Welcome to BPS Newsletter # 10 - June 2007
LOANS
First up this week, I would like to offer all readers and their friends a free one on one interview with Jay and I to talk about their loan. I had quite a bit of interest from readers about last issue's outline of the "Time Out" loan. This was where you can have a discount on the rate (below 4%) for the first 2 years and then catch up later. It gave me the idea that many people just want more information on their finance options. Instead of doing a seminar or presentation like others, Jay and I have decided to devote the week of July 16 - 20 to anyone who wants to come in and ask questions of us to help if they are in the right option or see if they could be doing better. Come in with your statements to see if you are getting the best deal. You may wonder if you have enough equity to look at an investment property or getting ready for your first purchase. We will also be offering tips to reduce your mortgage loan. Just ring up and make an appointment.
NAVRA
Except for Tuesday 17. This day I will be hosting an information day for Roger Fusca from Navra Financial Services. From 9.30 - 11.30 in the morning Roger will be outlining the strategy of Navra and how to better leverage your equity and assets. In the afternoon Roger will make himself available for one on one 30 minute sessions for anyone wishing to follow up. Please contact me if you are interested as numbers will be limited to 10. It will be in my office at #8, 19 - 21 Centennial CCT, Byron Industrial Estate.
PROPERTY
If the number of loan and buyer's agent enquiries I am having is any indication then the market is certainly on the move. I went to inspect 3 Ocean Shores and 1 Mullumbimby property last weekend and 2 of them were sold after only been listed a week. Byron is lagging behind other places that are taking off like Brisbane and, to a lesser extent, Melbourne. Last month there was a 100% clearance rate at auctions in Brisbane and that doesn't happen often.
The chart below is from Residex. It shows that there has been a slight pull back in prices in May which was unexpected as most punters feel the market is on the move. It could be explained by the usual slow down for winter as well as the number of investors unloading properties to plow into super. Even though it has been shown that over 10 years it would be much better return to keep an investment property than to put the same amount of money into super. Sorry I don't remember the source of that number crunching but the gist was that an investment property is going to return more in the long run than super.
The table below shows the latest median values, growth rates and rental yields for the month of April 2007.
Houses |
|||||||
Area |
Median Value |
Growth |
Rent |
||||
10 Years % pa |
Last Year |
May 2007 Quarter |
May |
Return |
May 2007 |
|
|
ACT |
$420,000 |
11.10% |
11.58% |
3.35% |
2.15% |
5.06% |
$410 |
Adelaide |
$317,000 |
10.12% |
9.36% |
4.36% |
0.90% |
4.53% |
$275 |
SA Country |
$216,000 |
9.96% |
8.62% |
4.57% |
0.87% |
4.71% |
$195 |
Brisbane |
$382,500 |
10.83% |
10.86% |
4.57% |
0.13% |
4.37% |
$320 |
QLD Country |
$343,500 |
9.88% |
12.58% |
4.74% |
0.44% |
4.86% |
$320 |
Darwin |
$374,500 |
9.43% |
12.68% |
7.74% |
3.13% |
5.01% |
$360 |
Northern Territory |
$340,500 |
8.34% |
11.94% |
6.29% |
2.60% |
5.36% |
$350 |
Hobart |
$317,000 |
11.56% |
4.32% |
-1.11% |
-1.43% |
4.61% |
$280 |
TAS Country |
$234,000 |
11.44% |
6.73% |
2.23% |
2.81% |
4.46% |
$200 |
Melbourne |
$410,000 |
10.12% |
8.41% |
4.81% |
-0.98% |
3.82% |
$300 |
VIC Country |
$243,500 |
9.72% |
2.97% |
1.25% |
-0.91% |
4.90% |
$230 |
Perth |
$494,500 |
14.54% |
8.50% |
0.77% |
-0.66% |
3.06% |
$290 |
WA Country |
$340,500 |
12.09% |
15.07% |
1.63% |
-1.08% |
3.52% |
$230 |
Sydney |
$558,000 |
8.55% |
4.00% |
3.56% |
0.91% |
3.74% |
$400 |
NSW Country |
$312,500 |
9.56% |
3.23% |
1.69% |
2.25% |
4.17% |
$250 |
That’s all for now and look forward to seeing you soon.
Michael M Murray
Buyers Agent/Mortgage Broker