As far as the property market goes, 2015 was dominated by politics. The year started in trepidation of the May election outcome and ended with bewilderment that the supposed best case scenario of an outright Tory victory has proven likely to be more painful than a victory by Ed Miliband’s Labour party
Despite the Government facing little in terms of true opposition and thus having the supposed freedom to do as they will, the Tory party is far from behaving as one might have expected. Much is made of the Chancellor’s austerity measures, yet the national debt keeps rising and he flunks the truly tough decisions on welfare etc. With cuts in spending only able to go so far, it comes as little surprise that the rich (a precise definition open for some debate) would be paying more through increased taxes as illustrated here.
I know something is up when I suddenly get multiple calls from friends or contacts who know about what I do here at RunningStream. These days it is calls enquiring about Melbourne properties. (Which is fine.) Specifically, about investing in Melbourne CBD apartments. (Which is NOT fine.) I know then that my friends must have seen the news about the cut in the Australian interest rate, cheap AUD, the inherent stability of the Australian housing and the accelerating growth in home prices. Everyone wants to jump onto the bandwagon of owning an Australia property these days.
Many agencies here in Singapore are selling Melbourne inner-city properties in Southbank, Docklands, Queen Victoria Market or Flinders and Spencer Street in the CBD. Go to any website and you will likely see advertisements on a property fair featuring these CBD properties. Many local investors buy into the advertisements without fully understanding the situation on the ground. I have already said my piece in an op-ed written last year after making a business trip there. (http://www.runningstream.com/staff-blog/on-the-ground-in-melbourne).
If you aspire towards financial freedom, or have an interest for investments, chances are, that you will be heading down to the investment fair this weekend at Suntec City.
I will say one thing about investment fairs. They are a great place to learn new things and about products. It is a great training ground for people in the sales line. Investment fairs are places where many people with hopes and goals of financial freedom seek out instruments to help them achieve that goal. However, it is also a place where nightmares are born and where some people have their dreams of financial freedom stolen from them. In this short post, I hope to encourage would-be investors to have the right mindset when deciding how to deploy their hard earned money and to be vigilantly skeptical.
A cloudless blue sky and bright sunshine greeted us upon our arrival into Coolangatta airport in the Gold Coast. It has been 2 years since I last step foot on Australian soil but the beautiful weather at least has not changed. Memories of good times spent on the Gold Coast during semester breaks from the university came back to me in a wave of nostalgia.
We were back in Aussie to meet with old and new developers, check on completed projects and look for interesting new projects in both Brisbane and Melbourne. Without further delay, we packed into the car and were on our way to Brisbane.
I love Australia and I love Melbourne so I just cannot help but find an excuse to get out of Singapore (and the office) to head to Melbourne whenever I can. This trip, I am pleased to announce, was for accepting my offer for the Australian PR and to assist a client with one of his acquisitions in Melbourne. I’ve also managed to snivel a few more days of working leave to do some scouting and surveys of interesting areas in Melbourne.
My main objective was to check out some hot spots for property investing. We’ve all spent many hours on research here in RunningStream. Now, I will be heading to the suburbs to see if the situation on the ground reflects the numbers and our expectations. I spent about 4 days driving around to visit different sites and around different suburbs to see how each of them are developing and growing.
2014 has seen a very clear shift in focus from prime London to secondary London and beyond. An unexpectedly robust pick up in the UK economy has been translated in to a surge in confidence for the broader housing market. With the Government’s Help to Buy scheme having kick started much of this last year, the UK housing market has seen around 10% growth in prices since last summer (Nationwide today report 11% August to August).
The momentum looks likely to carry through this year but with base rates set to rise most probably in early 2015 and the Government’s efforts to prevent an overheating market (MMR rules etc.) the signs point to price rises at a more moderate level in the near term but most likely back to their long term, pre GFC average of around 5-6% pa over the next 4-5 years.
Melbourne is an excellent place to go for a holiday and wonderful place to be living in. There’s a nice mix of city life and country life. What appeals to the Singaporean in me is the good food that can (almost!) rival us in variety and quality.
I’ve just returned from a holiday there. A holiday should be just that, all pleasure no work. But invariably, as a portfolio consultant, a trip to an area where we have client’s investing in will result in me putting aside a couple of days for work (It’s a good thing I have a patient girlfriend.)
One word comes to my mind the moment I had an unobstructed view of the CBD from the Queen Victoria Market: Oversupply. The number of cranes rising from the panaroma of the city is quite bewildering. What does all this mean for the local property market?
This is a general overview about NRAS. Your individual situation may differ and please seek a consultant for review before you make any investment decisions.
Do visit the Australian Government Department of Social Services, Housing Support for the latest updates.
What is NRAS?
The National Rental Affordability Scheme (NRAS or the Scheme) is a partnership between the Australian Government and the states and territories to invest in affordable rental housing.
Australia’s property investment story has always been about Sydney, Melbourne and Brisbane. Even the local property investment magazines, gurus and websites has always been reporting on these 3 major cities while casting Perth into the pool of so-called second tier cities.
Truth be told, we beg to differ and think that Perth is probably one of the most underrated investment location we think is on its way to be a possible dark horse in the Australia property market.
Perth is probably the most underrated market in Australia. Before the GFC, Perth was Australia’a 2nd most expensive capital city. In 2013, Australian house prices grew almost 10% with Perth being the 2nd best performing market gaining 9.9%. But the fact was lost of course with Sydney and Melbourne taking the limelight. It’s time we shed light on this hidden gem of the Australia market.
Gold Cost Property Market Regaining Its Shine
The Gold Coast property market has been in doldrums for the last 8 years since the GFC. Construction ceased and properties had their values dropped by as much as 40% in some instances. During 2006-7, we took a cautious stand against the market and advised many of our clients to stay out. We deemed then it was a market driven by tourism with little to offer in terms of long term jobs in sustainable industries. That sets it up to suffer the most during an economic downturn.
The collapse of the Gold Coast market saw many developers such as the Raptis Group (developer of Hilton Surfers Paradise) went into bankruptcy and major luxury projects with incredible ocean views such as Soul, Oracle etc all fell to administration.
Well, we think that the worst is now over.