mrd

SOUTH-EAST Queensland is on track to eclipse Melbourne’s suburban sprawl to become Australia’s second-largest metropolitan area within 50 years.

Civic leaders say that based on the population projections, the Gold Coast will need an extra 8000 jobs every year to keep unemployment down and the city thriving.

The Business GC Economic Development Strategy 2010 has laid out a plan to create new jobs, highlighting how the Gold Coast was no longer considered just a holiday destination … it was now a robust economy internationally recognised as a highly desirable location and a premium city in which to live, work and visit.

“The Gold Coast is expected to become Australia’s fifth-largest city within the next 20 years … the rate of growth being experienced in SEQ suggests that the region is likely to surpass Melbourne as the second-largest metropolitan area in Australia after Sydney, within the next 50 years,” said the report.

Business GC boss John Witheriff said the sheer infrastructure required for the huge population growth would generate 70 per cent of the 8000 new jobs needed annually. He said house and infrastructure construction and supplying food and entertainment would create jobs easily.

Not so easily was the remaining 30 per cent, which would require proactive moves to attract business investment and exports like film, high-performance sport and environmental and knowledge-based industries.

Mr Witheriff said they were now working with schools and universities to produce a more skilled, knowledge-based workforce that would in turn lure big companies to set up here. The city has been split into 10 key precincts to group similar businesses in the one hub.

It includes Southport as a medical, education, business and technology centre, Surfers Paradise and Broadbeach for international tourism and business and Coolangatta as a medical, tourism and transport hub.

Growth spurt demands 8000 more jobs Local Gold Coast News | goldcoast.com.au | Gold Coast, Queensland, Australia.

IT is being touted as the “Perfect Storm”. According to Gold Coast property experts, prices will continue their upward swing in 2010 but a looming “massive undersupply of housing” is set to reach critical levels.

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Robert Kiyosaki in his book ‘The Cashflow Quadrant’ says a Business Owner has developed systems that ensure revenue is not limited to the owner’s personal exertion. Where such systems have not been established, an owner is generally tied to the business. A more accurate title for these people is ‘Self Employed’… not business owner. A plumber working for himself is not that different to the plumber who works for someone else. He must get up each morning and put in a day’s work to receive a day’s pay. Begin now to see Property Investing As A Home Based Business, rather than an adjunct to your job or a second job.
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What Or Where?

I am repeatedly asked: “Am I Better Off Investing In Houses Or Units? “Personally, I tend to invest in units (apartments), rather than houses because I am more interested in where I invest rather than what I invest in.

Did you just pick up that the real question is “where” not “what”?

Readers of Nick’s weekly newsletter would know that we place huge importance on the laws of supply and demand. Whether oil, bananas (remember Cyclone Larry in 2007 and what that did to the price of bananas?), property or anything else, supply and demand will ultimately determine all long term pricing (NB: There may be short term “blips” along the way).

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Last week the Reserve Bank of Australia (RBA) made the decision at it’s monthly board meeting to leave the official cash rate on hold. That means no adjustment to interest rates this month.

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.

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Over the past 8 years or so speaking with all types of people on the subject of investing in property, many, generally new to investing, ask me the “what if” questions. My broad base of experience has meant my answers have generally put their minds at ease. Two questions, however, that I lacked a good solid answer for were:

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”!

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The Reserve Bank of Australia (RBA) will meet for the first time this year, next Tuesday. While it’s difficult to know exactly what they will do with official interest rates, I expect another generous reduction to be handed out; probably 1%; but certainly at least 0.75%.

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January 17th, 2009

RESIDENTIAL property values on the Gold Coast are set to benefit from a booming population and strong demand for housing, according to research from PRDnationwide.

The research, compiled by Lynda Campbell of PRDnationwide’s Gold Coast office, shows the city needs 129 new dwellings a week to cope with the present population growth of 3.6 per cent — 2.1 per cent higher than Australia’s national growth rate.

Ms Campbell said while the actual population figure was down from previous years, this was a direct result of recent local government boundary reforms rather than a declining population.

“Population figures have dropped below 500,000, but when you consider that Beenleigh and its surrounds no longer form part of the Gold Coast, the population growth is still significantly high,” she said.

The report states that building approvals for houses and apartments on the Gold Coast have dropped dramatically in the 12 months to June, 2008.

“Building approvals aren’t keeping up with the residential demand resulting from the Gold Coast’s burgeoning population,”said Ms Campbell. “The last year has seen approval of 735 fewer houses and apartments across the region.

“Combined with current record low interest rates, this drop in supply and continual increase in demand should have a positive impact on property.”

>>> Gold Coast needs 129 new homes a week: report – Realestate News – Gold Coast, QLD, Australia.

Once upon a time in a village, a man appeared and announced to the villagers that he would buy monkeys for $10 each.  The villagers seeing that there were many monkeys around, went out to the forest, and started catching them. The man bought thousands at $10 and as supply started to diminish, the villagers stopped their effort.

He further announced that he would now buy at $20. This renewed the efforts of the villagers and they started catching monkeys again. Soon the supply diminished even further and people started going back to their farms.

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To make sense of the property market we must separate opinion from fact. Opinions will always be heard… just in greater numbers now perhaps. If you are prepared to “drill deeper” and dissect the evidence available; the facts will speak for themselves. There’s no reason for allowing the conflicting voices of opinion to keep you confused!

In the current round of Web Seminars we are offering, I highlight four key factors that are a MUST… if you expect to draw any credible conclusions.

1.    Record Population Growth
2.    Investors Have Fled The Market
3.    Home Ownership Unattractive
4.    New Construction Has Stalled Badly

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