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New Generation Seeks Property

Tuesday, August 27, 2013

The Global Financial Crisis (GFC) has spooked the younger generation into shaking off the party lifestyle and instead aspiring to own property to ensure financial stability, according to recently released research.

The Future Leaders Index is a groundbreaking research series lifting the lid on the views of over 2000 young, educated Australians.

The results point to the rise of 'Generation Sensible' or 'Gen S' - a demographic of 17-29 year-old university students that is both conservative and traditional, as well as being fiercely family-orientated.

Overall, it seems that the younger generation has changed priorities. Having been spooked by the GFC, they now want financial security - 94 per cent are saving to buy property rather than pursuing the party lifestyle, with only 5 per cent of their income spent on socialising.

 

Author: Property Week

Property Market continues its Upward Momentum

Monday, August 12, 2013

Australian house prices have continued to rally, with official data showing improvements in all capital cities. Prices for established houses in the eight capital cities rose 5.1% in the year to June, according to Australian Bureau of Statistics data. Prices rose 2.4% in the June Quarter itself.

The ABS price index for established houses shows that capital city indexes rose in Sydney (+2.7%), Melbourne (+2.4%), Perth (+3.4%), Brisbane (+1.9%), Canberra (+1.0%), Adelaide (+0.3%) and Darwin (+2.9%). Hobart showed a fall (-1.0%).The biggest annual increases were in Perth (+11.0%), Darwin (+7.7%) and Sydney (+6.1%).

Queensland Lures Property Investors like no other State

Friday, August 09, 2013

Terry Ryder, 30 July 2013
 

Queensland’s status among the economic growth leaders of Australia has slipped in recent years, but its standing in the eyes of property investors remains undiminished.

Western Australia and the Northern Territory lead the country on economic growth, with Queensland a distant third.

The ACT has the nation's lowest unemployment followed by WA, while Queensland, with the exception for the struggle state Tasmania, now has the worst. WA is way out in front on population growth, with ACT second alongside Queensland, with the Northern Territory and Victoria challenging.

But property investors are oblivious or simply don’t care. Queensland has long held a reputation as the place to buy and nothing so far has shaken that conviction.

Overall, Western Australia is the national leader these days based on economic indicators – and Perth is the leader for price and rental growth - but more investors are buying in Queensland than in WA, according to the loan figures from the Australian Bureau of Statistics.

In the 2013 financial year, Queensland was the star of my hotspotting business.

The Top 10 Queensland Hotspots report outsold all our other state/territory reports by a considerable margin. The next most popular state, WA, attracted only half as many customers as Queensland did.

Our Queensland report sold more than NSW, Victoria and South Australia combined.  

When it comes to individual location reports, Queensland again topped the poll. The top five locations for Hotspotting buyers throughout the 2013 financial year were all in Queensland: Gladstone, Surat Basin, Mackay, Townsville and Emerald.  

Nine of our 12 most popular locations were Queensland regional centres.  

And, no, it’s not because we are based in Queensland. Only 20% of our report buyers were Queensland-based in the financial year 2013. We get most of our buyers from NSW and Victoria.  

So why is Queensland so popular?  

I think, in part, it’s because Queensland has an enduring reputation as a centre of growth. It has a track record for rising population and economic prosperity going back decades and investors are taking the long-term view that this will remain so.  

It’s also because Queensland is the most decentralized state or territory in Australia. All other states/territories have the bulk of their populations in their capital cities.  

Queensland is different. The state has stronger, prosperous regional areas than anywhere else in the nation and many of those places have well-established records for growth.

While Brisbane and tourism icons like the Gold Coast, the Whitsundays and Cairns have struggled in recent years, regional centres like Toowoomba, Emerald, Mackay, Gladstone, Roma and the towns of the Western Downs region have all delivered good price growth.  

Queensland offers unique or near-unique features to investors.

Nowhere else in Australia has a Gold Coast (probably not a bad thing, because the Gold Coast is a poor performer on capital growth, with houses and units on average still worth less than five years ago).

Nowhere else in Australia has a Gladstone, the nation’s leading industrial city.

Few other states have a Toowoomba, an inland city with 140,000 residents, a diverse economy and a boom resources province (the Surat Basin) on its doorstep.

Few other states have a Mount Isa, a remote mining town which is also a regional centre of 20,000-plus residents.

Few other states have a Townsville, a regional city with the population, economic diversity and strength of a capital city.  

And, with the exception of WA, no other state has the resources sector oomph of Queensland – a factor that will continue long-term, despite current weakness in the coal sector.  


