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State Of The Nation Compiled By Kevin Lee of Smart Property Adviser

Investors Scramble As Rental Crisis Bites From Sydney's inner suburbs to the mining towns of Western Australia, investors are scrambling to take advantage of the lowest mortgage costs since 2009 and a growing rental crisis. "The gap between rental payments and mortgage payments is tightening," said Andrew Ienna, director of Laing+Simmons' franchise in Blacktown, western Sydney. 12 March 2013. More.

Consumer Confidence Continues To Rise With HomeBuyer Confidence Also High: Westpac Index Consumer confidence continued to rise above two-year highs in March - despite no rate cut. The Westpac-Melbourne Institute Index of consumer sentiment rose 2% in March to 110.5, its highest level since December 2010. This follows a 7.7% increase in February – the biggest monthly gain since September 2011 – when the index rose from 100.6 in January to 108.3. 13 March 2013. More.

The Myth Of Risk What most of us have been taught about risk is wrong, and it’s probably holding you back from obtaining real wealth. Conventionally we’re taught that there’s a continuum of risk starting with low risk investments at one end of the spectrum to highly speculative, risky investments at the other. 13 March 2013. More.

How To Get Your Share Of Rallying Bull Market After a long period where cash was good, stocks are now offering some of the best returns in five years. The rally on the Australian sharemarket holds the promise of being long-lived. Though share prices never go up in a straight line, and there will be plenty of setbacks, investors who wait on the sidelines in cash risk missing out on the best returns from shares in five years. 13 March 2013. More

How To Buy Before A Boom Of all the hundreds of property market strategies out there, market timing would have to be one of the most discussed and least understood. According to Richard Reed, co-author of academic research report Understanding Property Cycles in a Residential Market, there may be good reason for this. 12 March 2013. More.

Younger Women Embracing High Life Young women are driving a shift towards apartment living but baby boomers are not downsizing into similar high-rise homes, research suggests. The boomer generation that was expected to

Issue # 030 March 15, 2013

reject its traditional three-bedroom suburban homes, are instead buying apartments for their self-managed super funds (SMSF). 9 March 2013. More.

Mortgage Activity Rises To Highest Point Since August 2009: RP Data The mortgage market rebounded strongly in February on the back of increased levels of consumer confidence and more attractive fixed and variable mortgage rates, according to the latest RP Data Mortgage Index. The index has surged over the past eight weeks reaching 100.7 points as of March 10 – its highest reading since August 2009, also the last time the cash rate was at 3%. 12 March 2013. More.

Credit Lockdown Contributing To Dim First Home Buyer Figures More of Australia’s new generation of first home buyers (FHB’s) are living with credit defaults, which could be a major contributing factor in country’s ‘dim’ first home buyer figures - with Gen Y facing credit lockdown in increasing numbers - says a credit repair specialist. Gen Y appears to have the lion’s share of defaults across all account types: telecommunications, credit cards, utilities and personal loans. 13 March 2013. More.

House That Leaves Blue Days Behind When architect Virginia Kerridge met potential clients Merrick and Georgie Watts at their newly purchased property in Sydney’s inner west several years ago, she found herself facing a building that some might say ‘only a mother could love’. It was a land-locked two-storey double-saw-toothed warehouse with a chequered history. 10 March 2013. More.

Suburb’s Property Market Underpinned A western Sydney suburb has been seeing an investor uptick, with recent LEP changes having the potential to ‘set the scene’ for the next 25 years of investing, a new release has revealed. Laing+Simmons Mount Druitt have recently seen investors purchasing sight unseen, which licensee in charge, Basel Nahas, is calling a sign of the market entering a new phase. 15 March 2013. More.

Sexing Up The Mortgage Industry: How To Attract Young People Into Broking Attracting young people into the mortgage industry has proven something of a challenge the last couple of years, with the average age of a loan writer creeping steadily upwards. However, there may be some signs of a turnaround, says one top broker, so long as those already in the industry are prepared to do a bit of group-promotion. 13 March 2013. More. E: T: (02) 9980 1311 M: 0416 083 995 Disclaimer: This document is a compilation of recent articles published in the media. The media sources are quoted beneath their respective article capture. Smart Property Adviser does not claim to be the author of any articles included within this document.

