by June 2011?) to discuss the Henry tax
recommendations.
The new Ministry and Cabinet is yet to be announced.
Independent MP Oakeshott has today declined an offer from PM
Gilalrd to be a minister in the new Government.
RBA leaves rates on hold, but ......
As everyone expected, the RBA left the cash rate unchanged at
4½% this week and their Statement indicated comfort with
current settings. But their language tweaks were on balance
firmer. As well, they reminded us quite clearly that the next cash
rate move will likely be up, even if may be a ways off.
First they reiterated "Through to mid 2011, underlying inflation is
likely to be in the top half of the target zone". Second, like their
August Statement they said the Board "judged this (current)
setting of monetary policy to be appropriate" but this time they
added "for the time being". In other words, interest rates that
borrowers face are appropriate, but only for now.
The addition of "for the time being" to the final sentence on
settings being appropriate of the Governor's media statement is
a clear indication that they are now on heightened data alert.
They are monitoring reports on the economy to assess wether
their economic forecast published in August now requires some
revision, and indeed if such a revision would be large enought to
prompt a change in monetary policy settings.

House prices up 0.4% in July, RP Data predicts little growth for the remainder of 2010

Tue, 31 Aug 2010 00:00:00 -0700

Australian house prices grew by a seasonally adjusted 0.4% during July, following on from a 1% fall in June, according to the latest RP Data-Rismark figures.

The research found that in the July quarter, national city dwelling values were down 0.8% with a median dwelling price of $465,000. However, prices over the year were up by 9.7%.

Darwin performed the strongest in the three months to July, with values up 1.1%, while Brisbane and Perth both recorded a 2.5% fall.

Sydney values rose by 0.3% during the quarter, with Melbourne values falling by 1.1%. Adelaide prices rose by 0.2% and Hobart prices also fell by 2.4%.

For more on this article go to http://www.smartcompany.com.au/property/20100831-house-prices-up-0-4-in-july-rp-data-predicts-little-growth-for-the-remainder-of-2010.html

Private sales may take over from auctions as sellers look for higher prices during Spring selling season

Mon, 30 Aug 2010 00:00:00 -0700

Private sales may increase during the traditionally strong Spring selling season as auction clearance rates fall and house price discounting grows, property experts say.

The prediction, which comes just one week out from the beginning of the Spring selling season, comes as many in the property industry believes prices will remain flat during the next few months as listings increase.

David Airey, president of the Real Estate Institute of Australia, says some buyers will choose private sales to guarantee a higher selling price.

"I think it's going to be a trend towards private sales over auctions. In a market that's somewhat slower, or where there is a lot of supply and little demand, people will take the private sale option and put the property on sale at a set price."

For more on this article go to http://www.smartcompany.com.au/property/20100830-private-sales-may-take-over-from-auctions-as-sellers-look-for-higher-prices-during-spring-selling-season.html

Investors 'disappointed' over quick housing gains

Mon, 30 Aug 2010 00:00:00 -0700

PROPERTY investors are targeting off-the-plan apartments hoping for short-term capital gain, with thousands of prospective pre-sale buyers eyeing Sydney projects.

Ray White is reporting a 6 per cent lift in investor buying as shares weaken and with the end last year of the boosted first-home buyer's grant, The Australian reported.

But analyst Michael Matusik predicts investment properties will flood the market in the near term, leading prices to soften.

An Australian Housing and Urban Research Institute report this month said 80 per cent of investors buy for long-term gain, but at least half sell within five years because of cashflow problems or disappointing capital growth. One in four investors sells within 12 months.

Homebuyers have spring in their step

Mon, 06 Sep 2010 00:00:00 -0700

MORE than 100,000 Sydneysiders are waking from winter hibernation ready for a spring home-buying spree that experts predict will jump-start Sydney's property market.

Real estate agencies are anticipating a record flood of inquiries in coming weeks.

They predicted buyers would unleash in October, a late spring bloom brought about by a recent positive turnaround in economic and market sentiment, albeit delayed by the continued stalemate in federal parliament.

The build-up of buyers is like a coiled spring, Sam White from Ray White told The Daily Telegraph.

Property investors delay purchases until Spring to wait for bargains

Tue, 24 Aug 2010 00:00:00 -0700

Property investors are waiting until a flood of listings hit the market in Spring in order to leverage their bargaining power and pick up some bargains, industry experts say.

The predictions come after a number of analysts, led by SQM Research founder Louis Christopher, believe the market will be flooded with listings with relatively few buyers, allowing investors and upgraders to leverage even lower prices.

