Investment News & Information

Meet the man with a property empire worth more than $14m

27/08/2014 - If you’ve ever dreamt of building a multimillion-dollar property portfolio, living in the penthouse of an island resort, owning a high-end car collection and never working again, meet Ian Hosking Richards, a self-made investor who has used property to create an empire worth more than $14m.

YIP: Already in your thirties, you came to Australia from the UK on a working holiday, earned just $35,000 per annum and managed to turn $20,000 into $14m. Do you consider yourself living proof that anyone can become a property millionaire?

IHR: I’m a great believer that your resourcefulness is more important than your resources, and that what you want is more important than what you have. I find that successful investors tend to be future focused; they have goals that are time specific. They are committed to achieving their goals, no matter what obstacles present themselves. There is always a way forward, and they will find that way. Less successful investors tend to be more focused on their present circumstances and accept more readily what is ‘realistic’.

YIP: You chose to start your own investment company called Rocket Property Group. What made you start Rocket when you could easily retire and just relax?

IHR: When I first started investing in property many people around me were quite negative. They gave me lots of unsolicited and unhelpful advice like, ‘Don’t buy in Queensland, you won’t get any capital growth’ and so on. So I started to become a bit selective about who I spoke to about my growing portfolio. Once I had quit my job, friends and work colleagues couldn’t quite believe it at first, but eventually they started calling me up and asking for my advice because they wanted to retire too. After a few weeks of fielding calls from friends and ex-colleagues I realised I was pretty good at property investing and that if I could formalise the help I was giving, I could make a business out of it which would give me an income so I could start buying property again.

YIP: In addition to your portfolio, you also own a 6,000-square-foot oceanfront penthouse in Penang, along with some other pretty enviable possessions. What would you say is the best thing you’ve bought that you could never afford had you not become a property investor?

IHR: My car collection is definitely my passion. At this stage one more investment property makes no difference to my life, but another car is a very different thing. I am an absolute car nut and because I am an Anglo-Australian, my cars have to be British or at least British built. I currently own two Rolls Royce Phantoms, the only updated Series 1 sedan in Australia and a metropolitan blue Drophead. I also own a Bentley GTC convertible. If I were to buy another one, which is inevitable I suppose, it is likely to be an Aston Martin Vanquish Volante convertible. It would make me very happy. I also collect special plates for my cars. I have ‘IAN’ on the Bentley and the Rolls Royces are HR1 and HR2. I have HR3 on retention for my next car, and I also have RPG on my BMW 750Li which is my main company car.

YIP: You’ve created a great deal of wealth through property investment. What else does that allow you to do in life?

IHR: I enjoy collecting art and have quite an eclectic collection, but my walls are now full. I tend to travel quite a bit, overseas as well as domestically, and I always travel comfortably, first or business and stay in amazing hotels. My next big cash outlay will probably be an investment in the family business back in the UK. My father is a big advocate of clean energy and has gained planning permission for a wind turbine. I can’t think of anything better than helping him to realise this project.

YIP: You mentioned the importance of staying focused. What did you focus on throughout the journey to have accomplished so much?

IHR: I believe that everyone is in charge of their own destiny, whether your life is good or bad, whether you are rich or poor – it is largely up to you. Based on that belief, why would anyone choose to be poor if they could just as easily choose to be rich? Why would anyone choose to drive a Fiat Panda if they could drive a Ferrari? I am very goal driven so once I got smart I just took the actions that would give me my intended outcome. Maybe not everyone would agree with me, but it has worked for me.

YIP: What is your best advice for someone wanting to achieve the life you’ve created through property?

IHR: Nothing is ever plain sailing, but always remember, it isn’t what happens, it is how you react that is important. Be prepared to see obstacles as a challenge, and find creative ways to keep on track despite these inevitable distractions.

This article was published in the June 2014 edition of Your Investment Property magazine. You can subscribe to the magazine here.
This article is ©Your Investment Property and has been republished with permission.

