MANAGING DIRECTORS’ NOVEMBER 2015 OVERVIEW -CERTAIN WEALTH GROUP

Over the past year or so it has gradually become apparent to me that the business of residential property investment has changed in many ways; not the least that the investor must be clear of mind before proceeding as to what are his or her property investment goals including the period to achieve those goals. It is no longer just the task of doing an on-the-ground property inspection of a number of affordable estates which relate to the buyers financial capacity; and then making a choice.

By way of example, two weeks ago we held our Certain Wealth Group annual property review in Melbourne; intentionally calling it the “State of the Nation Summit”. The name change represented the changing marketplace I refer to above; and also the necessity for us to change from a single presenter (Me!) to four of Australia’s highest quality and knowledgeable presenters representing property investment strategy, land development, construction trends, council planning for Melbourne and Brisbane suburbs; plus  a presentation giving new insights into selecting and retaining great tenants.

When we started out in this business 16 years ago, there were not many companies specializing in investment property business; allowing newspaper journalists to have a free run with their baseless prophesies of curves, collapses, GEC etc; none of which have had the results they predicted!. Today, while of questionable legality, we have seen a wrath of peripheral players enter the market including financial planners, accountants, real estate agents, solicitors, and mortgage brokers; most aligning themselves with investment property consultants; many of whom do not undertake the appropriate research, but seeing sprukers placing inexperienced investors into often shonky areas with overpriced houses of frequently smart designs combined with poor quality construction that in a few years will begin to cost much in maintenance.

This is not the fault of the buyer; but consider whether James Packer or Dick Smith would undertake an investment without first contracting world class consultants charging considerable fees to thoroughly look into the investment’s viability. Every day I receive emails from builders and land developers as well as sprukers offering me investment land and houses which I know has already been allocated to bigger players, but in the hope that if they get a “bite” with which they can approach the bigger player requesting they release the property for a fee. Conversely, we have in place business arrangements with the large companies who allocate property to us, and usually we can provide lower prices. Not only do you as the investor need to be aware of dubious “players”; you also need to stay away from them as they will often leave you in trouble; conceivably destroying your plans for medium term income generation from property returns.

There are also now more compelling reasons to work with professional investment consultants who know what they are doing. Banks continue to provide self-interest low loan valuations, and they are making more complex their rules for property investment borrowers. To deal with this requires the  use of very experienced and professional mortgage brokers, while working with an investment property  consultant who has access to big land developers; big wholesale building companies; and thorough knowledge through personal research including State Government Planning Departments, and Municipal Council planning offices relevant to areas that are being developed by private companies.

Modesty aside, I really believe that the strategic business arrangement we have formed with the key residential specialists referred to earlier in this paper places us in a position of knowledge, trust and integrity which we offer to you as you build your investment property portfolio. We are not simply there for “the next sale”.

Having read of those points that Certain Wealth Group believes in so strongly; and if you have not undertaken a review of your property investment goals for the past 2 or 3 years; or if you think you may be ready to purchase your next (or first) property, but are not sure; book for a review session of no more than an hour’s duration: in person (Melbourne), or by telephone or Skype. It will cost you nothing, but you could not put a value on it! To book, call us at (03) 8589 5908 or email to williammeehan@certain-wealth.com

With My Best Regards,

Bill (Meehan)

Managing Director

 

MANAGING DIRECTORS’ NOVEMBER 2015 OVERVIEW -CERTAIN WEALTH GROUP News Updates

AUSTRALIAN CAPITAL CITIES AT A GLANCE FOR THE PAST QUARTER OF 2015

I have confined this November commentary to a short piece about our industry; primarily because many of you attended the “STATE OF THE NATION ANNUAL SUMMIT 2015” and heard first-hand much of what I am writing about.

But I will provide a few growth statistics that have just been released, including for the quarter ending 31st October 2015.

Highlights:

. Dwelling values across Australia grew by 0.9% for the month of October 2015; with a quarterly average growth of 4%; led by Melbourne and Sydney.

. Best performing Capital City was Melbourne at 4%.

. Weakest was Hobart at – 0.2%.

. Average gross rental yields across Australian Capital Cities, for the quarter ending was 3.2%. Lowest was Sydney at 2.9%

. Most expensive house price city was Sydney with a median price of $785,500.

. Detached house prices grew 11.6% for the year to-date, outstripping apartments at 7.3%

AUSTRALIAN CAPITAL CITIES AT A GLANCE FOR THE PAST QUARTER OF 2015

Capital City Median Rent ($) Median Price ($) Vacancy Rate (%)
Perth 450 -6.3% 550 +2.8% 3.8 +2.8%
Melbourne 395 +2.3% 567 +4.2% 2.1 -1.4%
Sydney 525 +1.9% 785 +7.4% 2.8 +0.2%
Adelaide 380 +2.9% 420 +2.3% 2.9 +0.9%
Brisbane 410 +1.7% 480 +3.2% 2.9 +0.3%

Wishing Great Success to our Property Investor Members

Bill (Meehan)

Managing Director

AUSTRALIAN CAPITAL CITIES AT A GLANCE FOR THE PAST QUARTER OF 2015 News Updates

Address Changed

We have moved our office to the new address “Level 1, Suite 4, 844 Nepean Hwy, Hampton East 3188”.   Please note it for any correspondence.

Address Changed News Updates