Australian Property Monitors general manager Anthony Ishac says investors are definitely coming back into the market as prices plateau, while other buyers back away due to interest rate pressures.

"I think it's clear investors are going to pick up the slack, and I think that's reflected in the finance figures over the past six months. Over the next few months I think we're still going to see investors return to the market."

Ishac points to the latest ABS data, which revealed that in the month of June, the value of investment housing loans dropped for the first time in four months by a seasonally adjusted 3.6% to $7.3 billion.

For more on this article go to http://www.smartcompany.com.au/property/20100824-property-investors-delay-purchases-until-spring-to-wait-for-bargains.html

Housing shortage will hurt affordability for the next decade, experts claim

Thu, 19 Aug 2010 00:00:00 -0700

Housing affordability will spiral out of control in the next decade if state and federal governments do not fix the lack of supply - an issue which could possibly impact economic growth and spark widespread social distress, housing experts warn.

The harsh claims come after the Housing Industry Association revealed affordability continued to decline in the June quarter, and is now at a record low.

ANZ head of property research Paul Braddick says the issue of housing affordability is one that has been rampant for a number of years, and claims "affordability will continue to worsen".

"Given the shortage of supply, we think this is going to a problem. Unless something is done about that, we think affordability is going to be one of the biggest social and political issues over the next decade."

"The risk is that as housing prices increase, the RBA is forced to tighten rates further. This would curb economic growth and it would be lower than it otherwise would have been. Then you go into the potential social issues, where a large group of people simply can't move into housi

For more on this article go tohttp://www.smartcompany.com.au/property/20100819-housing-shortage-will-hurt-affordability-for-the-next-decade-experts-claim.html

Units outpace houses in growth

Mon, 16 Aug 2010 00:00:00 -0700

THE capital growth of apartments continues to outstrip houses, with some rising in value by more than 50 per cent in less than a year.

Industry analysts are expecting the trend to continue, with a greater number of people opting to live closer to their workplace.

"With people's lifestyles, and (with people) being time-poor these days, the closer they can get to CBD areas the better, and with investors back in the market, the apartment market has been strong," said Matt Lahood, general manager of sales at real estate agency chain McGrath.

"It is probably less the situation in holiday destinations."

In the 12 months to June, unit values increased 11.4 per cent compared with 10.2 per cent for houses, according to property research firm RP Data.

For more on this article go to http://www.theaustralian.com.au/news/nation/units-outpace-houses-in-growth/story-e6frg6nf-1225905090064?from=public_rss

Housing Finance Approvals, June

Fri, 06 Aug 2010 00:00:00 -0700

Housing finance approvals for owner occupiers rose1.9% in May, having fallen in every month bar one since last July, including a 1.5% fall in April. This looks somewhat counter- intuitive given that May was a rate rise month and one where the established home market showed further signs of cooling.

Lending approval volumes for established dwellings rose 1.9% in May and that was behind the overall rise, but this latest rise was buoyed by a pick-up in refinancing activity; excluding refi, lending for established homes was virtually flat in May.

In June, we expect another fall in owner-occupied volumes, of 3%, while the value of owner-occupied and investor approvals are expected to post a small rise of 1%.

Volumes (Owner-Occ): L:+1.9% (May); F: -3.0% (Jun) Values: L: -0.3% (May); F: +1.0% (Jun)

RBA leaves rates on hold in August

Fri, 06 Aug 2010 00:00:00 -0700

The Reserve Bank left the cash rate on hold for the third month in a row in August at 4.25%. The last rise of 0.25% to 4.5% was initiated in May.

Tuesday' statement after the August Board meeting said: global growth is mixed but above trend; inflation was on track; unemployment is falling "gradually" (that's good); pressure on dwelling prices appears to have "abated"; and wages have picked up a little, "as expected".

Against this backdrop, the current setting of policy is "appropriate", full-stop. Last month it was appropriate "Pending further information about international and local conditions for demand and prices". This time, no proviso.

RBA Statement on Monetary Policy

More background information on the context of this week's RBA 'no hike' decision was released in today's quarterly Statement on Monetary Policy (SMP).

The SMP contained a myriad of detail on the economy and markets but our key take away from the report was the evolution of the RBA's forecasts. The key thing to note is that the RBA made virtually no changes to the economic outlook for 2011 and 2012, where their focus lies for the purposes of setting monetary policy. The table below shows the RBA's key forecasts.

