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August 28, 2015

Most dangerous words in property investment


Today I’d like to share a memory from when I was still a novice investor. One of my early mentors taught me that the four most dangerous words a property investor could say were “this time it’s different”. Unfortunately I ignored his advice in my early days of investing to my detriment, as I found that history does in fact repeat itself.

crawfordBY MICHAEL YARDNEY

The best way to explain what I’m on about is to look back over the last few years. While many of our property markets boomed, two extreme opinions materialised. Just trawl the internet and you’ll see there are two differing views about what’s ahead for property: one group’s been suggesting we’re in for a long-term property boom and another is suggesting the property markets are going to implode.

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August 27, 2015

The alternative to Sydney property investment


The word “affordability” is thrown around by media and the government a lot, especially in reference to the ever growing Sydney and Melbourne property prices. But what does it actually mean?

jordanBY JORDAN NAVYBOX

Quite simply, affordability looks at the average person’s ability to meet his or her monthly mortgage repayment. There are three main determining factors when it comes to affordability – average house prices, interest rates and household income.

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August 24, 2015

Making the transition from homeowner to investor


For many, the great Australian dream is to own their own home. This was also our parents’ dream, yet today that dream can be realised much sooner than our parents ever did, providing you’re prepared to grasp the opportunities available to achieve it.

BY PAUL WILSON

I’m noticing a generational trend where younger buyers are becoming investors before they become owner-occupiers, which I actually applaud. In other cases, mostly in the 35-50 age group, there’s a more defined and traditional transition that takes place from homeowner to investor.
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August 21, 2015

Postcodes with higher risk of default on the watchlist


It should come as no surprise that with rising interest rates and unemployment some locations are more likely to be more at risk than others of residents defaulting on their loans.

crawfordBY MICHAEL YARDNEY

The Australian Financial Review (AFR) reports that the National Australia Bank has red-flagged 40 postcodes where business and personal loans are in higher risk of default because areas over-rely on single industries for growth, have high unemployment, or property prices have run too hard.

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August 20, 2015

Tax office turns up the heat on property investors


Despite the winter chill, Australia’s property boom is expected to see record audits on investors, with the tax office clamping down on excessive claims by property investors. 

crawfordBY JOHN MAKLOUF

Earlier this year the tax office announced it will be scrutinising property investors and, with the ability to cross match data with just about every government agency, banks, building institutions and credit unions, it plans on doing just that.

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August 19, 2015

Real risk, or perceived risk?


I’ve never totally understood why, but when a lot of property investors hear the term “regional town”, they automatically freeze up and think “regional” is “risky”.

crawfordBY SIMON PRESSLEY

The reality is, history has taught us that a majority of the best performing property markets have been in regional towns. It is in every single property investor’s best interest to think long and hard about specifically why they perceive investing in regional locations to be more risky than capital cities.

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August 17, 2015

Northern Inland NSW’s property scorecard


The property markets of 10 out of the 13 local government authorities (LGAs) that make up the New South Wales region of Northern Inland are ranked in Australia’s top 30 per cent property markets over the last 15 years.

crawfordBY SIMON PRESSLEY

Gunnedah and Liverpool Plains were the equal best performing markets in the region, with a national ranking of 38th out of the 550 LGAs in Australia.

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August 14, 2015

How important is timing the property markets?


Is it too late to get into this property cycle? Our property markets have performed strongly for a few years but now have slowed down a little, leaving many investors wondering, is it too late this time round?

crawfordBY MICHAEL YARDNEY

They wonder if they’ve missed the boat this property cycle and I understand why they’re thinking this way. It’s partly because it’s often said that timing is everything when investing, but I’ll let you in on a little secret – that’s not really the case.

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August 10, 2015

NSW’s property market scorecard


You would have made more money investing in Narrabri than Bondi, Liverpool Plains outperformed Liverpool, and Parkes beat Parramatta. These are just some of the findings from Propertyology’s property market study.

crawfordBY SIMON PRESSLEY

Metro Sydney (10 per cent) and Western Sydney (9 per cent) account for a combined 19 per cent of Australia’s population. Approximately one third of Australia’s total population resides in the state of New South Wales. Yet when it comes to historical property market performance, almost all Greater Sydney locations are ranked in Australia’s bottom 40 per cent.

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August 7, 2015

What the APRA changes mean for property investors


There have been some mighty big changes going on in the world of property finance over the last month or so, some of the most significant and fastest occurring changes I’ve come across – and they will affect property investors to some degree.

crawfordBY MICHAEL YARDNEY

To help you better understand what they may mean to you as a property investor, let’s do a Q&A.

What’s happened?

In short, the Australian Prudential Regulation Authority (APRA) has introduced directives aimed at curbing investor borrowing. The reason behind APRA’s involvement is the significant growth of lending to property investors, particularly in Australia’s two largest capitals property markets – Melbourne and Sydney.

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