June 18th, 2010 by RP Data Research
It’s nice to see that Jeremy Grantham has rolled into town this week and stirred up the property bubble argument once more. Mister Grantham, the co founder and chief investment strategist of US based investment management firm Grantham, Mayo, Van Otterloo & Co (or GMO), has been widely quoted during his tour across Australia saying that Australian property prices are in a bubble and need to fall 42 per cent to revert to trend (42 per cent, he’s even more bearish than one noted local bear who bet on 40 per cent falls). Whilst in Australia Mister Grantham has also commented on Australia’s proposed Resources Super Profits Tax, the UK and Chinese Property markets.
Whilst one can’t argue that capital city prices are expensive and unaffordable for many, capital cities do not make up the entire Australian property market. There is such a focus on the capital city property markets due to the fact that this is where the majority of Australian’s live. Over the three months to April 2010 the median house price in Australian capital cities was $492,000 and the median unit price was $410,000. When you combine all areas of the country including those outside of capital cities the median price falls to $425,000 for houses and $382,500 for units. The median price for all dwellings (houses and units combined) is $414,000. Clearly national median prices are heavily influenced by the capital city markets however prices are generally much more affordable once you move out of the capital cities.
via Housing bubble? Not here. » RP Data.
When I say “DOG” do you picture a big vicious black dog or a small playful fluffy white dog? What about the word “RETIREMENT”; what does that cause you to “see”? Your answer is indicative of when… and with how much you will ultimately retire. Assuming you still have ten or more working years left, keep reading; but “Older People Are Excused From Reading This”.
Myths That Are Just Not True
People are conditioned with wrong beliefs; here are some examples:
1. If it sounds too good to be true it probably is! The pessimist will agree with this all the time but the optimist will know that it is only true some of the time.
2. It takes money to make money! If this were true then everybody with nothing to start with would be destined to remain broke.
3. Practice makes perfect! No it doesn’t; if you practice something the wrong way for long enough you merely develop a bad habit, ask any golfer. The correct truth is that “perfect practice makes perfect”.
4. Retirement planning is something you think about in the years immediately preceding your retirement! While there is planning involved just prior to retiring, those plans have everything to do with how you will structure and use the wealth you have already created. This is not the time to be trying to find some fast way of accumulating wealth on which to retire. If that has not been taken care of you are probably far too late.
5. Study hard, get a good job and work hard till you are 65, at which time your superannuation and perhaps the government pension will give you a comfortable retirement. Most of us were conditioned to “see” retirement as an event that happens when we turn 65; but this is so wrong; retirement is a function of your income and not your age! Those results achieved by those who merely followed the “work hard” formula speak for themselves.
What Retirement Is Not
- An event that happens to people when they turn 65.
- A time of life when you are no longer productive.
- Something you do when you get old.
- Something to think about when you are older than 50.
- A time of life when you take up gardening and lawn bowls.
- Something that happens when we are grandparents.
- That stage of life when the government supports us.
Of course all of the above may be applicable to a retired person but these of themselves are not accurate in describing retirement.
What Retirement Is More…
mrd has identified two fantastic opportunities for good value, affordable quality house & land deals, which are available in capital growth suburbs.
The first opportunity…
is in South East Queensland where mrd has teamed up with Five Star Design and today we are offering a selection of good value houses in various locations that you can choose with the help of an mrd property mentor. For further information, view the featured property article on ‘Five Star Design’ in the right hand column of this page and download our property report.
The second opportunity…
is at Watanobbi on the NSW Central Coast – near Tuggerah Lake, Wyong & The Entrance.
Stamp Duty Cuts… act quickly
On 8th June 2010 NSW treasurer Eric Roozendaal announced in his budget that Stamp Duty cuts totalling $140 million including the country’s first zero per cent tax, for off-the-plan purchases worth up to $600,000 in NSW.
mrd‘s House & Land opportunity offers home packages from just under $365,000! Full details for ‘Watanobbi Downs’ will be available next week but we are letting mrd clients know today, because these homes are selling very fast, the opportunity is limited & you will need to act quickly.
Contact the mrd office for further details on 07 5580 8888 or >>>Contact Us Here
On 28th May 2010, Martin Bell, from mrd wrote an article which highlighted the fact that with property investment It’s Not What You Buy – But Where! that’s important.
Martin Wrote….. More…
Well the “How To Prosper In The Slipstream Of Population Growth” live national tour has now ended.
We recorded the session held in Miami on the Gold Coast on 12th May; which can now be viewed online.
Simply click the following link:
http://investmentmentor.com.au/slipstream-video/ More…
Five Star Design House & Land
‘Five Star’ investment properties are different to most others, in many ways. At ‘Five Star’ they build architecturally-designed low energy homes, incorporating a modern individual style that focuses on comfortable open plan living.
‘Five Star’ homes are fully-appointed and finished to the highest quality and with ‘Five Star’ you have the further option of choosing from a large collection of specially selected land sites, suited to your investment goals.
With ‘Five Star’ you are not bound by any one particular development estate, suburb or area.
2 Year Rental Guarantee – Speak with your property mentor !
More…
The Salvation Army realised that it had never received a donation from the city’s most successful lawyer.
So a Salvation Army volunteer made an appointment to see the lawyer in his lavish office.
