A letter from Jason

Doesn’t time fly when you’re having fun!

We’ve been having a great time, working with clients who are capitalising on the great opportunities that we have available in this current buyer’s market.

One announcement that we’re really pleased to make is that we have joined forces with Michael Luca to form Love Home Loans. This will make it a really seamless, easy process for you to build your investment portfolio or refinance. We will all be under one roof as we’ll be moving offices next month. Stay tuned for more on Love Home Loans and details of our new home.

We currently have positive cashflow solutions in Gladstone, Queensland. Our research shows it to be a key market for growth, which is supported by an article from The Australian – check out this link. We have brand new quality four bedroom houses for $480k, returning rent of $700 plus per week.

For a fantastic overview of the state of the current market, make sure you watch this RP Data market update video.

We’ve got a great article that we’d love to share from our research partners, Blue Wealth, so please read on…

Facts Vs Fear

Economists who sprout fear will always gain the most media attention. After all, the media is in the business of advertising, not necessarily telling a truthful, balanced story.

Often it seems they think if they continue along the same line, eventually part of their predictions may come true.

The phrase “even a broken clock tells the right time twice a day” comes to mind.

Looking at the facts vs the fear is often an illuminating process, and one that the media will never do. Mostly because it doesn’t sell papers.

A favourite economist of the media is Steve Keen. His dire predictions on the housing market have all been proven wrong. Even after famously losing a bet to ex-Macquarie economist Rory Robertson on house prices, Keen has continued along the same line.

Here is a quick look at some of Keen’s past predictions vs the facts:

• In 2008, Keen said interest rates would be at 2% by 2009, and Zero Interest Rate Policy by 2010 (the interest rate trough was 3%; today rates are at 4.25%)
• In 2008, Keen said we would have double digit unemployment (up to 20%). Unemployment only rose to 5.8%, and is 5.2% today.
• In 2008, Keen said house prices would be down 40% within ‘a few years’. They fell by about 3% in 2008 (less than one-tenth of what Keen predicted), rose strongly in 2009, rose again in 2010, and fell by around 5% in 2011
• In 2008, Keen sold his Sydney home at a cyclical low point, just before prices rose more than 10%

As we always say, it’s important to look into the facts when investing, and not buy into the fear or herd mentality.

If we can help, we’d love to!
Happy investing.

Jason Snaddon

I’m often talking about supply and demand in relation to property investment.

The key to successful investment is to have more demand than there is supply.  That way your property will maintain high rental occupancy and the value will hold or increase.

The linked article in SMH discusses the government rolling out initiatives designed to alleviate Sydney’s home shortage.  Competition for rental properties is pushing up rents and driving buyers back into the market.  Read more

All the indicators are there – so call me if you want to make the most of market conditions.  We’d love to help!

The latest BIS Shrapnel research for the QBE lmi Housing Outlook for 2011-2014 has some great news.

“Stable interest rates and improving economic conditions will drive rising house prices in the next three years, with Perth and Sydney leading the way, a major mortgage insurer says.”  Read more

Get in early!  We have some great projects in both Sydney and Brisbane that we’re really excited about.  Please call if you want to learn more.

We are drawing to the end of the year which is a busy time for us as many of our clients who set the intention to invest in a property this year realise they haven’t made it happen yet.

Was this your intention?  Have you made it happen?  We’d love to help and have many exciting projects available!

I’ve had a couple of trips to Brisbane recently and am amazed at the level of infrastructure, activity and energy that is present in the city.  It’s become vibrant again and you would never realise that it had major floods at the beginning of the year.

The BIS Housing Outlook for Australia 2011-2014 has just been released with some really positive forecasts.  Despite the volatility in the global economy they are cautiously optimistic about the outlook for the Australian housing market.

The report is forecasting low price growth in Melbourne of 6%; moderate price growth of between 6% and 8% in Adelaide, Hobart and Canberra; solid price growth of 16% in Brisbane and 17% in Darwin; and strong price growth of around 19-20% in Perth and Sydney.

The findings from this report state that “Australia is well paced to deal with any uncertainty that our economy or housing market faces in the next few years.”