Broker industry throws support behind first homebuyer plan

27/08/2014 - The industry has rallied behind a plan to allow first homebuyers to access their superannuation for a deposit.

HomeStart chief executive John Oliver told a Senate Economics References Committee meeting this week that Australia should implement a scheme similar to one in Canada which allows Canadian first homebuyers to access up to $25,000 for a deposit, and high-profile independent Senator Nick Xenophon has said he will move to support the idea. Now mortgage broking industry figures have applauded the plan.

Mortgage Choice chief executive Michael Russell said the franchise brokerage had long called for a similar scheme in which first homebuyers could access their super for a housing deposit, reducing the need for LMI.

"While Lenders Mortgage Insurance has a crucial role to play in assisting first homebuyers into the property market, if the premium can be reduced by lowering the Loan to valuation ratio, then this would seem to be in the best interests of buyers. First homebuyers should be allowed to invest part of their super in their own bricks and mortar,”

Russell said. Russell said the scheme should be put in place with the stipulation that the money will be reimbursed to the buyer's super account either at the sale of the property or within 15 years, whichever comes first.

1300HomeLoan managing director John Kolenda also voiced his support for the plan, saying it could be a boon to first time buyers, provided the proper stipulations were put in place.

The plan from Senator Xenophon deserves consideration and they can set parameters around it such as a maximum withdrawal from a super fund of $25,000," he said. Kolenda predicted that the plan could benefit not only the housing industry, but the superannuation system as well. “If first time buyers are allowed to access their super for a home loan deposit you might actually see people contributing more money into their fund, which will be beneficial to the superannuation sector.”

This article is ©Your Investment Property and has been republished with permission.

Hope for housing: First-home market set for recovery

28/11/2011 - AUSTRALIA'S struggling first-home market finally looks set for recovery as buyers regain confidence in the property and financial markets. Falling house prices in each capital city and in regional areas as well as a cut in lending interest rates are expected to spearhead renewed activity.

A savage slump in first-home loans fuelled by a flood of government incentives during the global financial crisis caused loan numbers to plunge 30 per cent below their long-term average. However, latest research suggests a return in demand is on its way.
According to a housing outlook report, the 60,000 first-time buyers who were "pulled forward" by the GFC incentives have now washed through the market.

"Data for the first six months of 2011 indicates that although first-home buyer loans declined in year-on-year terms, the rate of decline has slowed," the QBE LMI report says.Loans to first-home buyers in the latest June quarter were only 2 per cent below the same quarter the year before.
QBE LMI chief executive Ian Graham says first-home buyers are vital to the overall real estate market because they provide an impetus for "upgraders" to enter the market .
"Demand from upgraders is greatest when there is strong demand (to buy) their current dwelling," Graham says. "This needs healthy demand from first-home buyers to provide demand for their existing dwelling and encourage them to move on. "First-home buyers' demand for new whitegoods, furniture and so forth also results in a healthy economic stimulus."

The QBE data suggests that first-home buyer numbers which have been about 95,000 a year during the past two years are forecast to climb above 110,000 in 2012 and back to near their long-term average of 131,000 the next year.

Mortgage Choice spokeswoman Kristy Sheppard says the first-home buyer market has been playing catch-up for several years and also believes it could be turning the corner.
"We have noticed an increase in first-home buyer inquiries," Sheppard says.
"As they have spent more time looking at a market with interest rate stability, wages growth and increasing rents, all these factors are encouraging first-home buyers to at least consider the market."
Sheppard says potential first-home buyers should always check their credit file before applying for a loan and do plenty of research both online and through speaking with lenders and mortgage brokers.
"Be aware of what's happening, not just with the major banks but also non-banks, credit unions and building societies," Sheppard says.
"The mortgage market is more competitive than we have seen in years. Don't rush in. Ensure that you have your budget cemented in. And once you have the loan, don't take on any extra debt."

By Anthony Keane
From: News Limited newspapers
November 14, 2011

Buyers in the driver's seat as owners offer discounts

28/11/2011 - WITH Melbourne's property market in a deep freeze, vendors are dropping their asking price by as much as 25 per cent to wrap up a sale.

