Infrastructure spend is just another clue

When major infrastructure upgrades are in the pipeline, property investors take notice. Areas set for improvements in transport, utilities and community facilities are sought after by investors, because public spending on infrastructure often drives up property demand and value. But the formula isn’t always that simple. Spending on infrastructure in one area may not generate […]

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The problem of low stock levels

Spring is usually a time when there’s more housing on the market, but this year’s low levels are causing alarm in some circles. There’s growing scarcity in investment-grade property, and buyers are spooked by reports of 25 per cent lower stock levels than this time last year. Undersupply often begets a Catch-22 situation. Hesitant to […]

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A Time to sell…..

You may be tempted to sell your investment property when its value soars, but be careful. Selling at peak market-value can be a losing game. It can leave you vulnerable to steep losses in profit and diminished purchasing power. You don’t need to sell a property to take advantage of its strong market value. Holding […]

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Be careful out there…

Property investors need to be especially cautious at a time when the old formulas no longer hold. For example, oversupply in some markets has done little to dampen rising house prices. In other markets, undersupply for renters is not raising rental rates. Cheap money abounds, yet banks are not making things as easy as they […]

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House price and rentals in a low interest-rate environment

There’s a widespread assumption that low interest rates make housing more affordable. Rate-cuts also tend to raise people’s confidence in buying an investment property. But these approaches can be overly simplistic. Rate-cuts make mortgages more affordable, but they can also boost buyer-competition, placing pressure on house prices. Conversely, when there’s an interest-rate rise, we usually […]

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Keep an eye on the cash flow

After the RBA’s recent rate cuts we have seen more investors approaching their banks to request interest reductions, and in some cases, lenders are agreeing to reduce interest rates, but only if monthly repayments remain the same. This kind of deal might seem appealing — but if you’re seeking to refinance with the goal of […]

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Tax time

At tax time, property investors can miss out on valuable tax breaks if they don’t have an updated depreciation schedule and a shrewd tax accountant. Depreciation schedules itemise the assets in your property that lose value over time (such as ovens, carpets and even the building). These losses can be written off against your taxable […]

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Pressures in the rental market

Property investors often pin their hopes on rental yields, but these aren’t always the strongest source of returns. Recently, rental yields in inner-suburban markets have softened, causing some investors — especially those servicing mortgages — to get nervous. This softening is due in part to an oversupply of inner-city off-the-plan units. These are being offered […]

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The fundamentals in Geelong are taking hold

  Geelong, Victoria’s second-largest city, meets every benchmark of a region that’s about to take off. It has a rapidly-growing population with large-scale infrastructure improvements, including expanded railways and upgrades to the Princes Highway and Great Ocean Roads. Government and corporate bodies are relocating to Geelong, making it an employment hub. The bayside city is […]

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The two-tiered property market

We’re bludgeoned with hype about the “property market”, but careful analysis shows there’s no such thing. Instead, there are many markets. Real estate reports tend to rely on median-price data that sometimes separates houses and units, but doesn’t differentiate between other important property characteristics. The result is flawed simplistic analysis. Deeper investigation reveals a two-tiered […]

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