With the end of the financial year fast approaching it’s a good time to sit back and analyse your financial position in the same way that a small business does (or should!). Regardless of whether you have 1, 3, 5 or more properties you need to treat them all like a business. Undertake regular reviews, no less than six monthly.
As a stocktake here are a few things that you should ask yourself:
The devastation that homeowners and business owners have experienced in the flood-affected areas in recent weeks is unfortunately likely to continue for some time. The harsh reality is that property values in most of these areas (particularly in Brisbane) will drop quite significantly as they did in areas affected in the 1974 Queensland floods. I have spoken extensively to one of my Brisbane real estate contacts who was working in real estate in 1974 and he tells me that most of property which was affected at that time dropped in value by between 20% and 50% and in some cases even more.
I often see people getting out and about attending open homes and speak to many who tell me they are spending several hours each week searching on real estate websites when they haven’t done the basic preparation. If you’re one of them then here are a couple of tips to point you in the right direction:
Next week on the 1st of July, the new NSW Home Builders Bonus comes into play which is sure to attract plenty of attention. In a move designed to stimulate the building market, vacant land with a price tag of less than $400,000 as well as off the plan property up to a value of $600,000 will be stamp duty exempt. There is also a specific incentive for the seniors market where a new home can be stamp duty exempt with a value of up to $600,000. Of course you will need to read the fine print for all conditions.
Do you know who you’re competing against when buying a home or investment property after the Federal Government announced even more changes to the foreign investment rules on April 24?
What impact has the foreign investment rules had on our real estate market over the past 16 months and what impact will the new changes have going forward? How has it affected supply and prices and what’s likely to happen in the near future?
This week I joined Louis Christopher, SQM Research; Matthew Chun, Becton and Matthew Rollason, DibbsBarker to discuss these changes.
There’s been plenty of discussion in recent months about the increase of foreign buyers pushing up Australian real estate prices in established areas after the Federal Government relaxed the regulations last year.
The countdown to Christmas has begun and the pressure is on to organise the gifts, the lunchtime feast and holidays away. While it’s important to have fun and enjoy the break, don’t get too carried away and blow your budget – particularly if you’re saving a deposit for a home or investment property.
A. With any property or other investment purchase you’re taking a risk. If you want to increase that risk then buy in an area that you’re not familiar with - and if you really want to take your risk to the extreme then buy in another country.
My general rule of thought on buying OS property is that if the property deals really are as good as they seem then the locals would buy them.
Here’s a question I was recently asked that I thought was a good topic to share with my blog readers.
When deciding between buying an investment property or a home you really need to look at your short, medium and long term goals. From a financial, wealth accumulation perspective, in 99% of cases you are going to be better off buying an investment property.
I have been warning people about rental guarantees for over a decade in articles, books, and media interviews however it appears that prospective buyers continue to be fooled by the slick marketing.
I regularly speak with people who have had a negative experience when buying a property with a rental guarantee and I am yet to find one who tells me "we purchased the property at a great price, the company honoured the rental guarantee and the property rented for more once the rental guarantee period finished".
