Slow But Steady: Housing Values to Grow

Doomsayers have it all wrong — there is no housing bubble across Australia and a market crash is highly unlikely This is according to statistics by the CoreLogic-Moody’s Analytics Australian Forecast Home Value Index which indicated slow and steady home values growth over the next two years.

Positive Outlook

International economists stirred up a storm when they claimed that Australia would be the next nation to experience a housing crisis. Talk of a housing bubble has been prevalent over the past few months, especially in some capital cities like Sydney and Melbourne.

But local analysts have dismissed that notion and said that the growth will continue albeit at a slower pace. This is most probably because of stricter investor lending requirements, a surge in owner-occupier loans, and other factors like slower income growth.

Alastair Chan, an economist at Moody’s Analytics said, “On the outlook for the housing market nationally, we expect house price appreciation to slow in 2016. Our forecast reflects lower income growth as the Australian economy transitions away from mining-related investment, as well as the strong build-up of housing supply over the past two years.”

According to Tim Lawless, research director at CoreLogic, Melbourne will continue to outperform Sydney this year. He also suggested that the chance of either two markets crashing is unlikely. “We’re not about to see either of those markets falling off a cliff. It’s actually quite a controlled movement, it’s probably just what the doctor ordered when it comes to making an improvement in the stability of our housing markets,” he said.

Other markets such as Canberra and Brisbane may see moderate levels of growth. Brisbane in particular should outperform the rest of the country with its stable rental growth and employment conditions.

Know Where to Invest

A good understanding of how the market moves is integral in any property investment plan. If you’re looking where to invest next, you need to consider a variety of factors which should include potential capital growth and future developments. Consider up-and-coming areas as well if you want to maximise the growth of your portfolio.

Using our 44-Point Property Checklist, for instance, you can find properties that can match your investment goals. If you want to know more about how to improve your property game with effective investment strategies, contact us today.

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Choices Define Your Lifestyle: 4 Healthy Habits to Keep

“Habits maketh the person,” as the old adage goes. When it comes to living healthy, forming good habits is crucial. So what do healthy people do to stay in shape, apart from exercising regularly? Here are some important points to lead a healthier life:

1.     Seek balance

The problem with diets is that they eliminate and deprive. What you need is balance. Putting a restriction on what you consume can lead to binges and excessive eating, which in turn, can derail your diet regimen. This is the last thing you want to happen. Controlling your weight needs to focus on having a balanced diet by taking out all the excesses.

2.     Quality over quantity

When it comes to food, it’s always quality over quantity. So be mindful of the food you are consuming. It’s not how much you eat, but how nutritious is the food you are eating. Unless you want to add calories, skip the extra snacks and fillers.

3.     Inspect the grocery bill

Your grocery bill can reveal so much more about your diet regimen than your weekly meal plan. Take a look at it and see the types of food you purchased. Are they processed, packaged, or high in trans-fat? If so, you might be losing the battle already. Review your budget allocated for food and take out these unhealthy food choices from the list.

4.     Keep an eye on the weight

The first person who should know whether you’re losing or gaining weight is you. Healthy people keep their body in shape because they do all the right things and are mindful of their weight and well-being. They can respond quickly if their weight dips or gain unexpectedly.

Financial Health

Living a healthy lifestyle is all about making the right choices. It’s the same when it comes to your financial situation. You need to make smart investment decisions if you want to improve your finances. It’s a must that you know how you are faring when it comes to your finances and you have a solid plan in place.

This is where our expertise in wealth creation can help. Give us a ring if you want to know more about financial strategies to ensure your financial future.

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Negative Gearing: What’s In It for Mum and Dad Investors?

For many years, negative gearing has helped Mums and Dads to plan their retirement and make the most of the tax incentives available. Recently, however, negative gearing has taken the spotlight once again, as Labor released its proposed changes to the policy.

Negative gearing has been contentious for both sides of the political spectrum as detractors say it only benefits cashed-up investors, which is a huge misconception. What’s in it for the Mum and Dad investors then? Will the proposed changes help them secure their financial future?

Proposed Changes

Labor Leader Bill Shorten said that the current policies on negative gearing and capital gains discounts are draining the government budget. In its proposal, Labor specified that it wants to limit negative gearing to newly built properties. They argue that this will make it easier for first-time home buyers to enter the market and encourage building of new homes.

The changes may place investors in a worse position if they make the investments after July 1 2017, according to the modelling tax accountant H&R Block. “In such a scenario, many investors would probably exit the property market or put up the rent,” Mark Chapman, Director of tax communications said investors also faced the risk of selling off their properties for a lower value if left with high vacancy rates.

