The Centralian advocate Fri 25 Jul 2014
Centralian Advocate; NewspaperNT
This publication contains may contain links to external sites. These external sites may no longer be active.
Community newspapers -- Northern Territory -- Alice Springs; Tennant Creek (N.T.) -- Newspapers; Alice Springs (N.T.) -- Newspapers.; Australia, Central -- Newspapers
Nationwide News Pty. Limited
Copyright. Made available by the publisher under licence.
Nationwide News Pty. Limited
':<" FRIDAY JULY 25 2014 REAL ESTATE 31 + . Unlocking the best investing The key to unlocking the door to success property investment does not have to be difficult Natalie Robertson NEWS LTD FROM property investors who mortgage t:p.emselves up to the eyeballs only to sell in a couple . of years to seasoned buyers who have created secure nest eggs for retirement with bric;k and mortar, real estate experts have seen them all. Sowhataretheirtips for fifst-time investors? Real Estate Institute of SA president Ted Piteo says the nlimber one rule is to determine borrowing c;apacity including allowip.g for unexpected i:;osts such as.maintenance~ especially with older properties. ".['hep look for a property in that price.range. .. "Buy forthe medium-tolong term, five or more years;' Mr Piteo says. i:G:rowth has stagnate(! in the past couple of years here. Cop.sider buying investment properties like putting money into your super and don'ttouch itJor years. "Personally, I like properties closer to town, which usually have better capital growth. "But you have to consider what you can afford. If you are H9using ~t-Qr~ge. ~xpec;ted tO d3~peri fUtu~ rate ri$es - >J' ' ,,... Jessica Irvine . NEWS CORP AUSTRALIA AUSTRALIA'S usually - circumspectgovernorofthe Reserve BanR Glenn Stevens has weighed in on the country's obsession with housing prices. And his message is simple: don't expect prices will always rise. Is that a warning that prices are about to fall? Well, no, for reasons I'll explain. Cue: signs of relief from homeowners arid sighs of frustration from would-be first time buyers. The Reserve Bank is in a tricky position when it comes to home prices. It is, after all, in control of one of the major levers which ~an really affect prices:interest rates, or rather, the cost of borrowing (the other major levers are the :Strength of supply and demand ~d banks' willingness to lend). With mortgage rates at 50year lows; some are concerned that the Bank is fuelling an unsustainable "bubble" in prices. To which the governor made sevei;al important pointsin a speech last week. First, rising prices are not ' always bad thingper se, particularly if they follow a period of price falls; as we saw l>etween 2010 and 2012. To the extent that rising prices make homeowners feel wealthier, they may encourage n -t!A'<!EfilmlllMlll Reserve Bank of Australia governor Glenn Stevens more spending in the economy, . R,BA., is any evidence that banks which creates jobs and growth. were starting to really relax Of course, this is offset to , their lending criteria and allow some extent by the extra impost c; hoseho1(ls to take on excessive . on first-time buyers who must levels of debtthat couldn't be . scrimp an~ save even harder to repaid when interest rates do, afforct their first home. But tWo - inevitably, rise. thirds of Australians own t:p.eir Australia's household debt is own homes (half with a already at fresh re<tord highs ' mortgage, half without) so you compared to incomes (albeit, . do the maths. we've got more stashed in If higher prices also savings as well). But Mr Stevens encourage people to bi.!ild new doesnot see a bubble about to homes, that would also be a burst .. : not yet. . good thing. Only in Sydney, where prices Construction employs one rose 16 per cent last financial million Australians and a year, does he seem concerned, recovery would help as the warning that "investors should mining boom fades, take care in the Sydney market". What would concern the "People should not assume that prices always rise," he continued. "They don't~ sometimes they fall:" So how likely i$ that? The answer is: not