The best thing we can do with a problem is rename it! It’s not a problem, it’s a “challenge”… and with every challenge comes an opportunity to grow!

“Those who remain flexible rarely get bent out of shape”!

When Katrina and I settled our last property purchase we were without a tenant for almost 4 weeks! Given the housing shortage, we were very surprised.

So why did it take that long for us to secure a tenant?

Probably a combination of:

• Just an aberration at that time
• A result of the global economic downturn
• Reaction to the frenzy the media has whipped up by those who can move back home with mum & dad… or share accommodation when they would normally live separately

Whatever the reason, it doesn’t really matter.

Those few weeks seemed to go on forever. Looking back, they actually passed quickly and the “challenge” we faced was nothing more than a glitch in yet another successful attempt to convince a bank to let us leverage into another appreciating asset; using their money rather than ours!

Finding A Tenant

So what did we do to ensure we secured a tenant?

We did what any self respecting new vendor would do when he/she did not secure a tenant quickly… we dropped the rent! Twice!

You what???

We dropped the rent we were asking twice! If we are going to make a success of our financial position over time… then it is a given that we are going to have to stay fluid… or remain flexible. It is imperative that we meet the market where it is.

OK, I admit that the events of the past 18 or so months have seen real estate prices and rents soften a little in many places… but the overwhelming reality over many decades has been and will continue to be that prices rise. Property prices and rents will double again over the next property cycle… so why sweat the small stuff?

Six months before we settled the rental market would have paid more to lease our new purchase. However by the time we settled, not only did we have to accept less weekly rent, we had to absorb a few weeks of no rent.

Was I worried?

Like anyone who has just settled a property I wanted a tenant ASAP; but no I wasn’t worried. I saw my empty property as a challenge that needed addressing, so we did and “problem” fixed.

Had we secured a tenant from day 1 and for the higher/expected rental figure and had interest rates still been where they were six months earlier, we would have been (significantly) worse off  anyway. The saving we made with greatly reduced interest rates has left us a lot better off.

Don’t freak out if your tenant moves out and you property manager suggests you may need to reduce the rent to “meet the market”. While it is not common; sometimes prices move down temporarily… even though they are trending up. This is all part of normal cycles and adds argument to why we promote a set ‘n’ forget… for busy people approach to property investing. With the ‘buy & hold’ strategy a dip in values will only affect my ability to borrow as much again, in the short term. It will not impact on me, however, in any significant way at all.

So, Am I Better Off Now Than I Was 6 Months Ago… Even Though I Am Collecting Less Rent Now Than I Was Then?

Absolutely! An investor with a $350,000 mortgage pays $215 a week less in interest payments than they did six months ago… so even if they take $20 or $30 a week less in rent they are still ahead by a country mile! In our case we paid a lot more than $350,000, so our savings are even greater!

Add to that the expected capital growth over time.  If a property worth $350,000 doubles in 8 years for example, it will average $840 a week in growth.

Why would I be concerned about losing $20 or $30 a week for 6 or 12 months?

I guess my message here is to say that in the process of wealth creation:

• Don’t sweat the small stuff
• Remain flexible (and don’t get bent out of shape if something doesn’t go exactlty to plan)
• Meet the market where it is
• Understand the BIG picture
• Buy to hold
• Don’t be alarmed if your properties attract marginally less rent for a season. The savings you have had in interest more than compensate for this many times over!

Send us your property investment questions (and or requests) by replying to this article (blog), below.

Happy Investing,

Nick Lockhart
mrd Customer Care Program… because investing is personal

While the global financial crisis has wiped at least 45 per cent off the value of equity portfolios in the past year, the value of most residential real estate – excluding top end houses and coastal apartments – has fallen only about 3 per cent……

The ATO’s just released Taxation Statistics 2006-07 show that 1.6 million Australians … – one in every 10 adults in the country – included rental income in their tax returns….. Most – 72.5 per cent – held only one rental property.

…. Two clear groups of investors prefer residential property. One is professionals such as doctors and lawyers, who use negative gearing to manage their tax affairs and benefit from tax sheltered capital growth….. another group of investors was becoming even more important – the “mums and dads” investing for their future…..

Not only have property values generally withstood the financial storm but also the income has kept rising. Melbourne rents increased between 9 and 15 per cent in 2008, according to Victorian government figures released on Thursday. And the outlook in Australia – a housing shortage, low mortgage rates and a sound banking system – remains sound, unlike the situations in the US and UK.

