mrd

Finding the right property with all the fundamentals that make it a ‘good investment’ like location, infrastructure, investment and planning, population growth, strength of demand is a time consuming process and one that requires constant research.

That’s what we do! Because what we research and find we also buy! If we wouldn’t buy it, we wouldn’t sell it. We not only want to educate you on how to invest and where to invest but ourselves as well.

And we have some exciting projects coming up in areas that we have been researching:

CABOOLTURE: Two bedroom, 2 bathroom units 800mts from the railway station and the centre of Caboolture, $294k to $334k – some with views over the river – anticipated completion July 2008. Please register my interest to receive your Property Report; once available!

KINGAROY: Two bedroom units in small complex in Kingaroy – $235K – complete and ready to settle. Please register my interest to receive your Property Report; once available!

IPSWICH: Quality, hi-tech, designer one, two and three bedroom apartments, 2 minutes walk from Ipswich City Mall with pool, gym, spa and theatrette – from $360k – almost complete. Please register my interest to receive your Property Report; once available!

We will send out details of these projects once we have completed our research.

REMEMBER, VIP’s will always get 48 hour advanced notification of all new property listings. If you are not yet a VIP but would like to be, please click here to upgrade.

Most people enter the work force expecting to reach the summit of their financial freedom… utilising nothing more than their own efforts. This being so, why is it that less than 5% of Australians actually manage to retire on an annual income of $50,000 or more?

We know it’s not because they are lazy… Australia is filled with intelligent, hard working individuals who reach retirement… only to find (sadly) that they cannot survive on their superannuation.

At least in part, the answer to this question lies in a lack of understanding of the power of leverage. If leverage is such a powerful tool available to us all (and it is), then why is it so misunderstood or ignored by so many of us?

Could it be that we have become conditioned to believing that all income has to be earned? Maybe we have simply developed habits and continue to do the same things year after, year, essentially ignoring the opportunities that leverage offers. While we may know better … being busy and pre-occupied can be our excuse for failing to work smarter. Are you guilty of climbing the rock when you could have simply taken the escalator?

For many of us, the voices of our parents still haunt us saying… ‘Keep out of debt’. While sound advice is a valuable and we ought to heed it, there is cause for concern when it is given without qualification or differentiation? For example… the word DEBT generally conjures up all sorts of feelings within us (usually negative); but Debt, Properly Utilised, is actually a very powerful wealth creation tool!

Let’s have a look at three very different types of debt:

First there is what can only be described as HORRIBLE DEBT

Horrible debt refers to debt used to purchase consumables, or things that depreciate… bought with after tax dollars (that is no tax deductions). Cars, furniture, televisions and all general credit card debt best describe this category.

Then there is TOLERABLE DEBT

Tolerable debt refers to the type of debt we incur when purchasing an item (such as the family home) that appreciates in value but offers no tax relief.

Finally there is the good kind of debt or PRODUCTIVE DEBT

Productive debt is the type of debt that I want as much of as I can get my hands on! Productive debt is used to buy items that appreciate in value … And it also ATTRACTS TAX RELIEF… Investment in property falls into this category… property investment using Productive Debt is the gateway to your financial freedom!

Recent data from the REIA shows that rents have increased by around 25% in the last three years. The question is can this continue?

Michael Matusik thinks so!

Research by Matusik Property Insights shows that in 2004 , 25% of the average renter’s income went into paying their rent . Today it is around 26% .

While some renters are finding it tough, depending on the city, the report suggests that in general renters can afford to pay more. Matusik suggests that rentals are going to rise significantly over the next three years with an average increase of 35% by 2010.

REIA figures for the September quarter show vacancy rates in all capital cities averaging 1.9% . Noel Dyett (REIA president ) says a vacancy rate below 3% is regarded as an under-supply.

Property is still a good investment, despite some predictions that house prices could fall in the coming year, according to DEPPRO Managing Director Paul Bennion in the Deppro Summer Report 2008.
He said that when looking at the median house prices for capital cities over the past 30 years, it is clear that property as a medium to long-term investment is still a strong performer.
“Brisbane has been a particularly strong performer with prices increasing each and every year during this period, from $28,600 in 1977 to $358,600, in 2007, a rise of 1153.8%” Mr Bennion said.

The Gold Coast Sun (Feb 13th) comments that from April there will be an extra 1,800 seats on the Brisbane/Gold Coast rail services during peak hour alone. These will be resulting from the 4 new 6 carriage services each day with trains running every 15 minutes in peak hour.

The Gold Coasts booming population has meant that over recent months it has been nearly impossible to get a seat on the train to Brisbane that is used by thousands of commuters from the Gold Coast each morning. Having to stand or sit on the floor has resulted in the “Bombay Express” name.

The Gold Coast Sun (06/02/08) reports on Varsity Central and the four projects that alone total $155mil. They state that one new job is created every day in the Varsity precinct and has been since 2000. “Varsity Central is one of the fastest growing business hubs in the South East”. Varsity Lakes should eventually have 3,000 homes and 7,800 residents.

See http://www.investmentmentor.com.au/galleryvie.htm for oportunities in Varsity Central (its where our new offices are located)

Figures released by the Residential Tenancies Authority show the median rent for a two bedroom unit in Queensland had increased by 10% in the past 12 months while the cost of a three-bedroom house rose 11.1%, Housing Minister Robert Schwarten said today.
“In the December quarter of 2006, the median rent on a two-bedroom unit in Queensland was $250 per week, for the December quarter 2007 it was $275,” Mr Schwarten said. “The median rent for a three-bedroom unit in December quarter 2007 was $300 per week, in the same period in 2006 it was $270.” Mr Schwarten said that over five years the median rent for a two-bedroom unit had skyrocketed 66.7% while the cost of renting a three-bedroom house had leapt by 53.8%.
Source: Qld Gov Media release online

The Australian newspaper in December 2007 reported that Australians are actually less likely to face problems paying their rent or their mortgage than they were six years ago, despite rising rents and interest rates. A Melbourne research institute has shown no significant change, since 2001, with the number of people paying more than 30% of their income on housing.

The research reportedly shows many households overcome the stress of their mortgage or rent payments within three years. With the people who were paying more than 30 per cent of their income in rent in 2001, more than a quarter were below that threshold by 2004, while the share of owners stressed by mortgage payments dropped by a third in the same period.

They also report that ANZ senior economist Paul Braddick said “We are building around 150,000 houses a year, but our numbers show we’re going to need starts of 200,000 to 220,000 and there is a big question of whether the industry can produce that. If it can’t,, we’re looking at a housing shortage lasting for at least the next decade.”