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Property Information

WHY IS IT IMPORTANT TO PLAN YOUR RETIREMENT THROUGH PROPERTY INVESTMENTS?

You’ve probably heard these wise words from everyone and anyone who’s ever doled out investment advice: property investments are the best for planning your retirement. Most Australians believe that the returns from their super will be enough to cover their expenses during retirement. Unfortunately, this could not be further from the truth. More people are increasingly realising the importance of saving for their retirement nest egg, so they can live a comfortable life without having to worry about unexpected expenses. And while there are many avenues to choose from, when it comes to retirement planning, few are as reliable, effective or secure as property investments. Here are a few reasons why-

1.    Pays for itself

One of the biggest draws towards investing in property is that a property investment almost pays for itself. By putting your assets up for rent, you can generate income, part of which can be used to pay off the investment loan. Then, once your debt is cleared, you can choose to use the extra income to fund a more comfortable retirement lifestyle or reinvest it in more property to fund long-term wealth growth.  

2.    High potential for appreciation

Oftentimes, real estate investors will purchase properties at a low-value price with the intention of improving its value through renovations and restorations. This is a great way to drive up the asking price of a property and is an easy strategy to get a higher net return on your investment. Keep in mind that this requires a certain amount of effort from the part of the investor, as you will need to manage/oversee the renovation work.

3.    Long-term gains

There’s no better way to guarantee long-term growth for your money than by investing it in a property. While the average growth rate of property values in Australia overall is not too high, investing in property in the Australian capital cities will be a more fruitful investment, with sources claiming an average rise of 4% to 8% [Source]. However, property markets are infamous for going through patchy periods of little to no growth, and at times they may experience a drop-in value. On the bright side, Australia’s population is forecasted to grow to between 36.8 million and 48.3 million, a statistic that should brighten the day for anyone thinking of investing in property.  

4.    High level of control

When it comes to managing your personal wealth, it helps to have a high level of control. Property investments allow you to fine tune multiple parameters, like setting the asking price, screening tenants, hiring property managers, and so on. You’ll be hard-pressed to find an investment vehicle that allows you this high a level of control.

5.    Never too early

Lastly, when it comes to picking the right time to start investing in property, there’s no time better than now. Investments compel you to put aside a part of your income for long term savings, and the experience of starting investments at an early age helps you get a hang of managing your finances.

So, take the first step towards securing your financial future by investing in smart properties today!

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Property Information

WHY DO YOU NEED AN ACQUISITION ADVISER?

“Know what you own, and know why you own it.” – Peter Lynch

Making money and investing smartly are two drastically different aspects of a financially secure life.

While you may have the internet knowledge of investments, hiring an acquisition adviser is
becoming an increasingly popular decision nowadays. In the simplest terms, an acquisition adviser is a professional who provides financial guidance to clients based on their needs and goals. Even as the investors are becoming more mature and aware of their own limitations, acquisition advisers are becoming an emerging trend in the real estate industry.

Investors need a strategy which is very much about making a smarter choice and taking the
guesswork out of where the best yield is. To quantify that as a result of the market emerging and morphing into a more astute platform, we see investors actively seeking advisers, planners,
brokers, accountants and, more so, acquisition advisers.

While the financial industry is swarming with professionals who give you advice on your
investments, an acquisition adviser plays a more holistic role. Their job is much more than just
digging up data and making documents. An acquisition adviser has to interpret data in a way that suits their particular clients. While acquisition advisers are a ‘trend’, the profession still falls in a niche segment, since it offers very particular advice on risks and benefits involving investments.

An acquisition adviser’s role is to come up with an investment plan that suits their clients based on their goals, current situation, capabilities and limitations. They focus on a holistic view of the client’s property portfolio with the explicit objective to reduce risks, to maximise investment returns and to really enable the investor to make smarter investment choices in a time-poor environment.

The internet has opened up a lot of avenues for novices to gain knowledge about their areas of
concern or interests. Which means that a lot of people like taking up tasks themselves that are
better suited for professionals. While the internet can provide you with the necessary information, it means that you spend a lot of time doing work that you should’ve hired an acquisition adviser for.

An acquisition adviser has the ability to not only work with the information on hand, but, also get hold of the ideal agents and other professionals to help you make an informed decision.
In the end, it should also be paramount to find an ideal acquisition adviser. No two financial
situations are similar. Hence, finding an adviser who works on finding the best way out or in, for you can make or break your financial journey.

