When the average person looks at acquiring investment property, they probably imagine the joy of earning a passive income from a single rental apartment. After all, it’s quite possibly all they can afford. And surely, this will be enough to give them a little something extra in their pocket.
While this approach has some merit, it’s not exactly going to provide them with the riches they may seek. More often than not, the ongoing costs of insurance, agency fees, and maintenance will quickly eat into their profits.
So, rather than having a mere flutter on the market, they should be treating their investment process less like a hobby, and more as a business. Instead of settling for one lone piece of real estate, a diligent investor should aim for a portfolio of multiple properties.
But it would be foolish to think that you could just go from nothing to wealthy overnight. It takes time and strategy to get the ball rolling along nicely. And quite often, many people find it difficult to even come up with the extra cash for a small unit in an outer suburb.
Then how do you find the funds you need for your first investment and accumulate enough for further ventures?
What you need is an opportunity to spend less to make more. But does such an option exist? You bet!
With GSA’s property syndication model, you can pool your funds with other like-minded investors – which means you won’t have to outlay as much for a piece of the action. But you do get to invest in an entire complex of apartments or townhouses, as opposed to just one tiny flat. This means you receive a share of the profits for the whole building. Plus, you never have to worry about all the added costs of going it alone.
The beauty of our strategy is that you need only invest for a short-term five-year period. At the end of the term, you can either take your high yield returns and opt out, or you can extend your investment for another term. And this is how you get the ball rolling.
Get in touch with our investment team today and find out how you can effortlessly go from hobbyist to managing director. You really can mix business with pleasure!
Who would have thought that climate change had anything to do with the property market?
It’s not unheard of to associate natural forces with housing structure, such as raising a Queenslander onto stilts to avoid flooding. But how exactly do terms like “global warming” and “greenhouse effect” determine where we live?
Once it was only areas known for extreme weather conditions that influenced the housing market. It now seems there’s a broadening in the market locations that are affected by the elements.
Australian summers are getting hotter, and rising temperatures are proving disruptive to town planning. This hampering of events creates affordability pressures and increasing insurance costs.
Sydney’s western suburbs seem to be fairly hard-hit, especially the outer west in places like Penrith. Data from the Australian Bureau of Meteorology shows the maximum daily temperatures each month steadily rising, with plenty of days sweltering above 35 degrees.
The need for thermal comfort is a major focus for urban planners, supplying things like water technologies and tree canopies. Trees make sense, but in certain areas, the planners must also consider that bats and birds are a hindrance. You then have conflicting interests, and this places strain on planning options.
So, with all this heat, it’s no wonder people are now flocking to Tassie to escape the oppressive conditions. This movement has boosted the housing market in areas such as Launceston, once again eroding affordability. Those with higher means are likely to migrate south, crowding out those on lower incomes.
But it’s not only a matter of people seeking leafy respite. Climate change has also increased the severity and frequency of extreme weather events, such as flood, fire and violent storms. More Australians could, therefore, be slapped with rising insurance premiums.
Regions that offer insulation from aggravated weather patterns or higher temperatures could see demand rising, placing an increasing burden on their low-paid residents.
So, it seems there’s more to this housing game than meets the eye. And, once again, money is a driving force behind what happens next. This inequality will warrant a response from policymakers, planners and the housing industry. Watch this space.
Brighton retains the title of one of Melbourne’s top suburbs in terms of lifestyle and proximity. So, it’s no surprise that the residents here never want to leave!
With its fresh bay breezes, six-kilometre shoreline, and a wealth of shopping and entertainment options, there’s very little reason for locals to venture elsewhere.
Royal Brighton Yacht Club GM, Hannah Catchpole, openly sings the suburb’s praises, saying there’s nowhere else she’d rather be.
“When you move to Brighton, you are here for life. You have everything you need on your doorstep.”
People come from all around just to get a taste. From classically trained chefs (who once cooked for the rich and famous on the Greek Islands) – to Italy’s authentic pizzeria royalty, the jewel of Bayside offers a superior local experience.
And it’s not only good eats and swanky shops that get the heart racing; with the suburb also boasting superb architecture and luxury amenities.
One such piece of sought-after real estate is GSA’s Rooding Street development, featuring deluxe 2 and 3-bedroom apartments.
With Bay Street only a few hundred metres away and the idyllic sandy beaches within strolling distance, the complex is also close to some of Melbourne’s finest schools and local transport.
Empty nesters and downsizers are particularly fond of Brighton, keen to soak up its leisurely yet cosmopolitan vibe. But the prized suburb really has something for everyone, from single professionals to young families.
It’s easy to see why you’d want the opportunity to claim a little piece of Brighton for your own. And we can certainly help you do that.
Our senior consultants are only too happy to guide you through the process to see you become one of Bayside’s elite.
So, ditch the hard work and go straight to the top of the class.
Believe it or not, it’s cheaper to buy a property than to rent one in certain areas. So, if you had the chance to ditch the landlord once and for all, wouldn’t you?
