mrd

Article by Frank Lockhart

While real estate investing is a great line of business to get into with the potential to build a high asset empire, there are “Things To Consider BEFORE Jumping Into The Fray”. This is particularly true where there are tenants involved.

There are so many reasons supporting the wisdom of investing in residential real estate; who would not be interested in establishing a secure long-term business, especially one able to deliver such predictable results? As with any business there can be drawbacks, not all of which are financial, therefore it is wise to consider these things when you buy your first rental property.

Consider These

Firstly, some people elect to manage their own rental properties. The risk with this is that they could quickly discover that their life is no longer their own. Who wants to be on call 24 hours a day 7 days a week to handle petty or more serious issues that may arise from time to time? Do you really want your tenant to have your phone number and expect you to be available to take their calls? I think it is far wiser to employ a competent property manager where the small fee (approx 7.5%) is a cheap way to avoid all of those problems and pass them on to someone who has experience and systems in place to handle them.

Secondly… Read more…

Brand New Townhouses Brisbane Growth Corridor

River Cove is a boutique gated community of 59 – 3 bedroom townhomes featuring an on-site manager for added peace of mind. The residences are nestled around lush tropical gardens with two central landscaped parks incorporating a swimming pool and recreational facilities.

With the construction of Stage 1 commencing soon,  completion and the first release of townhomes, lots 1 to 25, is expected in mid 2011. Read more…

River Cove  Townhouses – Eagleby – South Brisbane Growth Corridor

These modern architect designed high-set homes feature ample living areas plus three generously sized bedrooms, with the master bedroom boasting an en-suite. With quality interior finishes including the latest trends in ceramic tiling and carpeting these stylish homes leave a lasting impression.

With the construction of Stage 1 commencing soon, the first release of townhomes, lots 1 to 25, is expected in mid 2011.

For more information or to request a complimentary no obligation cash flow analysis report:

• Call mrd on (07) 5580 8888 or
• Click here

If you missed the live webinar on 6th July – “Cairns On The Move”, you can now view the recording online….. Read more…

An older gentleman was on the operating table awaiting surgery and he insisted that his son, a renowned surgeon, perform the operation.

As he was about to get the anesthesia, he asked to speak to his son.

‘Yes, Dad, what is it?’ Read more…

Ipswich – Booming Growth Area in Queensland’s South East.

SOLD OUT

Labelled ‘hot and happening’ by those in the know, the city of Ipswich in Brisbane’s west is set to grow almost three times faster than the rest of Queensland in the coming years. Ipswich is one of the key urban growth fronts identified by the State Governments South East Queensland Regional Plan. The predictions for Ipswich in terms of development and population growth are nothing short of staggering. Its population is expected to grow by 9000 people per year for the next decade to more than double in less than 20 years. Read more…

Ipswich Update

The Ipswich Story just keeps getting better! Those in the know have labelled the city of Ipswich in Brisbane’s west as “Hot and Happening”! Ipswich, one of the key urban growth fronts identified by the Queensland Government’s South East Queensland Regional Plan, is set to grow almost three times faster than the rest of Queensland in the coming years.

As reported by Simon Johanson in The Age newspaper 24/07/10 – BIS Shrapnel’s chief economist, Dr Frank Gelber, who was speaking in Melbourne at a Real Estate Institute of Victoria lunch, said the global financial crisis had done the Australian economy a “huge favour” by crimping risks in the market.

“We’re not over-geared, we’re not overvalued and we’re not oversupplied,” Dr Gelber said.

“I can’t remember in the last 30 years a time when I have been more comfortable and optimistic about investment in the market.”

A recent article in Brisbane’s Sunday Mail newspaper stated that Ipswich could become The Seattle of the southern hemisphere after winning support for a plan to make the city a national aerospace and aviation hub. The full article appears below.

Further recent newspaper articles support Ipswich’s lower than average unemployment, strong demand for housing and continuing development of the aviation industry.

Raceview Terraces

The Suburb of Raceview is located on the east of Ipswich city, less than ten minutes drive from the Ipswich CBD & close to the Cunningham Highway and Brisbane Road, which provide direct access to Brisbane.

This quality townhouse development, located in Briggs Road Raceview, is poised as an ideal residential property investment due to the continued growth in the population of Queensland and Ipswich in particular. This growth will drive demand beyond supply.

Sales in the Raceview Terraces development have been relatively strong considering the current up and down residential market. Latest indications from the developer are that construction will commence on site toward the end of September 2010, then following a 7 month construction schedule, settlement should be occurring in late May or early June 2011.