Reserve Bank of Australia head of economic analysis Anthony Richards, in a speech during the week, said that “there are a number of reasons to think that [housing] outcomes here might remain better than elsewhere.”   The Weekend Australian Financial Review

But Did The RBA Get It Wrong?

It will be interesting to watch what they do with interest rates in the months ahead. Their actions will be an indication of whether this months decision to leave rates on hold was the right one or not.

At the beginning of 2008 the RBA put interest rates up twice. At the time the opposition argued that the decision to do so was wrong and a reaction to Kevin Rudd & Wayne Swan talking up inflation; citing it as the # 1 enemy to go after. What they failed to recognise was that the negative economic impact coming out of the USA had already begun to work its way through the system and here in Australia the economic slowdown was just about to bite.

The numerous interest rate cuts later in the year is clear evidence that monetary policy in the early part of 2008 was wrong.

As it turns out, 2008 was not a year where inflation was our major concern. In fact, before the year was out the global slowdown put an end to inflation as global demand for goods and services fell away and prices began collapsing.

Nick’s Opinion

Personally I think:

• Our economy still lacks the overall business and consumer confidence needed to see things turn around
• Banks are still being very difficult to deal with when it comes to businesses wanting to borrow money etc
• That the next round of federal government handouts (the stimulus package) will not have as potent a short term impact as expected or needed
• Unemployment continues to be the worrying issue and unless small business gets some relief the negative employment trend will not be arrested

It’s just an opinion and I may be wrong, but for reasons including those above, I expect we will see further cuts to interest rates. I also see justification for the extent of further rate cuts to go further than most economists are currently predicting.

The question: “Did the Reserve Bank get it wrong in March when they left interest rates on hold” draws a divided response; and only time will tell.

The RBA’s decision to leave interest rates on hold this month was either (1) A positive vote of confidence in the Australian economy, or (2) A mistake… that will be corrected in the months to come.

Outlook For Property Investors

Current conditions are actually ideal for investors… regardless of whether or not the RBA moves on rates further.

• Property can be purchased at fantastic prices; most, if not all, developers could be classed as “motivated vendors” right now
• Interest rates are the lowest they have been in our lifetime
• Australia is in the midst of a massive housing shortfall

For anyone with a job, the current climate should be as easy as it is likely to ever get… when it comes to creating wealth! Don’t let this open door close before you act!

Happy Investing,

Nick Lockhart
mrd Customer Care Program… because investing is personal

Finance Structure & Cash Flow Health Check

Prevention is better than cure. A complimentary, no obligation Finance Structure & Cash Flow Health Check may save you (literally) tens of thousands of dollars, see the mortgage on your home cleared quicker and open up opportunities that would otherwise have passed you by.

Yes please! Follow the link below to securely send us the information we need to complete this on your behalf:

https://www.investmentmentor.com.au/bca.php

Case studies of other mrd clients that have undertaken a financial health check:

http://investmentmentor.com.au/2009/02/20/property-investor-crash-victims/

The Valuer!!!

The term “Valuer” is often misleading.  Many people assume, due to the label “Valuer” that this person is going to mathematically compute a recommended retail price for a property.  Nothing of the sort!  The term “Valuer”, when dealing with a financier, refers to someone who assesses the perceived risk involved in a particular transaction.  There are many factors involved that have nothing to do with the property itself.  The biggest single factor in any assessment is the opinion of that one person named “Valuer”.  It is not uncommon for opinions between valuers to differ by 10% or more on the same property.  The property is the same, they both have access to the same documentation and historical data but they come back with two vastly different numbers.  The only variable between them is their opinion.

Included in the valuation report along with an actual dollar value is a series of risk ratings for different criteria, mostly relating to the expected future market conditions.  Even if the valuation figure comes back within close proximity of the contract price, if the valuer’s opinion of any of these other risk criteria is high then the bank can also limit or decline any finance application.  In a bank valuation the “Valuer” isn’t just valuing that property, they are also predicting the likely economic future for the locality!

I recently had an mrd client comment on the low valuation he received on his own home and how it was actually below the council’s latest CIV (Capital Improved Value). The CIV is the total market value of the land plus buildings and other improvement and is calculated every two years using a process governed by the Valuation of Land Act and carried out under the guidance and audit control of the Valuer-General. The valuations are carried out by qualified professionals who hold recognised tertiary qualifications and who have the required practical experience.

