AUGUST | 2013 ARE YOU FOLLOWING THE CROWD?
IN THIS ISSUE: Monthly Highlights
Reports you should read
Magazine Summaries cont.
Apps and websites
MONTHLY HIGHLIGHTS WHAT IS THE CROWD DOING? Seriously do you care? Why? Because the crowd usually gets it wrong. What we should be looking at is where the clever money is going. Just check out the map on the next page, the market is moving and there are many areas where the market is starting to rise. I don’t believe that for most, timing the market is the right thing to do. Mainly because I am still speaking to clients who I first spoke to in 2005 who have not bought any investment properties as they are waiting for the right time. Having said that, astute and experienced investors can read the signs to ride the capital growth wave when they see it approaching. So here is a heads up - it is approaching. If I throw on my mortgage broking hat I can tell you the last 2 months have never been busier. The buyers are back and they are not just buying investments. Many of my clients are taking the opportunity of low interest rates and a rising market to upgrade their homes. As a mortgage broker we start to talk to clients about the most appropriate finance structure about 6 weeks before they put in an offer. Then if they are successful (the first time) then settlement is 6 weeks later and then about 3 months later the sale is recorded and reported. So we see 6 months out where people are buying and potentially where we will see the next ‘hotspot’. So where are they buying? In Sydney and Brisbane and there are also a few strong NSW and Qld regional areas (you probably heard of some of these on my webinar with Terry Ryder last month). So far things are quiet in Melbourne. There are a few still purchasing in WA and NT, but no activity in Adelaide and Tassy that I have seen. I suspect that as Sydney’s median house price races towards $700,000 we will see that market pull back. So what suits you? Well it comes down to your goal, the timeframe to achieve your goal, your property investing strategy and your borrowing capacity. When you have nailed those you can then go and search for properties. Here is a tip though, even if you are not ready to buy again, with interest rates so low your borrowing capacity is a lot higher than it has been over the last few years. You might want to access some of your funds now whilst you can, to create a buffer or have funds ready to act when you are. Recently I joined Australian Women’s Weekly as an expert in property and finance. In the months ahead I will share a video series, Your Home Your Gold Mine. Don’t miss them! Till next month. Jane Slack-Smith PS Each month I try to use one of my photos for the cover of this newsletter. As a tilt of the hat to my awesomely talented photographer dad, David Slack-Smith I grabbed one of his recent shots taken on a trip to Sydney for the cover this month! Happy Father’s Day. AUGUST| 2013
Reports you should read Herron Todd White I believe this is a report that everyone should read. It is a fantastic review of what is happening in capital cities and regional areas for residential and commercial property. This should be your first port of call each month on what is happening in the market. You can download the report here CLICK HERE to download.
Capital City Market Conditions at a glance A quick look around the country to see what stage the markets are in. Data from Herron Todd White
RP Data Watch this 10 min video â€“ for a quick recap on state of the market according to the RP Data and Rismark home value index. Markets are rebounding and this quick video gives you a quick insight on where the market is going.
Magazine Summaries and Reviews for the Month Money Magazine As always Money is the best resource that covers all consumer spending tips. Everything from the best credit card to a great red (affordable) wine buy and much more. This month they take a look at how families around the world spend their discretionary income. Australian’s have holidays as their #1, like many in the world, but unlike anywhere else eating out is our #2! Check out the other comparisons, they are very revealing.
Your Investment Property Magazine It is no secret that I love the detail and the research to help me find the right location and then tools to find the right property. This month YIP looks at one of my favourite drivers for capital growth – population growth. Check out the fastest-growing suburbs in Australia. Then compare those to the top 100 suburbs for household income growth, another of my search criteria. After all, unless people can afford to buy in the suburb you have selected to research then there maybe no ability for property price growth. Also check out the article on the couple who have used properties with rental guarantees as a strategy, a risky strategy in my opinion but one that worked for them. Then there is the 4 riskiest finance strategies article, when I put on my hat as a mortgage broker I see these occurring time and time again. Without revealing too much, one of these strategies I think most do not even know they are signing up for it. To learn more check out my thoughts by clicking here.
