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"Buy land, they're not making it anymore." - Mark Twain
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IP addresses are NOT logged in this forum so there's no point asking. Please note that this forum is full of homophobes, racists, lunatics, schizophrenics & absolute nut jobs with a smattering of geniuses, Chinese chauvinists, Moderate Muslims and last but not least a couple of "know-it-alls" constantly sprouting their dubious wisdom. If you believe that content generated by unsavory characters might cause you offense PLEASE LEAVE NOW! Sammyboy Admin and Staff are not responsible for your hurt feelings should you choose to read any of the content here. The OTHER forum is HERE so please stop asking.
Would you invest in a property over other investments?
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[h=1]Sounds like Singapore??? Those with property in good locations,,,prepare to get richer
http://www.abc.net.au/news/2014-01-29/kohler-infrastructure-emergency/5224586Infrastructure deficit puts us on a road to nowhere[/h]The Drum
By ABC's Alan Kohler
Updated 9 hours 59 minutes ago
Photo: Infrastructure planning in Australia is still not independent of politics. (ABC: Spence Denny)
There's every indication we are approaching a national emergency when it comes to infrastructure, writes Alan Kohler.
One of Australia's many political ironies is that the national effort to Stop The Boats has disguised an immigration boom.
Immigration has increased five-fold since the Howard Government came to office and with a big increase in births over the past ten years, in part also due to Howard Government policies, Australia's total population growth has doubled and is now about three times that of most other developed countries.
The Abbott Government's ambitious paid parental leave project will ensure that the baby boom goes on and the pressure for immigration from India and China - apart from New Zealand the two leading sources of migrants - will only increase as well.
Last year Australia's population grew 1.8 per cent, or 407,000, compared with 0.7 per cent for the United States, 0.5 per cent for Europe and China, and minus 0.1 per cent for Japan.
The extra 400,000 or so people a year is the reason Australia has not had a recession for 23 years and it's why GDP growth is now around 2.5 per cent. On a per capita basis, Australia's economic growth is among the weakest in the world, and per capita consumption growth is zero.
In other words, population growth is the only reason it looks like the economy is growing.
One obvious consequence of Australia's population boom, apart from disguising a fundamentally weak economy, is rising house prices because not enough houses are being built as a result of restrictive planning laws and high construction costs.
Not enough infrastructure is being built either, to the point where a national emergency is approaching.
There is far too much focus on politically motivated big ticket infrastructure projects that soak up the available funding, and not enough on what you might call business-as-usual infrastructure.
Infrastructure Australia (IA) was set up as a statutory body in 2008 to organise and prioritise infrastructure spending but six years later Michael Deegan, the Infrastructure Coordinator (effectively the body's chief executive), has written a deeply frustrated submission to a Senate inquiry, declaring: "There is an air of unreality about our infrastructure planning."
The inquiry, by the way, is into the "Infrastructure Australia Amendment Bill 2013", which basically seems designed to scrap IA and start again. Deegan says the bill will make IA less independent; the Minister for Infrastructure and Regional Development, Warren Truss, says it will make it more independent but it doesn't look that way.
Says Deegan: "Several provisions in the Bill considerably broaden the power of a Minister to give specific directions to Infrastructure Australia in areas that are at the core of the organisation's responsibilities, so independence is not in fact conferred."
Rarely have we seen a more critical submission on a bill from a public servant. Through more than 20 drafts of the bill, IA was not consulted on it at all.
Deegan's broad complaint is that infrastructure planning in Australia is still not independent of politics.
That used to be true of monetary policy too, but not anymore. It has been generally agreed that setting interest rates is too important a task to be left to politicians, so the Reserve Bank is now entirely independent.
With Australia's population growing the way it is, infrastructure has become as important to the economy as monetary policy - if not more so.
IA should be given the sort of independence that the RBA has.
Alan Kohler is finance presenter on ABC News and Editor in Chief of Business Spectator and Eureka Report. View his full profile here.
http://www.abc.net.au/news/2014-01-29/kohler-infrastructure-emergency/5224586Infrastructure deficit puts us on a road to nowhere[/h]The Drum
By ABC's Alan Kohler
Updated 9 hours 59 minutes ago
Photo: Infrastructure planning in Australia is still not independent of politics. (ABC: Spence Denny)There's every indication we are approaching a national emergency when it comes to infrastructure, writes Alan Kohler.
One of Australia's many political ironies is that the national effort to Stop The Boats has disguised an immigration boom.
Immigration has increased five-fold since the Howard Government came to office and with a big increase in births over the past ten years, in part also due to Howard Government policies, Australia's total population growth has doubled and is now about three times that of most other developed countries.
The Abbott Government's ambitious paid parental leave project will ensure that the baby boom goes on and the pressure for immigration from India and China - apart from New Zealand the two leading sources of migrants - will only increase as well.
Last year Australia's population grew 1.8 per cent, or 407,000, compared with 0.7 per cent for the United States, 0.5 per cent for Europe and China, and minus 0.1 per cent for Japan.
The extra 400,000 or so people a year is the reason Australia has not had a recession for 23 years and it's why GDP growth is now around 2.5 per cent. On a per capita basis, Australia's economic growth is among the weakest in the world, and per capita consumption growth is zero.
In other words, population growth is the only reason it looks like the economy is growing.
One obvious consequence of Australia's population boom, apart from disguising a fundamentally weak economy, is rising house prices because not enough houses are being built as a result of restrictive planning laws and high construction costs.
Not enough infrastructure is being built either, to the point where a national emergency is approaching.
There is far too much focus on politically motivated big ticket infrastructure projects that soak up the available funding, and not enough on what you might call business-as-usual infrastructure.
Infrastructure Australia (IA) was set up as a statutory body in 2008 to organise and prioritise infrastructure spending but six years later Michael Deegan, the Infrastructure Coordinator (effectively the body's chief executive), has written a deeply frustrated submission to a Senate inquiry, declaring: "There is an air of unreality about our infrastructure planning."
The inquiry, by the way, is into the "Infrastructure Australia Amendment Bill 2013", which basically seems designed to scrap IA and start again. Deegan says the bill will make IA less independent; the Minister for Infrastructure and Regional Development, Warren Truss, says it will make it more independent but it doesn't look that way.
Says Deegan: "Several provisions in the Bill considerably broaden the power of a Minister to give specific directions to Infrastructure Australia in areas that are at the core of the organisation's responsibilities, so independence is not in fact conferred."
Rarely have we seen a more critical submission on a bill from a public servant. Through more than 20 drafts of the bill, IA was not consulted on it at all.
Deegan's broad complaint is that infrastructure planning in Australia is still not independent of politics.
That used to be true of monetary policy too, but not anymore. It has been generally agreed that setting interest rates is too important a task to be left to politicians, so the Reserve Bank is now entirely independent.
With Australia's population growing the way it is, infrastructure has become as important to the economy as monetary policy - if not more so.
IA should be given the sort of independence that the RBA has.
Alan Kohler is finance presenter on ABC News and Editor in Chief of Business Spectator and Eureka Report. View his full profile here.
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It is true. Even if we do not sell our properties, we "unlock" the equity and use the money to --------- invest. Remember, INVEST not consume.
http://www.landgate.wa.gov.au/corporate.nsf/web/Median+House+Price
Predictions Perth will surpass median house price record
Updated 2 hours 57 minutes ago
In Western Australia, the mining boom has fuelled a similar boom in real estate. Rents have sky rocketed and the median house price doubled. But despite speculation the mining boom is over, real estate experts say house prices will continue to rise in Perth.
http://www.abc.net.au/news/2014-01-...s-median-house-price/5228012?section=business
Greenlandzone
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Thanks. I was searching the same information since many months. Thanks for your hard work.
SEO Company
galapagos tours
Oak Furniture
SAS
HADOOP
SEO Company
galapagos tours
Oak Furniture
SAS
HADOOP
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actually rents are dropping and vacancy rates r increasing. so i dont see how investors can tahan such low yields.
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Many years ago, I posted the magic formula in this forum, it still hold true.
Rental need to fall another $100 before it will keep me awake at night.
My only concern is that I cannot renew my portfolio because property prices are too high.
I have to wait for interest rates to go up first.