Malcolm Turnbull responded to the proposal by saying that it would “smash the residential housing market”. Federal Treasurer Scott Morrison also said in an opinion piece,“I have always believed that negative gearing gives hard-working Australians a chance to build some wealth they would not otherwise get.”

Fighting for the Mum and Dad Investors

Julio De Laffite, founder of JDL Strategies, has weighed into the debate on behalf of Mum and Dad investors. In a recent press release, he was quoted saying: “It seems to me that any attack on property investing would hurt mum and dad investors most. They are the people I see every day. They are all trying to plan for their own retirement so that they don’t become a burden on tax-payers when they retire. Why would any reasonable government penalise them for trying to provide for themselves.”

Two thirds of Australians who use negative gearing have a taxable income of $30,000 to $80,000. These are the regular citizens who only want to secure their financial future.

“The impact of abolishing, or restricting negative gearing would unleash a shockwave that would be felt by all Australians. The housing industry employs a lot of people and any slowdown in that sector would mean a severe drop in spending on a range of household and general consumer items. In short – it would cause a shudder in the entire economy.”

Mr De Laffitte assures property investors that he will keep fighting for the fair opportunities for Mum and Dad investors.

To find out more insights about negative gearing, check out our blog page. You can also talk to our Client Managers to discuss about your property investing plan.

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Finding Their Dream Home: An Inspiring 11-Year Journey

How long are you going to search for your dream home? Will you settle for the next best thing or will you continue searching no matter how long it takes? One couple in East Ryde took a gamble and searched for more than a decade before they finally found the home they’ve been dreaming of.

The 11-Year Search

The new owners of a wonderful three-bedroom property in East Ryde took 11 years before finally finding their dream home.

“I don’t know what the reasoning was. They’ve found properties they have liked in the past but missed out or it hasn’t been enough for them to go the extra mile,” real estate agent James Sarzano explains.

East Ryde is a suburb in New South Wales, surrounded by bushland and water on almost every side. Its picturesque location is easily one of the top reasons why many are looking to buy a property there. Sarzano said that bidders of the property “liked the views to the water, it is on a big block of 1644sq m land and has the potential to build with captivating views.” The suburb’s close proximity to the city also adds to the value of the place

The house itself occupies a small portion of the block, with open-plan living space and a separate kitchen and studio. The new owners bought the property for a cool $1.831 million, which for them, might be a bit of a bargain.

Taking the Chore Out of the Equation

We commend the extraordinary patience and dedication the couple has shown in searching for their dream home. But other buyers don’t have to wait that long or over-analyse matters. Through solid research, you can identify which areas are primed for growth and what are the best properties suited to your investment goals.

Furthermore, there are professionals you can hire who can take the chore out of   the process of buying a property. Whether you’re an investor or an owner-occupier, buying a property requires a significant amount of time and effort, something which many Australians just don’t have the luxury of having.

Jumpstart your property portfolio with our proven investment strategies. Call us today to know how.

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Property Rental Maintenance: Making Your Home Safer

A good property investor knows that effective property management can go a long way to ensuring a successful investing future. It helps make good tenants stay and keeps the properties in good condition. So how do you prepare your property for the cooler weather? Tammy Goynich, property manager of Your Future Property Management, shares some of her tips:

Clean the Gutters

It is important to remove fire hazards as soon as possible, especially if your property is at risk of bushfires. Goynich recommends cleaning the gutters first to get rid of leaf litter. “This is something to keep an eye out for. Obviously, if your gutters are full, it can help contribute to any fire. It’s very important to make sure your gutters are clean,” Goynich said.

Inspect Pool Fencing

If you have a pool or are planning to build one on your property, you should know by now that pool fencing is a legal requirement here in Australia. Goynich said, “New legislation is coming later this year with regards to pool fencing around pools in our properties.”

Ensuring that you comply with the regulations now will save you a lot of problems in the future, and improve the value of your property as well. A good property agent will remind landlords of their responsibilities and ensure inspections are carried out when necessary.

 Clean the Air-Conditioning Unit

When it comes to the air conditioning unit, Goynich said, “[The] best thing to do is to make sure your filters are clean, both inside the unit itself and also on the external unit.” Neglecting maintenance might affect the unit’s performance and your utility bill. Conduct regular inspections to ensure that the unit is still in good condition.

The bottom line here is that regular maintenance is a crucial part of property management. “If you can do all of these things and make your properties as secure and fire-proof as possible, you’ll have a successful summer period with no issues at all.”

Property investing is a business, which means you need to have a solid plan managing your properties. Your Future Property Management can help you maintain your rental properties and keep you and your tenants happy.

