There’s been a dramatic increase in the number of so-called ‘experts’ hitting my email inbox recently. I’ve never heard of them. However, they’re making unbelievable claims about their ability to help me get rich quick. They’re people whose track record seems to consist of a recently created web presence. They have no credible background whatsoever. They think it’s a safe bet for them to strut their stuff because prices have been rising in most areas and interest rates are at record lows.
I’m often asked about the impact that new housing developments have on housing prices. It’s really interesting, because there are winners and losers in each case.
I’m standing here in the outskirts of one of Brisbane’s new suburban housing markets. What’s happening in Brisbane generally is that the supply of new housing—especially to new-time buyers—is exceeding the demand.
Hello, it’s John here. This month’s video is about why sometimes it’s better to buy with your heart than with your head.
You see, most experts tell us to always buy with our head. That is, we’re looking for capital growth, and we’re looking for cash flow. So we’re buying properties with an intent of getting some value out of them—I’m one of those too. But occasionally, it might be better to buy with your heart instead of with your head. You might go to a beautiful place: a beach, or a bay, the riverside area, or even up in the mountains—like I am now—and fall in love with the area.
Every major Australian City has had areas that have been entirely transformed and rejuvenated especially the old inner urban areas, the wolves and warehouses such as Docklands and South Bank in Melbourne, or Brisbane South Bank and in Sydney Barangaroo.
Now, I’m right here at the heart of Perth by the Swan River and at the development called “Elizabeth Quay.” Elizabeth Quay is now located in an area between the river and the CBD which is vastly underutilized and is being transformed by a massive $2.6 billion development, 150,000 square meters of office space, 39,000 square meters of retail space and over 1,700 apartments, yet over 65% of the land will be kept as open space for the people of Perth.(Read More…)
It seems simple enough in theory. You respond to an online ad for a new property development which seems to have excellent growth prospects. You pay a small deposit bond, sometimes before construction has even started, and settlement could be years away. As time passes, the price of your investment property rises and you sell, and walking away with a tidy profit even before you have actually settled.
This is called flipping, and it’s one of the most commonly relied on investment strategies for investors who buy properties off the plan. Developers also offer incentives to those investors who intend to hold their properties after settlement, such as generous rental guarantees that ensure your investment generates positive cash flow, paying for itself while the guarantee is in place.(Read More…)
Hello! It’s John Lindeman here. I’d like to talk to you a little bit about investing overseas.
There are always great opportunities for investing in property…
When prices are rising, you can flip and trade quickly.
When there’s little to no growth, you can just get your own growth by renovating or even developing.
When prices are going backwards, then you can move to stressed areas where there are sellers came to secure whatever prices they can.
However, there are also extended periods of time when there is little to no growth and all in the market is completely stagnant. And that’s when you start to hear people talking about the opportunities of investing overseas. (Read More…)
Have you heard the story of “The Sun Is Being Eaten”? I think it should be told to inspire every property investor.
Thousands of years ago, we relied on wise men called druids or shamans to interpret the meaning of signs and predict the future. When our forebears saw a solar eclipse, they thought that the sun was being devoured by some huge invisible monster and stared upwards in horror, unable to comprehend why this was happening. The wise men knew all about eclipses and could even predict when they would occur, but rather than impart this reassuring knowledge to the people, they told them something quite different.
‘Yes,’ they said, ‘a huge heavenly monster is eating the sun and only we, your protectors can save you – for a price.’ When the people had paid up, the druids assured them that they were scaring the monster away, and that the sun would soon return to its former glory, which it did.
What Is The Challenge With Housing Market Prediction?
Hello! This is John Lindeman and I would like to tell you something about an effect which occurs in housing markets known as the “bounce back effect”. You see, I’m standing here in Brisbane, by the banks of the Brisbane River. And just over 5 years ago, Brisbane was inundated as a massive flood when the river level rise and in fact, it rose to about a meter above my head high right now and many parts of Brisbane was inundated. But you see, over time, these areas bounce back as it were and prices recover and then they catch up back to where they were before. Now, this has happened in many parts of Brisbane already. (Read More…)
My involvement with property as a researcher, commentator and author spans over ten years professional research with major data providers, as well as forty years of personal housing investment experience.
While I use this acquired expertise and experience to help me identify up and coming property hotspots, there is an essential part of my research which I recommend that you should always do before you make an investment purchase decision. (Read More…)
The median sale price is one of the most common methods used by investors to track property values and assess their changes over time. John Lindeman explains why it can often be a misleading measure.
According to data providers Australian Property Monitors, one of the best performing suburbs in Australia during 2015 was Peregian Springs on Queensland’s Sunshine Coast where units experienced a massive lift in median sale price of 136% to $375,000. At the other end of the scale, last year’s worst performer was Bilinga on Queensland’s Gold Coast where the median sale price for houses fell by a huge 49% to $539,000. Before we rush for our cheque book (or a gun) we need to understand that these huge variations in just twelve months were due not so much to high buyer demand pushing prices up or oversupplies of stock causing price falls, but to changes in the type of properties that were sold in these suburbs from one year compared to the next. (Read More…)