2012 looks to be a positive year for property, however the question is by how much?

There are a lot of different reports and articles flowing through telling us that property prices are finally on the way up, and further rate cuts are imminent. However the doom & gloom reporters are still telling us that another GFC is just around the corner. How do you know if the time is right to invest your funds, and be able to grow your money for your family and your retirement? “Investing in shares, cash and property isn’t the same as it was 5 years ago. Back then you could invest your money in any direction and [within reason] be guaranteed to have growth in your portfolio,” commented Harry Charalambous of Plan Assist.

The RP Data – Rismark Home Value Index has released that in seasonally-adjusted terms, Australia’s capital city home values rose by 0.1% in November 2011. Whist this amount may seem very small, this increase was the first since December 2010. Rismark’s director Christopher Joyce commented that they project housing activity will rebound solidly. He said the best proxy for housing demand is the number of new home loans approved for purchasing established properties, and this has risen robustly every month since March 2010.

And whilst we all like to complain about the banks extremely large profits, and their resistance to pass on rate cuts to their customers, it is undeniable that our banks have provided a safety net for the Australian economy, which is coming out of the GFC somewhat bruised but indeed intact. With banks’ profits remaining to increase year on year, this stability should hopefully prop up the economy during these unsteady times.

After 30 consecutive months without a rate cut, the Reserve Bank’s decision to recently reduce the cash rate has also boosted confidence. When the RBA meets on February 7 a further rate cut is expected in many reports seen over the last week.

All of this leads to good news for Australian property prices. However Plan Assist’s director Harry Charalambous warns you should always have a strategy in these challenging times. “I encourage my clients to make decisions using strict criteria to reduce risks that the current climate may present. During my training I urge clients to look for property that suits their needs right now, and also in the future. In my recent training to ProfitsToShare clients I taught 3 ways to profit in today’s market, which helps give diversification in their portfolio, as well as provide additional cashflow to their current income.

Once all the planning and training is complete, to have your goals to come to fruition the most crucial step is taking massive action towards these goals. I have come across a lot of people who want to get into the market place, yet they seem to take months, sometimes years in preparation, and at the end of the day the best way to get ready to enter the market is to enter the market. The feedback from some of our most successful clients, is that having someone there guiding them through the process has given them the confidence and certainty to take that first step, knowing that they had the support where required.

Harry Charalambous provides professional property training. To enquire about his services phone Plan Assist on 1300 039 801 or email info@planassist.com.au

Gracemere, near Rockhampton, has emerged as Queensland’s top growth suburb – recording the biggest leap in the number of house sales over the last 12 months.

According to new research released by PRDnationwide, 96 houses sold in Gracemere in the six months leading up to June 2011 – up 63 per cent compared to the same period a year before.

Prices also rose by a modest 3 per cent during the same period.

The largest drop in house sales was recorded by The Gap, on Brisbane’s west – down 57 per cent.

The twenty suburbs which had the strongest increase and strongest decrease in house sales activity for the 12 months leading up to June 2011 are identified by the Queensland Sales Overview.

Aaron Maskrey, PRDnationwide research director, said 17 of the top 20 suburbs to have recorded the largest reduction in activity occurred in South East Queensland.

“The largest softenings throughout the first half of 2011 were achieved in The Gap, Buderim and Forest Lake,” he said.

“Notably, only three suburbs in the top 20 to experience declining sales, have recorded a median sale price above $500,000.”

“Despite interest rates remaining on hold since November 2010, it appears that confidence was sapped in the South East Queensland property market, as the majority of the top 20 suburbs to have experienced the largest decline in activity are located within this region.

Source: The Advisor

The big four commercial banks in Australia are estimated to receive an additional A$5.6 million in profit for each day where they delay the passing on of interest rate cuts to borrowers, according to an industry estimate.

Some argue that this A$5 million per day gain could be passed on to retailers that were hurting significantly due to low spending over the Christmas period.

ANZ Bank passed its rate cut on first, trimming its borrowing rates by the full 25 basis points at 12:30pm on the Thursday after the Tuesday 6th December announcement. NAB did likewise later that afternoon.

A number of factors caused this delay, with the main rationale cited being the time taken to consider the cost of sourcing funds from overseas.

Source: SMH

We have just been reading about the unpredictability of the property markets Australia wide. Whilst things look positive for Australia to not see the large decreases in property prices that other countries have suffered, sitting around waiting for our property portfolio’s to increase is not a good plan in the short term for increasing your personal wealth. There is only one true way to ensure profit in property in the current market: adding value to a property in one way or another which in therefore means we manufacture the growth in the investment.

Adding value can be done in several ways, and the following are just a few. Purchasing an old property, under the current market value and renovating in a cost effective way. Adding an additional bedroom to a property, again in a cost affective way. Creating a separate house or land via a subdivision. Investors these days need to think outside the box, and do their research.

The problem that most investors have is “Where do I start?” Confusing council codes, questions about engineers and architects, and dealing with builders can be too much of a headache to figure out, that sometimes we are so caught up in these questions that we don’t move forward, even when there is a huge desire to create wealth for your future. ProfitsToShare can assist you. Harry and his team of property professionals will assist you to set clear, defined goals, and help you put together a plan as to how to achieve your goals. ProfitsToShare will educate you via a large array of tools: one-on- one meetings with Harry and his team; access to a leading finance expert, to ensure that you are set up in the most effective way for property purchases; online tools and resources; Webinars and training / networking events. ProfitsToShare also gives you access to transactions, which may suit investors that want to invest at a more passive level.

“My intention is for you to realise your dreams, and to do this you need to have the right team and tools at your fingertips. I believe ProfitsToShare gives you the foundations you need, to assist you to realise these dreams” – Harry Charalambous

It is very common among people who have a desire to create wealth, to want to share this wealth with the greater community. At Plan Assist we also have this passion to help others, and the team working with ProfitsToShare Club Members are committed to presenting worthy causes with 10% of our profits.

Each year we give our ProfitsToShare clients the decision on which charities to support. We have set up the ProfitsToShare Foundation and currently support charities such as The Australian Children’s Music Foundation, The Children’s Hospital at Westmead, Make A Wish Foundation and Green School. Green School is a fantastic charity that Plan Assist has support in the past, making a difference to children in Bali.

Right now is the time for members to be casting their vote for which charities we will support together.