Invest in Property through your SMSF – Seminars in Sydney, Melbourne & Canberra

We are holding free Investing in property via your Self Managed Super Funds (SMSF) presentation in Melbourne, Sydney & Canberra in late May, early June, see below for dates.

Probably the biggest single change underway in the Property market right now is -

Australian’s purchasing Investment Property through their Self Managed Super Funds (SMSF)

In fact, the latest figures from the Australian Tax office show a 50% increase in property investment via SMSFs since June 2008.

Following the Global Financial Crises (GFC), investors are now looking to take control of their super funds and gain exposure to residential investment in an attempt to enhance the performance of their asset, reduce the costs associated with their super funds and manage their risks themselves. Click Here To Read More

Positive Cash Flow NRAS Property

We have just added some cash flow examples to our site that compare the same investment property, as an NRAS property and as a standard rental property.  Remember, the property itself is exactly the same, but if it does have an NRAS option then it will usually have a very positive effect on your cash flow, in most cases turning a normally negative cash flow property in to a positive cash flow property.

We currently have available some NRAS townhouses in Melbourne’s middle ring suburb of Pascoe Vale, just 10kms from Melbourne’s CBD.  We did an analysis on one of the 2 bedroom townhouses, priced at $495,000.

We’ve made a few assumptions, investor currently earning $100,000 (no other tax deductions) has current equity on their own home, so will borrow the full amount, including purchase costs, an interest only loan at 6.5% etc. Click Here To Read More

NRAS Townhouses Melbourne

We have just launched a brand new boutique townhouse development in Melbourne’s inner west suburb of Footscray and the great news for property investors is it’s also available as an NRAS property which for many investors will mean this is a positive cashflow opportunity.

This is a fabulous little project with just 8 X 2 bedroom townhouses available, due to complete later this year but as construction is just starting the stamp duty savings are still massive, saving investors over $20,000.

Footscray is a transforming suburb, it’s a part of the Melbourne 2030 plan with many infrastructure projects and redevelopments underway now or in the planning stages.  This suburb is expected to double it’s population over the next 10 to 20 years. Click Here To Read More

South Melbourne off plan apartments releasing soon

We will have a brand new South Melbourne apartment project ready to release by late next week.  Given the location and quality of this project we expect that once available it will sell extremely quickly.

The apartments will offer a mix of one, two and three bedroom apartments and given the high quality of design and fixtures and fittings, these apartments will have appeal to both investors and owner occupiers.

Many apartments will offer views of Albert Park Lake, or back the other way to the CBD and the Botanical Gardens.

We will have access to this project prior to its public release.  We have already had an overwhelming response from our Priority Investors and as such we expect that these off plan apartments will sell extremely quickly once available and will offer an excellent opportunity for those looking for their next investment property.

If you would like to receive further details for this project once it’s available, please be sure to register your details as a Priority Investor.

Melbourne NRAS Apartments – Cash Flow Positive

We have just completed a cash flow for our brand new off plan Melbourne NRAS property and for those looking for a very positive cash flow it’s a real stunner, borrow 100% and you are still cash flow positive by $3,876.

I just want to preface my cash flow comments with the following:
NRAS is an excellent opportunity to take a property (the lower the price the better it works) from a negative cash flow to a postive cash flow.  So, as you will see below, it can take away the holding costs all together.  BUT, and here’s the BIG BUT, you are still buying the property for long term capital gain.  Many of the NRAS opportunities that we have looked at are “B” grade properties in “B” grade locations.  So NRAS or no NRAS you still need to ensure  a well priced, quality property in a good location, a property that suits the demographic of the area and a location that is close to schools, shops, employment etc.  Our preference is a location close to the CBD, such as our current NRAS project in Melbourne’s Brunswick East.  Sorry about the long rant, but at the end of the day it’s still the usual attributes of a property that we always talk about that you require, the NRAS is just a cash flow benefit.

Now, the cash flow: Click Here To Read More

New NRAS apartments in Melbourne

As many of our investors are aware, when the NRAS (National Rental Affordability Scheme) was initially launched we stayed well clear.  Whilst the scheme had many investor benefits it also had a number of disadvantages which we felt outweighed the benefits.

