North Lakes Views Estate is an exciting new fully gated and secure Townhouse and Apartment complex situated in the master planned community estate of North Lakes, the central hub of the North Brisbane growth corridor. Stage 1 has been completed and sold, Stage 2 is now on the market. $10,000 Govt Grant Available

North Lakes Westfield shopping centre is less than 200 metres from the property and transport, schools, kindergartens, library, sporting clubs, parks, bikeways and the lake is all within walking distance.

The location near Westfield North Lakes is a key driver to making this property an excellent investment or first home buyer opportunity!

Located in the Redland Shire suburb of Capalaba, a bustling eastern suburb of Brisbane, a short drive from Moreton Bay with all its fishing and boating and just 30 mins from Brisbane CBD.  These townhomes are just a 5 minute walk to the central of Capalaba’s shopping district and is surrounded with infrastructure such as the Capalaba Bus Interchange, childcare centres, Moreton TAFE and primary and high schools withing walking distance.  Capalaba train station is just 8.6km away connected by bus.

Low body corporate rates and high rental yields due to low vacancy rates (1.3% at November 2011) ensure this property is an investor’s dream.

Mirador Apartments is located in Hawthorne, the beautiful riverside suburb of Brisbane, close to the CBD and with its own City Cat stop, making the journey to work an easy boat ride away.  Hawthorne is the neighbouring suburb of Bulimba and is considered one of the most prestigious markets in Brisbane with its chic cafes on Oxford Street and city views.  House prices are edging towards blue chip and are out of reach for many potential buyers however unit prices are still affordable with greater potential for capital growth.

Mirador Apartments each have two bedrooms, some with one bathroom and some with two bathrooms.  The kitchens are well appointed with European stainless steel dishwasher, cook top and range hood and beautiful stone bench tops.

All apartments have air conditioning to living and master bedroom and have either a balcony or courtyard.  One or two car spaces depending on the floor plan you choose is provided underneath the building.

By Martin Bell

The media is awash with people willing to make predictions about the property market in 2012 and beyond. From those who are optimistic to those who are on the ‘bursting bubble’ bandwagon.

As the Danish physicist Niels Bohr once said “Prediction is very difficult, especially about the future” (funny I never imagined he had a sense of humour). While we don’t claim to have a ‘crystal ball’ there does seem to be a gradual turn in the tone of the media articles in the past month (the significance of which Nick pointed out in his article last year titled ‘The Property Investors Tipping Point’).

We are always interested in vacancy rates as these show the scarcity of suitable accommodation. Historically a drop in vacancy rate is often a prelude to increasing property prices (it’s simple supply and demand).

A vacancy rate of around 3% is considered to be a ‘balanced market’. Recent reports show the Brisbane vacancy rate is now just 1.8% in some areas.

• An article last week quoted Dean Yesberg (Ray White Brisbane CBD principal) as saying “January has been absolute pandemonium”. “We have multiple people lining up for properties, multiple inspections at the same time and multiple applications going on properties”. He said one and two-bedroom apartments were the most popular and on average there had been a recent 5 per cent increase in rents.
• According to the Sunday Mail, while rents in mining areas were extremely high (and many would argue unsustainable) Brisbane has also seen increasing rents (which of course is a follow on from the lower vacancy rate). Inner-city Fortitude Valley house rents rose 112 per cent. Renters in nearby New Farm were slightly better off with a 52 per cent spike. Unit rents in Hendra (Brisbane’s inner north) were up more than 44 per cent. These figures will of course vary slightly from one month to another, across different suburbs and product types (units, townhouses etc).
• These increasing rental returns and reduced vacancy rates attract more investors and increase demand for property. Coupled with population growth this will be reflected in higher property values. The latest State Government statistics (Gold Coast News 30th January 2012) predicts “Brisbane is expected to need an extra 102,000 homes by 2031″.
• In the Sunday Mail on New Year’s day Adam Gray from DTZ blamed simple economics – too many people and not enough homes - “We are not adding much supply but we have added more than 100,000 people in the past 12 months”.
• All this is also supported by the Housing Industry Association (HIA) report from September 2011; forecasting a supply shortage of dwellings Australia-wide . It was interesting that their table of short supply anticipated for 2020 that Brisbane was number one and Gold Coast number three.

See Australian Housing Shortages by 2020 >>>here

See Also…

• Landlords Have Their Pick Of Tenants
• Strong Fundamentals Mean There Is No Australian Housing Bubble
• Gold Coast Real Estate
• Test Of Faith For Property Believers
• Coast Suburbs Packed To The Rafters

To discuss any aspect of your existing investment property portfolio, current market conditions, financing strategies or current unique investment opportunities go >>>here

Happy Investing,

Nick Lockhart
Our Customer Care Program works for you… because investing is personal!

There is no Australian housing price bubble, says ANZ in its latest assessment of the Australian property sector.