If you want to know more about property maintenance, watch the video here. To learn more about effective property investing strategies, call us now.

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What Do Modern Renters Really Look for?

Your tenants are the lifeblood of your property investing business. You need good paying tenants to ensure the success of your property strategy. And in order to find them, you first have to understand what they look for in a rental property.

According to news.com.au, there are now about seven million Aussies who are renting their living accommodation. But the types of renters have drastically changed now. Apart from those who are just saving money to buy their own house and those who can’t afford to buy one, there are those who simply choose not to purchase a property.

In the report conducted by McCrindle Research, homeseekers now prefer more freedom, flexibility, and choices. So if you want to find good tenants, you must ensure that you have all of the following items:

 

Internet connection

Renters are more tech-savvy now. This means if you don’t have good Internet connection or a Wi-Fi connection at the very least, you should get one right away. Technology has become part and parcel of modern living, and some Aussies need good Internet connection for work and other matters.

 

Transportation options

Location is still the top priority among renters, especially if your property is near a transport hub. Convenient transport options can make all the difference if you wish to have prospective renters lining up at your door. This is why we include available transport infrastructure in our 44-point checklist.

Neighbourhood

The neighbourhood is often an indicator of the quality of living that the local residents have. Renters usually look for a community that caters to the lifestyle that they wish to achieve. So check if your investment property is near fitness centres, parks, or recreational establishments. You can also check if there are future plans to build such amenities in your area. You can use this information to target certain demographics and attract potential renters.

Keep in mind that property rental is a business. You need to research carefully and plan how to go about renting your property and meeting the needs of your tenants. Fortunately, we can provide the help that you need to run your business right.

If you want to know the best strategies in property investing and wealth creation, don’t hesitate to talk to us now.

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Cut the Clutter and Improve Your Property Game

The New Year always comes with a sense of new beginnings, a clean slate for everyone. “Out with the old, in with the new”, as we often say. But how much of the old do we have to let go, and how much of the new do we need to introduce into our lives? You can start by reducing the clutter.

Decluttering enables you to organise and simplify your life. By removing the excesses from your system, such as non-essential material things or an unmoderated lifestyle, you’ll be able to concentrate on much more important matters like securing your financial future.

What are the ways to reduce the clutter and get things in order? We’ve rounded up some of the best pointers which you can apply to property investing:

DIVE INTO THE DETAILS

Be specific with the changes that you want. Do you have too much stuff in your home? Do you simply want to open up space in your bedroom? By identifying these particular things, you can then start planning how to get rid of them.

In property investing, you need to be very particular with the details. Understanding each transaction and each expense is essential if you want to make the most of your investing strategy. You can talk to a team to help you cover important matters, especially if you’re a first-time property investor.

SLOW DOWN

You don’t have to do everything at once. Slow down and prioritise which aspects of your life or part of your home to declutter first. You can also start small then work your way from there.

You don’t have to earn big to start investing nor rush into property investing. Take things slow and study every detail available, like location, proximity to establishments and such, before making a decision.

LOOK INTO THE FUTURE

How will removing something benefit you in the long run? Are there things or habits in your life you can do without, such as frequent smartphone usage for example? By taking these matters into account, you can better prepare for the coming months ahead.

Planning for the future is important in property investing too. You can better prepare for possible setbacks and ensure that you use only the best wealth creation strategies.

SELL SOME OF YOUR STUFF

After gathering the things you don’t need, sort them out and decide which ones you can sell or donate. Instead of throwing them out, you can gain monetary value from them and use the money for other things.

Assess your portfolio to see if it’s time to sell an investment property. Remember though that it’s always best to hold onto a good, well-selected investment property for the long-term.

Property investment may seem complicated at first. But with the right strategy and a solid team to guide you, you can be successful and secure your financial future.

For more information about best practices in wealth creation and property investing, call us today.

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Get Young Aussies into the Property Ladder the Right Way

Parents want the best for their children. So much so that some are willing to go the extra mile just to ensure that they have a good financial future. According to latest study, a growing number of parents are helping their adult children buy properties — by giving them money.

Investor challenges

A survey by REST Industry Super found that one in three retirees in Sydney, Melbourne, and Perth as well as one in five in Brisbane and Adelaide were willing to give money to their children so they can buy properties.

Young homebuyers these days are finding it difficult to enter the property market for various reasons. One of the challenges is the difficulty in saving for a deposit. With the rising cost of living and slow salary growth, many young Australians think they can’t buy properties with the money they have now. Furthermore, with stricter lending requirements, it’s not so surprising that some fall victim to financial scams or poor investing strategies. As a result, young Aussies are forced to rent or live with their parents longer, without a home to call their own.

