The Australian Property Market – Booms And Bubbles

June 13, 2014 By Leave a Comment

The mark of an astute property investor is his discernment of market trends, says Lauchlan Leishman. For instance, during times of market turbulence, when they say that it’s not a good time to buy, there are still areas that are prime for investment. If you have the money to spare and the patience to wait, you can ride out the period until you can cash in on your investment.

People also tend to get excited over booms and to panic over a presumed bubble bursting, but if they can read and understand how the market is moving, they can continue to make the right investments as well as expect returns from them.

Take your lesson from this scenario. In 2014, the Australian property market initially enjoyed great conditions with record low interest rates and a high demand from foreign buyers. It was reported that Chinese buyers alone were pouring more than $5 billion per year into the Australian property market. Such activity drove prices higher, leaving local income unable to keep up. During this time, the average house price in the major cities rose by over a third and the median house price ballooned significantly. Such a trend triggered concerns for a bubble.

As the second half of the year approached, indeed, prices began to drop. It was either a seasonal thing with the Australian fall and winter months inducing weaker market conditions, or a more telling indication of where the market was truly headed. After all, everything has a growth cycle, and when something has reached its peak, the only remaining movements would be to plateau or to fall.

The thing about bubbles is that they’re not as invisible as people expect them to be. When people exclaim that nobody saw a burst coming, they would be lying. In this day and age, with many lessons from the past, a bubble is very much discernible. You can, of course, keep on playing the market, but remember to keep your senses sharper.

Property investment is definitely not for the faint of heart. Its market may not be as volatile as that of other investment options, but you still have to stay on your toes and keep track of fluctuations and trends.

The key, of course, is in getting out before the burst. If you want to take advantage of a boom, go right ahead. Just make sure that you do not wait for the market to peak before selling. You want the highest profit you can make, but it would be imprudent to risk big losses. Remember that when markets drop, they usually do so at alarming speed, making it hard for you to exit without huge regrets.

Filed Under: Lauchlan leishman

What To Look For When Buying An Investment Property

June 6, 2014 By Leave a Comment

Investing in property is one of the top time-tested ways to build your wealth and prepare for the future. According to real estate experts, people continue to take an interest in the property market even in times of economic downturns because of the huge potential of high return and the tax advantages it can offer. A well-chosen real estate asset will increase in value over the years and can be a source of rental income, making it a profitable long-term investment vehicle.

However, it would be smart to remember that as with all other investment strategies, the potential returns should also be weighed against the potential risks. One wrong miscalculation or careless decision can easily derail your chances of enjoying capital growth. That’s why it’s important to equip yourself with relevant, accurate information before you make a move. You should also consider getting the help of a trusted property advisor to guide you as you navigate the highly volatile market today.

With diligent research and the assistance of an expert, you can first determine what to look for when buying an investment property.

According to strategic investment expert Lauchlan Leishman, there is a wide range of factors that will determine the success of your investing approach, and the odds of achieving your objectives will depend on the market conditions and the decisions you make along the way. But making a good start by choosing the right property is the first most important step to ensuring that every penny you invest will bring back multiple returns.

The following key criteria are worth checking out when you’re shopping for property. These characteristics typically provide high growth potential and long-term advantages.

  1. Great location. Properties close to the centre of business and lifestyle hubs will always attract the market’s attention, and will most likely steadily appreciate over the years. Don’t just focus on the obvious choices such as capital cities – get a real estate adviser with a nose for up-and-coming neighbourhoods that may not be as popular today, but are expected to be very much in demand in the near future.
  2. Good bones. Properties with classic architectural styles will never go out of style and will always attract the interest of buyers, renters and investors. But keep an eye open for other properties that may not exactly fit popular standards, but may have the potential to rise in value with a few tweaks or some well-planned renovation.
  3. Emotional appeal. Choosing investing property, whether you’re an investor, a buyer or a renter, will always have a strong emotional aspect to it. How will people “feel” about the property? There is no tangible way to detect this; it can be by how one room flows to another, or whether the space feels comfortable and safe. Some properties may be huge and vast but will still feel dark and stuffy, while a small apartment can be light, warm and welcoming. Tune in to your gut feel – sometimes it can be the last main reason why you should choose one home over another seemingly equally appealing property.

 

Filed Under: Lauchlan leishman, Real Estate Properties

Key Property Investment Tools You Would Not Want To Miss

June 6, 2014 By Leave a Comment

Don’t you wish you had bigger pockets — or at least, a bigger bank account? It is not a bad thing to want financial success, and to try and work at it every waking moment. Unfortunately, that approach to accumulating wealth can be a bit tiring. And before you know it, you could be burned out even before you ever see your first million dollars.

 

When it comes to gunning for a seven-figure income, perhaps no other investment creates bigger, better opportunities than property investment. Much like other forms of financial ventures, you will want sufficient resources to help you get the most out of your investments — without tiring yourself out. So here are some key property investment tools that could help you make well-informed decisions that lead to successful investments.

 

Property reports.

Know which properties are quicker to sell and which locations get the most sales at the best prices — all by getting property reports. Property reports give you factual details about suburb sales and sale histories, about house prices on specific locations, about suburb profiles, and a list of other data-driven reports.

 

Online tools that estimate the financial viability of a property.

When you are considering a property as an investment, you would want to know first if it is going to actually make money for you. Is the two-storey, two-bedroom suburb home going to fetch you a suitable profit? Will a studio apartment in the CBD give you enough cash flow as a rental property?

 

To determine the answers, as accurately as possible, you will want to rely on a property analyser. You can use online tools to calculate residential rental income. You can estimate your tax benefits. You can calculate capital growth after tax cash flow. You can analyse commercial and residential properties. Basically, you will be taking the guesswork out of your investments by using a reliable property analyser.

 

Guides to investment strategies.

Finally, find out what it takes to turn your one-time property investment into a goldmine by seeking expert help. You can download guides to investment strategies or you could look up online sources that offer sound recommendations as well as broad information about investing in property.

 

Lauchlan Leishman is one name synonymous with property investment. The group managing director at Berkeley Capital Group has been in the industry for over 10 years (and counting). So yes, he knows a thing or two about the property market. Look up Leishman’s blog and discover more property investment tools today.

 

Filed Under: Lauchlan leishman, Real Estate Investment