The volunteer opened the meeting by saying, “Our research shows that even though your annual income is over two million dollars, you don’t give a cent to charity. Wouldn’t you like to give something back to your community through the Salvation Army?”
The lawyer thought for a moment and said, “Firstly, did your research also show you that my mother is dying after a long, painful illness and has huge medical bills that are far beyond her ability to pay?”
Embarrassed, the Salvation Army volunteer mumbled, “Um… no, I didn’t know that.”
“Secondly,” says the lawyer, “did it show that my brother, a disabled Veteran, is blind, confined to a wheelchair and is unable to support his wife and six children?”
The stricken volunteer began to stammer an apology, but was cut off again.
“Thirdly, “the lawyer said, “did your research also show you that my sister’s husband died in a dreadful car accident, leaving her penniless with a mortgage and the burden of supporting three children, one of whom is disabled and another who has learning disabilities requiring an array of private tutors?”
Completely beaten, More…
There is nothing wrong with mince meat or recipes for spaghetti bolognaise… but these are of no benefit if it’s a vegetarian dish that you want. When it comes to property investing people all too often get their ingredients and recipes mixed up.
What’s Your Property Investment Strategy
What’s your property investment strategy? Are you planning to speculate, renovate or trade… or like me does the idea of a buy & hold strategy offer more appeal? At mrd we call it “set ‘n’ forget… for busy people“™ (more here). This is a really important question because the strategy you choose determines both (1) the type of property and (2) the location your research should direct you to.
Step One
Backing up, your first step is to decide upon a strategy… please don’t be a wandering generality when it come to investing! As a property investor you are actually a business owner; even if you don’t yet appreciate that truth. Any successful business needs a clearly defined strategy that’s right for that particular business type. The local fish n chips shop does not need to implement and duplicate systems that work for the local motor mechanic; in fact that would be just plain dumb!
Is Kingaroy Really A Hot Spot
If you’re following a buy & hold strategy as we at mrd do… then it is important that you are wary of the commentary promoting areas like Kingaroy, for example. I have heard some rather strong recommendations for people to invest in areas that personally I would not consider. Conversely, I listened to arguments as to why not invest in areas that I am excited about. I’m not saying it is wrong to invest in some of the regional centres being touted as the new trendy, potential “hot spots” right now… I am just suggesting that perhaps these areas will not best serve the interests of those following a buy & hold strategy. Let me explain…
More…
This has nothing to do with property, then again neither do the jokes.
AAMI invited auditions for their next TV advertisement and our third child (second daughter entered).
The competition was pretty lame and today we heard today that she was the winner of round 3 (final round) and will be receiving a debit card charged with $2,000 for her efforts – she’s so excited.
At the time of writing this she has not yet been posted as the winner but that is supposed to happen sometime today.
In the meantime, Natasha’s entry can be viewed by going to the AAMI competition website and then clicking “View All Videos”.
You can view Natasha’s entry on the 4th last page (of 14). She’s the girl 2nd from the top on the left hand side holding the guitar.
You can also view a collection of cover songs she has posted onto YouTube by typing Natasha Lockhart into the search section… More…
Above Ground Work Started !
No expense has been spared when designing and building this quality development with the occupant and investor in mind and the long term sustainability of Boulton Ridge.
Transit oriented communities are the focus of strategic government and council planning geared around access to public transport, cycling and walking thus reducing the impact of transport on the environment and reducing household travelling expenses.
Boulton Ridge has been built with this in mind and has created a sanctuary set within one of the most convenient locations on the Gold Coast. Right next door to Nerang Station, it is just one stop away from CBDRobina and the new Town Centre. Two stops north is Coomera where the new Coomera Town Centre is proposed which will be the size of Brisbane CBD. (Noise is not an issue due to the electric rail). More…
The populations of Queensland and Western Australia are expected to more than double within the next 50 years.
As the great population debate rages, the latest Australian Bureau of Statistics Yearbook shows the nation’s population is expected to swell to more than 35 million by 2056.
By 2101, the population will have hit 44.7 million.
The predictions point to a much different – and more crowded – Australia compared to 1901, when the country had a population of just 3.7 million.
While NSW will remain the most populous state, its share of the population will decline from 33 per cent in 2007 to 29 per cent in 2056.
In 2007, there were 6.9 million people living in NSW.
By 2056, it is expected there will be 10.2 million people in NSW, of whom almost seven million will be living in Sydney.
But it is the resource-rich states of Queensland and Western Australia where most of the population growth will happen.
In Queensland, the population is expected to grow from 4.2 million in 2007 to 8.8 million by 2056, while Western Australia will go from 2.1 million to 4.3 million over the same period.
While there are more of us, we are also living longer, with male life expectancy having risen from 55.2 years in 1901 to 79 years in 2007.
Women can expect to live a little longer, with their life expectancy having gone from 58.5 years to 83.7 years.
But there is still a wide gap between indigenous and non-indigenous Australians.
In 2007, the life expectancy of indigenous Australians was 67.2 years for men and 72.9 years for women.
Prime Minister Kevin Rudd has committed to “closing the gap” and has some work to go, with figures showing a difference of 11.5 years for men and 9.7 years for women.
* Article contributed by AAP
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