Raceview Terraces, a quality development consists of 26 three bedroom townhouses, selling at just $324,900 and with an expected rental return of $320/wk, are certainly an affordable quality development presenting an ideal opportunity in a standout south east Queensland capital growth area.

SIMON JOHANSON, July 24, 2010

COMMERCIAL property rents will double and residential property prices will rise by up to 40 per cent during the next four to five years, a respected economist said yesterday in a bullish forecast for the Australian economy.

BIS Shrapnel’s chief economist, Dr Frank Gelber, who was speaking in Melbourne at a Real Estate Institute of Victoria lunch, said the global financial crisis had done the Australian economy a ”huge favour” by crimping risks in the market.

”We’re not over-geared, we’re not overvalued and we’re not oversupplied,” Dr Gelber said.

”I can’t remember in the last 30 years a time when I have been more comfortable and optimistic about investment in the market.”

Problems in Europe and America were unlikely to affect Australia’s economic outlook, he said. ”They are real problems … [but] they won’t affect us a great deal,” he said. ”Our recovery now is already well entrenched and they won’t stop it.”

Almost 80 per cent of Australia’s exports go to Asia, Dr Gelber said. ”We’re much more dependent on what happens in China.”

”We’re talking about average growth over next five years of GDP of about 3 to 3.5 per cent,” he said.

Dr Gelber said that while the GFC’s impact wasn’t yet over it had triggered a correction following the financial engineering boom. ”That correction is pretty much over and we’re starting to see the beginnings of a pick-up again.”

Australia’s commercial property leasing markets will continue to tighten while banks still restricted lending to builders and developers.

This would push up rents to the point where building activity started again, Dr Gelber said.

”Melbourne commercial rents in effective rent terms will double over the next five to six years,” he said. ”There’s a boom coming in commercial.”

Dr Gelber dismissed the notion the housing market was suffering from a ”bubble” effect.

”At the end of the day, we haven’t got a bubble in our residential market. We’re under-supplied not oversupplied. We need to build more, and we will. [House] prices will go up another 30 per cent over the next three years,” he said.

Source: The Age

To follow up on last week I just found some data that should have been included.

You hear us carry on about “position”. That we believe being close to infrastructure, schools , hospitals, transport etc will give better capital growth. Because the government generally puts infrastructure where the population is going. Increasing population means increasing demand, limited land close to infrastructure limits supply.

Just makes sense doesn’t it?

So a big part of the bottom line has to be infrastructure spending- yes? Infrastructure projects mean more population and more jobs.

Infrastructure like-

• Building roads  – In 2010-11 the Queensland Government will be providing $7.3 Billion for transport and main roads.
• Bridges – e.g. new Gateway Bridge alone is $2.12 Billion
• Tunnels – e.g. Clem 7 tunnel. At 6.8km isn’t that the biggest one in Australia?. $3 Billion.
• Airports  – The Brisbane Airport is the fastest growing capital city airport in Australia
• Hospitals – $5.8 Billion for health in the current budget
• Schools etc .

Qld is spending more on infrastructure than any other state and has been for years.

Government Spending on Infrastructure (AUD $billions)

http://www.investqueensland.qld.gov.au/dsdweb/v4/apps/web/content.cfm?id=12268

According to the Property Council of Australia the record spending must continue if South-East Queensland is to cope with the hundreds of thousands of new residents making Queensland their home in coming decades.  The Property Council’s Steve Greenwood said Queensland was spending almost twice the per capita amount committed by the New South Wales Government.  Mr Greenwood said: “Credit where credit is due.”

On the 16th January 2009 “I Was Wrong – But This Time I’m Right”.

In case you hadn’t noticed we are in the midst of a federal election campaign. Politicians will say… and be seen to do, that which is popular and likely to win votes. The population debate is one of the HOT TOPICS in this campaign. Do we want a big Australia or sustainable population growth? Let me cut through all the spin and spell out what this debate is really about and what Australia is going to look like in 2050.

Firstly, let’s establish one thing up front. This debate is not about population… it’s about immigration!

Australia has grown on the back of foreign capital and immigration. Yes, we are currently growing at around 2% per annum, however, over the past 10 years our growth rate has averaged just 1.5%. I say “JUST 1.5%” because our demand for labour over this same 10 years have been increasing at a rate of 2.5% a year. How do we close this gap… or, what happens if we don’t?

We Are An Immigration Dependent Society

Remember that universal law I regularly talk about… Read more…