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Oh i see,,so u looking for higher interest rates? for me I prefer to keep it low,,as long as it remains low it means housing prices go higher...and perth having population boom,,,but on the downside more land is being release etc easing the housing shortage,,but of course the average for crappy suburbs is about 400k for a brand new house,,But it came out in the Australian that the gahmen wants prices to go up,,so all in all as long as prices go up its better for me...but what now surprises me is many are moving to Ellenbrook, Byford, Yanchep,,damn far away places,,,so the best is can afford closer to city the better,,good locations will weather the storm better,,,
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Trade-up buyers join Perth property rush
Kate Emery The West Australian<TIME class=article-time itemprop="datePublished" datetime="1392515786">February 16, 2014, 9:56 am
The flood of first-homebuyers that has driven Perth's property market is showing signs of giving way to investors and people trading up to bigger homes.
Properties in sought-after suburbs and those with development potential are being snapped up for sometimes tens of thousands of dollars above their asking prices, with some home opens anecdotally attracting more than 40 would-be buyers.
Agents said homes in the $600,000-$700,000 bracket in some suburbs were now receiving as much interest as those in the $400,000-$500,000 range favoured by first-homebuyers because of the stamp duty benefits. They said first-homebuyers were on the wane in favour of "trade-up buyers", who were selling one home to buy a bigger one, and - to a lesser extent - investors.
The Australian Bureau of Statistics reported this week that house prices in Perth rose 8.7 per cent last year, but the Real Estate Institute of WA has predicted more moderate growth of 3 to 5 per cent this year.
Momentum Wealth managing director Damian Collins said the first-homebuyer market was still active but not to the extent it had been. "We've seen a big number of trade-up buyers come into the market," he said.
Attree Real Estate property consultant Paul Devine said competition was driving up prices.
"The conditions are there to suit sellers at the moment based on a lack of homes for sale, lack of new homes being built, interest rates and market sentiment is still strong," he said.
Cheryl and Chris Kirwin bought a $645,000 investment property in Hillarys last month after putting in offers on five other properties. Mrs Kirwin said they paid more than they planned to get what they wanted.
Lynda and Richard Campo recently upgraded from their Maddington property, buying a home in Huntingdale advertised for offers above $519,000.
About 20 people turned up to the home open and the couple beat out a handful of other offers to buy it for $545,000. "We thought we could upgrade suburbs as well as houses," Mrs Campo said.
http://au.news.yahoo.com/thewest/wa/a/21497881/trade-up-buyers-join-perth-property-rush/
Kate Emery The West Australian<TIME class=article-time itemprop="datePublished" datetime="1392515786">February 16, 2014, 9:56 am
The flood of first-homebuyers that has driven Perth's property market is showing signs of giving way to investors and people trading up to bigger homes.
Properties in sought-after suburbs and those with development potential are being snapped up for sometimes tens of thousands of dollars above their asking prices, with some home opens anecdotally attracting more than 40 would-be buyers.
Agents said homes in the $600,000-$700,000 bracket in some suburbs were now receiving as much interest as those in the $400,000-$500,000 range favoured by first-homebuyers because of the stamp duty benefits. They said first-homebuyers were on the wane in favour of "trade-up buyers", who were selling one home to buy a bigger one, and - to a lesser extent - investors.
The Australian Bureau of Statistics reported this week that house prices in Perth rose 8.7 per cent last year, but the Real Estate Institute of WA has predicted more moderate growth of 3 to 5 per cent this year.
Momentum Wealth managing director Damian Collins said the first-homebuyer market was still active but not to the extent it had been. "We've seen a big number of trade-up buyers come into the market," he said.
Attree Real Estate property consultant Paul Devine said competition was driving up prices.
"The conditions are there to suit sellers at the moment based on a lack of homes for sale, lack of new homes being built, interest rates and market sentiment is still strong," he said.
Cheryl and Chris Kirwin bought a $645,000 investment property in Hillarys last month after putting in offers on five other properties. Mrs Kirwin said they paid more than they planned to get what they wanted.
Lynda and Richard Campo recently upgraded from their Maddington property, buying a home in Huntingdale advertised for offers above $519,000.
About 20 people turned up to the home open and the couple beat out a handful of other offers to buy it for $545,000. "We thought we could upgrade suburbs as well as houses," Mrs Campo said.
http://au.news.yahoo.com/thewest/wa/a/21497881/trade-up-buyers-join-perth-property-rush/
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This time 2 years ago was so quiet, and it was a great time for investors. Builders were giving deep discounts, and by the time, the houses were built, the rental vacancy was at record low.
Now that everyone else is buying, I am sidelined.
Most of Australia’s 20 wealthiest names have built their fortunes from property or mining. They then diversify into other investments, but they literally start from the ground up.
The exceptions are, of course, the Packers (media and gaming), Pratt (diversified), Liberman (diversified), Neilson (financial services), Stokes (media) and Besen (retail). So if you don’t like real estate or mining, consider media, packaging or retail as your starting point.
Now that everyone else is buying, I am sidelined.
Most of Australia’s 20 wealthiest names have built their fortunes from property or mining. They then diversify into other investments, but they literally start from the ground up.
The exceptions are, of course, the Packers (media and gaming), Pratt (diversified), Liberman (diversified), Neilson (financial services), Stokes (media) and Besen (retail). So if you don’t like real estate or mining, consider media, packaging or retail as your starting point.
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http://www.abc.net.au/news/2014-03-...n-february-sydney-rise-melbourne-fall/5294372
[h=1]Home prices stagnate in February: Sydney rises, Melbourne falls[/h]By business reporter Michael Janda
Updated 1 hour 12 minutes ago
Map: Australia
Sydney home prices continued to rise last month, but the steam appears to be going from Melbourne's market.
The mixed performance of Australia's major cities, including a 2 per cent slide in Brisbane prices, resulted in a flat result overall for capital city home prices in February, according to the widely-watched RP Data - Rismark index.
[h=3]Home prices in February[/h]
Hobart posted the strongest gain of 1.4 per cent for the month, while Sydney prices maintained their momentum, rising 0.8 per cent.
However, Melbourne prices eased 0.2 per cent, along with Perth and Adelaide, and Canberra was down 0.8 per cent.
The mixed results still leave average capital city home prices 9.5 per cent higher than they were a year ago, with Sydney more than 13 per cent higher, and Melbourne almost 10 per cent up.
Outside the capital cities, home prices rose 0.6 per cent in January, and are up 2.8 per cent over the past year.
Tim Lawless says the lack of national home price growth last month is probably just a normal pause after two very strong months.
"The likelihood is that the weak reading for February is an adjustment from the strong readings in December and January rather than the beginning of a flat to negative growth phase across the macro level housing market," noted RP Data's research director Tim Lawless.
However, he does expect the housing market to lose traction later in the year, due to a lack of affordability and growing wariness of rising interest rates.
"Our view is that housing market conditions will start to wind down later this year as affordability constraints and low rental yields dampen market conditions," Mr Lawless added.
"Additionally, with a belief that mortgage rates are likely to start tightening later this year, it may help to quell some of the exuberance we have been seeing."
The RP Data - Rismark report shows the strongest growth in home values over the past six months has been at the more pricey end of the market at 6.8 per cent, while more affordable homes have risen 3.5 per cent over that period and been flat nationally over the last three months.
[h=2]New home sales rise[/h]After a small decline in December, new home sales rose in January, according to a survey of major builders by the Housing Industry Association.
The trend to apartment living continued, with a 1.6 per cent rise in multi-unit sales easily eclipsing a 0.3 per cent rise in detached home sales.
"New home sales have been rising pretty steadily since the third quarter of 2012, encouraged by the falling interest rates and the return of confidence to the housing market," observed HIA senior economist Shane Garrett.
"The return of house price growth to most cities has done much to oil the market and allow transactions to start occurring in greater numbers."
New home sales were 17 per cent higher than in January 2013.
Over the three months to January, South Australia had the strongest increase in new homes sales (50.4 per cent), while Queensland (17.8 per cent) and New South Wales (6.2 per cent) also recorded growth.
Sales declined in Western Australia (-1.1 per cent) and Victoria (-12.3 per cent).
[h=1]Home prices stagnate in February: Sydney rises, Melbourne falls[/h]By business reporter Michael Janda
Updated 1 hour 12 minutes ago
Map: Australia
Sydney home prices continued to rise last month, but the steam appears to be going from Melbourne's market.
The mixed performance of Australia's major cities, including a 2 per cent slide in Brisbane prices, resulted in a flat result overall for capital city home prices in February, according to the widely-watched RP Data - Rismark index.
[h=3]Home prices in February[/h]
- Sydney: up 0.8 per cent, median price $610,000.
- Melbourne: down 0.2 per cent, median price $515,000.
- Brisbane: down 2 per cent, median price $445,000.
- Adelaide: down 0.2 per cent, median price $396,550.
- Perth: down 0.2 per cent, median price $514,500.
- Hobart: up 1.4 per cent, median price $325,500.