As the level of property sales hits it lowest level in more than a decade, home owners have responded, with some slashing hundreds of thousands of dollars from their asking price to attract a buyer.

Vendor discounting - the price between what a property is initially advertised for and its final sale price - has risen sharply over the past six months, figures from property research firm RP Data show.

In May, the largest vendor discounts were being recorded in Dandenong, with sellers dropping their asking prices by an average of 10.1 per cent so they could clinch a deal.

That has now blown out to about 25 per cent for units in Broadmeadows and 19 per cent for units in Vermont.

Melbourne's historic discount level is about 6 per cent.

The vendor discount does not mean property prices in that particular suburb are falling - several suburbs in the top 10, including Vermont, Macleod and Somers have recorded price increases over the past 12 months.

It does, however, show that vendors in these areas are being forced to retreat a long way from their dream figure if they are serious about wrapping up a sale.
It is also a reminder - if any was needed - that buyers are holding most of the cards when it comes to wrapping up a deal, a shift most real estate professionals say won't change until early next year.

Barry Plant Glenroy director Angelo Nestor said it was no secret prices had eased in the Broadmeadows area over the past year.

"Buyers have definitely been driving a hard bargain," he said.

"The vendors who want to sell are meeting the market."

"For a while they weren't but they are being pretty realistic these days."

Mr Nestor said inquiries, particularly from first-home buyers, had picked up since the Melbourne Cup day interest rate cut and house hunters should be careful about trying to pick the bottom of the market.

"I would say to those buyers sitting on the fence that if you are waiting for the market to bottom out be careful because by the time you know it has it will be too late," he said.

"The market here has always been a great starting point for people entering the property market and the number of phone calls since the rate cut has risen."
Other suburbs offering heavy vendor discounts include Park Orchards (17.7 per cent), Fingal (16.7 per cent), Macleod (13.7 per cent), Toorak (7.7 per cent), Mulgrave (13.5 per cent), Essendon North (13.2 per cent), Hawthorn (13 per cent) and Somers on the Mornington Peninsula(12.9 per cent). Country areas are also seeing large price reductions.

Sea Lake is recording vendor discounts of about 20 per cent, Ouyen 17.6 per cent, Charlton 17. 2 per cent and Myrtleford 15.1 per cent. Brad Teal Real Estate director Brad Teal said the Essendon market had taken a battering over the past year, but had rallied in the past quarter.

"Buyers can very much sense that they are in the driver's seat for the first time in a long time, but they have gone too far south in some of their offers," Mr Teal said. "We are getting a lot of vendors saying if they can't get their price they will hold off and wait for the market to improve.

"Buyers need to be a little more realistic and learn to value the discounts that are available."

Sunday Herald Sun
November 13, 2011

Why you need a different approach to an investment property

28/11/2011 - NO other investment evokes such unnecessary emotion and misguided perceptions as residential property.

Buying property falls into two categories: homes you want to buy to live in, and properties you want to invest in.
The first is a purchase that should be considered as an investment for the future combined with somewhere you are likely to feel happy and comfortable. Liking the area and feeling that you won't want to sell or a long time is a valid part of the equation.
With investments however, it is all about money. Unless you secure this home at the right price you should have no emotional tie and feel free to walk away. Whether you like the property or not is not the point. It's aim is to make you money.
However, no other investment vehicle evokes such unnecessary emotion and often misguided perceptions than residential property investment. Unlike other forms of long term financial investment, here we allow emotions and personal taste to rule our heads.
So the secret to successful negotiation when buying an investment property is to understand the rule - if it doesn't make financial sense, walk away.
A successful negotiation is the transaction that secures a good property that is either below current realistic market value, or has future development growth, or an income stream that meets your financial requirements.
None of these factors are as easy to secure as many investors believe, so the right negotiations can make an average property become an above average investment.
For owner occupiers, you can allow some emotion into the scenario. It will be a successful purchase if you enjoy living there and are able to stay long term rather than feeling you have to move on and incur acquisition and sale costs.
When you secure a dream home, it may not be a bargain. But aim to get the right house at the right price. Don't be scared negotiate hard but don't lose it for the last $5000. Combine sensible buying with the right home for you and your family.
But if buying for investment, leave emotion at home and just think about the cash. Play on your strengths as a buyer, have your finances in place, appoint a lawyer, let agents and the seller know you are ready to commit and go into the negotiations from a position of strength.