In its January assessment of the property market, the bank argues that gains in house prices over the past 25 years have been driven by increases in household income and lower interest rates.

The bank forecasts house prices will remain on hold or fall slightly in 2012, but will not crash.

“A combination of lower interest rates, falling house prices and rising household incomes has improved Australian house purchase affordability over the past 12 months,” say report authors David Cannington, senior economist at ANZ, and Paul Braddick, head of property research at ANZ.

“Despite the continued concerns about significant Australian house price overvaluation from some commentators, housing market fundamentals remain supportive,” they say.

According to ANZ’s analysis, all the growth in Australian house prices since 1986 can be explained by gains in average household incomes and a structural decline in the cost of borrowing.

“Cross-country comparisons using partial valuation measures are commonly used to contend the case of overvaluation of Australian house prices. That is, suggesting actual house price growth in Australia has run significantly higher than justified by explained price growth,” says ANZ.

However, international house prices, rental yields and house price-to-income ratio comparisons compiled by ANZ suggest that Australian house prices have not deviated from international trends.

ANZ forecasts housing affordability to improve in 2012 following recent improvements due to softening house prices, rising household incomes and lower mortgage rates.

Among the factors ANZ says will continue to support the housing market is net migration, which is starting to rebound after the recent slowdown and combined with weak housing construction will add to the pressure building within the housing sector.

“While housing construction continues to weaken under the cloud of negative market sentiment and softening prices, forward indicators suggest the recent slowdown in net overseas migration will continue to reverse,” say Cannington and Braddick.

“This renewed housing market tightening will add further upward pressure on rents, household size and provide a fundamental support to flagging market activity, especially for the first-home buyer market.”

However, there will be no marked improvement in new home building in 2012, according to ANZ.

“Soft house prices, weak housing market sales activity and tight credit conditions have dampened residential developer sentiment. Despite the recent interest rate cuts, weak housing market sentiment will continue to weigh on residential development activity through 2012,” says Cannington and Braddick.

via Residential – Strong fundamentals mean there is no Australian housing price bubble: ANZ.

Never Let The Truth Get In The Way Of A Good Story

Different people/groups may ‘spin’ these figures in a variety of ways… but let’s simply take an objective and sober look at the facts.

• For all the talk this report has incited of ‘another global recession’… the same report says global economic growth in 2012 will be 3.3 percent! Dissecting the differences between individual regions and countries paints a positive outlook for Asia… and those countries tied to it.
• 2012 – 2013 growth in emerging and developing economies is expected to average 5.75 percent; down from the 6.75 percent growth in 2010 – 2011
• Despite a 0.75 percentage point downward revision, developing Asia is still projected to grow most rapidly at 7.5 percent on average in 2012 – 2013
• Economic activity in the Middle East and North Africa is expected to accelerate in 2012-13
• Most oil-importing countries in the region face muted growth
• The impact of the global slowdown on sub-Saharan Africa has to date been limited to a few countries, most notably South Africa, and the region’s output is expected to expand by about 5.5 percent in 2012

When reading editorials or listening to TV programs that report on what the IMF said… it’s important to be mindful of what their report actually contained. The points above should be comfort enough for those fortunate to be living in this great country we call Australia; but here’s some more nonetheless:

• “The adverse spillover effects are expected to be the largest for central and eastern Europe, given the region’s strong trade and financial linkages with the euro area economies”
• “The impact on other regions is expected to be relatively mild, as macroeconomic policy easing is expected to largely offset the effects of slowing demand from advanced economies and rising global risk aversion. For many emerging and developing economies, the strength of the forecasts also reflects relatively high commodity prices”

Like me you want to navigate your way through these challenging times and come out the other side better off. I see MORE opportunity to progress financially than in years gone by – we’re facing the perfect storm!

1. Sections of our property market have bottomed and are just beginning to rise – that’s a buying opportunity
2. Interest rates are low and dropping – this will increase demand for property and push prices higher
3. Australia’s population is growing yet new housing numbers consistently fall short – limited demand MUST result in higher prices

I’ll stop there although I could go on.

Swimming is great but care needs to be taken to avoid drowning… so too with investing. At mrd we only recommend the responsible use of the right kind of debt. Don’t make avoidable mistakes… talk to us first!

The Downside Of A Buyer’s Market

In a buyers market when prices are down… so too are valuations. In my experience this is when valuers are at their ‘worst’, making it difficult to access and use existing equity. For those in a position to take advantage of a buyer’s market… DO IT – THERE’S NO BETTER TIME!

Your Next Step

Step one is to have your current position assessed by someone whose motives are not self-centered. NB: Don’t pay to have this done – you don’t need to! For those with the borrowing capacity, buying conditions and some buying opportunities make now a great time to be considering your next investment.

