mrd

by Martin Bell

From memory it was early in 2007 (at 60 my memory is not what it was, ok?) and the median house price in Perth showed an unbelievable 40% growth in one year.

Far from exciting me, such growth “rang alarm bells”. You simply cannot have “genuine” growth of that magnitude in one year . To me that was a good percentage of genuine growth and then a buying frenzy that artificially boosted prices beyond a reasonable level (in my opinion).

I have a 3 bedroom brick and tile house in Thornlie, a Perth suburb. A property that, as it happens , I have never seen. One of the few second hand ones I have bought, the only one I have in Perth and a “cheapie”. You see I paid just $110,000 a few years before and my concern was that the prices had peaked (or over peaked) and that the near future would see a sharp correction (and boy did it!).

After a quick phone call to my broker the bank was sent in to revalue the property. They valued it at around $350,000 (thank you!). After successfully applying for a 97% lend against the new value, I found myself with an additional $206,000 (approx.) of available funds in a redraw facility. While I had no immediate need for these extra funds at the time, I saw the opportunity to Stack The Odds In MY Favour. You see, I (instinctively) knew that to have this property valued a year or two down the track would result in a lesser valuation and, therefore, a smaller redraw facility available. Read more…

Nick has taken his “How To Prosper In The Slipstream Of Population Growth Event” to:

Perth, Sydney, Melbourne, Adelaide, Darwin and Canberra.

This LIVE event has been very well received with feedback incredible!

Brisbane and Gold Coast LIVE Events:

• Brisbane Southside on NEXT Wednesday 5th May
• Gold Coast on Wednesday 12th May
• Brisbane Northside on Wednesday 19th

Following that he heads to Tasmania:

• Tuesday 25th in Hobart
• Wednesday 26th in Launceston

Event Details

Event Registration (complimentary) Read more…

by Martin Bell

Some people have recently queried the “Housing Under Supply” we talk about. Is it “Fact Or Fiction”?

‘Population growth and housing under supply’ do have a significant impact on residential real estate as a wealth creation vehicle, for those of us who are investors anyway. Because of this, I decided to take a fresh look at this issue and address the questions some clients have recently asked us. I trust my findings will go someway towards helping you make decisions today that are right for you.

Housing Under Supply Questions From mrd Clients

1. What are these statistics based on?
2. What is behind these statistics?
3. How is housing under supply calculated?
4. Does it take into consideration homeless people etc?
5. Maybe these stats are a load of rubbish… how would we know?

After many hours of research let me do my best to answer these valid questions!

Read more…

Completed Townhouses

- ONLY ONE 3 BEDROOM TOWNHOUSES LEFT
- Will Not Last
- Tenanted Now!

Deception Bay takes its name from explorer Lieutenant John Oxley who, in 1823, mistook the bay for a river and was surprised by its deceptive shallowness. Historically the area was used by Aboriginal tribes who were sustained by a plentiful supply of crabs, oysters, fish and sea birds. The area has recently become one of the fastest growing areas in Australia. (Qld. Govt.)

Read more…

While walking down the street one day a “Member of Parliament” is tragically hit by a truck and dies.

His soul arrives in heaven and is met by St. Peter at the entrance.

‘Welcome to heaven,’ says St. Peter.. ‘Before you settle in, it seems there is a problem. We seldom see a high official around these parts, you see, so we’re not sure what to do with you.’

‘No problem, just let me in,’ says the man.

‘Well, I’d like to, but I have orders from higher up. What we’ll do is have you spend one day in hell and one in heaven. Then you can choose where to spend eternity.’

‘Really, I’ve made up my mind. I want to be in heaven,’ says the MP.

‘I’m sorry, but we have our rules.’

And with that, St. Peter escorts him to the elevator and he goes down, down, down to hell. The doors open…. Read more…

PREMIER Anna Bligh has predicted a Commonwealth Games-led recovery for the Gold Coast, declaring the tourism strip as the firm front-runner to secure the 2018 event.

Despite a $1.9 billion infrastructure boost to the city's economy this financial year, Premier Bligh said a successful Games bid would bring forward projects that already were in the pipeline.Speaking at a Property Council of Australia lunch on the Coast yesterday, Ms Bligh said the facilities to be built for the Games would become a lasting legacy for the city.New sporting venues would allow the Coast to host a broad range of national and international sporting events that would benefit the tourism industry.

