Property Investment

AUSTRALIA’S comparatively strong economy should drive continued foreign investment in our property market despite the uncertain international outlook, according to Colliers International managing director of investment services, John Marasco.

Mr Marasco said offshore investors had committed about $3.7 billion in Australian property markets in just the past six months. ”Local investors are also becoming more active, with pension funds looking to increase their allocations to commercial property.

”Investors will remain cautious, with forecasts suggesting the weight of capital chasing quality assets will lead to a further tightening of premium and A-grade yields by as much as 25 basis points in the next six months.”

Mr Marasco said the secondary-grade market would continue to experience a softening of yields as investors’ appetite for risk remained soft and owners placed more assets on the market as funding pressures increased. Despite this, opportunistic buyers would continue to target underperforming assets to take advantage of the potential future upside.

”Foreign investment from sovereign wealth funds, pension funds and REITS, particularly from Asia, is forecast to remain high as investors chase secure yields of between 6.5 per cent and 7.5 per cent in Sydney, compared with 4 per cent to 6 per cent returns in Hong Kong, Singapore, London or New York,” Mr Marasco said.

”For the first half of the new financial year, we expect an increasing battle for core and core-plus assets across all asset classes.”

Foreigners stay keen on our real estate

In the wider retail sphere, Mr Marasco said the going was tough: ”While household spending has been rising, expenditure in the traditional retail sector has been lagging other areas of consumption.

”With continued short-term pressure on the sustainability of occupancy costs, property owners will be focusing on tenancy mix and maintaining occupancy levels in their shopping centres, with growth in specialty rents limited.

”The stability of retail property, however, remains an attractive proposition for many investors as they look beyond the current challenges being experienced in the broader retail sector.”

Mr Marasco said the property sector would continue to be defined by the two-speed Australian economy in the year ahead. ”This will continue to present challenges,” he said, but the growth from the mining and resources sector would continue to stimulate the broader Australian economy.

Story by Phillip Hopkins, Story source: http://www.smh.com.au/

With all the rapture about interest rate cuts – now equalling 0.75 per cent over the last two months – spare a thought for older Australians.

Already a third of over 50s say they can’t afford their home repair bills, according to a national survey, and with every dent to their savings, things get worse.

Australia’s over 50s are facing a combined repair bill of $5.57 billion to fix more than 17 million defects in their homes.

The most common issues reported in research by insurance provider Apia were leaking taps (41%), trees that need to be trimmed for safety reasons (39%), cracks in walls (38%), insect or vermin infestations (33%), and blocked drains (27%). Read more

Oh to live in Darwin at this time of the year! Temperatures in that city this week are expected to average 32 degrees, with overnight lows of 21.

For the rest of us, the pre-winter chill is certainly starting to bite. As we move into the colder months, here are 10 ways to warm up your home. Read more

Many small businesses operate from the owner’s home. This could mean the factory is a shed in the backyard and the office a corner of the kitchen or dining room table.

For others the business can have a separate section of the home or permanent structure on the property used exclusively by the business. The facts of each case will determine what costs can be claimed as a tax deduction.

Business owners are often keen to claim a percentage of the interest on a loan where a mortgage has been taken out to purchase the property. The ability to claim property related expenses will depend on two tests being passed. Read more

Open plan living is in vogue at the moment – but how do you turn a big open space into a cosy interior that’s easy to live in and doesn’t feel like a warehouse?  It’s all about zoning and creating intimate areas without walls.

The best place to start is from the ground up.  Use rugs to define your space and then use furniture to help partition spaces. Read more

Conditions are favourable for home owners to dip their toe into the property investment market.
That’s the view of leading agent Madeleine Hicks of Madeleine Hicks Real Estate Everton Park.
“When investing in property it is important to buy at a low point in anticipation of securing a quality gain in a rising market. Conditions are now viable for investors to do just that,” said Madeleine.
Traditionally property has made a sound long term investment and with the volatility surrounding the share market since the Global Financial Crisis many Australians are returning to property for their investment options.
“The fact that the market is coming off a sustained period of low or negative growth mean that buyers can obtain a good deal. When you combine this with the recent cuts in interest rates one gets the feeling that healthy rises in property values are not too far away,” explained Madeleine.
For all your Real Estate needs contact Madeleine on 33556845 or visit: madeleinehicks.com.au

Many of us could spend hours (possibly weeks) pouring over pictures of hip homes in interiors magazines, and dreaming … If you’ve ever pondered the secrets of these pads’ photogenic success and wanted to emulate them, here are a couple of general tips:

Story time: Most photoshoots capture pictorial vignettes – the sofa, the casually draped throw, the lovely fluffy cushions, the pile of artistically arranged books … It’s not just about the furniture; it’s about what these items say and the story they tell about you and your home.

Go into detail:  A photographer’s nightmare is a room with no possessions on show. Editors love details – knick-knacks make a home a home.  We’re not thinking for a minute that you cover every space with your old telephone bills and children’s drawings – think knick-knacks, photos of loved ones and think about putting some of your children’s special pics in a frame – and put the bills and clutter out of sight!

How to get the Interiors Magazine Look

Set great store: Good storage is vital – but it doesn’t need to be an expensive built-in: photographically that’s dull. Try a trendy glass cabinet, such as the eye-catching, Forma.

