We are well truly in the rebound phase, and the data will start to show that property values are set to reach new record heights, not seen since the downturn began in mid-2017. We thought it was timely to provide seven reasons why property values will continue to surge in 2020!
Interest rates are at all-time lows, lending is flowing freely and a hand-out for first home buyers is giving prospective purchasers a leg up onto the property ladder. It may seem all rainbows and sunshine but beware of the danger lurking in the shadows. The property spruiker! Much like the troll under the bridge, the property spruiker takes advantage of unwitting investors and can trap novice buyers into making the mistake of a lifetime – buying a dud property.
In our video series Mortgage Strategy 101 Ep. #12 David shares with you how your mortgage strategy can grow your wealth by enabling you to hold properties as you accumulate more. He has also written "How you to turn your home into an investment property when upgrading" in his regular piece for Domain ‘Advice’.
As if high rise apartments hadn’t been in the media enough, reports from the CFMEU estimate that it will cost $6.2 billion to fix shoddy apartments! Issues include defective cladding, water leaks, fire safety and structural failures. Co-host of the Property Planner, Buyer and Professor podcast, and Chairman of Property Investment Professionals of Australia, Peter Koulizos, takes you through how to recognise a bad-buy when looking at apartments.
Your interest rate will save you money, but an effective Mortgage Strategy will create wealth? Our Managing Director Dave Johnston and Mike Mortlock of MCG Quantity Surveyors discuss the top 5 mortgage strategies for Australian Property Investor magazine. There is always a great rate out there, you don’t need to be an expert in mortgages to know that 4.01% is higher than 4.00%. You do need someone in your corner to ensure that your mortgage strategy incorporates...
The Bushfires, Davos and the World’s Largest Investment Funds – How the transition from fossil fuels will impact the economy and your property?
The Annual World Economic Forum (WEF) was held in the city of Davos in Switzerland last week. The Australian fires were a talking point, being in our fourth month of bushfires with over 18 million hectares burnt. This is greater than the size of Switzerland itself. The lofty mission of the WEF is to ‘improve the state of the world’. It is telling that failure of climate change mitigation and adaption was ranked the number one risk, with biodiversity loss coming in second for the first time in the history of the event over multiple decades.
A survey of property investors by PIPA has uncovered that nearly half of investors plan to buy a property interstate in the next year. We’ve always said that your next property decision could be anywhere in Australia. Each time you purchase a property, you should aim to purchase the highest quality asset you possibly can and the location should be based on your goals and personal situation, rather than where you live or where a buyer’s agent is based. Or worse, where they are buying but not based!
Over the last 10 years, high-rise apartment prices in Melbourne and Sydney have underperformed houses by more than 50%, and if you have been listening to our education for the last 15 years, this would come as no surprise whatsoever! Core logic data indicates that Melbourne’s high-rise apartment market is by far the worst of every other city in Australia. As we've been banging on about for years, high-rise apartments rarely make the grade as quality investments, if your goal is capital growth. Low land-to-asset-ratio's is just one reason for this as we have opined in an article for Domain, in Podcast Ep#16 “unpacking land to asset ratio” and alongside property professionals CateBakos and Petewargent on landtoassetratio.com.au.
How do you recognise a con artist from a professional? The property industry is unregulated, which gives ample opportunity for property spruikers to masquerade under the guise of being property investment experts. Property marketers have almost perfected this art, while actually receiving huge commissions for selling you a property. For 15 and a half years and counting, we have been educating consumers to seek independent advice from trusted professionals. It may just save you from making the most expensive mistake of your life. There is no such thing as a free lunch!
As we begin the journey of a new year, it is time to place our head on the proverbial chopping block and make a few predictions. As 2019 showed, with most pundits predicting a continuation of property values falling, this is a particularly risky exercise. But, what the heck, let’s give it a go anyway. We outline our predictions for: 1. The capital cities. 2. When property values will reach record prices. 3. When growth rates will normalise and what will precipitate this happening. 4. How and why property data lags behind real-time events. 5. The supply and demand factors that will drive growth, and those which will apply the brakes. 6. How buyers should approach the current market. 7. The impact of APRA and the government, including policies they will implement to slow down the market and increase the supply of affordable housing. 8. And finally, what an ideal world 'could' look like in 2020 (versus our predicted outcomes). So, come take a ride with us in our time machine as we explore what 2020 has to offer!