by Mark Nielsen
There have been market drops across the world such as the big corrections in China and hiccups in the US. This shows, more than ever, that everyone needs to make their own enquiries about the stability of their investments and financial future.
What makes investigating your own financial future so difficult is that there are as many diverging opinions as there are financial planners, accountants and investment gurus. The problem is, who do you trust? Some may side with David Koch or Paul Clitheroe because as media personalities they have a reputation and are trusted. I doubt anyone thinks they would lie to us but how do we know they have a complete grasp of the world economic climate; surely it’s too big a subject for anyone.
At some point each of us has to take responsibility for making decisions for our financial well being.
Real estate agents are certainly one group in society that claim something like a ‘pseudo’ insight into the state of the economy and a crystal ball like ability to interpret where the real estate market is heading that apparently exceeds that of mere mortals. There is a real danger in taking the word of any one ‘expert’. Continue reading
Apartment VS House – Which is a better investment?
By Cheryl Lee
A typical question I hear whenever I attend property seminars or when I met up with ready buyers from Asian countries is, “Which is better, apartments or houses?” They are wrestling with the niggling question of which type of property will deliver a bigger return in the long term.
I came from a country where eighty percent of the population buy apartments to live in or for investment therefore I can completely understand the struggle they are having between buying the type of relatively maintenance free apartment they are familiar with or the bricks and mortar house on a plot of land like they see in Australia.
The rule of property ownership is that the value of real estate is in the land because this is what appreciates. However it is not exactly the norm if you come from a densely populated city where most people strive to live within 5-10 km of the CBD where land is very scarce. Continue reading
Should you market a home to sell when empty or furnished?
Without thinking too hard most people would quickly answer, FURNISHED, but rarely are things that simple especially when it comes to the crunch of having to make this decision in real life with real dollars at stake.
After you have spent all your money and done all the hard work of renovating and after you have made all the even harder decisions of what NOT TO DO so as to keep your renovation viable often the last thing anyone then wants is to toss away even more money on getting furniture to just sit around and look pretty.
Let’s face it, many real estate agents advertise empty properties and they definitely sell so why doll up a house with expensive furnishings? Continue reading
On a recent trip to the Chinese mainland the writer had a unique opportunity to find out what 20% of the world thinks of us.
Going to Hong Kong has, for Australians, been something akin to going to Bali; we have known them as popular places to go discount shopping but they have not seemed like parts of mainstream Asia. Bali is as different to Indonesia as Hong Kong is to China. For me the task was to find out more about mainland China.
Chinese people from Hong Kong have been a part of the life of Adelaide since ‘almost forever’ but Chinese coming from the mainland in any significant numbers have been a comparatively recent phenomena yet they and China in general are having an increasingly significant effect on us. I was keen to understand how Adelaide real estate fits into a larger world market with the goal of selling Adelaide properties in China.
WHY DO WE WANT CHINESE BUYING HERE?
Before I left in March 2015 some people asked, “Why do we want Chinese coming here to buy our homes because they will only inflate prices and push locals out of the market.” Continue reading
Many who invest in property make a conscious decision to buy an established property with a tenant in place as the easiest way to enter the market. Everything is already set up with a tenant and Property Manager humming away nicely … or so they think.
They will check out the house but not the tenancy or the Property Manager.
They will probably get a building and pest inspection done and if the reports look fine they will quickly proceed to settlement and simply take over the position of landlord from day one. The money rolls in immediately. What could be easier? Continue reading
This might sound like a backward statement but the fact is if you want to create wealth more quickly you should rent the place you live in and rent out the place you own.
But how do you do it effectively?
Because of the way negative gearing tax laws work, if you own a house and rent it to tenants then all of the expenses associated with that property become tax deductible whereas we all know that virtually nothing is tax deductible for the home you live in. Continue reading
Saul Eslake is the chief economist from Bank of America Merrill Lynch and he believes that negative gearing contributes more to a potential housing bubble than Chinese property investment. Continue reading
New home buyers struggle to afford to get into the real estate market so they either continue to live home with parents for longer or compromise on their dreams by buying inadequate cheap properties.
It’s all about having the deposit to satisfy a lenders requirements and having the income to service what can become a crippling debt. Continue reading
Buying just any property to rent out can be a hit and miss affair. You need to be well informed and have a targeted approach as to what you should buy.
You need to research all the variables thoroughly.
Most people who buy an investment property buy within 7kms of where they live. That is not a high recommendation because obviously they all can’t be right about the best place to invest. It’s not just a matter of investing in an area you are familiar with but where your dollars will get the best return.
The fact is that most people buy where they feel most comfortable or in the areas they know best but if you want to take property analysis to the next level then you need to look outside of these narrow constraints.
What should you buy?
- Established home on a large block
- Any home with a good rent return
- City apartment for international students
- Quality home within 10km of the CBD
- Outer suburb allotment with potential for future subdivision
- Inner suburb allotment with potential to knock down and rebuild?
On the face of it there is certain wisdom in selling your own property to save money on agent’s commission but there are many pitfalls that few will tell you about.
Twice now, I have sold my own home and I believe it was only a fool’s luck that got me a good result.
The first property I owned was a 2 bedroom unit in a tacky group of 6 in St Marys, South Australia that cost me $38,500. Then some years later I was getting married so I needed something bigger. I had 2 agents come to give me an appraisal but then decided it would be so easy to sell it myself. So I put it on the market for ‘Offers over $48,000’, if I remember rightly.