Only the near term forecast for Q2 GDP seems to have been changed. That probably reflects the surprise record high balance of trade surplus for June, which must have pushed up their June quarter net exports component in GDP to around 1%. In turn that lifted the GDP forecast for the year to June 2010 to 3% from 21⁄2% in May.

These forecasts mean that the RBA can now remain comfortably on hold for the time being, putting significant risk that our current forecast of two rate hikes in November and December of this year will be delayed until 2010.

Note that we only envisage that rate hikes could be delayed, not cancelled. That is because the RBA cannot leave rates at 4.5% indefinitely (a level which translates to retail rates around "average levels") as the underlying inflation rate gradually trends high to 3% by mid-2012. To do so would be to risk the inflation rate to continue to trend up, breaking up through the top of the target band. Hence, the RBA needs to move to a setting on the tight side of neutral. To us this means that the RBA has an unstated tightening bias.

The unstated tightening bias probably reflects the RBA's conclusion "...the Board views the current setting of the cash rate as appropriate at this stage" (emphasis added).

According to the RBA, if the economy continues along their central forecasts track, from 2011 through the end of the forecasting period (2012) some tightening in industrial capacity and a gradual tightening in the labour market is to be expected. This is another pointer to the need to raise rates eventually, in order to ensure that the economy does not hit capacity constraints, a sure trigger for inflation.

With their forecasts looking good, the early tightening by the RBA has bought it time to watch and assess the data as it comes in. The RBA's SMP set out risks to both the upside and the downside for its central forecasts. Upside risks come from: a stronger than forecast global economy; firms attempting to push ahead with investment at too fast a pace, especially in mining; and household consumption bouncing back (the RBA assumes a higher household saving rate than was the case before the GFC).

Downside risks come from: private sector demand (investment) not rising as quickly as forecast; China tightening too hard causing their economy to grow more slowly than intended; and the possibility of another bout of financial crisis emanating out of Europe and a retreat in risk taking (they note the direct effects of weak Europe would be relatively limited).

WA set for housing shortage

Wed, 04 Aug 2010 00:00:00 -0700

WESTERN Australia may be about 72,500 homes short by 2020 according to a report from Australia's biggest building industry association, the HIA.

The Housing Industry Association's 'Housing to 2020' report examines current and future levels of housing demand and associated requirements for new homes.

HIA WA executive director John Dastlik said WA's aggregate housing shortage currently stands at 17,400 dwellings.

''This shortage is set to worsen without a clear plan from the WA Government to ensure well-located, affordable land is made continually available,'' he said.

''Furthermore, planning restrictions, higher taxation on new housing relative to existing dwellings, labour shortages, and onerous regulation on new housing all add to the problem and constrain growth in new home construction.

''WA's population is expected to reach 4.3 million by 2056, with most people residing in Perth.

For more on this article go to http://www.perthnow.com.au/real-estate/wa-set-for-housing-shortage/story-e6frg3o3-1225842486755 Your Link

Fees create confusion for homebuyers

Tue, 27 Jul 2010 00:00:00 -0700

SELLING a home can be an expensive exercise and the national real estate industry body is urging caution, with laws and fees differing from state to state and likely to cause confusion among some consumers and investors.

Real Estate Institute of Australia president David Airey says conveyancing fees are regulated in some states, while in others selling commissions are monitored and lawyers are required to prepare contracts.

"These things are gradually becoming more nationalised and the sooner they do the better, because consumers moving from state to state won't be faced with such a minefield of different legislation and charges, which can make buying and selling quite confusing,'' Mr Airey says.

"Across eight states and territories we have eight separate purchase types and contracts and eight different consumer regulators. It's a crazy system.''

Read more: http://www.news.com.au/money/property/fees-create-confusion-for-homebuyers/story-e6frfmd0-1225896898018#ixzz0upzuzJjI

Forget buying homes in cities, mining towns will be next big property boom

Sun, 18 Jul 2010 18:16:58 -0700

THE detente between miners and the Federal Government over the resource super-profits tax will fuel demand for housing in mining towns.

Residential researcher RP Data said the bounceback in commodities prices was also a factor.

"For property buyers, the timing may now be right . . . (following) an amicable solution to the RSPT," said RP Data research analyst Cameron Kusher.

In a research note yesterday, RP Data pinpointed three regions where house prices should rise: iron ore-rich north-west Western Australia and its towns of Karratha and Dampier; Queensland coalfield towns such as Moranbah, Dysart and Clermont in the Bowen Basin; and Queensland's Western Downs, where extraction of coal-seam gas is a burgeoning industry.

