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

Families looking to upgrade to a bigger house have been noticeably absent from the Sydney real estate market for much of this year but that might be about to change, experts predict.

Agents are starting to see more of these buyers at open houses and in some of the more affordable upgrader areas – where these properties sell for less than $1 million – they are very active. This is in contrast to more affluent suburbs, where interest has been much more subdued.

“The top end of the market is generally the one that suffers in an increasing market,” says Harry Charalambous, “as they are the last to go up in price. They are also the first to feel the pinch in a declining market, as they are the first properties to be hit, and usually with significant decreases.”

The chief executive of LJ Hooker Real Estate, Janusz Hooker, says the catalyst for upgraders re-entering the market has been the Reserve Bank’s interest rate cut. This recent interest rate cut has put more money in the pockets of existing first home owners. ”So at our open for inspections over the past couple of weeks since the RBA’s announcement, we’ve seen an increase in activity of about 10 per cent [in these buyers], which is pretty significant,” Janusz Hooker says.

The principal of Belle Property Mosman, Tim Foote, says upgrading is the ”number one opportunity” for buyers at the moment because selling and buying in the same flat market means ”the difference between what your property is worth and what you can buy is smaller”.

Upgraders tend to follow the pattern of first-home-buyer to mid-range property, then upgrading their mid-range to top end when considering their next property purchase. This is the reason that this group are being identified as being active on the market now. They can get a decent return on their existing property, and look for larger homes in similar areas for a relatively marginal increase in pricing. Previously these larger homes would have been priced outside their budget.

For those that are seeking to subdivide and renovate in the current market, looking at the needs that a home must meet for upgrading to be attractive is a key part of your investment strategy – ensuring that value is provided to these potential buyers. Room numbers and sizes, fittings and fixtures, proximity to key amenities are all considerations with regards to the upgrading market.

Before starting a development project understand who your buyer is – are you targeting a family, downsizer or an out of area buyer?  Along with the different buyers comes a new set of must haves. You must always provide value and meet the market to receive the best results.  Speak to local trusted agents about the demographic of your suburb and design your property to meet these buyers needs.

Forecasts that Australian property prices could fall by as much as 40 per cent over the next decade have been rubbished by leading industry analysts.

Earlier this week, Professor Steve Keen told The Adviser that Australian properties could suffer a price slump similar to Japan.

“I have always said we will see property prices fall by 40 per cent over the next 10 to 15 years. In fact, I wouldn’t be surprised to see property prices fall by as much as 20 per cent in the next five years.”

But Mr Keen’s comments have been branded “sensationalist” by leading analysts.

“I don’t know what research he has done to back that up, but it sounds rather sensationalist. I wouldn’t expect to see a 40 per cent fall in property prices when we have a growing population and not enough houses to cope for the demand,” RFI’s director Alan Shields told The Adviser.

“I would be surprised to see house prices depreciate by 10 per cent let alone 40 per cent over that time period.”

Mr Shields comments were echoed by both AMP chief economist Shane Oliver and HIA chief economist Harley Dale.

Both Mr Dale and Mr Oliver agreed that Australia could be in for a period of softening house prices, but did not expect to see any significant depreciation.

“House prices will continue to rise, if only ever so slightly,” Mr Dale said.

(Source: Jessica Darnbrough)

The Australian housing market has a bright future, and Gen Ys will be the ones to lead it there, a social demographer has claimed.

In spite of growing pessimism surrounding the economy, KPMG partner Bernard Salt has told Australian BrokerNews he expects economic conditions to pick up within the next few years. Salt claimed much of the economic pessimism in the housing market is merely reverberations from the GFC.

“We are in the shadow of the GFC at the moment. When you’re in the shadow, it’s cold and bleak and you can’t see beyond the darkness. By 2012, 2013 or 2014 we will have left it behind. You can’t be moping around after a recession forever,” Salt commented.

Salt believes Gen Y buyers will be responsible for reinvigorating the housing market in the coming years. He said Gen Ys are not affected by post-GFC malaise that has seen many consumers tighten their belts and retreat from the housing market.

“I don’t think Gen Y were really particularly affected by the GFC. They weren’t married, they don’t have a mortgage, they don’t have kids. There’s sort of a brash optimism. It will be they who move us forward,” he said.

Though first home buyer participation has fallen to 15.8% of all housing finance, Salt believes Gen Ys will soon begin to enter the housing market in earnest. He commented that Gen Ys will stimulate first home buyer activity as both their optimism and the necessity to “grow up” pushes them into property ownership.

“They have to move into household form pretty quick-smart,” he said. “They can’t hang around and pretend to be the people from Friends forever. Ultimately, the practicalities of life force you to do that. You can’t be footloose and fancy-free at 33. You can do that at 23, but you can’t do that at 33.”

(Source: By Adam Smith  10/06/2011 )

Investors that are looking to snap up a property bargain should do their shopping in winter, Australian Property Monitors chief economist Andrew Wilson has claimed.

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 in the lead up to Easter. Similarly, there is always a lot of action in spring. Often buyers overlook winter which, provided you have the capital behind you, can be an excellent time to grab a bargain,” he said.

Mr Wilson also said the current market conditions favoured 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.”