- Canberra: down 0.8 per cent, median price $520,000.
- Darwin: up 0.7 per cent, median price $520,000.
Hobart posted the strongest gain of 1.4 per cent for the month, while Sydney prices maintained their momentum, rising 0.8 per cent.
However, Melbourne prices eased 0.2 per cent, along with Perth and Adelaide, and Canberra was down 0.8 per cent.
The mixed results still leave average capital city home prices 9.5 per cent higher than they were a year ago, with Sydney more than 13 per cent higher, and Melbourne almost 10 per cent up.
Outside the capital cities, home prices rose 0.6 per cent in January, and are up 2.8 per cent over the past year.
Tim Lawless says the lack of national home price growth last month is probably just a normal pause after two very strong months.
"The likelihood is that the weak reading for February is an adjustment from the strong readings in December and January rather than the beginning of a flat to negative growth phase across the macro level housing market," noted RP Data's research director Tim Lawless.
However, he does expect the housing market to lose traction later in the year, due to a lack of affordability and growing wariness of rising interest rates.
"Our view is that housing market conditions will start to wind down later this year as affordability constraints and low rental yields dampen market conditions," Mr Lawless added.
"Additionally, with a belief that mortgage rates are likely to start tightening later this year, it may help to quell some of the exuberance we have been seeing."
The RP Data - Rismark report shows the strongest growth in home values over the past six months has been at the more pricey end of the market at 6.8 per cent, while more affordable homes have risen 3.5 per cent over that period and been flat nationally over the last three months.
[h=2]New home sales rise[/h]After a small decline in December, new home sales rose in January, according to a survey of major builders by the Housing Industry Association.
The trend to apartment living continued, with a 1.6 per cent rise in multi-unit sales easily eclipsing a 0.3 per cent rise in detached home sales.
"New home sales have been rising pretty steadily since the third quarter of 2012, encouraged by the falling interest rates and the return of confidence to the housing market," observed HIA senior economist Shane Garrett.
"The return of house price growth to most cities has done much to oil the market and allow transactions to start occurring in greater numbers."
New home sales were 17 per cent higher than in January 2013.
Over the three months to January, South Australia had the strongest increase in new homes sales (50.4 per cent), while Queensland (17.8 per cent) and New South Wales (6.2 per cent) also recorded growth.
Sales declined in Western Australia (-1.1 per cent) and Victoria (-12.3 per cent).
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http://www.news.com.au/finance/real...-drive-up-prices/story-fncq3era-1226848427262
RBA chief warns foreign buyers drive up prices <!-- google_ad_section_end(name=story_headline) --><!-- // .story-headline -->
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<!-- // .image-frame -->Fitzroy is among the Melbourne suburbs on Chinese buyers’ hit lists. Source: Supplied
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<!-- // .image-frame -->RBA governor Glenn Stevens says wealthy foreign investors have an interest in the Australian market. Source: News Limited
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<!-- // .article-media --><!-- google_ad_section_start(name=story_introduction, weight=high) -->RESERVE Bank governor Glenn Stevens says that wealthy Asian investors are bidding up Australian home prices, with inner-city areas feeling the greatest pressure - and specialist estate agents confirm it. <!-- google_ad_section_end(name=story_introduction) -->
<!-- // .story-intro --><!-- google_ad_section_start(name=story_body, weight=high) -->They have revealed the Melbourne suburbs on rich Chinese buyers’ hit lists.
Fitzroy, North Melbourne and West Melbourne are now targets, joining Brighton, CBD and Southbank, among other hot spots.
Mr Stevens told a parliamentary hearing in Sydney on Friday that the wave of Asian investment in Australian real estate was akin to investment by Russian oligarchs in London properties.
A frequent flyer, Mr Stevens said he often noticed advertisements in Asian countries tempting investors to buy Australian real estate.
“I travel through Singapore a number of times a year on the way to interminable meetings in Basle,” he said.
“It is quite noticeable when you pick up a Singaporean newspaper on the plane to see advertising for Australian property, as well as property in other countries. So there is no doubt that wealthy foreign investors have an interest here.”
He said he believed most of the interest was confined to inner city areas, near universities.
“If you are sending your children to study in Australia, you are probably an affluent person and quite possibly, in some cases, you have purchased an apartment in which they would live or which you might come and stay in when you come to visit them. There are people who are wealthy enough to do that.”
Mr Stevens said he believed the issue may have been overstated, but that “in particular parts of our cities, the role of foreign investors is quite prominent indeed”.
He added that all foreign investments had an impact on local prices.
“It has its effect on asset values and the exchange rate, just like all the other forms of foreign investment,” Mr Stevens said.
“I suppose the question is really: how big a problem do you really think it is? Foreign investors are generally confined to buying new structures.”
Mr Stevens admitted rising house prices posed a problem for young homebuyer hopefulls, but said he believed we could meet the demand for foreign and local investment in property.
But Mr Stevens warned borrowers against taking on too much debt because they assume house prices will always rise.
“It cannot be beyond our capacity over time to meet that demand and to meet the legitimate demands of our own citizens for structures as well, can it? If we cannot do that, if there is a supply side constraint, I would say that is an issue worth addressing in its own right.”
Housing affordability has deteriorated in recent months thanks to rising home prices.
“The biggest threat to affordability in this country would be if we get a very large increase in house prices, which those of us who have a house will enjoy,” he said.
“But, if we think about our children, we will be having second thoughts.”
As economic growth picks up, and with interest rates already at multi-decade lows, Mr Stevens said the case for cutting interest rates again was weak.
“I don’t think we do need to at this point in time,” he said.
At the same time Mr Stevens’ statement emerged, a pair of Mandarin language websites advertising Australian property for sale have told the Herald Sun which suburbs are getting the most attention.
Juwai.com, a China based real estate website that commands a monthly audience of about 1.5 million cashed-up prospective buyers - 82 per cent of which live in mainland China, has Australia as its second most popular search location, behind the US.
CEO Simon Henry told the Herald Sun the bayside suburb of Brighton topped its list, followed by the CBD, Kew, Southbank, Glen Waverley, Richmond, Fitzroy and Box Hill.
He said for buyers in mainland China the four key reasons for looking to buy in Australia were: investment, education, ego or lifestyle and immigration.
Upper class Chinese typically spend 70 per cent of their disposable income on educating their children, according to a recent survey by the Chinese Central Government cited by Mr Henry.
That translates to an average spend of $1-$1.5 million for a property for those children to live in overseas.
“Traditionally in China the family unit has always been very, very tight - the kids will typically take on the responsibility of taking care of their parents,” Mr Henry said.
“With the advent of the one child policy they only have one to take care of them, so they are making sure they are well educated.”
In the past year Juwai.com has seen Chinese buyer interest in Melbourne rise 888 per cent, and a “dramatic increase in properties being added to their advertising”.
“I think it’s a good thing ... it helps stimulate the economy and new projects and it’s a trend that will continue in the foreseeable future,” Mr Henry said.
A separate Chinese language real estate website, ACProperty.com, which is based in Australia and has a high proporting of overseas buyers, revealed its top 20 most inquired about suburbs in the first two months of this year.
The CBD topped the list and was followed by Box Hill, Doncaster and Carlton. Further down the list were Point Cook, 10, West Melbourne, 13, Forest Hill, 16, and Murrumbeena, 18.
“As they could not buy established houses, land and house packages in west side became very attractive,” said Esther Yong, a ACProperty sales and marketing manager.
“To own a house with large garden and back yard is always preferred by a lot of Chinese investors.
“It is also quite interesting that the popularity of Point Cook properties are not solely driven by relatively cheap prices as we saw quite a lot of inquiries went to some luxury and expensive houses in Sanctuary Lakes.”
Ms Yong said she believed already substantial increases in demand seen on the site would be fuelled by new restrictions to investment in mainland China announced last year and six Australian universities being ranked highly in the recently released QS World University Ranking.
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- 15 hours agoMarch 07, 2014 10:30PM
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<!-- // .image-frame -->Fitzroy is among the Melbourne suburbs on Chinese buyers’ hit lists. Source: Supplied
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<!-- // .image-frame -->RBA governor Glenn Stevens says wealthy foreign investors have an interest in the Australian market. Source: News Limited
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<!-- // .article-media --><!-- google_ad_section_start(name=story_introduction, weight=high) -->RESERVE Bank governor Glenn Stevens says that wealthy Asian investors are bidding up Australian home prices, with inner-city areas feeling the greatest pressure - and specialist estate agents confirm it. <!-- google_ad_section_end(name=story_introduction) -->
<!-- // .story-intro --><!-- google_ad_section_start(name=story_body, weight=high) -->They have revealed the Melbourne suburbs on rich Chinese buyers’ hit lists.