very: As Mr Stevens notes: "'Some segments of the housing market do appear to hav~ been calming down lately." Sch a period of slower growth would indeed be a good thing. We should hope, Mr Stevens says, for a truly "unremarkable performanGe" on house prices - not.too hot and not too cold. "Thaf'would contribute to a balanced growth path for the economy and to housing more people at manageable cost." Rising house prices are, after all, essentially .a zero sums gains. Rising prices benefit sellers, but only at the expense oflmyers. This game of generational pass the parcel is the basis of much of Aus_ttalia's wealth - and there is much riding on it continuing. Meanwhile, a record housing shortage - more than 300,000 homes on ANZ's reckoning-:- is also supporting prices. During th.e past decade, Australia has consistently failed to build.enough new hom~s to keep up with our rising . population. The inevitable resultis higher prices. So don't expect the Re.serve Bank to start lifting interest rates any time soon to cool the property market. more interested in the rent than the growth, you might buy a property where you pay less for it but still get good rent." Mr Pjteo says tbere are plenty of good investmentpuys around. Another possible pitfall for the first-time investor is buying a property based on what they would live in. "True investors bi,Iy ori rental yield, capital growth and p.ossibly development potential now or latei::' Mr McMahon saiq. "Do yor ownresearch but nothing beats talki.ng to a real estate agent who }<nows the . local areq_as far as rents and purchas~ pJices go;' he said. LJ Hooker SA manager Rod Adcock said location is the key . ...,_ to property investment. "Another tip is to make sure you get a tax depreciation schedule done on the property so it's clear what you can claim when it comes to doing your tax retur11." Phil McMahon Real Estate managing girector Phil McMahon say th~re flfe many good investment opportunities in Australia. "However, investing still requires the buyer to be astute .. "Choose a suburb where there is a track re<,;Qtd of yearon-year growth, taking into cop.side.ration fluctuating markets;' he says. "Any real estate agent will ' have access to sales data over a period of time to give the investor an educated guide. "Also ask for rent values as .that will determine the inve&@ent return on capital outlay-your buying price. "Rent yields of around 35 per cent gro.ss should be the aiming point." !'You Will still need to do research in regard to coqi.parison sales, th.e number of houses selling and so on." But a word of warning, stay away from the "renovator's delight" if you are not a handy person. Once you hiJ.ve chosen you.r preferred suburbs never buy the '"" best house in the worst street. "You could findafter inspection that it may take a lot of work," Mr MGMahon said. "An investor needs ~o let. the higher-priced houses in the street drag up the price of their ,..;: investment property;'. Mr Adcock said. Licensee.I Agent AL559 Golden Home Real Estate The ,A/ice ... _.4 Go/rim Home Toll'!? 87 Albrecht Drive $799,000 Open Saturday 10:30am-11 :OOam Eli Melky 0427 012 699 57/111Bloomfielci Street $265,000 Open Saturday 11:30~12:00pm Greg Liebelt 0419 094 964 Eli Melky_ 0427 012 699 23 Mulara Street Braitling $459,000 Open Saturday 12:30-1:00pm Greg Liebelt - 0419 094 964 35 Van Senden $468,000 Open Saturday 1 :30-2:00pm Greg Liebelt 0419 094 964 Eli Melky 0427 012 999 35 Pt i lotus $509,000 Open Saturday 2:30-3:00pm Eli Melky - 0427-012 699 158 Woods Terrace $418,000 Open Saturday 10:00-10:30am Mardi Cotterill ~ 0418 897 236 Unit 5 /11 Undoolya Road $339,000 Open Saturday 11 :00am-11.:30am Mardi Cotterill - 0418 897 236 Unit 3 I 13 Battarbbee Street $355,00 Open Saturday 12i00pm-12:30pm Mardi Cotterill - 0418 897 236 3/8 Patterson Cres $299,500 NEW PRICE ..:>. ~ "" ,.z Open Saturday 1 :00-1 :30pm .. ' ~-. '/' .. Mardi Cotterill ; 0418 897 236 Eli Melky 0427 012 699 Greg Liebelt 0419 094 964 Mardi Cotteriil 0418 897 236 www.goldenhome.com.au Leve! 1 Anangu House - 4.:l Bath St .,,,,,, ,,. j ! j ~ i ,j