Category — Property
For something different,I thought an article on property investment would not go astray. Enjoy.
10 Tips for Successful Real Estate Property Investment
Even when the real estate market is slowing down, either stagnating or in a depression, excellent profits can still be made here and also overseas.
This article will show you the top ten tips that real estate investors employ in their property portfolio building systems to assure them of profitable success from their property investments.
1) Research the curve -
The reality of a property market cycle existing is not myth it’s factual and is broadly admitted to be established on a price-income relationship. [Read more →]
September 15, 2012 Comments Off
‘Building approvals in surprise slide’ – Age
Surprise to whom?
It doesn’t surprise us. The only people who were surprised by the fall in building approvals were those with their heads stuck in the sand.
It’s funny, in recent weeks we’ve seen a bunch of commentary talking about a recovery in the Australian housing market. We’ve even seen a few housing bears sayings things are looking on the up.
The reality is far different.
If they think the housing price falls they’ve seen over the past two years were the worst of it, they’re kidding themselves. As we’ll explain this morning, the worst is yet to come…
Look, in a lot of ways the reaction is understandable.
Heck, we’ve fallen into the same trap. We’ve occasionally jumped in too early when picking penny stocks in Australian Small-Cap Investigator.
The fact is most people are naturally optimistic. It must be a genetic thing. Arguably, the human race wouldn’t have become the most successful and intelligent of all living species if it wasn’t for this natural optimism.
By the same token, it’s humanity’s ability to recognise danger and have a questioning mind that has also contributed to this success. [Read more →]
September 3, 2012 Comments Off
The tale of Ireland’s spectacular property boom and bust is well known. The Irish countryside is littered with half-finished properties – a legacy of the times when Irish banks would lend to seemingly anyone.
Little wonder that Irish property prices have halved since 2007 and fallen further than in any other Western economy since the financial crisis. However, things may at last be starting to change.
The Economist claims that the ratio of prices to incomes and rents are both below their long-term averages and that house prices may be up to 5% undervalued in Ireland. Meanwhile, the Irish Independent reports that professional buyers are starting to circle the market.
So should you also be thinking of buying bombed-out Irish property? [Read more →]
August 24, 2012 Comments Off
In yesterday’s Money Morning our old pal, Dr. Alex Cowie, wrote to you about the terrible outlook for the Melbourne property market.
According to Morgan Stanley research, Melbourne house prices could fall by 30% from peak to trough.
That’s a bitter pill for the hundreds of thousands of investors who need house prices to rise in order to offset the losses from interest payments and running costs.
But indebted housing investors needn’t worry — if they believe BIS Shrapnel and academics at two Aussie universities — because help is on the way. In what form? Trains and the end of the resources boom!
To find out the latest excuses used to justify a housing boom, read on… [Read more →]
July 26, 2012 Comments Off
A family friend working in real estate recently told me:
‘Well, there are plenty of sellers, and also plenty of buyers,
…but never the twain will meet.’
It’s a tough challenge to bridge the expectations of the two parties.
But right now, buyers have the upper hand. They know there’s a fair chance that all they have to do to get a better price – is wait.
And if the recent analysis on the Melbourne property market is right, it will be worth their while waiting a bit longer… [Read more →]
July 25, 2012 Comments Off
There are two things you can’t discuss at the Smith’s extended family gatherings. Religion and politics. And that’s mostly because there’s no talking when those subjects come up, just yelling, fist pumping and table thumping.
And after a recent weekend gathering, we added a third ‘no-go’ topic. After all the noise, thinly disguised name calling and our colour blind electrical engineer uncle setting fire to the dining room table, we decided to never discuss Australian property with them again.
Just this week The Age commented on rising negative equity for homeowners in the outer suburbs.
‘Many people who bought houses on Melbourne’s fringes in recent years could be facing financial ruin after a slump in prices has left them owing more to the bank than their homes are worth, experts have warned.’ [Read more →]
July 15, 2012 Comments Off
But based on the recent numbers from the 2011 census, it looks like the glory days of the Australian housing sector are over.
Two events over the past four weeks sum up the desperation in the Australian housing lobby. The government funded National Housing Supply Council (NHSC) tried to talk up the so-called Australian housing shortage.
It was a brave attempt, but just over a week later, their case was shot down. Here’s how Bloomberg News reported the NHSC update:
‘The revised national estimate of the housing shortfall at end-June 2010 is 200,000 dwellings, 13,000 greater than previously published.’
It was a gutsy move to revise the housing shortage numbers just two weeks before the release of the 2011 Census numbers. Too gutsy. We bet they wish they had waited. [Read more →]
July 6, 2012 Comments Off
Our old pal Warren Buffett knows where the money is.
This week Bloomberg News reported:
‘Warren Buffett’s Berkshire Hathaway Inc. jumped into the slumping private-jet market again with a record order valued at $9.6 billion, betting on a rebound later this decade with a third plane purchase in less than two years.’
It suggests that Buffett doesn’t think his proposal to tax the rich will have an effect on private-jet travel.
The timing of the deal was appropriate, because it came at the same time as a report from the US Federal Reserve that showed US household wealth is back to 1992 levels. According to the San Francisco Chronicle:
‘Median net worth declined to $77,300 in 2010, the lowest since 1992, from $126,400 in 2007, the Fed said in its Survey of Consumer Finances…Almost every demographic group experienced losses, which may hurt retirement prospects for middle-income families, Fed economists said in the report.’
June 15, 2012 Comments Off
Kris is at home today. He claims to be taking care of a ‘sick nipper’, but we all know that he’s actually busy framing the front page of the weekend edition of the Financial Review. That’s because it features a chart of Australia’s falling house prices. Remember that such an event was once considered a ‘virtual impossibility’.
‘This transition involved lower interest rates, better-anchored inflation expectations, and increased availability of housing credit. Without some reversal of these structural changes – which is a virtual impossibility – we do not expect Australian housing prices to fall.’ – Paul Bloxham, chief economist, HSBC (formerly at the RBA)
Oops. [Read more →]
June 5, 2012 Comments Off
The rate cuts in November and then December were supposed to save Australian house prices.
Yet less than six months later, recent economic data suggest things are getting worse.
According to RP Data, capital city house prices lost a combined 4.5% last year.
But ever the optimist, RP Data called this decline in April a ‘renewed softness’.
Even Tim Lawless, RP Data’s research director, admitted interest rate cuts won’t help the housing market. He said:
‘Our estimate of transaction volumes to February suggest that the two interest rate cuts in November and December last year are yet to provide a sustained stimulus to the market, with transaction volumes remaining reasonably steady around 31,000 each month. Comparing this with the sales rate through mid 2009 when around 45,000 homes were selling each month, the slowdown in buyer activity becomes quite clear.’
May 14, 2012 Comments Off