Fitzroy, North Melbourne and West Melbourne are now targets, joining Brighton, CBD and Southbank, among other hot spots.
Mr Stevens told a parliamentary hearing in Sydney on Friday that the wave of Asian investment in Australian real estate was akin to investment by Russian oligarchs in London properties.
A frequent flyer, Mr Stevens said he often noticed advertisements in Asian countries tempting investors to buy Australian real estate.
“I travel through Singapore a number of times a year on the way to interminable meetings in Basle,” he said.
“It is quite noticeable when you pick up a Singaporean newspaper on the plane to see advertising for Australian property, as well as property in other countries. So there is no doubt that wealthy foreign investors have an interest here.”
He said he believed most of the interest was confined to inner city areas, near universities.
“If you are sending your children to study in Australia, you are probably an affluent person and quite possibly, in some cases, you have purchased an apartment in which they would live or which you might come and stay in when you come to visit them. There are people who are wealthy enough to do that.”
Mr Stevens said he believed the issue may have been overstated, but that “in particular parts of our cities, the role of foreign investors is quite prominent indeed”.
He added that all foreign investments had an impact on local prices.
“It has its effect on asset values and the exchange rate, just like all the other forms of foreign investment,” Mr Stevens said.
“I suppose the question is really: how big a problem do you really think it is? Foreign investors are generally confined to buying new structures.”
Mr Stevens admitted rising house prices posed a problem for young homebuyer hopefulls, but said he believed we could meet the demand for foreign and local investment in property.
But Mr Stevens warned borrowers against taking on too much debt because they assume house prices will always rise.
“It cannot be beyond our capacity over time to meet that demand and to meet the legitimate demands of our own citizens for structures as well, can it? If we cannot do that, if there is a supply side constraint, I would say that is an issue worth addressing in its own right.”
Housing affordability has deteriorated in recent months thanks to rising home prices.
“The biggest threat to affordability in this country would be if we get a very large increase in house prices, which those of us who have a house will enjoy,” he said.
“But, if we think about our children, we will be having second thoughts.”
As economic growth picks up, and with interest rates already at multi-decade lows, Mr Stevens said the case for cutting interest rates again was weak.
“I don’t think we do need to at this point in time,” he said.
At the same time Mr Stevens’ statement emerged, a pair of Mandarin language websites advertising Australian property for sale have told the Herald Sun which suburbs are getting the most attention.
Juwai.com, a China based real estate website that commands a monthly audience of about 1.5 million cashed-up prospective buyers - 82 per cent of which live in mainland China, has Australia as its second most popular search location, behind the US.
CEO Simon Henry told the Herald Sun the bayside suburb of Brighton topped its list, followed by the CBD, Kew, Southbank, Glen Waverley, Richmond, Fitzroy and Box Hill.
He said for buyers in mainland China the four key reasons for looking to buy in Australia were: investment, education, ego or lifestyle and immigration.
Upper class Chinese typically spend 70 per cent of their disposable income on educating their children, according to a recent survey by the Chinese Central Government cited by Mr Henry.
That translates to an average spend of $1-$1.5 million for a property for those children to live in overseas.
“Traditionally in China the family unit has always been very, very tight - the kids will typically take on the responsibility of taking care of their parents,” Mr Henry said.
“With the advent of the one child policy they only have one to take care of them, so they are making sure they are well educated.”
In the past year Juwai.com has seen Chinese buyer interest in Melbourne rise 888 per cent, and a “dramatic increase in properties being added to their advertising”.
“I think it’s a good thing ... it helps stimulate the economy and new projects and it’s a trend that will continue in the foreseeable future,” Mr Henry said.
A separate Chinese language real estate website, ACProperty.com, which is based in Australia and has a high proporting of overseas buyers, revealed its top 20 most inquired about suburbs in the first two months of this year.
The CBD topped the list and was followed by Box Hill, Doncaster and Carlton. Further down the list were Point Cook, 10, West Melbourne, 13, Forest Hill, 16, and Murrumbeena, 18.
“As they could not buy established houses, land and house packages in west side became very attractive,” said Esther Yong, a ACProperty sales and marketing manager.
“To own a house with large garden and back yard is always preferred by a lot of Chinese investors.
“It is also quite interesting that the popularity of Point Cook properties are not solely driven by relatively cheap prices as we saw quite a lot of inquiries went to some luxury and expensive houses in Sanctuary Lakes.”
Ms Yong said she believed already substantial increases in demand seen on the site would be fuelled by new restrictions to investment in mainland China announced last year and six Australian universities being ranked highly in the recently released QS World University Ranking.
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http://www.news.com.au/finance/real...vest-in-property/story-fncq3era-1226848121146
Where you should and shouldn’t invest in property <!-- google_ad_section_end(name=story_headline) --><!-- // .story-headline -->
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EVERYONE has an opinion on where is the best place to invest in property. <!-- google_ad_section_end(name=story_introduction) --><!-- // .story-intro --><!-- google_ad_section_start(name=story_body, weight=high) -->It’s one of the great topics of conversation in which everyone thinks they are an expert.
We decided to ask the real experts what they think and have come up with the places you should and shouldn’t park your investment dollars.
Hotspotting founder Terry Ryder reckons infrastructure is one of the most important things to consider when buying an investment property.
His tips for buying in Queensland are:
NORTHERN SUBURBS OF BRISBANE: Brisbane city’s north stands out in our research on areas with rising sales activity. Suburbs such as Chermside , Nundah and Zillmere are on the rise.
<!-- // .image-frame -->A two-bedroom home 54 Meemar St, Chermside close to schools and amenities. Picture realestate.com.au Source: Supplied
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<!-- // .module .image-module .module-image-freeform -->CAIRNS: After several years of poor performance, the Cairns property market is mounting a solid recovery, boosted by infrastructure spending, improving tourism and Asian investment.
<!-- // .image-frame -->OFFERS of high $300,000s are being sought for 40 Ebony St, Redlynch in Cairns. Picture: realestate.com.au Source: Supplied
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<!-- // .module .image-module .module-image-freeform -->TOOWOOMBA: The area had a solid 2013 and continues to grow, thanks to its strong and diversified economy, affordability, and the boost from the gas industry in the nearby Surat Basin.
<!-- // .image-frame -->A unit market is starting to emerge in Toowoomba, with a two-bedroom dual key apartment at 532 Ruthven St, Toowoomba on the market for $352,000. Picture: realestate.com.au Source: Supplied
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<!-- // .module .image-module .module-image-freeform -->SUNSHINE COAST: This is another coastal city which has struggled in recent years but is now recovering strongly, thanks to infrastructure spending and improved affordability.
<!-- // .image-frame -->BRAND new apartments are priced from $267,500 at 3 Emporio Place, Maroochydore. Picture: realestate.com.au Source: Supplied
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<!-- // .module .image-module .module-image-freeform -->REDCLIFFE PENINSULA: In addition to providing an affordable bayside lifestyle, the suburbs in and around Redcliffe Peninsula are being boosted by progress on the new rail link.
<!-- // .image-frame -->CHEAP and cheerful at 105 Dover Rd, Redcliffe is priced at $279,000. Picture: supplied realestate.com.au Source: Supplied
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<!-- // .module .image-module .module-image-freeform -->Terry Ryder’s places to avoid:
GLADSTONE: Demand remains strong in Gladstone, thanks to the mega gas projects, but developers have oversupplied this market and vacancies are high, causing rents and prices to fall. Will get worse before it gets better.
MORANBAH: Once the growth success story of Australian real estate, Moranbah has declined massively in the past 12-18 months, thanks to coal industry contraction and growing use of fly-in-fly-out workforces. The median house price fell 45 per cent in the past 12 months and rents are now one-third of their peak levels.
MACKAY: The Central Queensland city is suffering from a combination of new developer supply and coal industry downsizing. Vacancies have risen, causing rents and prices to fall, though not as dramatically as Gladstone or Moranbah.
GOLD COAST (high-rise): While there are signs of improvement in the Gold Coast market overall, after five very poor years, the oversupply in high-rise apartments lingers. Unit values remain lower than five years ago. Developers are gearing up to build more towers and the surplus problems will recur in the future. Investors who want to buy on the Gold Coast should stick to the housing market in inland suburbs.
GRACEMERE: While Rockhampton has a solid market, the satellite town of Gracemere just outside Rocky has major oversupply, with high vacancies and still more houses being developed.