By Andrew Winter
November 11, 2011
* Andrew Winter is a real estate commentator and the host of Selling Houses Australia on Lifestyle

MARKET CONDITIONS: Considering investing?

07/11/2011 - If you are one of thousands of Australians that has always wanted to be a property investor – your time has arrived. According to experts we are in a buyers market as now is one of the best times ever to buy real-estate, even better than was in the midst of the Global Financial Crisis.

According to Andrew Wilson from Australian Property Monitors, Investors that are looking to snap up a property bargain should do their shopping in winter, and can start looking around right now.

Speaking to The Adviser, Mr Wilson said investors with good equity would be well placed to avoid the Easter property rush and buy in winter.

"There is always a lot of action in the property market just before the Easter break. Similarly, there is always a lot of action in spring. Often buyers neglect winter which, provided you have the capital behind you, can be an excellent time to source a bargain," he said.

Mr Wilson strongly believes that the current market conditions favour investors. “The economy is very strong at the moment. And it is definitely a buyer’s market. There is plenty of stock in the mid-price range – which is ideally suited to investors.”

Figures compiled by property analysts SQM Research show there are now 356,600 properties currently for sale across the country, which is almost 50 per cent more than this time last year. Whereas the numbers of home loan approvals continue to drop.

Homebuyers are being cautious and many are simply not able to qualify for a home loan under the new credit laws. This presents a perfect opportunity for investors.

Long term investors can expect price rises in Australian property

06/11/2011 - Australian property prices are still well supported as is evidence by the latest median prices for property and will not see the dramatic falls experienced elsewhere in the world. The more conservative money lending policies practised by Australian banks, plus a genuine shortfall in property availability across the country, has placed us in a far better position than, in say, the UK and USA - which are both experiencing the exact opposite market conditions to those in Australia. The overhang of unsold houses in the U.S. has created downward pressure on house prices as builders and developers have been forced to sell. This is absent in the Australian property market. Rather, the shortage of housing here means that there are buyers waiting for better circumstances - e.g. lower interest rates, rising incomes or simply some confidence - to facilitate their entry to the market. This latent, underlying demand for housing is a factor that will support the market moving forward!

Western Sydney very attractive to investors

06/11/2011 - According to Starr Partners Real Estate, affordable property prices, higher than average rental returns and a wide range of stock are attracting a large number of property investors to west Sydney. Starr Partners chief executive officer Douglas Driscoll said the climate of stable interest rates, development opportunities and flourishing employment centres are drawing buyers to the western suburbs. According to Starr Partners network it is not only investors but also first home buyers and young families that have identified Sydney’s west as a desirable place to purchase property. These purchasers will benefit from continually improving infrastructure and employment prospects.

Newington, Homebush, Parramatta, Merrylands, Pemulwuy and Greystanes are proving particularly popular as constantly improving infrastructure and jobs in the area underpin strong rent demand and strong rental returns.

The Macarthur region, on Sydney’s fringe, is also offering attractive investment opportunities, according to Starr Partners. One of the reasons that investors are finding West Sydney so attractive is that after paying five to 10 per cent deposit – property purchased is almost neutrally geared. Based on current rental yields, investors could pretty much rely on rent alone and benefit from having a steadily appreciating asset to their name. Affordability remains a key drawcard of the west, according to Starr Partners principal Phillip Starr. Mr Starr said Starr Partners Merrylands recently sold a four bedroom home for $600,000 to an investor. “In the city, they had trouble finding a studio for this price and yields would be much lower,” he said.