Housing Finance Approvals

Mon, 12 Jul 2010 00:00:00 -0700

After running red hot on the heels of low mortgage rates and the Boost to the First Home Owner's Scheme last year, housing finance approvals have taken a hit in recent months. In January, the number of owner-occupied housing finance approvals declined by 7.9%, the fourth consecutive decline. Investor housing however bucked the trend increasing by 0.9% in January after a 1.6% rise in December.

Given this apparent fall in housing finance demand in the owner-occupied market both in terms of the new and established segments, it's a little surprising that the tone of the re-sale market has maintained its vigour so strongly. But for the new housing market, it seems that a lot of demand was satisfied and brought forward into last year; we are now seeing some payback to last year's bloated sales with less purchasing in the first part of this year. We expect another decline in February.

Volumes (Owner-Occ): L:-7.9% (Jan); F: -1.0% (Feb) Values: L: -5.0% (Jan); F: -3.0% (Feb)

Westpac Consumer Sentiment, April (Wed, 10.30)

Despite the RBA rate increase in March, consumer confidence edged higher by 0.2%, underpinned by strong data on unemployment and GDP. The index had fallen 2.6% in February, so it remains below the level seen in January, but confidence is still up 37%yoy, and around 17% higher than its long term average.

The March level of the confidence index is consistent over time with solid 3-4% growth in household consumption growth. It suggests that interest rates have not yet reached a level where they are having a major impact on consumer sentiment, with consumers remaining buoyant due to the strength of the labour market and house prices.

But following the April RBA rate increase, the fifth increase since October, it will be interesting to see if confidence is significantly affected.

L: +0.2% (March)

How long will it take you to buy a house?

Fri, 09 Jul 2010 00:00:00 -0700

AND what do you do in the meantime?

Rent? Stay home with the parents? Board somewhere?

I mentioned in Tuesday's blog that in 1970 the average house cost 5.8 times the average salary, and that in 2010 that average house costs 9.3 times the average salary, meaning that nowadays you really do need the double-income lifestyle to maintain a mortgage.

So I was interested in a Bankwest "First Time Home Buyer Report" released yesterday which indicated that first home-buyers need about 4 ½ years to save for an average house deposit.

According to the research, a first time buyer couple needs to raise an $85,800 deposit to purchase the median house, and $76,900 to buy a median unit, equating to a savings time of 4 ½ years and 4 years respectively.

Read more: http://www.news.com.au/money/how-long-will-it-take-you-to-buy-a-house/story-e6frfmci-1225889446650?from=public_rss#ixzz0t9Sr5WGj

Billionaire Harry Triguboff’s housing shortage warning: Gottliebsen

Tue, 06 Jul 2010 20:07:37 -0700

Australia's largest apartment owner and developer, Harry Triguboff, scoffs at the idea that there will be a housing bubble. He believes the shortages, the absence of stock and the fact that the cost of construction is close to selling prices will underpin values and eventually lead to a rise. And to back his view his Meriton Group is embarking on a major apartment building campaign and plans to erect 5,000 units - double his old building rate - in the Sydney suburbs of Epping, Zetland, Alexandria, Warriewood, Rhodes and St Ives. He is also building two massive towers in Brisbane.

For more on this article go to Smart Company

Unreal estate prices as million dollar homes 'sell like hotcakes' but won't last

Tue, 22 Jun 2010 00:00:00 -0700

Million dollar homes still sell well
But market 'not sustainable'

MILLION-dollar homes are selling at a rate of one every two hours, analysis of sales figures reveal.

The staggering spending habits of some home buyers has seen the equivalent of 12 $1 million-plus homes selling a day at auctions for the past three weekends, said Mal James from Melbourne's James Buyers Advocates.

For more on this article go to news.com.au

RAMS Home Loans undercuts the banks by slashing interest rates

Wed, 16 Jun 2010 00:00:00 -0700

Fixed home loan rates cut 0.31pc
RAMS declares war on the banks
Rival lenders expected to respond

STRESSED mortgage-holders could be the winners from an interest rate war.

RAMS Home Loans will today slash its two-year and three-year fixed home loan rates by a whopping 0.31 per cent.

For more on this article go to news.com.au

Perth house prices set for biggest climb

Tue, 15 Jun 2010 00:00:00 -0700

The median price for a Perth house will pass $600,000 within three years as the city's property market reclaims its title as the strongest and fastest growing in the country, a new report predicts.