I thought it may be useful for me to share what I sent to our client in regards to this matter. Names and other personal details have been changed for privacy considerations.

Hi X

I agree that valuations are an issue. You would have seen my own experiences related in recent articles. You would also be well aware of the issues last year where two identical townhouses standing side by side returned valuations $25k apart using the same bank and the same valuer- just different people working for that valuer. It’s a “professional’s” personal opinion , based on criteria set by the banks, and the bank will rarely vary from it because of the legal implications.

My issue with all this is in the terminology used. I don’t believe that the commonly accepted meaning of “valuation” is appropriate at present.

There are clearly two distinctly different documents here.  Both are misleadingly called “Valuations”:

• The bank “Valuation” for risk minimisation
• The Council “Valuation” for the setting of rates

I personally believe (and I could be wrong) that  the bank is setting a dollar value on their perceived risk, based on the property and on the borrower.

The council value is not really relevant as it’s the councils opinion of the current market value to set rates.  It is in no way related to the bank valuation which is a valuer’s opinion of the banks future risk potential in that particular transaction.

Realistically if the council’s valuation is too high, or values drop markedly what impact does it have on the council? They just collect more rates than they should I guess.

If the bank’s valuation is too high or values fall it has a dramatic effect on the banks security and risk level. Although we see no comparison between the Australian housing market and the US (covered in recent articles), what has happened in America must have some effect on our banks in that they will be more “nervous” about their security and will therefore be more conservative with their valuations.

A bank valuation of $410k when the CIV valuation is $434k is no more a variation than we often see between different valuers and lenders. In my recent apartment purchase at Robina we saw a $72k difference between a valuation done for St George and a valuation done for  Commonwealth Bank; mine was the one that came in $72k short!

In the current “financial crisis” with all the unknowns, banks failing around the world, often taking other banks down with them, I don’t see much chance of us changing their system.

I don’t disagree with your comments, I guess I don’t see anything we can effectively do apart from trying to understand how the system works and make sure we use it to our advantage (or minimise our disadvantage) wherever we can.

Happy Investing,

Martin Bell
mrd Customer Care Program… because investing is personal

Other Links to related “Valuation Articles”

• http://www.investmentmentor.com.au/valuations.htm
• http://investmentmentor.com.au/2008/11/28/valuations-will-somebody-please-explain/
• http://investmentmentor.com.au/2008/11/28/valuations-will-somebody-please-explain/

Finance Structure & Cash Flow Health Check

Our recent offer to complete a complimentary, no obligation Finance Structure & Cash Flow Health Check has been widely taken up. If you would like us to undertake this same service on your behalf please click the link below to send us your contact details.

More Info…

http://investmentmentor.com.au/2009/02/20/property-investor-crash-victims/

Yes please; I would appreciate a complimentary Financial Health Check

https://www.investmentmentor.com.au/bca.php

1. How good will your portfolio be if we have another world war?
2. How good will your portfolio be if we have a worldwide recession or depression?

Well, with regards to Q 1, I still have no concrete answer for, and hopefully never will. With respect to Q 2, however, I can now (i.e. only now) say from experience… “It’s all ok”!

My portfolio now numbers 13 properties. When interest rates were 9% plus it was of some concern. We would have remained OK for a couple of years at those high rates because the equity we have built up provided us with a buffer (safety net).

Now every 1%  rate cut puts an additional $35,000 a year in my pocket. We’ve had 4% slashed from our rates in recent months (less what the banks failed to pass on) and the season of low interest seems set to continue for some time.

I use a separate line of credit for my property expenses (i.e. rates, body corp and so on); only paying interest charges from my cashflow. Interest rates are falling and rents are rising so cashflow is looking better and better. I don’t have to work, so while the world “financial crisis” works its way through the system; affecting us all, I remain content and comfortable holding a large property portfolio.

Increasing Population + Shortage of Rental Properties
= Low Vacancy Rates = Rental Increases

OK; ‘so far so good’. With cashflow under control, there’s no stress in us holding a portfolio of 13 properties. BUT, what about growth and the lenders?

Certainly, growth has been flat over recent months but prices have not dropped in most areas. An article in The Australian last month said:

“In fact, the latest RP Data-Rismark Index results show that Australian house prices declined by just 0.8 per cent in the 12 months to October this year, and increased during the most recent three months”.

They are talking about the country as a whole (the good, the bad & the ugly); whereas certain areas have outperformed others. As an investor I discriminate against much property and only accept that which I believe will perform better for me.