Interest rates stay on hold for the moment

06/11/2011 - THE Reserve Bank of Australia contemplated raising interest rates today, but held off because of political and economic uncertainty in Australia and across the world.

In a statement accompanying the decision to hold the cash rate at 4.75 per cent for August, RBA Governor Glenn Stevens said the board had started to worry about the growing rate of inflation.

While the statement said it would now be appropriate for interest rates to “exert a degree of restraint” to combat inflation, the US and European debt crises were cited as reasons for the decision to hold.

“At today’s meeting, the board considered whether the recent (inflation) information warranted further policy tightening,” Mr Stevens said. “On balance the board judged that it was prudent to maintain the current setting of monetary policy, particularly in view of the acute sense of uncertainty in global financial markets over recent weeks.

“In future meetings, the board will continue to assess carefully the evolving outlook for growth and inflation.”
The Australian dollar was sold off on the decision – the local currency fell from $US1.0980 before the statement was released to $US1.0929.

Equities markets have been under pressure throughout today’s trading session.

In the statement, Mr Stevens said the board was aware inflation had begun to rise.

The population figures tell the history

05/11/2011 - An almost unprecedented population rise has been occurring in Australia and in particular South East Queensland, which continues to be Australia's fastest growing region. By 2031 the South East Queensland population will have grown to over 4 million, not far short of the total population of the whole of Queensland today, and will have generated demand for an additional 735,500 new dwellings. All of this has strong bearing on future capital growth, particularly for long term residential property investors. Queensland's overall population grew by an impressive 105,128 in the year ending September 2008. That figure represents 27% of the country's total population growth whilst Queensland currently only accounts for about 20% of the Australian population. Year after year Queensland's pro-rata share of population growth has been more than its weighting in terms of its existing population numbers. While some of these new residents will be born to Queensland parents, most of the increase will be from interstate and overseas migration, clearly indicating where people want to live in Australia. Will this growth trend start to flatten out? Not according to the ABS which forecasts strong growth beyond the middle of this century. In fact ABS forecasts that by 2056 Queensland's total population will have expanded to almost 8 million people, basically double the current level of population. With the state currently experiencing a population growth rate of approximately twice that of the rate of growth a decade ago, unless we build much more property, the property shortage is set to continue.

Long term property investment proves its worth

05/11/2011 - The current share market correction, combined with poorly performing superannuation funds, has refocused the attention of many investors on the benefits of long term property investment. The world economic crisis was always going to have an impact on Australia regardless of whether we had a recession or not Australian share market investors have been susceptible to the global demise in share prices and have seen the value of their portfolio fall drastically. Australian property investors, however, are far better off. In this edition of Which Property? Insight, we will explain why the Australian property market, and even more so the Queensland property market, will remain strong in the long term.

Investing is more affordable now than 5 years ago

05/11/2011 - Australian houses cost $66,000 less than what they were two years ago, yet household wages have risen by almost $20,000 in five years. The changes mean it's now very realistic for homebuyers to get into the market, according to RateCity.

Chief executive officer Damian Smith says saving for a home in 2011 is much easier than it was five years ago and especially two years ago.

"Buying a home and paying off a mortgage is something most Australians strive for. It got much harder towards the end of 2008, but since the global financial crisis affordability has improved, due to lower housing prices and continued income growth for most Australians," he says.

"The average Australian home now costs $417,500, which is $66,000 less than the average house price from two years ago and pretty much the same as five years ago."

Median household income continues to rise at an average annual rate of more than seven per cent, since 2006. Median household income in Australia also now sits at just under $77,000, compared to just over $54,000 in 2006.

"It's certainly true that the rich have got a lot richer in Australia over the last few years - but middle Australia is doing better on the income side than some of the doom and gloom stories might suggest."
He adds that because of declining property prices and consistent income growth, a 10 per cent deposit in 2009 was just over $48,000, whereas in 2011, the equivalent figure is just under $42,000.

