Sam’s Weekly Reading List for the week of October 21st through October 25th

October 26, 2013 Sam Saggers

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As savvy property investors it’s important to keep on top of events and changes which can have an impact on our property investments. There are so many analyses, opinions and articles about investing in property out there that it can be tough trying to keep up with what’s happening in property.

I’d like to take a moment to share some of the more interesting articles I’ve come across this week.

Not all land is created equal – so buy in the inner suburbs

Michael Yardney does an excellent job of explaining why investors should focus on the inner and middle rings of the CBD to find great capital growth opportunities.

“For as long as I’ve been investing the argument has been raging: regional Australia vs capital cities; or inner suburbs vs outer suburbs,” says Yardney.

“There are always exceptions. Some better performing regional areas have exhibited more capital growth than some underperforming capital city suburbs and some high growth outer suburbs have grown faster than some demographically challenged inner suburbs.”

“But overall for strong, stable long-term growth that outperforms the averages the inner and middle ring suburbs of our capital cities are the place to invest.”

As urbanisation has taken hold, the demand for accommodations near jobs and infrastructure has increased, offering property investors the potential for a greater return than perhaps they might find in more rural locales.

“The process of gentrification and rising prices has locked a generation of younger people out of inner city housing and it is likely that the gap will only widen over the years”, says Yardney.

“I’ll leave discussion of the remedy for this to the politicians and town planners, but the conclusion for property investors is that if you want to own the type of property that will outperform the averages, the inner and middle ring suburbs are the place to be.”

Interested in learning more? Click here to read the article in full.

Sacrifice and compromise, the reality of first home ownership: Terry Ryder
Ryder takes on the concept of housing affordability, shining a spotlight on potential home buyers’ attitudes about buying their first home.

“Many surveys have been conducted on the activity or otherwise of potential first home buyers,” notes Ryder. “A recent survey by RAMS showed most thought this was a very good time to buy – but most did not intend to buy.
“Therein lies the clue as to why first home buyers are not exploiting strong buying conditions. It’s all about attitudes and priorities.
“Many younger Australians say they have priorities other than home ownership. They want to travel, own expensive gadgets and have a nice lifestyle in their location of choice, in preference to taking on a mortgage in a less desirable location.
“Others do want to own a home but they want their dream home in a premium location as a first purchase. That’s never has been achievable and probably never will be.
“First home ownership demands sacrifice and compromise and the new generations are less willing to do that.”

In response to the idea that a generation of people are “doomed to a lifetime of renting”, Ryder says that this concept is “…only true for those unwilling to prioritise home ownership and make the necessary compromises. It seems many young Australians prefer to rent and have the lifestyle they prefer.

“That’s fine, if that’s their choice,” continued Ryder, “but stop telling us you can’t afford to buy.”

Click here to read the article in full.

Seven Signs A Suburb is So Hot Right Now

A smart property investor is always on the lookout for helpful clues that a particular suburb may be the next “hotspot”.

In addition to the macro and micro market drivers every savvy investor should know and understand…ad nauseum…take a look at some unconventional signs you might be missing!

“Lumberjack chic and skinny jeans

The first sign a suburb is heating up begins with fashion. But it’s not about stylish boutiques or even Devil Wears Prada princesses parading down the main street (they are the late comers to ‘it’ suburbs). No, it all begins with the Yipster.

Part Yuppie, part Hipster, these urban dwellers are real estate truffle pigs. Somehow they can sniff out where the next cool neighbourhood is forming and start to plant their seed.

If, when driving around Sydney on a Saturday morning, you can see a crowd of Yipsters (collective noun: an iPod) milling around buying coffee with a satchel in one hand and a French bulldog in the other then you know the area is gaining property price momentum.

For the uninitiated, you can spot the Yipster men by their bushy beards, checked shirts and skinny jeans or the ladies by their 1950s headwear and 1880s boots.”

Other unconventional signs include:

  • Old boozers become wine bars
  • The cafe furniture factor
  • Pop up culture pops up
  • The inconvenience store
  • A Mexican wave
  • Village people

For more of this very entertaining article, which has a grain of truth, I must admit, click here.

Are you concerned that Australia is experiencing a property bubble? To find out Sam’s take on the subject, check out his article in Your Investment Property Magazine titled “What a property bubble is”.

If you’re tired of getting lackluster returns, perhaps it’s time to change up your strategy a bit. Slip on over to Smart Property Investor Magazine for some good tips on the profitable strategy known as subdivision. Sam’s article titled “How subdividing can double your money – Part I” provides some keen insights into this advanced property investing strategy.

Have a great weekend, and if you enjoyed this list, please share it with your friends by clicking a social link button to the left of this article.

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