The BIS Shrapnel residential property report forecasts house prices in Perth will climb an average 7 per cent a year for three years, pushing the median price to $610,000 from $500,000 today.

For more on this article go to the west .com

Byron Bay listed as one the worst places to buy a new home

Fri, 11 Jun 2010 00:00:00 -0700

BUYERS are being warned that homes in Byron Bay and the Sydney suburbs of Sutherland and Breakfast Point are real estate poison.

Property analyst Terry Ryder, of Hotspotting, nominated the spots as toxic real estate in his latest No-Go Zones Research Report.

"It's as valid to warn people the places they should avoid as telling them where to buy. They are spending a lot of money and it can be a financial disaster," Mr Ryder said.

For more on this article go to news.com.au

Darwin property more expensive than New York and London ArticlePage

Mon, 07 Jun 2010 00:00:00 -0700

THE average Darwin house is more expensive than its equivalents in London and New York, a comparison of real estate in cities around the world has found.

Combined figures from Residex and Australian Property Monitors show the median cost of a Darwin house is $549,035 - almost $90,000 ahead of London, where the median price for a two to three-bedroom house is $462,000, reported Northern Territory News.

For more on this article go to News.com.au

Cashed-up foreigners snap up homes

Thu, 27 May 2010 00:00:00 -0700

CASHED-UP foreigners snapped up $14.9 billion worth of houses and land in Australia last year, including $2.49 billion worth of existing homes.

The Federal Government refused to release but they were in a Foreign Investment Review Board (FIRB) report that was quietly posted online last week.

It shows the Government issued 4827 real-estate approvals to foreign investors last year for commercial and residential properties.

About half the approvals were for temporary residents wanting to buy a house as their principal residence.

For more on this article go to news.com.au

Housing loans drop on rising interest rates

Tue, 18 May 2010 00:00:00 -0700

WEAK lending finance figures show the economy is stalling and give the central bank a reason to keep interest rates on hold for at least the next two months, economists say.

Figures from the the Australian Bureau of Statistics (ABS) show total personal finance commitments fell 1.3 per cent in March, seasonally adjusted, to $6.874 billion, from $6.968 billion in February.

For more on this article go to news.com.au

PROPERTY Putting finances in shape can help land a loan

Tue, 20 Apr 2010 00:00:00 -0700

Banks tighten tests for home loans
Fixing your finances can help land a mortgage
Cancel credit cards, shop around, seek advice

TOUGH lending conditions for homebuyers are expected to continue for at least another year but there are ways to make yourself more appealing to banks and other lenders.

Five interest rate rises since October have not helped borrowers but mortgage experts say most people can improve their loan prospects.

For more on this article go to News.com

Low risks make it a great time to invest in property

Fri, 16 Apr 2010 00:00:00 -0700

DO I sound bullish about property to you? If not, you're missing the point. To me, this is an extraordinary time for property investment.

Most of the risk has gone. Non-residential prices have fallen dramatically. They're below replacement cost. Development has stalled. Demand is returning. And we can't build until rents rise.

For more on this article go to The Australian

Foreign men of property move in

Tue, 13 Apr 2010 00:00:00 -0700

OVERSEAS home buyers may be crowding locals out of the market.

At backyard barbecues during the weekend, it's a fair bet conversations turned to the political panic-button topics of interest rates, immigration and property prices.

Disconcertingly for the Federal Government in an election year, the community is starting to notice a nexus, and it borders on xenophobia.

Anecdotes abound about cashed-up Chinese investors "land banking" by collecting houses, only to leave them vacant and desperate first home buyers repeatedly being beaten at auctions by foreign bidders.

For more on this article go tonews.com.au

RBA raises cash rate to 4.25%

Tue, 06 Apr 2010 00:00:00 -0700

The Reserve Bank of Australia has raised the cash rate by 25 basis points to 4.25 per cent, saying growth and inflation are around trend and it is appropriate for interest rates to be closer to average.

"With the risk of serious economic contraction in Australia having passed some time ago, the board has been lessening the degree of monetary stimulus that was put in place when the outlook appeared to be much weaker," the central bank said in a statement today.

For more on this article go to WA Business News

Auctions running hot with 73pc clearance

Tue, 06 Apr 2010 00:00:00 -0700

AUCTION clearance rates across the country soared last month, with thousands of properties selling under the hammer and many going for well above their reserve, particularly in Sydney and Melbourne.

According to figures released by RP Data, national auction clearance rates for March reached 73 per cent, up 11 percentage points from the same period last year.