Monique Sasson, founder of independent property investment firm, Wakelin Property Advisory said suburbs and regions close to the CBD in Victoria could be good for investment.
Her tips for buying in Victoria are:
ELWOOD: A Melbourne bayside suburb with easy access to the CBD that is especially good for older style apartments and single fronted cottages.
<!-- // .image-frame -->ONE apartment remains in this development at 34 Pine Ave, Elwood, Victoria. Picture: realestate.com.au Source: Supplied
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<!-- // .module .image-module .module-image-freeform -->NORTH MELBOURNE: An undervalued city-adjacent suburb that has retained a number of very consistent streetscapes of Victorian and Edwardian houses.
<!-- // .image-frame -->A contemporary home at 67 Melrose St, North Melbourne is priced between $680,000 and $720,000. Picture: realestate.com.au Source: Supplied
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<!-- // .module .image-module .module-image-freeform -->BRUNSWICK: A cool, eclectic inner northern Melbourne suburb. Look for two-bedroom cottages and one or two-bedroom older-style apartments on quiet streets that are predominantly residential.
<!-- // .image-frame -->A three-bedroom sky terrace at 704/1 Lygon St, Brunswick Victoria. Picture: realestate.com.au Source: Supplied
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<!-- // .module .image-module .module-image-freeform -->THORNBURY: Just seven kilometres northeast of the Melbourne CBD, Thornbury has good transport links to the city, a vibrant cafe scene and easy access to many parks. Once again, good investment opportunity for older style two-bedroom houses and older-style one and two-bedroom apartments.
<!-- // .image-frame -->THIS investment property for sale at 1/165 Darebin Rd, Thornbury, Victoria is currently rented for $2167 a month. Picture: realestate.com.au Source: Supplied
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<!-- // .module .image-module .module-image-freeform -->GEELONG: The entry level for high quality investment property in Melbourne is $400,000 to $450,000. For those with a smaller budget or say $300,000 to $350,000, consider Victoria’s second city. But ensure you focus on period architecture on quiet streets within 1-2 kilometres of the CBD.
<!-- // .image-frame -->SET on 470sq m this home at 277 Bellerine St, Geelong will go to auction. Picture: realestate.com.au Source: Supplied
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<!-- // .module .image-module .module-image-freeform -->Monique Sasson’s place to avoid
MELBOURNE CBD and DOCKLANDS: Avoid high rise apartments as developers’ supply always outpaces demand and hence long-term capital growth is weak.
FRANKSTON: The perpetual hotspot it seems, judging from the advice of many property commentators over the years. Nevertheless, this southeast “gateway to the Mornington Peninsula” has always disappointed in terms of capital growth. With a 50km drive to the city, it remains too far from Melbourne for most renters — and therefore investors — to consider.
WYNDHAM VALE: One of Melbourne’s extreme fringe new suburbs 35km southwest of the CBD that has seen its population and housing stock sky rocket in recent years, far beyond valiant efforts to build matching social infrastructure. Few renters will want to live this far from the city so investors should avoid.
ECHUCA: Despite its beautiful gold rush-era architecture, Echuca is too small physically and economically and too remote from Melbourne to drive the sufficient demand from home buyers and renters that would make a property investment worthwhile.
APOLLO BAY: I’m not a fan of an investment strategy that targets property for seaside short-term lease. The high turnover of leases is costly from a property management point of view and they invariably don’t deliver solid, long-term capital growth. This is especially true for towns like Apollo Bay which are a two hour-plus drive from Melbourne.
Property Professor Peter Koulizos, the co-ordinator of Property and Share Investment at TAFE South Australia picks areas which have undergone gentrification and close to the beach as good investment spots.
His tips for buying in South Australia are:
CHRISTIES BEACH: A beach-side suburb with train and bus access, primary and high schools, excellent shopping and accelerated capital growth due to its seaside location and gentrification.
<!-- // .image-frame -->135 Dyson Rd, Christies Beach is on the market with a price guide between $265,000 and $285,000. Picture: realestate.com.au Source: Supplied
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<!-- // .module .image-module .module-image-freeform -->COWANDILLA: Is only 2km from the CBD, it has primary schools, shopping, is adjacent the airport and is between the city and the beach. Above average capital growth due to proximity to the city, character properties and gentrification.
<!-- // .image-frame -->A classic bungalow at 3 Poynton St, Cowandilla will be auctioned on March 18. Picture: realestate.com.au Source: Supplied
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<!-- // .module .image-module .module-image-freeform -->PORT NOARLUNGA: A beach-side suburb, easy access to train and bus services, primary school, great range of shops, cafes and restaurants. There is the potential for fast-tracked capital growth because of its proximity to the beach and gentrification.
<!-- // .image-frame -->RECENTLY renovated 12 Corpe Ave, Port Noarlunga has an asking price between $369,000 and $389,000. Picture: realestate.com.au Source: Supplied
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<!-- // .module .image-module .module-image-freeform -->THEBARTON: The suburb is only 1km from the CBD, has good tram and bus access to the city, between the city and the beach. It has had better than average capital growth because it is close to the city, has character properties and has undergone gentrification.
<!-- // .image-frame -->AN artists impression of a development proposed for 22 Livingstone St, Thebarton. Picture: realestate.com.au Source: Supplied
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<!-- // .module .image-module .module-image-freeform -->TORRENSVILLE: As it is so close to the CBD, only about 2km, Torrensville has had accelerated capital growth. It has character properties and gentrification. There are excellent bus services, primary and senior schools, shopping, great range of cafes and restaurants, aquatic centre, between the city and the beach.
<!-- // .image-frame -->ART Deco style at 10 Gifford St, Torrensville. Picture: realestate.com.au Source: Supplied
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<!-- // .module .image-module .module-image-freeform -->Peter Koulizos’ places to avoid
DAVOREN PARK: It is on the edge of the metropolitan area and has a mixture of low-quality housing and high supply of new houses. Its future capital growth is limited because of the impending closure of the nearby Holden manufacturing plant.
ELIZABETH: The suburb is a relatively long way from the Adelaide CBD with a significant proportion of low-quality housing. Capital growth will be restricted in the foreseeable future also because of the closure of the Holden manufacturing plant in 2017.
MOUNT BARKER: Was a picturesque town in the Adelaide Hills but the landscape has changed with large tracts of land being converted to residential housing. There is limited capital growth of new and near new homes because of the large supply of new dwellings being constructed.
SALISBURY: It is a significant distance from the city centre with large pockets of low-quality housing. There has been limited capital growth for several years due to the upcoming closure of the nearby Holden manufacturing plant.
WINGFIELD: There is a high concentration of heavy industry intermixed with some residential properties. Capital growth will be hindered because of the type of land use — industry and the large refuse dump in the suburb.
Damian Collins, managing director of Momentum Wealth said recent rezoning made many areas in Western Australia ripe for investment.
His tips for buying in Western Australia are:
HIGH WYCOMBE: The Shire of Kalamunda draft housing strategy identifies part of the suburb as being primed for an increase in density. This increase allows for greater development potential and aims at gentrifying the suburb. The extension of the train line from Bayswater train station, to include a stop at or near High Wycombe in the next decade, will increase the suburb’s accessibility to the airport and Perth foothills making it more attractive for investors. The majority of land to the east of the suburb is zoned as permanent bushland, meaning it won’t ever be developed. This will limit potential supply.
<!-- // .image-frame -->METICULOUSLY renovated home listed for sale at 37 Macao Rd, High Wycombe. Picture: realestate.com.au Source: Supplied
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<!-- // .module .image-module .module-image-freeform -->SPEARWOOD: A recent rezoning of the northern part of the suburb has increased the suburb’s development potential and associated land values. The Phoenix Revitalisation Strategy aims at gentrifying the area through increased development and removal of aged housing stock. Recently, favourable demographic changes are prevalent in this area with an increase evident in the number of white collar professionals and families. The newly-constructed Port Coogee will become a large drawcard for the southern coast and Spearwood’s proximity will boost property prices.
<!-- // .image-frame -->OFFERS from $615,000 are sought for 4A Todd St, Spearwood. Picture: realestate.com.au Source: Supplied
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<!-- // .module .image-module .module-image-freeform -->BASSENDEAN: Bassendean has been an undervalued suburb for many years. It is within proximity to the CBD and river and is easily accessible thanks to frequent train lines and bus routes. Portions of the suburb are zoned for development and properties in these areas have undergone a solid increase in values over the last year. A change in demographics is occurring within the suburb with professionals moving in. Pockets of the suburb are still considered somewhat rough. however the suburb is in transition.