“If we get the Commonwealth Games, then we have a very clear deadline for planning and investment over the next eight years,” she said.”Much of what will happen in that time might have happened anyway, but the Games will help to bring some of them forward.”As for the Coast’s chances, Ms Bligh said there was only one competitor, Sri Lankan city Hambantota which has a population of just 15,000.”I think the Gold Coast is really hard to beat. It’s a very easy product to sell on the world market.

“They’re going to Delhi this time and they’re going to Glasgow next time. I think they’ll be looking for some sunshine and a place with security and safety.”Meanwhile, Ms Bligh told the Gold Coast to be prepared to put up with population growth.She said a growing population had driven prosperity and opportunity for the Coast for decades.”It has made the Coast a better place to live,” she said.”It’s not a question of if we grow at all, it’s a question of how we grow and how we manage that.

“Ms Bligh said the issue was not about “closing our borders or just letting it rip”. It lies somewhere in the middle. We have a chance to grow sustainably and out of that enhance quality of life,” she said.Key to this was the southeast Queensland regional plan, she said. While Ms Bligh said it was a pretty good plan, she admitted there had been weaknesses in its implementation.Ms Bligh skirted around the issue of a second motorway linking the Coast and Brisbane, suggesting the capacity constraints looming on the M1 would be met by improvements to public transport.

>>> Bligh: Games to drive Coast growth Local Business | goldcoast.com.au | Gold Coast, Queensland, Australia.

CUE the collective sigh of relief – the painful procession of official interest rate rises may be coming to an earlier-than-expected end.

Reserve Bank Governor Glenn Stevens conceded yesterday that interest rates were now “pretty close” to the 10-year average, giving the central bank more than enough reason to take its foot off the pedal.

In a speech delivered in Toowoomba, Mr Stevens presented an unusually relaxed view on the current cash rate of 4.25 per cent – and also expressed a degree of caution regarding some parts of the economy.Economists believe the statement significantly lowers the chances of the RBA hiking cash rates when its board meets in May and even June – music to the ears of homeowners already struggling under the weight of five hikes in the space of the past seven months.

“If the economy is growing close to trend, and inflation is close to target, one would expect interest rates to be pretty close to average,” Mr Stevens said. “The Reserve Bank has moved early to raise the cash rate to levels that deliver interest rates for borrowers and depositors more like those that have been the average experience over the past 10 to 12 years. Those interest rates are now pretty close to that average.”

via RBA chief signals end to rates hikes for now | The Daily Telegraph.

Those of you that have purchased a property in Queensland may have received a copy of the new land valuation from The Department of Environment and Resource Management (DERM) Queensland.

I have several properties in strata complexes and every one showed a large drop.

For my Robina unit at Riverwalk the unimproved value for October ’07 was $2,900,000 (for the whole complex) and the new value for October ’09 was $1,550,000 almost a 50% drop.

Don’t panic! This does not mean your property value has dropped by 50% (but that would make Steve Keen right wouldn’t it?).

This is just the unimproved land value and for the 2011 valuation, the Queensland Government has announced it intends to move to a ‘site valuation’ methodology for non-rural land which will be different again, – Read more…

Ready To Settle in Varsity – Gold Coast !

Azzurra Eco Resort offers Gold Coast investors a great opportunity!

With it’s perfect setting adjacent to water, surrounded by native bushland and with resort style living, Azzura Eco allows every resident to enjoy the Queensland lifestyle.

There is a mixture of 36 – 1, 2, or 3 bedroom units all with a media room, they’re big & spacious, luxuriously appointed - many with spectacular views. With a variety of floor plans, number of rooms and aspects there is a property to suit everyone and they are completed now - ready to settle!

Expansive decks create the perfect environment for outdoor living overlooking bushland or water.

Azzura Eco is only 10 minutes to world famous beaches, a few minutes to main roads and the new Varsity Lakes business & restaurant precinct with train station. It is perfectly positioned to take advantage of everything the Gold Coast has to offer and they are selling fast.