Of course, it comes down to individual preference and viable relocation options. But if you’re not too fussy, or you’re already in the right spot, you could be saving yourself some precious pennies.
According to CoreLogic data research, it’s possible to service a mortgage for less than it costs to rent, for around 34% of all Australian properties.
To break that down further, 6 of our capital cities currently offer favourable buyer vs renter opportunities, with Darwin coming in at 77.6%!
Following closely behind are Hobart at 59.7%, Brisbane 48.8%, ACT 44.9%, Perth 44.3%, and Adelaide at 40.6%.
It comes as no surprise that Melbourne’s offerings are a bit meeker, with an estimated cheaper mortgage repayment figure of just 9.6%.
And Sydney’s piddly 7.1% is disheartening, though you could still expect to secure a bargain in the outer western suburbs of Parramatta and Auburn.
There are some hidden factors that might influence the rent to mortgage ratio, pushing rental prices much higher. Transitory areas like mining or university towns, for example, or simply a shortage of vacancies, can affect the numbers.
The flip side is that these figures don’t account for the cost of having to save for a 20 per cent deposit on a home loan. The struggle to find this reserve places extra pressure on the rental market, inflating tenant outlays further.
It’s certainly worth considering your options. Isn’t it better to be paying off your very own mortgage, instead of servicing someone else’s?
If you’re grappling with lack of funds right now, let us help you accumulate more. You can use what you’ve already got to double your money in a very short time.
Come and have a chat with one of our senior finance consultants to find out how. And you can finally be lord of the manor.
Forget the Year of the Rat, 2020 is the Year of the Boomer!
Empty-nesters, retirees, wealthy older buyers – call them what you will. But they are a force to be reckoned with as they take the current property market by storm.
With enticing ingredients like soft lending conditions and fresh-cut interest rates, home buyers have the perfect recipe for securing the property of their dreams. That is, except for the final splash of steep price increases which turns it all a bit sour. And it’s left a foul taste in the mouths of those hungry to enter the housing market. It seems that it’s not only the interest rates experiencing a sense of depletion, with house hunters now losing all hope.
Unwittingly stretching the generation gap further, the “oldies” are cashing in on a lifetime of prosperity as they sell up their family homes in favour of something smaller and more manageable.
According to Real Estate Buyers Agents Association president Cate Bakos,
“The sorts of challenges that most buyers face, including valuations and gaining finance approval, are obviously not a concern for a buyer who is not impacted by a shortfall.”
Older, wealthier Aussies can simply afford the residential property of their choosing without all the red tape, giving them the upper hand in a seller’s market.
In Melbourne, Glen Waverley is the top hot spot for downsizers, with Brighton East, Parkdale, Point Cook and Berwick coming in not far behind.
So, can the younger generations even get a look in?
It’s possible with the right strategy. And a viable option would be to use their savings in the short term to invest in a high-yielding asset. Rather than relying on scanty interest rates with the bank, they could see their investment returns double in five years – allowing them to purchase more expensive real estate down the track. GSA prides itself on this strategy.
If you’re discouraged by the Baby Boomer Boom, come and have a chat with us and we’ll soon put a smile back on your face.
And that’s probably true! Considering the current shortage of available rental properties around the country, love will only get you so far.
Like all good supply and demand stories, the housing shortfall means higher rent in most areas. So, for many – it’s going to take a whole lot more than affection to find a place to live.
Once again, we’ll pin the blame on the banks.
You see, there are a finite amount of existing rental properties – yet, we have an ever-growing population. House hunters, therefore, rely on the construction of new dwellings. But the banks are up to their usual tricks by withholding much-needed funding to developers to make this happen. And two years down the track, people are still struggling to find a home.
The shrinking vacancies and inflating rental costs don’t just apply to houses, either. Apartments are also hard to come by. And neither is the shortage only restricted to the cities, with regional markets also experiencing significant vacancy declines.
In Melbourne’s inner-city suburbs of Fitzroy North and Southbank, vacancy rates are currently sitting at 1.8%. And in regional Victoria, they have fallen to an average of 1.2% over the month of February. In a healthy market, rates should be up around the 3% mark, with experts declaring it a “landlord’s market”.
An ABC report found Ballarat mother Caitlin Costello applying for a dozen different properties a week in an effort to find a home for herself and her 2-year old daughter.
“A lot of them [houses] are falling apart and they’re still asking top dollar. The real estate doesn’t care about showing you through a dirty house because the housing market is just that bad, you’ve got to take it. You can’t be too picky, or you’re going to miss out.”
Lucky for us, we do have the funding to build brand-new townhouses and apartments, providing welcome rental opportunities in some of Melbourne’s most prized locations.
These developments not only offer a roof over the heads of many; they also create a wealth-generating income stream for our investors.
Our great love is to help people get into the property market and find the ideal security that comes with knowing you’ll be OK.