State Of The Nation Continued… Tenants Put Out By Rubbish Rota

Modest Property Growth Forecast For Capital Cities In 2013

Imagine you have settled into your new rented apartment and you get a notice slipped under your door saying you are required to take your turn putting out the communal rubbish bins every, say, six weeks. You check your lease and it says nothing about a bin rota. So what do you do? Many tenants pitch in – it's only once every few weeks, after all. But some owners won't even do their bit so why should you? 12 March 2013. More.

Australia’s property market is in recovery mode but there are still some hurdles ahead, a new report reveals. The latest RP Data Capital Markets Report revealed "a broadbased recovery'' in capital city dwelling values. While values had dropped 7.4 percent between October 2010 and May 2012, they had now climbed back up by 3.3 per cent in the nine months since May. 13 March 2013. More.

New Mining Project To Bolster Employment The latest mining project proposed in north west Tasmania has the potential to create hundreds of jobs and opportunities for investment in the region, according to premier Lara Giddings. According to Ms Giddings, the federal government’s decision to reject the Australian Heritage Council’s advice to list areas of the Tarkine on the National Heritage Register has opened the door to new mining investment in the state. 13 March 2013. More.

Do You Have The Right Money Mindset? There are some property investors who have naively purchased negatively geared investment properties and there are some highincome earners who have never invested in property. The highincome group often tends to struggle because they buy the status symbols by accumulating massive consumer debt instead. I have personally seen clients with $70,000, $100,000 or more in consumer debt – including more than $70,000 in credit card debt at 20 per cent interest. I know of a colleague’s client with $220,000 in credit card debt. I’d have heart failure! 7 March 2013. More.

$70m Worth Of Infrastructure Projects Expected Multi-million dollars worth of construction and housing projects will be brought forward by the South Australian government in a move to stimulate the industry. Premier Jay Weatherill said the acceleration of the projects will boost employment and support the housing and construction industry. 13 March 2013. More.

Sydney Skyline To Get 240-Metre Apartment Block The southern end of Sydney's CBD is about to get an additional 400-plus new apartments in a tower billed as the tallest residential block in the city. The project will be developed by Chinese company Greenland Group, which has lodged plans for a $600 million development of a 240-metre apartment building. It will be located at 115 Bathurst Street on the former Sydney Water Board site. 11 March 2013. More.

Controversy Corner Syd Teacher 'Abused Boy Student For Years' A Sydney school teacher sexually abused a teenage student for two years, giving him heroin and showing him how to snort speed, a court has heard. The 62-year-old man has pleaded not guilty to a number of child sex offences which are alleged to have occurred between 1984 and 1986 on Sydney's northern beaches. 13 March 2013. More.

If you would like to voice your opinion on any article you have read in the State Of The Nation Newsletters or elsewhere that has concerned you, please send the article and your opinion on it to us and we will include it in a future issue of the State Of The Nation. Send your opinion to

Buyers Hooked In On Boatsheds In Tasmania Some of the most tightly held properties in Tasmania are not in an upmarket area or come with a million-dollar price tag - in fact, they are not even houses. The Cornelian Bay boatsheds have been a popular waterside feature for about a century and are some of the most hotly contested real estate going. 13 March 2013. More.

Big Does Not Equal Best For Property Our homes are worth less than we think, about $100 billion less Australia-wide. New research published in the Aust ralian Economic Review finds Australians typically overestimate the value of their homes by 2.5 per cent. The ones who do it the most are young, living in so-called McMansions on the fringes of Sydney, Brisbane and Perth. Daniel Melser, a senior economist at Moody's Analytics conducted the research while at the University of Technology Sydney. 10 March 2013. More.

Some Parting Advice “Expose yourself to a wide range of property investing and wealth creation strategies. Read books, subscribe to property magazines, check out what’s on the Internet, talk with other property investors, and attend seminars and courses. From that, you can then start to get a feel for which approach best works for you in terms of your goals.”

Until Next Time… Kevin Lee

E: T: (02) 9980 1311 M: 0416 083 995 Disclaimer: This document is a compilation of recent articles published in the media. The media sources are quoted beneath their respective article capture. Smart Property Adviser does not claim to be the author of any articles included within this document.

State of the Nation Issue 30 Mar 15, 2013  

This week’s State of the Nation includes a couple of interesting articles about investors scrambling to take advantage of the lowest mortgag...