For these and other reasons, Queensland lures property investors like no other part of Australia. 
Terry Ryder is the founder of hotspotting.com.au 

Exports Hit 3 Year High at Hay Point Coal Terminal

Friday, July 26, 2013

By Dominic Geiger

 

HAY Point Coal Terminal has recorded its highest export figure in more than three years as companies go into overdrive in an attempt to offset falling commodity prices.

More than 4.1 million tonnes of coal was pushed through the BHP Mitsubishi Alliance-owned terminal in June, a figure Queensland Resources Council chief executive Michael Roche said was testing the facility's capabilities.

"In the June quarter in Gladstone, Abbot Point, Hay Point and Dalrymple Bay ... all exports were up strongly on this time last year," Mr Roche said.

During the same period last year, Hay Point Coal Terminal exported just over 2.6 million tonnes of coal.

At full capacity it can churn through 6000 tonnes an hour.

Mr Roche said increased export volume showed companies were moving in the right direction to maintain profitability.

"Companies know the way to make money at the moment is through volume because they're not going to make money through fat prices," he said.

"So that's got to be good for confidence of the industry and good for the workforce."

According to the Reserve Bank of Australia, the commodity price index fell 10.5% during the past year, due mainly to declines in the prices of coking coal, iron ore, thermal coal and gold.

Mr Roche said the high export volume was evidence BMA had "got on top of its cost structure".

But he said not all companies were in the same situation.

"We have ... some mines that have got on top of their cost structures and ... established a profit margin," he said.

"There are other mines that are yet to establish that margin of profit ... and there are mines and parts of mines that may well not get into profitability in this current environment."

Hay Point Coal Terminal is owned by BHP Billiton Mitsubishi Alliance, while Dalrymple Bay Coal Terminal, also at Hay Point, is leased from the State Government by DBCT Management Pty Ltd.

http://www.dailymercury.com.au/news/exports-hit-3-year-high/1944416/

Real Estate Market at Start of a New Growth Cycle

Friday, July 05, 2013

Estate agent John McGrath says Sydney’s recovery is well underway, with increasing buyer demand and strong prices being achieved across all property types under $2 million.

He has noted weekend clearance rates have been consistently above 70% for several months and that home loan applications are rising.

"Official interest rates are at a record low, with fantastic deals such as a three-year fixed home loans now on offer at 4.83%," he told his Switzer blog readers.

"We’re on track to achieve 5-10% growth in prices this year, with more buyers coming off the sidelines as they see more and more evidence of stronger sales in their neighbourhoods," he said.

McGrath reckons investors are very prominent in the market.

"Many are choosing to purchase through their self-managed super funds, which continues to be one of the most significant changes in the Australian residential marketplace today."

"We are at the start of a new growth cycle which will play out over the next three to five years."

 

By Jonathan Chancellor
Thursday, 04 July 2013

Record Population Growth Forecasts

Friday, June 28, 2013

At the same time that building starts were dropping Australia’s population was growing at the fastest rate in 200 yrs*. In fact, our population is predicted to grow by 350,000 people per annum*.

(* Australian Bureau of Statistics)        

Australia is predicted to grow at a rate of 65% well above the global average, a survey by the Washington based private research body, the Population Reference Bureau. 

This puts Australia’s growth rate at second only to India.  

Why is this?

1. Migration:

I am no economic expert but many I have talked to have commented that the GFC has rapidly escalated the number of people wanting to migrate to Australia.  The old adage of Australia being the ‘lucky country’ has become a ‘world wide’ slogan.  Australia was one of the only countries to escape a recessions.  Actually, oops I think Prime Minister Rudd announced a recession for only a few days.  During the GFC that crippled many countries, Australia continued to grow at a rapid rate.  In addition, a factor that strikes at the heart of many Australians is that Australia is coined to become ‘the resource hub’ of the new world.  Australia’s natural resources are in ample supply and whether we like it or not, we are a target for a continued resource boom. 

The final verse of Australia’s Anthem makes it clear that migration is a fundamental part of Australia’s mindset.

For those who’ve come across the seas
We’ve boundless plains to share;
With courage let us all combine
To Advance Australia Fair.

(Advance Australia Fair)

2. Increasing birth rate:

Australia’s birth rate is on the increase for the first time since the post-war migration baby boom saw it explode in the 50’ and 60’s. 

According to (Reuters – Aug 6, 2010 (Canberra)) - Australia's birth rate has hit a 25-year high, and government has urged "have one for mum, one for dad, and one for the country".

