1. This Is The Kind Of Event Investors Should Look For
Investors should be on the lookout for major business announcements which create significant cant new jobs. Housing demand comes from local events that create employment – particularly if the underlying property market ticks key boxes, like affordability, infrastructure, transport links and major jobs nodes. Here’s a current example: the City of Ipswich in the south-west of the Greater Brisbane Area has good qualities and has been a strong performer in the past. ,Lately the market has been moving slowly – but a major Federal Government announcement may change that. The decision to award a $5 billion contract for 211 high-tech Defence vehicles to Queensland means a new Centre of Excellence at Redbank (a suburb of Ipswich City) and defence jobs for 40 years. Ipswich mayor Andrew Antionolli says the decision is the biggest news for Ipswich since rail came to town in 1865. The contract will create 330 jobs initially and more as the work progresses.
2. High Crime Suburbs Often Outperform General Market
One of the greatest myths in real estate is that prestige property grows the fastest in value, while “problem” areas (lower socio-economic locations with high crime rates) under-perform. RiskWise Property Research has found high-crime areas across Australia are out-performing the general market. They’re trumping their safer neighbouring suburbs when comparing their ve-year growth to the city’s median – especially those problem areas undergoing a gentri cation process. RiskWise CEO Doron Peleg says most investors believe high-crime rates have a detrimental effect on price growth, but it simply isn’t so. In Melbourne, suburbs surpassing the market included Frankston North which had growth of 102% over ve years. “Suburbs like Frankston North are not outliers and similar results can be found in each of the major cities,” he says. “Busby in the western suburbs of Sydney has endured some of the highest gun violence rates, yet it delivered growth above the city median.”
3. Demand A Better Deal From Your Bank – Or Switch To Another Lender
Banks are charging loyal customers $1,200 a year more than new borrowers, an of cial inquiry has revealed. ACCC chairman Rod Sims has urged borrowers to shop around for the best deal. He says big banks often give cheaper loans to new borrowers and, in the past two years, existing borrowers with standard variable home loans at the big four banks have paid interest rates that are up to 32 basis points higher than new borrowers. On a typical $375,000 home loan, loyal customers were paying $1,200 a year more in interest than new borrowers. “It seems existing customers are not being rewarded for their loyalty,’’ Sims says. “Many bank customers would likely bene t from either switching mortgage providers, or approaching their bank for a better rate and indicating they are prepared to switch.’’ The ACCC inquiry found banks offered secret discounts on their advertised loan rates, based on a borrower’s “characteristics, their value to the bank and their ability to negotiate’’. The average discount across the ve banks under review was 78 to 139 basis points off the “headline’’ interest rate.
4. Many Spend Just 1 Hour Checking Before Buying A Home
Don’t be one of those people who buy property without doing proper due diligence. Over half of Australian house-hunters spend the same amount of time inspecting a property as they do watching an episode of a reality TV show. A survey of property owners by ME revealed that once they found their property, 58% spent less than 60 minutes checking out the property they eventually bought. Not surprisingly, about a quarter of these people discovered issues with their property after they purchased it. More than a third of respondents said they missed picking these up issues because they “fell in love with the property and overlooked them”, while another third said they “lacked experience and skill in inspecting the property”. About 11% said they were “impatient and tired of looking”. The main post-purchase complaints included paintwork, construction quality, gardens and fences. Among those owners who identi ed issues, 41% said they would have paid less had they discovered the problems earlier.
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