I have always accepted that property values travel through cycles. I have every confidence that the short supply of property will mean that the growth in prices will/must kick in again. NB: We were about 80,000 dwellings short for 2008 and the Australian Bureau of Statistics  expect around 100,000 too few to be built this year; with the undersupply continuing around those annual figures till 2018 at least.

The mrd set ‘n’ forget, for busy people TM system that Nick promotes has worked for me personally; in good times and in bad and I have no reason to believe my ongoing confidence will be met with any disappointment! Why? Because I believe the fundamental law of “supply and demand” will ensure any outcome other than that which I expect, will be nothing more than a short term aberration.

For the benefit of those who have not spoken with me, let me explain a little of my personal strategy. It revolves around drawing on equity from my portfolio. For those of us in “retirement”, that means using low-doc or no-doc loans; not easy to secure with competitive rate at the moment.

What next?

My plan; or perhaps “flukish luck” (ha, ha) when Marion and I contracted to buy our 13th investment property; included an “ulterior motive”. We bought a top floor, 3 bedroom apartment adjacent to the Robina Town Centre. We thought we may eventually like to downsize and move into this ourselves.

We are now very close to having a number of our properties revalued so as to clear the security from our owner occupier. This is to allow us to then change the security supporting some of my loans away from my own home onto some of my earlier investment properties. With our own home unencumbered (and debt free), we will sell up, pocket the lot and move into the 3 bedroom apartment.

I accept new valuations at this point in time will not be great; but that’s fine, our goal is to simply clear the security from our owner occupier so when we sell we remain in control of all the cash we receive. We will do this without having to qualify for any new loans. No need to be concerned about the availability of a low-doc or no-doc offers – we won’t need either!

I already have an offset account set up for our 3 bedroom apartment. Therefore, after selling we will have $550,000 clear (conservatively) to put into an offset account that sits against (what will be) our new principal place of residence. NB: Selling is something we encourage you rarely ever do. In this instance, it allows us to fund the retirement we want. Because it has been our principal place of residence there will be no capital gain tax. A tailored solution that works for us, even in the face of the global credit crisis!

Some may ask: “Why don’t you simply pay out the loan on your new apartment instead of keeping the debt and putting what funds you get from the sale into an offset account”?

Good question! “Because to do so would mean that I would immediately lose control of the $550,000. If I wanted to get at any of the equity created in the new unit (by paying it off), I would have to go through the exercise of making a fresh loan application; and risk being knocked back etc, etc.

My strategy to have the existing debt on the unit 100% offset still ensures we have a $ZERO (non tax deductible) interest bill, while still allowing us the freedom to draw on the $550,000 as I need it over the next “however many years”; without the need to prove serviceability! Now when you add to that the two hundred plus thousand dollars we currently have available in other lines of credit, one can begin to see that no matter how tight credit for a retiree may become, we will be pretty much set for a number of years to come.

The “crisis” will pass, however, in the meantime a clever strategy and proper financial structuring will allow us to avert any interruption our retirement plans may have otherwise suffered. Then, when things get back to normal and my property portfolio  AND RENTS double in value again we will revalue the lot, increase our credit lines and continue to enjoy our retirement (with growing asset & income base). I am a month off 59 now. When Marion & I started on this journey I was about to turn 50 and I have been self-funded now for 3 years.

7 years + 13 Properties + A Financial Crisis = Never Work Again!

I can hear the voices screaming from all around cyber space “It’s ok for you! You have a significant property portfolio”. Compared to most maybe, compared to others… I’m crawling! Guess how you get hold of a large property portfolio yourself?

Start with a small one… but START!

Now is a good time to do it. Did I say “good”? I see the current “Perfect Storm” as being a ‘once-in-a-lifetime’ opportunity. Interest rates the lowest in 45 years (and falling); with property prices very affordable AND a rental crisis that’s only going to get worse.

My message to anybody who over the past years, didn’t get started because of their “WHAT IF” questions is: This works; so get started!

If your “WHAT IFS” are still plaguing you then maybe you should do nothing but sit tight for a few years and ask me again. I suspect, however, that I will have the same answer for you then.

* Please note: I am not a financial advisor, accountant or a finance broker – I’m just a very comfortable self funded retiree. The examples and opinions above are a compilation based on my own personal experiences, both in creating a $4.5mil property portfolio, starting with only $50k equity and also in helping a large number of people achieve similar goals of million dollar property portfolios. If unsure then consult your own accountant; hopefully one with some property experience and a personal retirement plan that is working. Financial advisors, in my opinion, rarely understand or recommend property, as their commissions come from other investment products. It should be a case of “don’t believe what people say, believe what they do!”