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Property Information

TIPS TO BUILD YOUR PROPERTY PORTFOLIO

While there are many options to choose from when it comes to growing your wealth, investing in property turns out to be one of the most reliable, effective and secure in the long run. Arranging your finances and planning your future can be enhanced with the right kind of strategy. This will also help prepare you for the inevitable roadblocks in your journey as a property investor.

With newspaper headlines and online media sources talking about the economy and the weakening property market, you might have second thoughts about building a property portfolio. But with a little bit of research, you’ll find that the country’s housing markets are not performing anywhere near as badly as some of the scary headlines would suggest.

It is never the wrong time to invest in property. The question that remains then, is where, rather than when. Rather than timing the market, we recommend laying emphasis on finding the right property deal. Here are some tips to help you formulate your own property investment strategy in accordance with your financial goals –

Macro-level research

When it comes to property investments, location is everything. You may not be able to control the changes made at the macro-level, but you need to be able to understand them regardless, in order to make the right decision. Make sure to check the area’s historical data and consider the pattern of capital growth.

Micro-level research

After deciding the city, you will need focus on areas that promise growth in terms of property. Remember, these are investment properties and aren’t being purchased for you to reside in. Central proximity to employment nodes is one of the most important feature to be taken into consideration. You may be able to discern the potential of an area through the leadership of the local council. Zoning changes, potential infrastructure projects and other information can be obtained from them in order to help you make an informed decision.

Understanding the growth cycle

You need to be able to identify the growth spurts and potential of a particular area. We recommend staying away from the middle or the end of the growth cycle. Conduct your own research about the industries of a region, the potential economics and the future of the area before deciding upon the location of your investment. Factors such as the tenant profiles, industrial diversity, job growth and planned infrastructure development should be taken into consideration to ensure year on year profit growth for your potential investment. Data indicates locations that hold steady long-term growth are generally located within 2-12 km from the CBD.

Housing supply

Property prices are often greatly influenced by the ratio of supply and demand. Any city can be over supplied at any point of time and past experiences prove that one must be weary of getting too confident about it. Sometimes you might need to pay for good advice that can be key to making the right choice as far as your future is concerned.

Style of dwelling

The houses versus apartment debate differs from city to city. Generally, it is found that apartments prove be better investments in the long term. Before deciding upon an investment though, you must take the time to check out the individual body corporate. Avoid big ticket amenities like lifts and swimming pools, because although they might attract the tenants, you might be the one paying for them. New property apartments tend to involve further costs. We recommend low-density, small complex and low maintenance properties.

General sentiment

Finally, confidence in the market can’t be discerned only through numbers and charts. Generalisations can be dangerous. Rely on your gut after visiting the area, surveying the location etc. Do not hesitate to get down to the street level to conduct your surveys. We recommend having a forward-thinking approach to your property investments – this means that it is not always be about how it looks now, it is about how is it going to change over time.

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Property Information

7 MYTHS BUSTED!

The property market often scares people despite its potential to turn them into millionaires.

Why? It may be because a lot of us choose to believe in weightless rumours instead of researching facts. “A little learning is a dangerous thing” is unbelievably true when it comes to information about property investment; knowing more always helps! This is why we’re about to bust seven common, yet dangerous myths that could stand in the way of you being an intelligent property investor.

Myth: You need to be loaded to invest in property.

If there’s any long-standing and ubiquitous myth that holds back potential property investors like no other, it’s this one.

Fact: Money does make money, but there’s also equity.

Even though you may not have that deposit sitting ready in the bank, you needn’t worry. Remember, there’s always the option of a smaller deposit if you pay mortgage insurance. Apart from this, there’s also the alternative of using the equity in your own home as your deposit!

Myth: You must do everything by yourself.

This is another giant lie; just as with so many other ventures, you don’t have to go it alone.

Fact: A team of experts will lessen the load and improve the decision.

Having an expert team to guide your investment choice will not only reduce the burden on you but also ensure you make a more efficient decision. To make the entire process even smoother, ensure your team includes a financial advisor and a property manager!

Myth: Saying yes to investing in property means saying yes to overnight riches.

The property market doesn’t work like an ATM. So, don’t believe this one unless you want to feel a nasty kick of disappointment.

Fact: A property investment can make you rich, but you have to be patient.

Even though there will be gains eventually, a belief that these will fall into your lap by tomorrow morning will only lead to disappointment when the reality of the slow pace of property gains hits you. Aspects like tenants not being available for lease at the right time could mean a rocky road in terms of financial benefits, but property investments still ensure fixed returns.

Myth: Don’t invest now! Wait for the right time.

Now is very often the right time to invest; you just may not know it. Delays, however, could mean properties getting more unaffordable.