According to the survey, there are several ways parents help their children in financing their property purchase. Some pay a portion of the deposit. Others, the exceptionally generous ones, even cover the entire amount. Some parents also provide a personal loan, which usually involves tricky mortgage plan and clauses. Lastly, many act as guarantors on their children’s mortgage.

(Read More: http://www.afr.com/real-estate/residential/how-to-help-your-kids-get-into-the-property-market-20151109-gkudlv)

Get into the property ladder

There are many strategies when it comes to property investing. You can have the property rented out for example, while you rent a smaller place instead of living in the home that you purchased. This enables you to cut your debts faster with the rental income, take advantage of the tax incentives, and improve your portfolio — all of which could help you get into the property ladder.

Without sound advice, buying a property could easily lead to mistakes. What is important is that you get a deep understanding of the property market and you have a solid investing plan. It’s good to start early and find an experienced team who can show you and your children the ropes.

Given the right advice, you can help your children to secure their own financial future. Give us a ring now to know more about efficient strategies in property investing.

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Why Reducing Red Tape Is Good News for Property Investors

For the past few months, affordability and supply issues have plagued some of the areas in the country, preventing potential investors from entering the market. However, the situation may improve soon, following the Federal Government’s response to a review of competitive policies in Australia.

So what does this mean to your property investment plan then?

Red Tape Reduction

The Competition Policy Review Final Report was released earlier this year, and it includes recommendations on land-use strategies and zoning laws. Recently, the Federal Government issued a response backing some of the recommendations mentioned in the review.

The response indicated that “The Government recognises the productivity benefits of removing unnecessary red tape and implementing effective land‐use planning, including the transparent application of a community net‐benefits test.”

“The Government encourages the states and territories to review planning and zoning regulations and include competition principles in the objectives of planning and zoning rules so that they are given due weight in decision making,” the response continued.

The response could effectively pave the way for reducing red tape which, in turn, could ease affordability and supply issues. Property Council of Australia chief executive Ken Morrison believes that the indication alone, that the Government is willing to consider paying states and territories to make improvements, encourages reforms.

 

 

Clear Winners

Julio De Laffitte, head of the JDL Strategies group, has called for similar measures earlier this year. In a media release last May, Mr De Laffitte said that: “Tightening lending conditions on one segment of the market (investors) isn’t the answer to a booming market in one city. The problem is not investors but access to good land, approved and registered in a timely manner through local governments.”

By reducing red tape, there’s a good possibility that entering the housing market will be easier in the future for Mum and Dad investors who simply want to secure their financial future. But investors still need to be thorough with the investment plan to make the most of this opportunity.

At JDL Strategies, we constantly fight for everyone’s right to create sustainable wealth. Securing your financial future starts with careful planning and effective strategies.

Talk to us to learn more how we can help you grow your property portfolio.

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What First-Time Home Buyers Must Always Do

Buying a home for the first time is nothing short of a nerve-wracking experience, especially if it’s an investment. You need to do your research thoroughly about the property and look into different financing options. Study suggests, however, that some first-time home buyers are not doing enough research.

Last month, commercial banks have increased their variable rates by an average of 18 basis points. This is despite the RBA deciding yet again to leave the cash rate unchanged at 2%. Westpac, CommBank, NAB, ANZ, and other non-major lenders have all hiked their rates out-of-cycle with the RBA, which raised questions about financing options investors can avail.

(Read More: Mortgage Rate Hike — What Happens Next?)

Personal Finance Education

It turns out that not all buyers are aware how this could affect their investing strategy. Recent survey conducted by Mortgage Choice reveals that one in five first-time home buyers don’t know commercial banks can raise their rates independently of the RBA.

Mortgage Choice chief executive John Flavell said that additional education about personal finance could help first-time buyers understand the situation and assess their financing options. “Personal finance isn’t taught as part of the HSC curriculum in any of the states,” he said. “Anyone planning to get their foot on the property ladder needs to understand the role and power financial institutions have on the rise and fall of interest rates.”

Mr Flavell reiterated however that in spite of the rate hikes, home loan rates are still at their lowest. The RBA has also remarked that the impact of the variable rate hikes is minimal and did nothing but to reverse the effects of the cuts this year.

(Read More: Property Market Recap — “Investors Need Not Panic”)

 

 

Understanding is Key

A good property investing plan needs solid research. At JDL Strategies, we use the best practices in helping our clients build a smart property portfolio, that includes having an in-depth knowledge of the market and financing options. If you want a good team to help grow your investments and secure your financial future, contact us now.

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