Australian Property Investor Magazine Financial Freedom at 40 – is it possible? Yes it is! Three people share how they did it (congratulations to my mate Daryl who shares his story). It is a bumper edition this month. I was asked to contribute my thoughts on fixing rates and it was good to see that my contemporaries shared my views, however proceed with caution as it may not suit your circumstances. If you want to know more, check out my e-book by clicking here “Is Fixing a Farce” Don’t miss the article on the suburbs where buying a unit is actually better than buying a house. If you risk tolerance runs to property developing then check out the story on the mates who pooled their resources and 5 years later achieved their goal. If your thoughts run to the rent to buy strategy then check out Property lawyer Rob Balanda’s article and warnings.
Smart Property Investment Magazine This month a number of experts look at how one investor on $50,000 can get to financial freedom. There are many different ways to achieve your financial goals with property and it is interesting to see these. As I mentioned there has been a lot of activity in Sydney. If you are interested in buying in Sydney or if you already own there, then check out the article by a local buyer’s agent who shares their secrets. The team also shares their weekend renovation plan; it is great seeing a renovation in action from planning to execution, so keep track of their progress.
Australian Women’s Weekly Magazine This month I have contributed again to AWW as a property and finance expert showing home owners the three ways they can use their home to create wealth. After all I believe that Your Home is Your Gold Mine waiting as an untapped resource to assist you achieving your goals. Who better than an exmining engineer (yep that’s me) to show you how to tap that resource. Make sure you download the Viewa App and watch the videos.
Genworth Homebuyer Report Genworth Homebuyer Confidence Index (HCI) rose 7.2% to its highest ever level. Each year, Genworth releases its biannual Streets Ahead report in March and September which tracks consumer confidence. Check out where we stand as a Nation in this special report http://www.genworth.com.au/streetsahead/
The Ultimate Guide to Renovation is on its way Finally, after 5 months of filming on renovation sites and in the studio, The Ultimate Guide to Renovation is ready. The 20 Beta testers have been selected and are currently working their way through the courses. If you would like to sign up now to pre-register for the course then Click here Over the next few weeks I am going to send those who have pre-registered some snippets from the course so you can get a sneak peak.
Looking for a great gift? If you have not got a copy of my latest book http://yourpropertysuccess.com.au/book/. Order now and you’ll receive free postage and a free e-book; “Renovation Tips and Tricks”. AUGUST| 2013
Websites, Apps & Subscriptions you should sign-up for (mostly free) Apps for mobile devices seem to be the latest thing – there are certainly a lot of companies investing big bucks in free apps; I think they will become the new business card of the future so watch this space. Let us know about any you’ve found helpful email@example.com
Websites Here are this month’s resources for your toolbox. I am always looking for cost effective research tools. One website that I demonstrate in my online courses is www.ripehouse.com.au, this is a great tool for finding the hot zones in any suburb and much more. In fact it has just been upgraded, now you can also find where in each suburbs renters want to rent. The best thing is, you can sign-up for just one month. This month Tyron Hyde from Washington Brown Quantity Surveyors shares a great video on why now is a time to buy. He shares examples where they are currently seeing properties selling for less than their construction costs! Click here to watch If you are interested in getting your finance structured for portfolio growth and you are looking for resources, tips and tricks, then check out the Investors Choice Mortgages website. This is what I do when I am wearing my other hat as a mortgage broker. I am sure you will find many resources that will be helpful. Not just creating the finance structure to suit your needs but also the education to help you achieve your goals. NB. Diamond members, you get access to Terry Ryder’s webinar and that spread sheet. www.investorschoice.com.au
Disclosure – I purchase with my own money many courses and reports and I give my personal thoughts and opinions on these products and only recommend those I feel of benefit to property investors. In some cases I am invited to be an affiliate of some of these reports, courses and related products and if you buy through my links, I am paid a commission. I believe this does not influence me, but you need to decide that AUGUST| 2013 for yourself. I do believe transparency is vital and hence this disclosure.