"If you've got money to invest towards a home loan deposit, it's a better time to save now than in 2009, because savings interest rates are higher and there are now more attractive savings incentives for first homebuyers.

"That, combined with higher incomes on average, means borrowers today are in a better position to save larger deposits and ultimately shave thousands of dollars in interest off their future mortgages."

Why a second GFC could be good for your investment property

05/11/2011 - European debt, American recession and a looming second global financial crisis (GFC). Sounds familiar, doesn't it? Well, according to Understand Property, another economic slump around the world is potentially a good thing for your investment property.

This is because another GFC could actually send investors scurrying to the relative safety of housing, which is nowhere near as volatile as other forms of investment.

Another reason that many people haven't yet considered as to why Australia stands to benefit is because of debt in Europe.

"People have an option not available to governments to solve a crisis - they can leave," Understand Property says.

"It's happened before and it will happen again and if the situation deteriorates in Europe, as it probably will, we may once again throw open our nation's doors to a new wave of European migration.

"Thousands of disgruntled Spaniards, Irish, Portuguese, Italians and Greeks will seek their fortunes here. Not only is our economy insulated from Eurozone woes by being increasingly reliant on Asian economic fortunes, the arrival of a new wave of migrants will generate economic growth and just as our history shows, the housing market will boom for investors in the areas where they choose to settle."

The obvious choices would be capital cities, but perhaps they could also find employment in our regional areas. And the mass migration could occur sooner, rather than later.

Understand Property says the US is printing more money to inflate itself out of debt, but Europe doesn't have the same choice, because of the Euro. So if another GFC occurs, it will hit Europe much harder.
"When the smaller countries joined the Eurozone, they traded in their Drachmas, Escudos and Pesetas for Euros. They lost the ability to print money they now need to buy their way out of trouble.

"The only option left for the debt ridden nations of the Eurozone is extreme belt tightening. It will get worse before it gets better and could result in the break-up of the entire EU system, with political turmoil, severe depression and high unemployment in the worst hit countries."

Property Investment in Australian Capital Cities

05/11/2011 - FINDING THE RIGHT INVESTMENT PROPERTY IS WHERE MOST PEOPLE BEGIN WHEN CONSIDERING PROPERTY INVESTMENT

In Australia finding the right investment property is where most people begin when considering the optimum method to increase their personal wealth and financial security. The percentage of Australian people investing in property has increased profoundly in the last ten years. Property selection, capital growth, and the type of investment property in Australian Capital Cities. There are many issues to consider and work out before looking for a particular property.

You need to find out:

  • How much you should borrow, as distinct from how much you can afford to borrow.
  • How much you can afford to invest.
  • The cost to you, the investor, before and after tax.
  • Which area will potentially give you the best return and in the long run the optimum capital growth and many other issues, all of which help determine the property that best suits your circumstances and helps you attain your goals and objectives.

    Some factors to consider:

    1. Buy brand new to maximise tax benefit
    2. Buy in a recognised developing area to maximise capital growth
    3. Buy houses as a first choice for better capital growth
    4. Buy in the median price range for the locality to maximise its appeal
    5. Obtain the right finance package
    6. Use the right solicitor, experienced in conveyancing
    7. Use the right accountant, experienced in property investment
    8. Obtain the right Quantity Surveyors Report to maximise tax deductions
    9. Have the right insurance safety net package
    10. Employ the right property manager who has your interest at heart not the tenants
    11. Don't sell in the short term - hold property long term to maximise return
    12. Re-finance only when necessary not as a matter of course
    13. Seek the guidance of professional people when making any decision in relation to property investment

    Aussies new home loans plunge 20%

    05/11/2011 - RESIDENTIAL property prices peaked in 2010 and will continue cooling in the next six months as big mortgage brokers report a 20 per cent drop in loan numbers.

    Aussie home loans managing director John Symond said its new loan volumes had plunged 20 per cent in the past four months because the housing market was soft.