To ask me any questions or arrange a chat regarding how my chosen retirement plan may work for you, click here

Would you like me to guide you through an mrd complimentary & no obligation “Finance Structure & Cashflow Health Check”? Then simply complete the online secure form and I’ll be in touch with you next week; click here

Happy Investing,

Martin Bell
mrd Customer Care Program… because investing is personal

How times have changed.

To demonstrate how the changes in interest rates affect your holding costs I will use the properties at Endeavour Gardens as an example…

When rates peaked, the property would have cost you about $210 a week to hold after tax, based on a 30% tax rate. For the majority of people that is a significant amount to find each week. Holding a property such as this was difficult and fewer people were able or willing to get involved and wait for the capital growth to repay their holding costs.

With more advanced financing strategies such as the capitalising of most property expenses you may have been able to bring the holding costs down to a little over $100 a week. Even at these higher rates it was still a very good investment as the expected capital growth would have dwarfed the holding costs but few people would have been able to see that.

What is the holding cost now?

That initial $210 a week to hold after tax has dropped to a tiny $32 a week.

Using the mrd advanced financing strategies the property actually becomes cash flow positive by $75 a week.

The Hidden Bonus is that not only is the property now not dependent on a contribution from your hard earned wages but it is actually paying you back, contributing to your weekly savings, helping you pay down your own home loan and creating wealth for you through capital growth.

What is rarely understood is that by using these same mrd advanced finance strategies it may be possible to have the tax man contribute to paying off your home loan by changing home mortgage debt into tax deductible investment debt.  For more information about how this may work for you please ask one of our team.

You can now have a property that pays you every week. In addition, it generates huge equity pools for future investments or lifestyle choices. As an example, if this Endeavour Gardens property grows by an average of 9% a year (8 year doubling cycle) then in that 8 years it will average $805 a week in equity growth for very little time and effort.

This complies with our “set ‘n’ forget” for busy people ™ strategy.

It is only a matter of time before the masses realise what a bargain this property is.

My question to you is… are you going to be ahead of the herd or following in its wake?

So if in the midst of financial turmoil, negative media and confusion you are wondering what actions will best serve your medium to long term interests; I challenge you to test us.

You can make one of two choices:

• Take us up on our offer for a no obligation, complimentary “Financial Structure & Cashflow Health Check” click here to email us.
  
• Find out what your Borrowing Capacity is now that rates have dropped so quickly. Click here to submit your form today.

Regards,

Doug Wroe
mrd customer care program… because investing is personal

The current global market volatility and recent interest rate hikes have heightened interest in the debate leading to even more rate scrutiny.

Homebuyers are now more aware that loan finance decisions should be thoroughly explored. As a result, they are seeking the advice of home loan specialists who can help prioritise goals, examine financial circumstances, assess need for security and, ultimately, decide which side to take in the Great Rate Debate.

Commonwealth Banks Head of Retail Products, Michael Cant, takes the role of adjudicator to mediate the case between fixed and variable rates.

What is the difference between fixed and variable?

>>>> The Great Rate Debate – Yahoo7 Money Matters.

Now things could happen over the next few days to change that. For example, the Federal Government announcement concerning the next round of stimulus to be announced. Factors such as this cannot be properly considered at the time I am writing this.

Initial evidence suggests the Federal Government’s cash handouts in December ’08 fell short of having the desired effect. It needs to be noted, however, that official reporting on Christmas spending last month has not yet been released.

Assuming the cash rate will move down by another 1.25% (to 3%) by early March… I see two options before the RBA when they meet next Tuesday:

1. Move rates down by just 0.5% in February while waiting for official figures to indicate exactly how much impact the 1st stimulus package had on Christmas spending. This option would also allow the RBA time to digest the detail of the 2nd stimulus package and assess its likely impact. NB: 2nd stimulus package will be announced soon… possibly this week end.
2. Move rates down by a full 1.0% in February and not risk losing another month whereby the economy could be further stimulated. If they take this option and risk “over cutting” rates next Tuesday they can then put the brakes on a little and do less the following month.

Of course there could be any number of other options and the net effect is that the next two months could see the official cash rate fall below 3%; that is certainly not out of the question.