<!-- // .image-frame -->CUTE cottage at 3 Second Ave, Bassendean, needs renovation. Picture: realestate.com.au Source: Supplied
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<!-- // .module .image-module .module-image-freeform -->MORLEY: Morley has been a strong performing suburb for the past few years as the suburb has undergone a transition period. Many properties have been converted from stand-alone houses on classic 700 sq m blocks into duplexes. Morley also has many good shopping areas, and is identified by the State Government as a “Strategic Metro Centre”, indicating significant growth will occur in due course, along with updated infrastructure and increased government spending.
<!-- // .image-frame -->A three-bedroom duplex at 10B Lingfield Way, Morley is suitable for investment. Picture: realestate.com.au Source: Supplied
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<!-- // .module .image-module .module-image-freeform -->SCARBOROUGH: Large government spending is planned for the area with an updated street and beach scape. The aim is to make the area a family-friendly and lively centre. A negative stigma has been attached to the area over the years, however, the suburb is in transition and prices are now reflecting this, with growth in recent years. Many blocks have development potential and as activity increases within the area, demand will also increase. This is already evident with development blocks now being sold at a premium.
<!-- // .image-frame -->A beachside investment unit at 3/251 West Coast Highway, Scarborough, Western Australia, is in a complex with a large pool area. Picture: realestate.com.au Source: Supplied
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<!-- // .module .image-module .module-image-freeform -->Damian Collin’s place to avoid:
BALDIVIS: The area has many properties are on the market and significant land releases in the vicinity are scheduled. With the suburb being a considerable distance away, the area is not easily accessible to the CBD and the lack of employment centres nearby increases travel times.
EAST PERTH: There are currently many projects underway which will bring with it a lot of supply to the suburb and nearby areas. The Riverside Development, Perth City Link, Belmont Racecourse and general infill are creating significant amounts of supply in the area. The area is well located and has great amenities but the stock level will pull back prices for the medium term.
ARMADALE: A lower socio-economic demographic is behind the area’s negative stigma and the suburb has not yet undergone a transition in this demographic. Lack of proximity to the city or other major employment centres are other downfalls of the suburb, affecting demand among people seeking to live near where they work. It will eventually change with redevelopment scheduled but it is a few years away.
ELLENBROOK: Ellenbrook’s location away from the Perth City and other major employment centres is a large downside for property growth. There are still large quantities of land surrounding Ellenbrook which are suitable for future urban development. This plentiful stock will limit capital growth for the suburb.
RIVERVALE: The suburb of Rivervale has been a very strong performer over the past three years due to the rezoning that occurred in 2011. As a result, many properties went from being unsuitable for development to becoming highly developable. Currently development is running strongly in the suburb, with boutique apartment complexes being advertised in high numbers. Long-term Rivervale is still a solid location but the area has performed well with strong capital growth and subsequently a stabilisation of prices is expected as supply increases.
Gavin McPherson, chief executive of property buyers agents Oasis Property said suburbs in New South Wales which are close to amenity or transport are worthwhile investing in.
His tips for buying in New South Wales are:
ST PETERS: Until recently, many investors have avoided St Peters due to its reputation as an industrial area. But it has now been stripped of this tag and has become a coveted location. At 15 to 20 per cent cheaper than premium Newtown — just a short 5 minute walk away — I see significant upside with investments here in the medium term.
<!-- // .image-frame -->77 Hutchinson St, St Peters is to be auctioned on March 15. Picture: realestate.com.au Source: Supplied
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<!-- // .module .image-module .module-image-freeform -->MOSMAN: Mosman has often been overlooked as an investment area because its lack of proximity to a train station — but a strong market like the present has attracted buyers that otherwise would never have even considered it. And with fantastic bus links along Military Road — taking you into the CBD in just ten minutes — there isn’t even need for a train here. With investor apartments still under $500,000 (in a suburb of average house price close to $2 million) most agree that it’s a hidden gem.
<!-- // .image-frame -->BEACHSIDE living at 15/12 Punch St, Mosman New South Wales, is seeking offers $600,000 plus. Picture: realestate.com.au Source: Supplied
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<!-- // .module .image-module .module-image-freeform -->NEUTRAL BAY: Neutral Bay has grown up and come out of its shell in the past five years with Grosvenor St creating a village atmosphere with a ‘pulse’ — a great area for investment.
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<!-- // .module .image-module .module-image-freeform -->STANMORE: With its appealing little corner shops and excellent transport links, Stanmore is definitely an area in which investors should consider buying. It’s in a superb spot for convenience as well, and beats its neighbour Leichardt thanks to the train station.
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<!-- // .module .image-module .module-image-freeform -->TEMPE: Tempe now attracts the same new appeal for investors as St Peters. Due to the move away from the industrial and being so close to Newtown, this area makes for a great investment while prices are low.
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<!-- // .module .image-module .module-image-freeform -->Gavin McPherson’s areas to avoid:
ZETLAND: With high rise after high rise and an abundance of homogenous properties, I can’t stress enough how overdeveloped this area is. In areas this dense, land value will always be compromised.
RHODES: For the same reason as Zetland, Rhodes is also an area full of homogenous properties and low land value factor, and I predict that this will only get worse over time as more high rises and development occurs. The formula for an investor is simple — high development = lower land value.
WOLLI CREEK: Unfortunately an abundance of overseas investors in Wolli Creek have over inflated the prices here, making it a big no, no for investors to consider. The same zoning and overdevelopment burdens will punish this suburb when interest rates rise. An investors nightmare in waiting.
PARRAMATTA CENTRAL: Investing in Parramatta will not bring you joy in the long-term. Repeating the same theme here — the ever increasing number of high rises in the area, and more development on the way, will only bring down the value of you land.
SYDNEY CBD: Be cautious if you’re thinking of investing in the CBD — banks don’t like lending here and will often have their own policies on how much lending they will allow. They don’t always want to lend you money on a Sydney 2000 postcode and, in my book, that’s as high a risk as you can get. Why do the banks feel this way? Overdevelopment.
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- by: <CITE class="author author-michelle-hele ">Michelle Hele </CITE>
- From: <CITE>News Limited Network </CITE>
- 2 hours agoMarch 08, 2014 10:55AM
EVERYONE has an opinion on where is the best place to invest in property. <!-- google_ad_section_end(name=story_introduction) --><!-- // .story-intro --><!-- google_ad_section_start(name=story_body, weight=high) -->It’s one of the great topics of conversation in which everyone thinks they are an expert.
We decided to ask the real experts what they think and have come up with the places you should and shouldn’t park your investment dollars.
Hotspotting founder Terry Ryder reckons infrastructure is one of the most important things to consider when buying an investment property.
His tips for buying in Queensland are:
NORTHERN SUBURBS OF BRISBANE: Brisbane city’s north stands out in our research on areas with rising sales activity. Suburbs such as Chermside , Nundah and Zillmere are on the rise.
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<!-- // .module .image-module .module-image-freeform -->CAIRNS: After several years of poor performance, the Cairns property market is mounting a solid recovery, boosted by infrastructure spending, improving tourism and Asian investment.
<!-- // .image-frame -->OFFERS of high $300,000s are being sought for 40 Ebony St, Redlynch in Cairns. Picture: realestate.com.au Source: Supplied
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<!-- // .module .image-module .module-image-freeform -->TOOWOOMBA: The area had a solid 2013 and continues to grow, thanks to its strong and diversified economy, affordability, and the boost from the gas industry in the nearby Surat Basin.
<!-- // .image-frame -->A unit market is starting to emerge in Toowoomba, with a two-bedroom dual key apartment at 532 Ruthven St, Toowoomba on the market for $352,000. Picture: realestate.com.au Source: Supplied
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<!-- // .module .image-module .module-image-freeform -->SUNSHINE COAST: This is another coastal city which has struggled in recent years but is now recovering strongly, thanks to infrastructure spending and improved affordability.
<!-- // .image-frame -->BRAND new apartments are priced from $267,500 at 3 Emporio Place, Maroochydore. Picture: realestate.com.au Source: Supplied
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<!-- // .module .image-module .module-image-freeform -->REDCLIFFE PENINSULA: In addition to providing an affordable bayside lifestyle, the suburbs in and around Redcliffe Peninsula are being boosted by progress on the new rail link.
<!-- // .image-frame -->CHEAP and cheerful at 105 Dover Rd, Redcliffe is priced at $279,000. Picture: supplied realestate.com.au Source: Supplied
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<!-- // .module .image-module .module-image-freeform -->Terry Ryder’s places to avoid:
GLADSTONE: Demand remains strong in Gladstone, thanks to the mega gas projects, but developers have oversupplied this market and vacancies are high, causing rents and prices to fall. Will get worse before it gets better.