For more on this article go to The Australian

Melbourne house price jump leads nation

Sat, 03 Apr 2010 00:00:00 -0700

MELBOURNE'S house prices have outperformed every city in Australia, new benchmark real estate figures show.

According to RP Data-Rismark's Australian housing report, released yesterday, in the three months to the end of February, Melbourne's property prices grew 5.4 per cent.

For more on this Article go to news.com

New housing starts to flat-line in 2012

Tue, 30 Mar 2010 00:00:00 -0700

New housing starts in Western Australia are forecast to grow 24 per cent this financial year but then flat-line in 2011-12, a new outlook report shows.

For more on this article go to WA Business News

Housing shortfall likely to worsen

Mon, 29 Mar 2010 00:00:00 -0700

OFFICIAL forecasts for the nation's housing shortage have worsened, with more than 100,000 prospective home buyers already locked out of the market by June 30 last year.

The ongoing gap between demand and supply will be greater than previously feared, as all levels of government and the building industry struggle to keep up with Australia's world-beating population growth.

By 2029, the combined shortfall could reach 500,000 homes and apartments.

The housing shortage is most critical in NSW, which accounts for almost one third of the nation's total population but is contributing less than 20 per cent of the nation's new dwelling starts at the moment.

For more on this article go to The Australian

Negative gearing safe, says Swan

Sun, 28 Mar 2010 00:00:00 -0700

Wayne Swan has hosed down suggestions of a clamp on negative gearing, as the Rudd government seeks to lower expectations that tax reform will be a central plank of its election platform.

The Treasurer yesterday described as "hysterical" a media release from the Housing Industry Association this week claiming the government had selectively briefed journalists that it viewed negative gearing of rental investment property as a tax rort.

For more on this article go to The Australian

US house sales fall less than expected

Thu, 25 Mar 2010 00:00:00 -0700

SALES of existing homes in the US fell a third time in a row during February, but the decline was less than expected, spurring hope for a turnaround in the spring.

Inventories rose. Prices fell, but mildly. There are concerns of a "shadow" inventory, made up of homeowners waiting to put their property on the market when prices begin rising again.

For more on this article go to The Australian

Sydney property prices set to double

Tue, 23 Mar 2010 00:00:00 -0700

Home prices tipped to double in Sydney
Perth, Brisbane predicted to boom
Thousands will be locked out of market

UP TO half of Sydney homeowners are set to become property millionaires, with house prices predicted to double in the next decade.

Figures prepared exclusively for The Sunday Telegraph by Australian Property Monitors (APM) show Sydney's median property price is on target to reach $1.2 million, averaging 7.6 per cent growth per annum.

Have you been priced out of the market? Tell us below

It's good news for those already in the market but economists say housing affordability is at a crisis, blaming both federal and state governments for failing to act. They warn the Australian dream of home ownership is ending.

For more on this article go to news.com.au

House surge leads to mortgage stress

Sun, 21 Mar 2010 00:00:00 -0700

VICTORIA'S resurgent housing market is putting borrowers under severe financial strain, even if they are employed or earn more than $80,000 a year.

Researchers from the Melbourne Institute of Applied Economic and Social Research say they are "unsettled" by new findings that reveal more than half of the 14.4 per cent of households who consider themselves to be financially stressed are employed.

For more on this article go to news.com.au

Higher interest rates not so bad

Fri, 19 Mar 2010 00:00:00 -0700

EVERYONE wants a strong economy, but the spate of rising interest rates is dreaded by most property owners. It's not just the increase in mortgage repayments that is loathed, as higher interest rates, we're told, lead to house prices taking a tumble. But is this true?

Looking at the track record, the answer is not as clear as you might expect. It's true that residential property prices stopped growing during the last interest rate peak, but a worldwide financial calamity also peaked during the 2008 spring market, when 40 per cent of Australia's property transactions take place. Interest rates rose three times in the year before, yet prices in three cities -- Brisbane, Adelaide and Melbourne -- rose more than 20 per cent.

For more on this article go to The Australian

Watch on rate rises as building picks up

Thu, 18 Mar 2010 00:00:00 -0700

THE long slide in the housing construction industry has come to an end with a big jump in the number of new starts, although the recovery may be slowed by rising interest rates.

The number of new homes started rose 15.1 per cent in the December quarter from the September quarter, the biggest increase in eight years, buoyed by historically low interest rates and the tripling of the first-home owners grant for new houses.