Personally I suspect the RBA will view their responsibility of overseeing monetary policy with much caution next week and attempt to make a significant contribution to boosting both business and consumer confidence quickly.

At this time our economy is quite fragile and to ‘play it safe’ would seem the most responsible course of action the RBA could take. Managing inflation is no longer of primary concern. Even so, inflation has been taken care of anyway. Falling commodity and labour prices has rectified any inflation problems we were considered to have a year ago… adding to the argument for lowering interest rates.

Have you heard it said that “in every adversity lies the seeds of a bigger and better opportunity”?

This is not just a string of nice words, but a profound truth. The bigger the adversity, the bigger the opportunity. Assuming we understand that influences of “supply & demand” and “herd mentality” on values (even though in the short term aberrations may occur); we will be better positioned to SEE the bigger and better opportunities available now.

• I believe there are more pessimists than optimists; it’s easier to be negative just as it’s easier to grow weeds than flowers
• When it comes to matters of finances, more people are more influenced by their emotions than facts
• If “everyone else” is doing it… so will we
• In Australia we have a growing demand for housing continuing, with a very limited supply
• Confidence is at an all time low; albeit without justification in many instances
• Some developers have gone out of business, others have put the brakes on until they see the property market pick up… many of the rest would still construct if they could find a bank to lend to them
• If the source of this supply problem was fixed overnight, it would take years before the solution worked through the system resulting in sufficient numbers of additional completed housing
• Those who hold property today can look forward to the benefits of significant capital gain… resulting from the next up-cycle
• Up-cycles follow seasons where housing is considered affordable
• With interest rates quickly falling (and to levels most Australians have never seen in their lifetime) and rents being forced up by the growing demand (with lack of supply for years to come) housing will soon be considered VERY affordable

The numbers look really good now and are only going to get better. This gives me confidence that broadly appealing residential property, in sought after locations… will, over the next few years, grow significantly in value. The doomsayers and their followers will have about as much credibility as a cult leader and his key disciples.

My Suggestion:

Assuming you have had an analysis run on your personal situation and understand the associated costs and responsibilities of both buying and holding real estate… now is a fantastic time to buy – i.e. for those who subscribe to the mrd buy/hold strategy (if you’re a property speculator, trader and/or renovator – “good luck & may the force be with you” – ha, ha)

My property portfolio is just about always adding to my wealth. Either my property values are increasing; and adding to the amount of equity I have to work with… or the rents are increasing; and adding to my income base. Remembering that to acquire more property we must demonstrate to our lender sufficient equity and income… I am always winning with real estate.

Safety In Numbers:

People feel safer in numbers; that’s why the herd mentality is so prevalent… but recent history has shown that if you followed what was popular you may have lost half your super or shares etc. I believe real opportunity (like risk) comes from our knowledge (or lack thereof) and our willingness to “swim against the tide” of popular opinion.

Interest Rates & Holding Costs:

Currently the CBA offers the lowest professional package interest rate; just 6.04%. If I am right and rates come down by another 1.25% (or more) over the next 5 weeks… and even if it were not all passed on, we would be looking at being able to borrow for about 5%!

That means the total interest bill on a property that cost $400,000 (assuming you borrowed 100%) would be more than covered by a weekly rent of $385. Now I know that there are council rates, body corporate and rental management fees etc to come from this… but so too there are tax deductions and the strong likelihood of more rent than $385 a week. Watch how, when the numbers change so much in such little time, even the herd will see the opportunity! And when they do… we will have our next up-cycle.

Click here to take us up on our complimentary, no obligation offer of an mrd “Finance Structure & Cash Flow Health Check”.

Happy Investing,

Nick Lockhart

mrd customer care program… because investing is personal

A landmark BankWest study to be released today reveals Queensland has the lowest stamp duty taxes in the nation but the median bill still increased by 151 per cent between 2003-2008 – despite household incomes only increasing by 39 per cent.

The report again highlights why southerners are moving to Queensland in droves.

Estimates show Sydney and Melbourne buyers need almost three months salary to afford stamp duty for median house prices, while those in Brisbane only need a month.

In Queensland, the median stamp duty bill is about $5000 while the most expensive is $17,888 in the ACT.

>>>> Queensland cheapest for stamp duty, lures southern buyers | The Courier-Mail.

Of course, the market is changing all the time, but if you want to look back at what we’ve said about a particular subject in the past, you can use our search facility to look up articles by topic, date or format.