MORANBAH: Once the growth success story of Australian real estate, Moranbah has declined massively in the past 12-18 months, thanks to coal industry contraction and growing use of fly-in-fly-out workforces. The median house price fell 45 per cent in the past 12 months and rents are now one-third of their peak levels.
MACKAY: The Central Queensland city is suffering from a combination of new developer supply and coal industry downsizing. Vacancies have risen, causing rents and prices to fall, though not as dramatically as Gladstone or Moranbah.
GOLD COAST (high-rise): While there are signs of improvement in the Gold Coast market overall, after five very poor years, the oversupply in high-rise apartments lingers. Unit values remain lower than five years ago. Developers are gearing up to build more towers and the surplus problems will recur in the future. Investors who want to buy on the Gold Coast should stick to the housing market in inland suburbs.
GRACEMERE: While Rockhampton has a solid market, the satellite town of Gracemere just outside Rocky has major oversupply, with high vacancies and still more houses being developed.
Monique Sasson, founder of independent property investment firm, Wakelin Property Advisory said suburbs and regions close to the CBD in Victoria could be good for investment.
Her tips for buying in Victoria are:
ELWOOD: A Melbourne bayside suburb with easy access to the CBD that is especially good for older style apartments and single fronted cottages.
<!-- // .image-frame -->ONE apartment remains in this development at 34 Pine Ave, Elwood, Victoria. Picture: realestate.com.au Source: Supplied
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<!-- // .module .image-module .module-image-freeform -->NORTH MELBOURNE: An undervalued city-adjacent suburb that has retained a number of very consistent streetscapes of Victorian and Edwardian houses.
<!-- // .image-frame -->A contemporary home at 67 Melrose St, North Melbourne is priced between $680,000 and $720,000. Picture: realestate.com.au Source: Supplied
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<!-- // .module .image-module .module-image-freeform -->BRUNSWICK: A cool, eclectic inner northern Melbourne suburb. Look for two-bedroom cottages and one or two-bedroom older-style apartments on quiet streets that are predominantly residential.
<!-- // .image-frame -->A three-bedroom sky terrace at 704/1 Lygon St, Brunswick Victoria. Picture: realestate.com.au Source: Supplied
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<!-- // .module .image-module .module-image-freeform -->THORNBURY: Just seven kilometres northeast of the Melbourne CBD, Thornbury has good transport links to the city, a vibrant cafe scene and easy access to many parks. Once again, good investment opportunity for older style two-bedroom houses and older-style one and two-bedroom apartments.
<!-- // .image-frame -->THIS investment property for sale at 1/165 Darebin Rd, Thornbury, Victoria is currently rented for $2167 a month. Picture: realestate.com.au Source: Supplied
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<!-- // .module .image-module .module-image-freeform -->GEELONG: The entry level for high quality investment property in Melbourne is $400,000 to $450,000. For those with a smaller budget or say $300,000 to $350,000, consider Victoria’s second city. But ensure you focus on period architecture on quiet streets within 1-2 kilometres of the CBD.
<!-- // .image-frame -->SET on 470sq m this home at 277 Bellerine St, Geelong will go to auction. Picture: realestate.com.au Source: Supplied
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<!-- // .module .image-module .module-image-freeform -->Monique Sasson’s place to avoid
MELBOURNE CBD and DOCKLANDS: Avoid high rise apartments as developers’ supply always outpaces demand and hence long-term capital growth is weak.
FRANKSTON: The perpetual hotspot it seems, judging from the advice of many property commentators over the years. Nevertheless, this southeast “gateway to the Mornington Peninsula” has always disappointed in terms of capital growth. With a 50km drive to the city, it remains too far from Melbourne for most renters — and therefore investors — to consider.
WYNDHAM VALE: One of Melbourne’s extreme fringe new suburbs 35km southwest of the CBD that has seen its population and housing stock sky rocket in recent years, far beyond valiant efforts to build matching social infrastructure. Few renters will want to live this far from the city so investors should avoid.
ECHUCA: Despite its beautiful gold rush-era architecture, Echuca is too small physically and economically and too remote from Melbourne to drive the sufficient demand from home buyers and renters that would make a property investment worthwhile.
APOLLO BAY: I’m not a fan of an investment strategy that targets property for seaside short-term lease. The high turnover of leases is costly from a property management point of view and they invariably don’t deliver solid, long-term capital growth. This is especially true for towns like Apollo Bay which are a two hour-plus drive from Melbourne.
Property Professor Peter Koulizos, the co-ordinator of Property and Share Investment at TAFE South Australia picks areas which have undergone gentrification and close to the beach as good investment spots.
His tips for buying in South Australia are:
CHRISTIES BEACH: A beach-side suburb with train and bus access, primary and high schools, excellent shopping and accelerated capital growth due to its seaside location and gentrification.
<!-- // .image-frame -->135 Dyson Rd, Christies Beach is on the market with a price guide between $265,000 and $285,000. Picture: realestate.com.au Source: Supplied
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<!-- // .module .image-module .module-image-freeform -->COWANDILLA: Is only 2km from the CBD, it has primary schools, shopping, is adjacent the airport and is between the city and the beach. Above average capital growth due to proximity to the city, character properties and gentrification.
<!-- // .image-frame -->A classic bungalow at 3 Poynton St, Cowandilla will be auctioned on March 18. Picture: realestate.com.au Source: Supplied
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<!-- // .module .image-module .module-image-freeform -->PORT NOARLUNGA: A beach-side suburb, easy access to train and bus services, primary school, great range of shops, cafes and restaurants. There is the potential for fast-tracked capital growth because of its proximity to the beach and gentrification.
<!-- // .image-frame -->RECENTLY renovated 12 Corpe Ave, Port Noarlunga has an asking price between $369,000 and $389,000. Picture: realestate.com.au Source: Supplied
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<!-- // .module .image-module .module-image-freeform -->THEBARTON: The suburb is only 1km from the CBD, has good tram and bus access to the city, between the city and the beach. It has had better than average capital growth because it is close to the city, has character properties and has undergone gentrification.
<!-- // .image-frame -->AN artists impression of a development proposed for 22 Livingstone St, Thebarton. Picture: realestate.com.au Source: Supplied
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<!-- // .module .image-module .module-image-freeform -->TORRENSVILLE: As it is so close to the CBD, only about 2km, Torrensville has had accelerated capital growth. It has character properties and gentrification. There are excellent bus services, primary and senior schools, shopping, great range of cafes and restaurants, aquatic centre, between the city and the beach.
<!-- // .image-frame -->ART Deco style at 10 Gifford St, Torrensville. Picture: realestate.com.au Source: Supplied
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<!-- // .module .image-module .module-image-freeform -->Peter Koulizos’ places to avoid
DAVOREN PARK: It is on the edge of the metropolitan area and has a mixture of low-quality housing and high supply of new houses. Its future capital growth is limited because of the impending closure of the nearby Holden manufacturing plant.
ELIZABETH: The suburb is a relatively long way from the Adelaide CBD with a significant proportion of low-quality housing. Capital growth will be restricted in the foreseeable future also because of the closure of the Holden manufacturing plant in 2017.
MOUNT BARKER: Was a picturesque town in the Adelaide Hills but the landscape has changed with large tracts of land being converted to residential housing. There is limited capital growth of new and near new homes because of the large supply of new dwellings being constructed.
SALISBURY: It is a significant distance from the city centre with large pockets of low-quality housing. There has been limited capital growth for several years due to the upcoming closure of the nearby Holden manufacturing plant.
WINGFIELD: There is a high concentration of heavy industry intermixed with some residential properties. Capital growth will be hindered because of the type of land use — industry and the large refuse dump in the suburb.
Damian Collins, managing director of Momentum Wealth said recent rezoning made many areas in Western Australia ripe for investment.
His tips for buying in Western Australia are:
HIGH WYCOMBE: The Shire of Kalamunda draft housing strategy identifies part of the suburb as being primed for an increase in density. This increase allows for greater development potential and aims at gentrifying the suburb. The extension of the train line from Bayswater train station, to include a stop at or near High Wycombe in the next decade, will increase the suburb’s accessibility to the airport and Perth foothills making it more attractive for investors. The majority of land to the east of the suburb is zoned as permanent bushland, meaning it won’t ever be developed. This will limit potential supply.
