Property Planning Newsletter

The market bounces back as opportunity presents in spring

In the news this week all reports are that the property market has bounced back from the slowdown in 2008 and set for growth through the spring market this year.

The rebound in the property market can be attributed to a few key fundamental elements.

Historically low interest rates
Incentives for first homebuyers through government grants and bonuses
Low supply of available property to purchase
High rental yields attracting property investment and improved cashflow
Steadily increasing population

These key elements have seen home buyers competing with investors for limited supply, which has forced prices up. Making sure you understand the fundamentals of how property can work for you as an asset and knowing that all property will work differently is vitally important. We often say that the property market is not one market, but is made up of a range of sub markets. Understanding this will hold you in good stead in maximising your property portfolio and ensuring you develop an informed property acquisition strategy.

Another key element to your property strategy is financing. While historically cheap finance is currently available you must be fully aware of your cash flow through changing economic environments if you have a variable interest rate. Also, if you choose to fix your interest rate you must consider the banks exit fees if you pay out or refinance your loan.

To find out what is happening in the market and educate yourself on the key fundamentals of how property works come to our “State of the Market” seminars. CLICK HERE for more information and to register.

Alternatively, for a comprehensive understanding of all facets of property investing come to our university endorsed property courses run by The Property School. CLICK HERE for more information and to register.

Article: Why home values hold up when all else turns down

Last year the value of Australia's commercial property trusts fell by more than 30 per cent, according to Super Ratings' property index. This compares with statistics released by RP Data that show the median value of Australian residential property fell by around 3 per cent in 2008, and in the first four months of 2009 has risen by 2.8 per cent. In Melbourne prices have re-bounded by around 4.5 per cent.

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Article: Spring growth forecast for property

Depending on who you listen to, Melbourne's property market looks to be experiencing anything from a solid recovery to an outright boom.

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Article: Not in your best interest

The big banks might be winding back some penalty fees but the biggest and most costly of them all, the home loan exit fee, is staying put.

Read More

Up Coming Seminars

State of the Market Address - Why now is the time for property investors to act

Come and hear leading property commentator Mark Armstrong, director of Property Planning Australia and The Property School, talk about what is happening in the current property market and the opportunities that exist for investors.

Melbourne - Wednesday 26 August
Sydney - Thursday 27 August

For more information and to register CLICK HERE

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