The NRAS scheme has now had some positive changes making it far more flexible and in turn making an NRAS property (so long as it is still the right location with a quality product at the right price) an excellent investment opportunity.  Why not let the government pay you $100,000 tax free over the next 10 years!

You may like to look at our What Is NRAS page and typical NRAS cash flow for more details.

We are very pleased to announce that we will shortly have a very well located NRAS opportunity in Melbourne’s inner city suburb of Brunswick.  It will be off plan with a 2014 completion.  Prices will be from the low $300,000’s and with the NRAS incentives these apartments will change from a negative cash flow to a positive cash flow for many investors.  Stock will be limited so if it is of interest please contact us for more details.

Home Loan Approvals support Property Growth

According to the latest figures, the number of home loans rose by 0.7 per cent to 51,981 in October.  This was up on what economists had predicted, they had been expecting similar figures to the previous month.

It’s the seventh straight monthly increase in home loan lending.

As the latest figures are for the month of October, these figures do not take in to account the positive effect of the last two interest rate drops that we have now seen in November & December.

These latest figures are yet another indication as to the strength of our property market.

Now is an ideal time to secure an off plan investment property in Sydney, Melbourne or Brisbane.  What we are seeing now is the same predictable cycle that we have seen in the past.  We are seeing rents increasing, this means that for many it is more economically viable to buy a home than rent a home.  With the latest interest rate decreases this trend will be accelerated.  As more first home buyers enter the market this then allows those who are looking to upgrade to sell their first homes and move up. Click Here To Read More

Interest Rates Fall, Property Prices Rise!

Yesterday the Reserve Bank of Australia cut the official cash rate by 0.25% bringing it down from 4.75% to 4.5%.  Two of the 4 major banks Westpac and CBA have already passed on the rate cut in full and it is expected the other two majors NAB & ANZ will follow suit.
It was unclear from the RBA’s statement yesterday whether they expect to make further rate cuts but the futures market is pricing in an 80% probability of a further rate cut next month.  Whether it comes next month or not, the market has factored in further rate cuts next year.

We are in the process of preparing a full market update which will be out soon.  But in a nutshell, if we look at the history of the last 20 years,

every time we have had a rate cut the property market goes up, so now is a great time to consider an investment property

Our other factors are all fairly positive, a relatively healthy economy, relatively low unemployment, relatively low vacancy rates, an overall housing shortage relative to our population growth, housing affordability back to where it was in 2003 (and that was before the current drop in rates) but the most important factor to look at as a property investor in the current market Click Here To Read More

The “Manhattenisation” of Australia’s cities

We have talked on many occasions previously about the fact that in Australia our population is increasing and this is putting sustained pressure on our undersupplied property market.  But in addition the mix of property is changing and it is expected that what will be required over the next 20 years as far as size and type of property will be very different to what was required over the past 20 years.

The Australian dream of the large house on the quarter acre block in the suburbs is expected to give way to the demand for smaller inner city accommodation as Australia looks to absorb a further 2.3 million additional households over the next 15 years and it will be those investors who are ahead of the pack who will gain the most.

Here’s a link to a great article on the subject by Rismark International’s Christopher Joye
“Over the next 50 years our cities will densify much more than most can currently imagine.”

Now’s the right time to secure your quality inner city investment property.

Melbourne voted the World’s Most Liveable City

Thinking of an investment property, if so you may be interested to know that the latest survey by the Economist Intelligence Unit has seen Melbourne voted the world’s most livable city.

The survey ranks 140 locations as having the best or the worst living conditions, with cities scored on political and social stability, crime rates, access to quality health care, cultural events, the environment, education and the standard of infrastructure, including public transport.

Melbourne scored 97.5%, just edging out Vienna & Vancouver, as 100% is considered ideal, Melbourne has rated extremely well.  Sydney, Perth and Adelaide also managed top 10 results and Brisbane came in at  a very respectable 21st place.

Economist Intelligence Unit survey editor Jon Copestake said in a statement: Click Here To Read More