Fact: The ‘where’ is as important as the ‘when’.

Instead of putting off an investment plan because you’re afraid it might not be the ‘right time’, invest in a property in a location that will benefit you. For instance, pick a spot where you know the rent you’ll earn will be high. Also, stay away from locations notorious for witnessing price drops or other wild fluctuations in pricing.

Myth: Property always appreciates.

Although the property market is more stable than a lot of other markets out there, appreciation isn’t guaranteed.

Fact: Like most markets, the property sector can also see dips.

While ups on the value front are very likely very often, they aren’t for certain. So, don’t go into an investment expecting guaranteed growth in value; you could set yourself up for a shock or two. There’s also the fact that properties don’t always grow in value at the same pace. You may see a 2% rise in December but a 1% rise in March. In the long-term, however, the dips tend to average out, giving you a healthy return on your initial investments.

Myth: You’re not going to profit much unless you diversify your investments.

This is not true and could lead to confusion and you might end up juggling too much all at once, for no reason at all.

Fact: Believe Warren Buffett: diversification is only required when there’s a lack of understanding.

Instead of poking your paws into too many investment pies of various kinds, if you want to take on more than one investment, do so in the property market itself. This could help you get better at the whole process too.

Myth: Investing in property will mean bankruptcy if you lose your job!

This one’s a reasonable fear that a lot of people have, but it’s not definite.

Fact: Bankruptcy is not certain, and don’t forget insurance.

Bankruptcy is the worst-case scenario, so don’t worry yourself sick thinking about its possibility. That being said, you need to ensure a financial safety net if you’re making a move to enter the world of property investment. But remember, properties often pay for themselves as time passes, and there are a number of insurance options that could help too. 

Categories
NSW Property Information Qld

THE SEACHANGE EFFECT AND COUNTER-URBANISM

Full fathom five thy father lies:
Of his bones are coral made:
Those are pearls that were his eyes:
Nothing of him that doth fade
But doth suffer a sea-change
Into something rich and strange.

– Shakespeare, The Tempest 

When Shakespeare wrote the term ‘sea-change’, he was clearly referring to the dramatic transformation of one of his characters by the sea. Stemming from this, we have adopted this same term into our vocabulary to mean a deep transformation caused by any agency. We have all grown up consuming popular media like television shows, movies, magazines and blogs. These give us a chance to explore different values and ideals and in a subtle way, end up influencing our life choices.

A great example of the media’s influence on consumers is the effect the show SeaChange had on Australian migration ever since it ended in 2000. For those who don’t know, the premise of this show is the protagonist’s search for her SeaChange from urban life. After witnessing her life crumble around her in the city, she moves her family to a small fictional seaside town to start anew. This inspired many Australians to follow suit and is still seen as a common occurrence, now more than ever.

The SeaChangers

Increasingly, the SeaChange phenomenon, which was once linked to retirees, now includes the younger generation. Since coastal regions are popular with local and international visitors, the tourism industry in these areas is thriving. The working population is attracted to the jobs created by this and are happy to leave behind their stressful lives in the city for a peaceful and well-balanced life by the coast. Other migrators include alternate lifestylers, specialised service providers and more.

The reason for the change

“I think the notion of SeaChange is more relevant now than it was 20 years ago,”

 – David Mott, ITV.

The concept of counter-urbanism has been explored globally for decades. Most Australians live in an urban setting, but many seem to crave the great escape from concrete and glass to blue skies and the sea. Thus, SeaChangers are choosing the lifestyle afforded by small coastal settlements over stressful city life. This may be because of a number of economic, aesthetic, and environmental factors like:

  • Better housing
  • Debt via mortgage
  • Work-life balance
  • Shorter commutes
  • Lesser crime rate and risks
  • Enhanced family life
  • Safe environment for raising children
  • Pleasant climatic conditions
Case Study: Bellarine Peninsula

The TV show had an enormous effect on putting coastal townships in the Bellarine Peninsula on the map. Although the location in the show was fictional, it was filmed in these small villages which have resulted in SeaChangers seeking to settle down here.

This has greatly affected the real estate prices and the values have shot up tremendously. This happened gradually during the length of the show, doubling up between the 3 years it was on the air. But this rise did not end with the show. The real estate prices have been going up steadily ever since, and today, the median prices have increased by 484% in the 18 years to $900,000.

Although the towns retain their original charm, the migration has added a modern culture to this area, claim the local real estate agents. By keeping the SeaChange dream alive, the rise in property prices hasn’t stopped people from flocking to these idyllic seaside towns.

The SeaChange Effect