For more on this article go to The Australian

Lack of housing will challenge recovery - Reserve Bank

Wed, 17 Mar 2010 00:00:00 -0700

Housing supply not sufficient - RBA
Prices could rise if balance not adjusted
"Hard work" staved off recession

AUSTRALIA is facing an under-supply of housing that isn't meeting the demands of a growing population, an RBA official says.

Australia is likely to devote a higher share of its GDP to housing than before, or risk a "further adjustment" in housing prices and rents to balance supply and demand.

For more on this article go to News.com.au

Boom city top for 10-year property prices

Sat, 13 Mar 2010 00:00:00 -0800

PERTH has been the standout property market of the last decade, with 11 of the city's suburbs making the top 20 list for the fastest average annual price growth, according to residential researcher RP Data.

Perth has had two housing booms in the past 10 years, effectively creating a bull market for half of the last decade, says RP Data senior analyst Cameron Kusher.

The mining and resources boom pushed the average price growth for Perth houses to 12.2 per cent a year, topped only by Darwin at 14.3 per cent over the past decade.

For more in this article go to The Australian

Return of wealthy buyers to push up prestige home prices

Thu, 11 Mar 2010 00:00:00 -0800

AUSTRALIA'S most expensive homes are likely to rise in price by 10-15 per cent this year as wealthy locals and overseas buyers hunt for prestigious addresses in a resilient economy, according to researcher RP Data.

The rebounding sharemarket and increased business confidence is underpinning demand for capital city waterfront and other top-end homes, while prestige holiday homes are yet to catch up, said senior researcher Cameron Kusher. "You can't underestimate how important the sharemarket is for top-end buyers," he said.

"When they lose half the value of their shares -- as they did in 2008 -- it's no surprise the top end of the market is hit."

For more information on this article go to The Australian

Property Couples work twice as long for a house

Tue, 09 Mar 2010 00:00:00 -0800

AUSTRALIANS have to work almost three times harder to pay off the average family home than they did 50 years ago.

Figures compiled by CommSec for The Sunday Telegraph reveal homebuyers on the average income now have to work for 19,374 hours to buy the average Australian house with the average mortgage.

Based on an eight-hour day and a five-day working week, that equates to about 10 years of work. In reality, it takes much longer to own a home, because wages must pay for all living expenses, not just housing.

In 1960, it took homebuyers just 7500 hours to pay off the average mortgage.

CommSec chief economist Craig James said that half a century ago, average wage-earners took home the equivalent of $1.08 an hour.

For more on this article go to news.com

House auctions find ready buyers across Australia

Mon, 08 Mar 2010 00:00:00 -0800

THE booming property market has shrugged off last week's interest rate rise, with strong auction clearance rates recorded across the nation at the weekend.

In Sydney, 70.5 per cent of auctioned properties were sold -- up 5.9 percentage points compared with the same time last year. In Melbourne, despite the Labour Day long weekend, clearance rates hit 75 per cent.

For more on this article go to The Australian

First home buyers give up the dream

Sat, 06 Mar 2010 00:00:00 -0800

Interest rates set to continue rising
Some home buyers giving up on dream
Others say they can cope with higher rates

ONE-fifth of Australians will give up on the dream of buying their first home in the next two years if home loan interest rates hit between 8 and 9 per cent, according to a survey from home loans broker Mortgage Choice.

By yesterday afternoon all four major banks had increased their standard variable home loan rates by 0.25 per cent, taking average mortgage rates to about 7 per cent, The Australianreports.

For more on this article go to news.com

Property Don't worry about the short term; focus on the future

Thu, 04 Mar 2010 00:00:00 -0800

TELL anyone property is a long-term business and they'll nod sagely and agree wholeheartedly. Then they'll ask what's hot now.

Suggest to someone they should stop stressing about short-term economic issues and focus on the future, the standard response will be: "Yes, I understand that, but . . ." The "but" means they don't understand.

Few people do.

You could present a crowded room with a panel of 12 property experts, all agreeing that real estate investment must be approached from a big-picture perspective, and the next comment from the audience will concern the Reserve Bank's next interest rate decision or the effect of an upcoming election.

For more on this article go to The Australian

US new home sales slide to record low

Fri, 26 Feb 2010 00:00:00 -0800

NEW home sales in the US unexpectedly plunged in January to a record low, erasing all gains made in the market during the past year.

Demand for single-family homes fell 11.2 per cent from the previous month to a seasonally adjusted annual rate of 309,000, the Commerce Department said Wednesday.