And further increases in the birth rate could worsen the problems of an ageing population, driving new mothers out of the workforce and reducing the tax base, the nation's productivity watchdog said.

"Much of the recent increase in the fertility rate is likely to reflect the fact that over the last few decades, younger women postponed childbearing and many are now having those postponed babies," Productivity Commission author Ralph Lattimore said.

Australia's 21 million population was boosted by 285,000 births in 2007, the highest level in 25 years, and up from 261,400 births in 2005.

The population is expected to hit 31.6 million by 2050, driven to a small extent by the higher birthrate and almost 10 million new immigrants.

3. Increasing health and longevity:

Australia is well known for it’s healthy and active lifestyle, clean living and fresh, open air spaces.  Coupled with our reasonably good health system and we have Australian’s living longer. 

According to www.aag.asn.au/filelib/Economic_implications_of_increasing_longevity

Regional towns a budget property investment option but avoid one-industry mining towns

Friday, November 23, 2012

Property investors with small budgets should consider investing in larger regional towns where prices are more affordable, but “avoid one-industry conurbations such as mining or resort towns” according to investment advisor Monique Sasson Wakelin.

In her latest blog post, Monique Sasson Wakelin says a regional town investment may be an option for prospective investors whose budgets don’t stretch to the $350,000 threshold that will buy “an entry level investment grade one bedroom apartment in an inner suburb of most of our capital cities, with a little more required in Melbourne and a fair amount more in Sydney”.

She says investors should consider regional cities that have a larger population and a diverse range of economic activity.

Sasson Wakelin says good regional options for budget-conscious investors are Newcastle and Wollongong in NSW and Geelong, Ballarat, and Bendigo in Victoria.

However, there are risks with investing in regional towns while the returns may not match those attainable in the bigger capital city markets.

“Be aware that due to the compromise in location, you are unlikely to attain the capital growth in a regional city that you can expect from the capital,” says Sasson Wakelin.

“The aim should therefore be to pay off debt quickly. With the acquired equity, you can then use this first property as a stepping stone into a capital city market.”

Investors should focus on property close to the town’s CBD, often within 1 kilometre of centre.

“A word of warning. It is much easier to pick a quality asset in a capital city than in a regional centre.

“Follow the fundamentals for inner suburban investment and the risk is low. An investment in a regional town is far more problematic,” she says.

 

Larry Schlesinger

Property Investing in NSW Mining towns

Thursday, October 04, 2012

Mudgee leads list of 10 top-performing NSW housing markets with prices up 7.44%: Residex

By Larry Schlesinger
Tuesday, 25 September 2012

The central western NSW town of Mudgee, a hotspot for mining, agriculture and tourism, has been the top-performing NSW housing market over the past year, according to the latest Residex regional market update.

Mudgee district house prices are up 7.44% for the year to August, with a median house price of $272,500 following a gain of less than 1% in the previous 12-month period.

Residex reported a 16% jump in sales in Mudgee over this period, with 548 properties selling.

The median Mudgee rent is up 30% for the year to $410 per week, equating to an average yield of around 7.8%.

Mudgee ranked just above the Hunter Valley, where houses appreciated 7.18% over the year to August with a median price of $324,000.

Other strong performers were Riverina houses (4.27%), Penrith Windsor houses (3.95%) in Sydney’s West, Bathurst Orange Houses (3.43%) and south-west Sydney units (3.47%).

The worst-performing markets was upmarket Neutral Bay/Spit houses (-8.16%  to a median of $2.02 million) followed by north coast houses (Port Macquarie, Coffs Harbour, Foster), with prices down 5.53% to a median of $348,000.

Area

Median price

Annual capital growth to August 2012

Median rent

Yield

Mudgee District houses

$272,500

7.44%

$410

7.8%

Hunter Valley houses

$324,000

7.18%

$405

6.5%

Riverina houses

$236,000

4.27%

$270

6%

Penrith Windsor houses

$391,500

3.95%

$420

5.6%

South West units

$411,500

3.47%

$445

5.6%

Bathurst Orange Houses

$280,000

3.43%

$320

6%

South units

$611,000

3.24%

$645

5.5%

Campbelltown houses

$363,000

3.13%

$420

6%

Newcastle houses

$403,500

3.08%

$415

5.4%

North West units

$444,000

2.89%

$475

5.7%

 The historic country town of Mudgee lies 270 kilometres north-west of Sydney in the fertile Cudgegong River valley and benefits from both agriculture, tourism and nearby mining activity.


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