All the little things:  Bold doesn’t have to equal expensive. If you’re nervous, build on a neutral base – beige or brown lounge – then take risks with accessories: zingy cushions or throws, or a ceramic jar – much cheaper than getting the wrong lounge.

Screened off: Something you’ll never see in an interiors mag is the TV! They’re so huge now – and not pretty. Hide giants in a cupboard – and never hang one over a fireplace.

Personal appearance: Forget having the ‘right’ or fashionable thing. The best style is surrounding yourself with things that you love.

To create that beautifully designed magazine look, be sure to follow these tips.

Source: Nick Scali Reviews

Some may describe the market as “sluggish” others describe it as “normal real estate conditions.” Whatever the case, property investment has never been a get rich quick scheme.

“Property is a great investment over long periods of time,” says leading agent Madeleine Hicks of Madeleine Hicks Real Estate Everton Park.

Property Investment Is Not A Get Rich Quick Scheme

“Too often people get excited when the market booms and fast gains can be made. This type of market is rare and generally lasts for short periods.

The current climate is typical of a normal real estate market where one can make steady long-term gains over time,” explained Madeleine.

History shows that property has proven to be a great investment averaging annual growth of upwards of 7% per annum over 10 year periods. This provides the opportunity for property values to double every 7 – 10 years.

“There are riches to be made through property investment but a sound strategy and patience are the keys,” concluded Madeleine.

For all your Real Estate needs contact Madeleine on 3355 6845 or 0413 733 617.

Property can be a great investment and can fund an early, wealthy retirement.

Smart property investors often have the comfort of knowing that they can quit their day job and live off their passive income that they have created whilst watching their assets grow.

Leading agent Madeleine Hicks of Madeleine Hicks Real Estate believes that anyone can create wealth from property providing they devise and stick to their game plan.

“There is an abundance of information on property investment and many resource tools to draw upon, even for first timers,” said Madeleine.

“The real challenge isn’t in the legal detail, though it is wise to be educated or seek professional advice. The challenge is in formulating your plan then sticking to it,” Madeleine explained.

How to Build Your Property Portfolio

So where does one start?

Madeleine offers the following tips to devising your game plan:

  • Work out your reason why. Why do you want to invest in property?
  • What is your dream result?
  • Set goals you wish to achieve through property investment and WRITE THEM DOWN.
  • Put a net value on those goals
  • Work out your budget. Where are you spending your income?
  • Allocate and affordable amount to service mortgages.
  • Budget for vacancy factors, repairs and problems

If you are interested in property investment and would like assistance in getting started contact Madeleine on 3355 6845.

Knowing your limits and the market will help to expand your property portfolio.

Why do some people struggle to buy one investment property and yet others manage to own five or six? The answer isn’t simply that they have more money.

Investors who are creative in their approach to financing and who thoroughly research the important real estate indicators routinely achieve their goals faster and with less hassle.

There are several well-known ways to increase a property portfolio. You can take out an interest-only loan, buy with partners as ”tenants in common” or tap into your home equity.

Make the most of your investment dollars

Owning an investment property is not out of reach, it simply requires an astute approach. Photo: AFR

All of which help free up cash flow, enabling you to make more substantial contributions to a principal place of residence or to access cash flow for other investments. Coupled with buying investment properties in the right place at the right time, these tactics have reaped financial rewards for many people.

But savvy investors take their strategies to the next level. Let’s look at some of the less-traditional approaches to more profitable property investing.

Varying your income tax

If you’re negatively geared, a good way to improve immediate cash flow is to ask your accountant to submit an income tax variation form to your payroll office.

This reduces the tax rate charged on your wages by estimating your total end-of-financial-year tax position in advance. Rather than receiving a lump sum tax refund, you receive money evenly throughout the year.

Line of credit with a global limit

This is a line of credit home loan with a ”global” or ”umbrella” limit and several sub-accounts. It gives you maximum access to your equity to optimise your investment opportunities. The loan can be operated with multiple accounts under one global limit.

Mortgage Choice spokeswoman Belinda Williamson says line of credit accounts can be attached to a credit card. ”If you earn a decent income, using a credit card for expenses should mean that most of your income stays in the loan until the credit card payment is due, which helps to reduce the loan balance.”

Targeting distressed vendors

Successful investors don’t appraise the properties on the market in an area, they try to work out why they are for sale. Paul Osborne, of the buyer’s advocate firm Secret Agent, says it’s a smart move to understand household indebtedness in specific areas to snare a bargain.

He says many households are managing to service only the interest repayments, not the principal amount, of their home loans. As a consequence, the best buying opportunities tend to be in suburbs that have high proportions of household debt.

A secondary dwelling as an investment

Building second dwellings, such as granny flats, on the land held by either an owner-occupied or an investment property has become a growing trend. These dwellings can generate extra rental income and increase the property’s future value.

They also provide depreciation benefits and must be council-approved. Lending criteria for secondary dwellings varies from lender to lender and it’s smart to monitor how such additions in an area have shifted property values.

Choose a loan tailored to your needs

Depending on your finances, lifestyle and investment portfolio, there are a range of property loans to consider. Ms Williamson recommends checking the health of your home loan at least once a year.

”You should make sure that your loans not only meet your current needs but also take your future needs into consideration,” she says. ”Make sure that you are managing your loan, rather than letting it manage you.” Always be aware that new products are entering the competitive housing finance market constantly.

Story source: www.domain.com.au Story by Chris Tolhurst