Friday, 25 November 2016

Internet and Real Estate

There is no doubt that the internet has revolutionized the way we work and do businesses. Online business models are now emerging in a range of industries that previously involved bricks and mortar investments. But how much it has impacted on real estate? There you can have your thought process. The rise of online music stores such as Apple, iTunes, or book stores such as have emerged as new threats to existing bricks and mortar retailers.

The power of the internet as a selling tool its ability to quickly search and find the information required by the customer and make use of appropriate database management systems to accurately match the consumers requirement.

Melbourne’s residential property stole some of the limelight from Sydney in 2014-15.This only because the buyers are now getting involved in internet stuffs, they are aware of their vicinities. Are retailers following? Yes, but there have been some interesting shifts in the Melbourne retail property market. It is been an interesting year for the Melbourne retail property market. Low interest rates helped fuel demand for housing in 2014, but the falling Aussie dollar and an influx of foreign tourists and bringing luxury brands to Melbourne. In 2015 there has been backlash against the high rents on Collin streets. There is enough contribution with luxury brands as well. Luxury brands rely on tourists for steady sales and tourism is surging in Melbourne. In 12 months to September 2014. Of those, more than 365,000 were Chinese tourists.        

Friday, 18 November 2016

Australia Real Estate Report

Commercial real estate in Australia has weathered external headwinds from a slowdown in China, global economic uncertainty, and a fall commodities prices. This can be attributed to the influx of foreign investment into prime assets that has kept prices buoyant and rental rates comparatively high. However, the surge of acquisitions from foreign investors has led to falling capitalization rates, primarily influenced by a lack of supply. The current investment climate presents opportunities over 2017, with particular prospects for property managers.

As the construction pipeline is controlled and regulated heavily, new developments will be limited over the coming 12 months, seeing little activity in the Brisbane market as a result. The predominantly industrial market in Perth looks to come under pressure from falling oil prices, which affects exports considerably, and will hence see a fall in demand for industrial real estate units.

So, over all this is a bit serious time for all the people, who had the desire to buy and who wanted to make property. However, it can't be predicted what can happen next but yes, possibly the dark clouds may clear the sky soon.

But if the things looked clearly, the elected president of America is the major tension as he is an incorrigible person and actually unpredictable. Hence, it is impossible for the analysts also to tell something about the real estate condition in any place of Australia.

Saturday, 12 November 2016

Property Boom In Sydney and Melbourne

When the topic of Australian Real Estate comes, most of the people give more preference to Melbourne than Sydney, why? The data of houses/ flats sold and bought is varying a lot in terms of these two. It is being drawn from the data that Melbourne is surpassing Sydney.

Basically Melbourne has posted quarterly home price growth of 5%, increased by 2.3% rise during the month of September. Whereas Sydney, still recorded strong price increased by 3.5% over the quarter, but 0.8% only last month.

When we talk on the other hand Sydney's annual price growth is 10.2%, which is still strongest in the nation but don't think that Melbourne is lagging behind as Melbourne is closing its annual price at 9%, which is quite significant.

Mr. Tim Lawless, the CoreLogics Head of Asia-Pacific research predicted that no one should expect this cycle could really last that much longer. He also added that there are clear parallels with the property booms of the early 2000s, where Sydney home price surged between 2000-2004, before leveling off and even dropping afterward and recovering until 2009.

Henceforth, Sydney is now facing a very nice and great competition from Melbourne, as Melbourne is just following it in terms of the rise of the property price. However, if take a look towards the mining regions, it can be seen that North Western Australia is quite worsen for the investors. In that term, Sydney and Melbourne is a very good option for everyone.

Sunday, 6 November 2016


The deterioration of home affordability because of rising property prices has been a critical issue for a number of years, particularly among young Australians wanting to buy a first home.
Maybe the solution is… don’t buy but rent instead.
We know Australians love their bricks and mortar, but maybe we have taken that love affair a little too far. The latest property data suggests that’s the case, with renting arising as the most financial confidence move right now.
As property prices sustained to soar on the east coast last year, RP Data research shows that capital city rents increased by just 0.3 percent in 2015. While it may be a bitter pill for investors who depend on a good rental return to swallow, it should make potential homebuyers hiatus to consider their next move.
Australia was lucky to avoid a house price crumple during the financial crisis but that’s not to say it can’t happen here. Many academics and economists have been advising of the possibility of something similar in Australia. But provided it doesn’t happen and prices continue to raise, leverage will benefit those who own. Over the long term, the value of leverage is approximately equal to (annual return – mortgage interest rate) x leverage.
Of course, buyers build up equity as they pay off their loan, which can make up for superior monthly costs. However, short term, we’d say that most people are better off renting right now.
But, and this is a big but, renting where it’s cheaper than owning is only a better financial decision if you invest the difference between the cost of renting and the cost to buy.
If you blow the money saved from renting instead of investing it, you’re better off servicing a mortgage and having an asset to show at the end of the day. Think of it as enforced saving.
If you do have that financial self-control, then renting is probably a better option. We don’t just say that because of the greater financial burden of a mortgage compared to a lease in the current market, but also because of the less tangible benefits.
The opportunity cost of a mortgage is noteworthy. By that, we mean that having your money tied up in a mortgage means you don’t have it to pay out on other opportunities… Investing in a business, selling shares, funding further education.
The most current research from the Australian Housing and Urban Research Institute shows a surge in the proportion of renters who are long-term tenants. One-third of all private renters were long-term in 2013, up from one-quarter two decades ago.

Overseas market interested in Australian real estate

Overseas market interested in Australian real estate
The cities of Australia are the latest destination for globally-minded property investors. New York has been an attracting property since the 1950s, with buyers drawn in by the city’s fame. Now the Australian is the main focus for investors.
Before four years, the government of federal relaxed some of the rules which restrict the foreign citizens from buying of real estate of Australian. Now people who have been residents for more than 12 months may qualify to buy the established property, a change that has opened the door to an area of interest from purchasers of overseas.
Most prominent are buyers from the country of Hong Kong, China and Singapore, who are mostly favouring the apartments of inner city and family homes in Melbourne’s eastern suburbs and on Sydney’s North Shore.
But they are not alone; Malaysian, Taiwanese and South Korean buyers are in the market, targeting the new apartments and townhouses in east coast side of cities. Perth is showing interest from the South Africa and investors from the Middle East are merely active in southeast Queensland.
Why are the overseas market interested  in buying here?
Overseas-based buyers are investing here for many reasons:
1. Australia real estate has proved an investment with security, while perennial favorites – think that the US shares and European bonds have been surprisingly more volatile.
2. Wealthy families are the investing part of their portfolio offshore because of the concerns about the stability of political or the sometimes arbitrary actions of the officials of the government.
3. Purchases are tied in with establishing a residency for a family member in a safe prosperous country like Australia.