That’s just the news we were looking for!

Happy investing! Call us if we can help.

Jason Snaddon

jason@loveproperty.com.au

The thing that we love most about investing in property is leverage.  We can take whatever capital you have and make it work really hard for you.   We are able to do more with less!

So it makes sense really – you work hard for your money, so why not make it work hard for you!

If you want to know more about leverage and investing in property, give me a call and we can arrange an obligation free consultation. 02 9281 9300

The biggest destroyer of peoples wealth is their emotions; their mindset.  Have you ever wondered why some people have wealth and others don’t?  It comes down to their mindset.  We can all do and have anything we want to create in our lives, its our own “made up” limitations that limit us.

If we keep check of what we are thinking about and be aware of the negative self talk, that’s a starting point.  Shift your thoughts to ones of the things you want rather than the things you don’t want.  Because whatever you are thinking about, that’s where you attention is going and that is what will generally show up.

If you are worried about debt then guess what you will see more of?  Debt.  If you focus on what you do want then that is what will show up. But don’t be attached to the outcome as it may show up differently and better than you expected.

Put images up around you of things that give you joy and the things that you might like to achieve. For example on my desk I have a card that says I am attracting wealth and abundance, on my computer desktop screen I have an image of my dream Mercedes. I have photos of my family members and friends around me,  in my car I listen to Million Dollar affirmations that I have recorded in the first person and I also meditate daily to a guided meditation which helps me keep my awareness in check and focus on what I want. Do whatever feels right for you – but do something!

You may like to download the attached document, Million Dollar Affirmations

How are you feeling with all this negative media? Do you know that I have stopped watching the news. I’m over it!

I’ve realised that the news I need comes to me in the form of research, the research that comes through my research partners, that’s the research we follow.  Not this constant negative media barrage the creates fear which in turn creates more fear so essentailally we have a general population that is paralysed.

What do you think the multi millionaires and billionaires are doing?

They are buying up, they are investing! Huge opportunities are out there!

We must get back to basics on property investment, it simply comes down to supply and demand.

In the nine years that I’ve been helping clients invest in property as well as help them build portfolios, we have been through many cycles, we’ve seen and read all the negative media before.  The thing to remember is that property performs based on the amount of supply available and the demand for that supply.

Us humans all inherently need a roof over our heads. Right? If there are not enough homes being created this increases demand, incomes increase over time, rents increase, property values go up etc.. it’s simple really.

You just need to take action and invest, however invest strategically.

That’s where we can help,  Our research fundamentals look for patterns that will drive growth.  We do the homework for you that takes the guess work out of the equation.

So don’t buy into the fear and jump onto the negativity bandwagon, hold your vision of what you want to create for yourselves and build wealth… just make sure you do your research.

We’d love to help with your next investment there are some fantastic opportunities currently available.

Happy investing!

Jason Snaddon

More evidence has emerged that Gen Y buyers are increasingly turning to investment properties for their first purchases.

A reported 15% rise in the number of first home buyers looking to purchase investment property indicates that Gen Y is starting their investment strategy early.

Read more and please call if we can help you with your property investments.  02 9281 9300

SMH reports that housing affordability has hit first-home buyers hard, but with a pull back in interest rates and a slowing of property price growth, now is a good time to put a plan in place to get your foot in the door. And it helps if you’re willing to be creative.

Read more

We’d love to help you onto that property market ladder or to go up a couple of rungs.  Call us on 9281 9300 or 0425 332 600 we would love to help!

Have you heard about NRAS – the National Rental Affordability Scheme?  It’s a long term commitment by the Australian Government to investors prepared to build affordable rental housing.
NRAS seeks to address the shortage of affordable rental housing by offering tax-free financial incentives to the business sector and not for profit housing organisations to build and rent affordable dwellings. Through this, NRAS will:

• increase the supply of new affordable rental housing;
• reduce rental costs for low and moderate income households; and
• encourage large scale investment and innovative management of affordable housing.

To find out more, please download our NRAS  fact sheet, or give me a call if you want to discuss some opportunities that we have available.  9281 9300 or 0425 332 600.