Posts Tagged ‘property market’

Know Your Market

Thursday, December 17th, 2009

 Investors need to understand the market they are investing in, whichever one that may be. It is important to research facts, data, potential profit and loss as well as fees and charges, rather than rely on speculation or observation, if any of theses are overlooked you place your capital at risk.

Some facts associated with property investing are outlined below,

  • Demand for housing is determined mainly through demographic changes. These changes include:- population growth (increased migration, higher birth than death rates), changes in household size (through divorce, children leaving home).
  • The rate of new dwellings being built is increasing - an analysis conducted by the Commonwealth Treasury estimated that the demand for housing will increase to 200,000 per annum by 2010 while new dwellings are expected to reach only 150,000 to 160,000. Add to that a shortage of available land and the result is an imbalance between supply and demand that can only result in Australian property values increasing.
  • Affordability is always an issue.                                                                       When is the right time to enter the market?                                                   The answer to that is always, ‘Now is as good a time as any’. What you must do though is look at ways to organise your finances and understand what way is going to work best for you.

The Government has extended first home owners grant assistance into the first half of 2010 to encourage entry into the property market so if your in a position to take advantage of this. Another option you may consider is to buy and rent. This strategy means you buy in an area you can afford with the intention to rent the property out, the property has the potential for capital gain over time and can often offer a high rental return. Meanwhile you rent in an area that suits you for location and work, with the freedom to relocate as desired. The idea is to get into the market now and stay there for the long term. If, as a buyer you can combine solid research with a medium to long term outlook you will find many opportunities offering good capital growth.

So don’t get discouraged by listening to reports of economic turmoil a few wise men in the past have created massive wealth in similar times, just be open to finding the right oportunity for you.

Power Thought

I am open to the opportunities that are always around me.

Repeat this thought often.

Teresa and the Team at

AustraliaWealth.com.au

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Money I Will or Money I Won’t

Monday, November 23rd, 2009

What do you think about money?nati-forti

How you feel about making money or being financially successful will have a lot to do with the results you end up with when investing. Whether you use the property market , the share market or a business how successful you are at wealth creation and maintenance will be a reflection of what you believe.

The three wealth creation avenues mentioned above are all capable of making millionaires, you can study how to do it and get it right, but without the right mindset you will sabotage yourself somehow.

John Burley author of  Money Secrets of the Rich, stated, ‘Your belief system is actually the single biggest factor (the vital prerequisite) to your wealth creation capabilities’, (2000 p 267). Let’s look briefly at some of the reasons why we may sabotage our journey on the road to success.

Belief

Some of your beliefs systems around money are negative and the best thing you can do is to become aware of them. Most people tell themselves that money isn’t important but the truth is, in this society, we can’t do a whole lot without it and that makes it very important. Attach some positive ideas to money like the ability to pay all your bills before they’re due, start a charity or set up a scholarship fund.

Fear

It’s amazing that we crave success so much and yet just as things are looking good something we do or don’t do turns everything around again.  How many times have we heard the amusing expression ‘ Missed by that much’. It rings so true and it really isn’t funny but something inside has switched on and a fear or belief is telling you, you can’t go any further. Fear of success or failure, fear of what others will think, all your limiting thoughts can be overcome, acknowledge your fear but go forward anyway.

Inaction

It’s true that opportunities don’t come knocking on our door we have to go out and find them. Still many of us make excuses why we can’t move forward but the basic truth is it makes us feel uncomfortable. In order to grow and change we have to take action and step out of our comfort zone.

Realise you are stronger than you think. When you know you should do something but find yourself making excuses, change your thought pattern. Reject your old limiting beliefs. Start telling yourself things like, ‘I can do this’, ‘this won’t take long’ or ‘I’ll take one step at a time.

It is possible to change your life and your beliefs it’s all up to you.

Power Thought

I am powerful, success is mine.

Repeat this to yourself regularly, especially when you have a goal to achieve.

Cheers

Teresa and the Team at

AustraliaWealth.com.au

Photo

Danilo Rizzuti: http://www.freedigitalphotos.net/images/photos/nati-forti.jpg

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What You Should Know Before You Buy Property

Sunday, November 22nd, 2009

photo_5299_20090314One of the most important rules to follow when buying property is to make your profit when you buy.

It’s a good idea to establish some criteria to follow so you know exactly what to look for.

Following are a few tips from Jamie McIntyre’s homestudy course that will get you headed in the right direction.

1. Get to know your local real estate agents

Getting to know the agents in the area you want to buy, if you can, will give you an idea about how they operate. Different agents use different strategies so find one that understands what you are doing and what your criteria is. If you want them to take you seriously don’t waste their time, let them know what you want and only make serious offers. If they understand you mean business, and they know what you are looking for the right agent will work with you to achieve what you want.

2. After an auction

One of the best times to buy property is after it has been passed in at auction.

If a property is passed in at auction buyers will realise they must, unfortunately, lower their expectations. It is often the right time to get a property at the price you want to pay.

3. Timing

There are seasonal times in the year when the property market is more active. Buying in the off season is when you are more likely to get a bargain. The off seasons tend to typically be around:

  • November, December, January
  • July
  • Holidays – Easter and Christmas

4. Work in progress

Roadworks or other major constructions can often put a lot of buyers off buying in that area. If you can see past the noise and dust to what the finished work will be you may see it adding value to the property down the track.

5. Before listing

If you can find a property owner ready to sell, but before they list with an agent, you will have cut out the agents commission and possibly lowered the price considerably. You have to be proactive to find this type of opportunity but if you keep your eyes and ears open the opportunities are out there.

6. Special Levies

This applies to units where the body corporate is raising levies. Some owners may not be able to afford the increase and may be keen to sell. Keep your eye open for units that are having work done on them the work will often create a need for this increase and you may be able to negotiate a good deal for yourself and an owner.

These six tips from Jamie will give you an idea of a few ways to think about and approach buying property. Of course they are not exhaustive and we encourage you to continue to increase your knowledge base in this area if you want to succeed, beyond your wildest dreams, and create wealth through property.

Power Thought

I am destined for success

Repeat this to yourself several times today

Cheers

Teresa and the Team at

AustraliaWealth.com.au

Photo

Tom Curtis: http://www.freedigitalphotos.net/images/Yorkshire_g136-Conisbrough_p5299.html

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