<!-- // .image-frame -->METICULOUSLY renovated home listed for sale at 37 Macao Rd, High Wycombe. Picture: realestate.com.au Source: Supplied
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<!-- // .module .image-module .module-image-freeform -->SPEARWOOD: A recent rezoning of the northern part of the suburb has increased the suburb’s development potential and associated land values. The Phoenix Revitalisation Strategy aims at gentrifying the area through increased development and removal of aged housing stock. Recently, favourable demographic changes are prevalent in this area with an increase evident in the number of white collar professionals and families. The newly-constructed Port Coogee will become a large drawcard for the southern coast and Spearwood’s proximity will boost property prices.
<!-- // .image-frame -->OFFERS from $615,000 are sought for 4A Todd St, Spearwood. Picture: realestate.com.au Source: Supplied
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<!-- // .module .image-module .module-image-freeform -->BASSENDEAN: Bassendean has been an undervalued suburb for many years. It is within proximity to the CBD and river and is easily accessible thanks to frequent train lines and bus routes. Portions of the suburb are zoned for development and properties in these areas have undergone a solid increase in values over the last year. A change in demographics is occurring within the suburb with professionals moving in. Pockets of the suburb are still considered somewhat rough. however the suburb is in transition.
<!-- // .image-frame -->CUTE cottage at 3 Second Ave, Bassendean, needs renovation. Picture: realestate.com.au Source: Supplied
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<!-- // .module .image-module .module-image-freeform -->MORLEY: Morley has been a strong performing suburb for the past few years as the suburb has undergone a transition period. Many properties have been converted from stand-alone houses on classic 700 sq m blocks into duplexes. Morley also has many good shopping areas, and is identified by the State Government as a “Strategic Metro Centre”, indicating significant growth will occur in due course, along with updated infrastructure and increased government spending.
<!-- // .image-frame -->A three-bedroom duplex at 10B Lingfield Way, Morley is suitable for investment. Picture: realestate.com.au Source: Supplied
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<!-- // .module .image-module .module-image-freeform -->SCARBOROUGH: Large government spending is planned for the area with an updated street and beach scape. The aim is to make the area a family-friendly and lively centre. A negative stigma has been attached to the area over the years, however, the suburb is in transition and prices are now reflecting this, with growth in recent years. Many blocks have development potential and as activity increases within the area, demand will also increase. This is already evident with development blocks now being sold at a premium.
<!-- // .image-frame -->A beachside investment unit at 3/251 West Coast Highway, Scarborough, Western Australia, is in a complex with a large pool area. Picture: realestate.com.au Source: Supplied
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<!-- // .module .image-module .module-image-freeform -->Damian Collin’s place to avoid:
BALDIVIS: The area has many properties are on the market and significant land releases in the vicinity are scheduled. With the suburb being a considerable distance away, the area is not easily accessible to the CBD and the lack of employment centres nearby increases travel times.
EAST PERTH: There are currently many projects underway which will bring with it a lot of supply to the suburb and nearby areas. The Riverside Development, Perth City Link, Belmont Racecourse and general infill are creating significant amounts of supply in the area. The area is well located and has great amenities but the stock level will pull back prices for the medium term.
ARMADALE: A lower socio-economic demographic is behind the area’s negative stigma and the suburb has not yet undergone a transition in this demographic. Lack of proximity to the city or other major employment centres are other downfalls of the suburb, affecting demand among people seeking to live near where they work. It will eventually change with redevelopment scheduled but it is a few years away.
ELLENBROOK: Ellenbrook’s location away from the Perth City and other major employment centres is a large downside for property growth. There are still large quantities of land surrounding Ellenbrook which are suitable for future urban development. This plentiful stock will limit capital growth for the suburb.
RIVERVALE: The suburb of Rivervale has been a very strong performer over the past three years due to the rezoning that occurred in 2011. As a result, many properties went from being unsuitable for development to becoming highly developable. Currently development is running strongly in the suburb, with boutique apartment complexes being advertised in high numbers. Long-term Rivervale is still a solid location but the area has performed well with strong capital growth and subsequently a stabilisation of prices is expected as supply increases.
Gavin McPherson, chief executive of property buyers agents Oasis Property said suburbs in New South Wales which are close to amenity or transport are worthwhile investing in.
His tips for buying in New South Wales are:
ST PETERS: Until recently, many investors have avoided St Peters due to its reputation as an industrial area. But it has now been stripped of this tag and has become a coveted location. At 15 to 20 per cent cheaper than premium Newtown — just a short 5 minute walk away — I see significant upside with investments here in the medium term.
<!-- // .image-frame -->77 Hutchinson St, St Peters is to be auctioned on March 15. Picture: realestate.com.au Source: Supplied
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<!-- // .module .image-module .module-image-freeform -->MOSMAN: Mosman has often been overlooked as an investment area because its lack of proximity to a train station — but a strong market like the present has attracted buyers that otherwise would never have even considered it. And with fantastic bus links along Military Road — taking you into the CBD in just ten minutes — there isn’t even need for a train here. With investor apartments still under $500,000 (in a suburb of average house price close to $2 million) most agree that it’s a hidden gem.
<!-- // .image-frame -->BEACHSIDE living at 15/12 Punch St, Mosman New South Wales, is seeking offers $600,000 plus. Picture: realestate.com.au Source: Supplied
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<!-- // .module .image-module .module-image-freeform -->NEUTRAL BAY: Neutral Bay has grown up and come out of its shell in the past five years with Grosvenor St creating a village atmosphere with a ‘pulse’ — a great area for investment.
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<!-- // .module .image-module .module-image-freeform -->STANMORE: With its appealing little corner shops and excellent transport links, Stanmore is definitely an area in which investors should consider buying. It’s in a superb spot for convenience as well, and beats its neighbour Leichardt thanks to the train station.
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<!-- // .module .image-module .module-image-freeform -->TEMPE: Tempe now attracts the same new appeal for investors as St Peters. Due to the move away from the industrial and being so close to Newtown, this area makes for a great investment while prices are low.
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<!-- // .module .image-module .module-image-freeform -->Gavin McPherson’s areas to avoid:
ZETLAND: With high rise after high rise and an abundance of homogenous properties, I can’t stress enough how overdeveloped this area is. In areas this dense, land value will always be compromised.
RHODES: For the same reason as Zetland, Rhodes is also an area full of homogenous properties and low land value factor, and I predict that this will only get worse over time as more high rises and development occurs. The formula for an investor is simple — high development = lower land value.
WOLLI CREEK: Unfortunately an abundance of overseas investors in Wolli Creek have over inflated the prices here, making it a big no, no for investors to consider. The same zoning and overdevelopment burdens will punish this suburb when interest rates rise. An investors nightmare in waiting.
PARRAMATTA CENTRAL: Investing in Parramatta will not bring you joy in the long-term. Repeating the same theme here — the ever increasing number of high rises in the area, and more development on the way, will only bring down the value of you land.
SYDNEY CBD: Be cautious if you’re thinking of investing in the CBD — banks don’t like lending here and will often have their own policies on how much lending they will allow. They don’t always want to lend you money on a Sydney 2000 postcode and, in my book, that’s as high a risk as you can get. Why do the banks feel this way? Overdevelopment.
No in the next 3 yrs, interest rate will remain flat as for now. Country has high unemployment, jobs were lost due to mighty dollar.. There's a mini boom in Chinese areas.. When jobs are back avd economy boiling, then interest will up..
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Good idea. Capital appreciation in Sydney average 25% last year.
*** correction, avrrage house prices in sydney up 25%. ***
2009-2013
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Don't forget these are people that have the cash that they desperately want out of china. If buying a house qualifies they will dump it here no matter the risk!
When Others are getting out, China get in. Good luck to them!
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If an economy can only supply $100 WORTH of housing but it has $200 to spend on housing, thanks to printing of money, the houses are still worth $100. ceteris paribus.
The RBA will try to stop hot money, but it has less levers to control compared to singapore.
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I do not t have a good perception od the RBA. Nothing but a bunch of highly paid cho bo lans like pappie dogs. The rba raise rates when the whole world rates were low and the yanks had their QE shit. This caused the hot money to come i faster n rates go up again adding fuel to the fire. Now rates r cut but the damage to the manufacturing sector already done. The high rates caused biz cost to go up n speculative money to come in. If the rba was serious abt they should have done something IN 2010 N 2011...the rba board needs to be rounded up and shot and their assets taken.
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Hey, you are still in Australia?
If so, you will know that the RBA has made a right decision to keep interest rates higher than other countries.
Australia is different from Singapore in that we have different economic conditions in each state.
The tools that RBA has on hands are blunt and the carry trade is inevitable because of the float.
but at least this country does not undermine the value of its currency (eg US and Japan) and it is not making savers pay for the debtors - moral hazard (eg Singapore, Europe, US & Japan).
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