Transaction

One of the fundamental elements of economics is the relationship between supply and demand. We are seeing this played out in the current Melbourne and Sydney markets. But beyond this things aren’t always so straightforward. Many factors complicate supply and demand. One complication affecting the supply side is the cost of transactions — a leading […]

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Car factory closures – A tale of two cities

Last week’s closure of Ford’s casting plant made Geelong property investors nervous — especially on the heels of job-losses at Alcoa and Qantas. The loss of manufacturing jobs from industrial heartlands can lead to ‘rust belt’ regions, characterised by declining industry, populations and economic activity. Rust belt effects were predicted for Geelong and also Adelaide, […]

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Strategy and tactics

When buying residential properties, we’re continually evaluating our mix of strategy and tactics. To borrow from military theory, strategy presumes control and predictable outcomes. On the other hand, tactics rely on on-the-ground intelligence, so they’re agile in the face of unpredictability. They’re constantly re-oriented for the situation-at-hand. One of our key strategies involves buying in […]

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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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