• Heather from mrd finance… along with one of our property mentors will happily (and professionally) assess your current position before discussing your options with you. To request this support simply complete a “My Starting Point” assessment form >>>here.
• Alternatively… contact us with your question(s) on ‘anything property’ >>>here

Happy Investing,

Nick Lockhart

Our Customer Care Program works for you… because investing is personal!

]]> http://investmentmentor.com.au/news-commentary/from-the-desk/world-economic-outlook/feed/ 0 http://investmentmentor.com.au/news-commentary/from-the-desk/february-interest-rate-prediction/ http://investmentmentor.com.au/news-commentary/from-the-desk/february-interest-rate-prediction/#comments Fri, 27 Jan 2012 06:30:12 +0000 Nick Lockhart @ mrd http://investmentmentor.com.au/?p=16401 On Tuesday week the Reserve Bank of Australia (RBA) will meet for the first time since early December to decide what to do with interest rates. In my opinion it is not a matter of IF they put rates down again… but by how much. As I sit here right now I cannot think of any half-decent argument for keeping rates on hold so I’m predicting another drop. I’ll even go out on a limb and suggest that they should bite the bullet and drop them by 50 basis point (or a full half a percent).

BUT… I do not believe the banks will pass the next rate cut on in full; making the argument for an even bigger rate cut (say 60 or 65 basis points) justifiable. What the RBA is more likely to do, however, is go beyond the usual 25 basis points in February (but not more than 50 basis points) and then when the banks don’t pass it all on to consumers… follow it up with another rate cut in March or April.

My disclaimer, however, is that while I have been consistently right with what SHOULD happen (as proved over time)… the RBA board doesn’t always ‘get it ‘ at first. So let’s sit back and see what they do. Either way, I am again on the record for you to ‘judge’ over the months ahead.

Please send me your question about ‘anything property’ and/or ‘anything economics’ >>>here

Happy Investing,

Nick Lockhart
Our Customer Care Program Works For You… because investing is personal!

mrd has secured an exclusive offer that matches and surpasses the Qld Building Boost of $10,000

Brisbane Poised For A Change In Status

“…boosted by the emerging resources boom Brisbane has seen CBD office vacancies contract and demand for industrial property grow and is seeing growing airport traffic from fly-in-fly-out workers… sales volumes and rising rents are being seen…

…The Next Stage Is An Increase In Prices..” – Terry Ryder

Stunning Three Bedroom, Two Bathroom Townhomes In A Boutique Project Of Just Eleven Large Homes… but Limited (two only) Spots Available!!!

Stop Procrastinating!

Position Yourself Now For The Next Price Move

For more information:

• Go >>>here
• or call 1300 883 854

Happy Investing,

Katrina Lockhart
Our Customer Care Program works for you… because investing is personal!

It’s good news for landlords after recent statistics from the Residential Tenancies Authority showed rents remained flat during the second half of last year.

January is usually the busiest month for property managers as university students shore up their digs for the year and workers start relocating from southern states.

Agents are once again reporting massive crowds at recent rental inspections.

Ray White CBD/South Brisbane has one of the inner city’s largest rent roles and principal Dean Yesberg says January has been “absolute pandemonium”.

“We have got multiple people lining up for properties, multiple inspections at the same time and multiple applications going on properties,” he said.

“Last year with the floods there was more pandemonium. There were people that were flooded out of their house trying to find a property so it’s not as busy as last year.”

He said one and two-bedroom apartments were the most popular and on average there had been a 5 per cent increase in rents recently.

On the Gold Coast, LJ Hooker Surfers Paradise principal Tony Tooma says vacancy rates are the lowest they have been for some time.

“We’re down to about a 2.5 per cent vacancy rate and days on market are down to 10 days. Rental rates are holding,” he said.

“The better properties are going the day they become available. We don’t have a house to rent as we have leased them all.

>>>Property landlords have their pick of tenants | Reviews and Recommendations | The Courier-Mail.

We know “Sex Sells”… and so does fear! I completed a Diploma of Financial Services and while undertaking my qualifications some years back I was horrified at some of the things that were being taught.

The course was divided into two parts: Insurance/Risk Products and Managed Funds. I objected to (and challenged) the lecturers teaching on techniques to scare people into signing up for multiple, high levelled cover risk products. NB: I personally believe in and have insurances… and I acknowledge the many trustworthy and responsible industry professionals selling these products. I was just very disappointed that a lecturer of what was a very expensive course I had signed up for would teach his class how to sell by manipulation.

My objection to an over emphasis on risk type of products is that while the few will need income protection, temporary & permanent disability insurance and life insurance… just about all of us are going to make it through our working lives only ever really needing financial assistance in retirement. Two obvious but important points to understand:

1. If you ignore entirely or procrastinate on taking appropriate steps during your working life to financially secure your retirement years… you will struggle in poverty!
2. If you allow laziness or ignorance to stop you from gaining the knowledge necessary to accurately separate fear from fact… you are destined to react to sensationalism (designed to whip up fear – because it is an effective selling tool) which will result in terrible financial judgement and the same outcome as above!