    He said Aussie had kept its 5 per cent share of the market and, until December last year, usually settled $1 billion worth of new home loans a month.

    “The general consensus is the market is down around 20 per cent in volumes,” Mr Symond said.

    “Housing generally throughout the country is definitely in a cooling stage, swinging towards a buyers’ market particularly for properties above $700,000 or $800,000.”

    Australia’s housing market is past the peak of the cycle and will probably continue to soften over the next six months, he said.

    “The cheaper prices close to the city – prices up to $600,000 or $700,000 – are still quite good because you’ve got first home buyers and small investors vying for those properties.”

    He said competition between brokers had not intensified despite a host of post-global financial crisis mergers and acquisitions in the sector, making the industry more concentrated.

    Historic property under-supply

    05/10/2011 - Is there a light at the end of the housing shortage tunnel? Not really. Instead of improving, the under-supply is actually worsening, especially in South East Queensland. Property under-supply in Australia will inevitably lead to price rises and rent increases, a situation confirmed by the ANZ Bank which has stated that Australia will face a critical and potentially intractable shortage of property likely to last for a decade. Australia-wide, the natural population increase plus net immigration means we need to build 180,000 dwellings per year to satisfy demand (some say the real demand is for 200,000 properties per year). The reality is that the country will build just 130,000 to 140,000 properties this year and, with the recession, the total number of new properties likely to be built next year will fall even further. This is despite the fact that population growth continues unabated at record levels.

    With its surging population, Brisbane is a prime example of the effect on housing demand. Setting aside the outer suburbs, Brisbane's inner suburbs alone are receiving 7,000 new residents each year. Based on an average of 2.6 persons per home (a figure which itself is reducing as a result of changing demographics and creating even more demand) approximately 50 brand new homes need to be built in the inner suburbs each week to satisfy demand. Now, with nervous builders and developers, plus bank finance drying up, the gap between Brisbane's supply and demand widened further again. Investors should note that in the September quarter of 2008, Inner Brisbane maintained the lowest rental vacancy rate in Queensland of 1.4%. A report by BIS Shrapnel estimated that since 1999 the Brisbane CBD apartment market has had a shortfall of rental stock of 1,000 dwellings, as at June 2007. As a result, Brisbane CBD apartment rents have risen by a staggering 64% since 2001. The low number of new building approvals, combined with a historical low number of rental vacancies, will lead to further price rises and rent increases.

    This will mean the main beneficiaries, of course, will be you, long-term property investors.

    VISIONARY INFRASTRUCTURE KEEPS PEOPLE COMING

    South East Queensland is the third-largest urban region in the nation and for many years has been approving dispersed, low density dwellings that have crept well into the landscape. This pattern is now thought to be unsustainable as the effects, such as traffic congestion and eco-impact, are affecting people's lifestyles. The state government has addressed these and other population issues with a regional plan that supports ongoing population growth. The plan has a focus on higher density and mixed use development in and around regional centres, with enormous improvements to road corridors and public transport. The plan -SEQ Regional Plan 2009 to 2031 - concentrates urban development in the Urban Footprint and redirects a proportion of new growth to existing communities. Already the government has committed more than $100 billion to road networks, extended rail links, public transport, energy networks, industry development and many other areas. Accompanying this is a visionary plan for managing growth, housing availability, transport congestion and climate change. As the plan is progressively implemented, South East Queensland will become an even more desirable destination.

    Strong foreign interest in property investing

    05/10/2011 - Investment properties are still popular as suggested by Google.

  • Lots of foreign investors are interested in buying

  • Sydney, Sunshine coast, and Tasmania were the hot spots

    Investment property is still popular and seen as good investment move as suggested by the search volume of the top 100 investment property related keywords on Google Australia.

    Data also suggests that there are lots of foreign investors who are interested in buying investment property in Australia as lots of search keywords had "Australia" in them which local investors will not tend to use.
    In addition, the data suggests that Sydney, Sunshine coast, and Tasmania were the hot spots for property investment.