Economists surveyed by Dow Jones Newswires had estimated sales would rise 3.8 per cent, to 355,000.

"There are no words for today's new-home sales report other than terrible," said Miller Tabak analyst Dan Greenhaus.

For more on this article go to The Australian

Housing debt in overdrive

Thu, 25 Feb 2010 00:00:00 -0800

HOMEBUYERS and investors have nearly doubled their borrowings over the past five years, figures show.

Latest Reserve Bank of Australia figures show total housing debt hit $910.1 billion in December, up 17 per cent over 12 months and up 92 per cent since December 2004.

Total housing debt is set to reach $1 trillion within a year.

The figure itself is not a worry, but there is concern the pace of borrowing is exceeding household income growth.

For more on this article go to News.com.au

New Jardim Corporation website goes live

Tue, 22 Sep 2009 00:00:00 -0700

Thanks to the efforts of Ryan Briggs - Web & Print Creative and Sarah Mitchell of Global Copywriting, Jardim Corporation has a fresh new website. Our ambition is to keep the new site up to date with the latest Headlines, Feature Articles & Upcoming Events. We hope you enjoy our new online presence as much as we do...

Launch of Real Property Millionaires

Tue, 27 Oct 2009 00:00:00 -0700

Underground Property Millionaire-Maker suffers to help "The Little Guy's" Get Rich with Property in This Economy! LIMITED TO ONLY 25 LUCKY CANDIATES!

For more infomation go to Real Property Millionaires

Underground Property Millionaire-Maker

Wed, 28 Oct 2009 00:00:00 -0700

Find out how a simple 90- minute one-on-one meeting with one of WA's leading property coaches could put you on the right path to financial freedom!

For more information go to Underground Property Millionaire-Maker

Bubble warnings as investors move back to property

Wed, 10 Mar 2010 00:00:00 -0800

PROPERTY investors have returned in force to Australia's major capital cities with more than one-third of home loans sourced for investment purposes.

The percentage of loans made through Australia's biggest mortgage broker surged 26 per cent in the past six months as buyers shrugged off the global financial crisis, rising interest rates and warnings of a property bubble.

The AFG Mortgage Index, released yesterday, showed the proportion of loans to investors rose to 34.1 per cent of all mortgages in February, up from 27.1 per cent in August. It was the highest level of investor interest in the four-year history of the index.

For mor on this article go to The Australian

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This week, caretaker PM Julia Gillard was successful in forming a minority government

House prices up 0.4% in July, RP Data predicts little growth for the remainder of 2010

Private sales may take over from auctions as sellers look for higher prices during Spring selling season

Investors 'disappointed' over quick housing gains

Homebuyers have spring in their step

Property investors delay purchases until Spring to wait for bargains

Housing shortage will hurt affordability for the next decade, experts claim

Units outpace houses in growth

Housing Finance Approvals, June

RBA leaves rates on hold in August

WA set for housing shortage

Fees create confusion for homebuyers

Forget buying homes in cities, mining towns will be next big property boom

Housing Finance Approvals

How long will it take you to buy a house?

Billionaire Harry Triguboff’s housing shortage warning: Gottliebsen

Unreal estate prices as million dollar homes 'sell like hotcakes' but won't last

RAMS Home Loans undercuts the banks by slashing interest rates

Perth house prices set for biggest climb

Byron Bay listed as one the worst places to buy a new home

Darwin property more expensive than New York and London ArticlePage

Cashed-up foreigners snap up homes

Housing loans drop on rising interest rates

PROPERTY Putting finances in shape can help land a loan

Low risks make it a great time to invest in property

Foreign men of property move in

RBA raises cash rate to 4.25%

Auctions running hot with 73pc clearance

Melbourne house price jump leads nation

New housing starts to flat-line in 2012

Housing shortfall likely to worsen

Negative gearing safe, says Swan

US house sales fall less than expected

Sydney property prices set to double

House surge leads to mortgage stress

Higher interest rates not so bad

Watch on rate rises as building picks up

Lack of housing will challenge recovery - Reserve Bank

More on struggle street as prices, rates rise

Boom city top for 10-year property prices

Return of wealthy buyers to push up prestige home prices

Property Couples work twice as long for a house

House auctions find ready buyers across Australia

First home buyers give up the dream

Property Don't worry about the short term; focus on the future

US new home sales slide to record low

Housing debt in overdrive

New Jardim Corporation website goes live

Launch of Real Property Millionaires

Underground Property Millionaire-Maker

Bubble warnings as investors move back to property