I read once that “the worst investing advice usually arrives near the top and bottom of market cycles”. Too true! When markets are rising people think the cycle will never end. Equally when markets are falling or stagnant… people think the cycle will never end – both are wrong.

Where Are We Now

I repetitiously promote gaining accurate knowledge because you are going to continually hear mixed messages. I am not backwards at coming forward when it comes to giving my views on ‘everything economic’… but the things I predict are very often at odds with mainstream media – so who do you listen to? I’d suggest looking at the track record of the person(s) you listen to is a good starting point. Remember also that better than learning what someone else thinks is to learn how they think.

Confusion is a breeding ground for fear -> fear results in poor judgement and inactivity -> exactly why most people will end their working lives broke and dependent on a pension.

Recent media talk of another global recession lines up exactly with what I have been predicting for months. Its impact on Australia, however, is where I differ in opinion from those who (to me) are more interested in selling news via fear than anything factual. Let’s face it… if the hundreds of cruise liners that didn’t sink this past week made the front pages of the newspapers you wouldn’t buy any!

The term ‘another global recession’ refers to us having had a global recession – in 2008/09. As ‘global’ as it was… Australia did not go into recession; nor are we likely to this time (but headline with innuendo sells). Here’s what I have been (past tense) telling readers of this newsletter to expect will happen (future tense):

• Europe and the USA will go into recession
• Therefore, demand for Chinese produced goods will soften somewhat. But only somewhat because in the interests of protecting their own economy, the Chinese government will increase internal spending to maintain a strong growth rate
• That said, demand out of China for Australia’s minerals and resources will drop off a little, causing the value of our minerals and resources to soften a little (supply & demand determine the worth of everything)
• Lower prices mean lower inflation which in turn will bring about lower interest rates. This is exactly why I said the RBA got it wrong back in September when they left rates on hold, why they have since dropped twice and why they will continue to drop; commencing next month (February 2012)
• Lower interest rates will mean a weaker Australian dollar. NB: Our dollar may remain high against the US dollar given that economy will be in recession… but it will nevertheless be lower than it otherwise would have been
• A weaker Australian dollar is good for the manufacturing, tourism and the agricultural sector by keeping Australian produced goods cheaper for overseas customers
• Falling interest rates, coupled with rising rents, will make home ownership more attractive. It will also mean that investors will be able to afford to hold property that they may otherwise have been unable to hold. This will attract both home owners and investors into the residential property market

Other things that need to be considered include:

• The impact of higher unemployment (as our economy will slow somewhat) on people’s ability / willingness to take on new property debt and/or service existing debt
• The impact falling share values will have on home owners and investors alike
• The impact Australia’s ever expanding population will have on the demand for and value of residential property… especially in the context of an already existing housing shortage
• The impact brand new approved mining projects throughout Queensland and the Northern Territory (in particular) will have on immigration numbers, numbers of people employed and spending in the economy… including the demand these will place on existing housing numbers
• Where in the current property cycle different capital (and regional) city markets are positioned. That is, which markets have recently peaked and which have recently bottomed.

Nothing is an exact science but with the right understanding things can be a lot easier to understand. The electrician who didn’t attend classes (if he ever gets a license) will be a failure… so it is with financial literacy. Learn and do… your retirement years depend on it!

Economically Australia has in recent decades decoupled itself from Europe and the USA in all areas other than the stock market. Interest rates, inflation and property prices are reflective of the state of our own economy and the Asian region in which we are located. The stock market… where most Australian’s have their superannuation invested is where the impact of this new global recession will be hardest felt. In fact… what happens in these overseas markets (good or bad) impacts us all; directly or indirectly – for many Australians directly AND indirectly.

All this aside, you still need remain ever mindful that the day is fast approaching when investing will no longer be an option. Opportunity will have come and gone and retirement (ready or not) will be your reality. So… what steps forward are you going to take in 2012?

Here are just some ways mrd can help you:

• Education and mentoring
• Complimentary financial health check
• Assistance in rolling your super balance from the stock market into residential property
• National Rental Affordability Scheme ($100,000 of NRAS money from the government)
• Queensland Building Boost Grant ($10,000 from the Qld government)
• Restructuring and/or refinancing your finances (correctly)
• Assistance in designing a ‘Property Strategy Blueprint’
• Securing a great deal on an investment property
• Simply finding out how much you could borrow right now

Our services are complimentary and without obligation because we believe once you engage with and get to know us you will want to do business with us anyway (if you can). Using the following link be sure to tell me how you would like us to assist you >>>here

Happy Investing,

Nick Lockhart
Our Customer Care Program works for you… because investing is personal!