With all of the negitive press that we have been bombarded with lately, it’s nice to finally read something positive.   Michael Matusik paints a completely different picture and presents a positive view based on the fundamental fact of Supply and Demand.   Read more here

Welcome to our monthly newsletter for June 2008.

Thank you once again to all clients who have responded with excellent comments, congratulations and advice we appreciate your time.  Enjoy this month’s reading with an interesting view from PRD and an update on the Lewin Suites Development opportunity.  Newsletter June 2008 

West End has been noted as one of the fastest growing areas of Brisbane with it’s close proximity of only 3 klms to the city, Brisbane River precinct and Universities.  It is fast becoming the new ‘vogue’ area with trendy cafes and a hint of the bohemian lifestyle as you stroll down Boundary Street. Investment properties are seeing strong, excellent returns on resale, and rentals are coming more in line with the property values. To find out more about the The Jewel of Brisbane  read the latest report from PRD.

Have I got your attention?   Does this seem too good to be true?   Read on, it is a true story about one of my clients, and as I have been involved during the whole process and have been witness to the events as they have unfolded, I can vouch for their factuality. 

During my 25 years in property sales, I have read and heard about so many get rich quick schemes, and when it comes to Investing in property there seems to be countless ways to go about creating wealth.  It is no wonder so many ‘would be’ investors become confused, and why ultimately so many get it wrong.   

When we have so many options to choose from, and so little factual information and guidance supplied, I am not surprised to hear that so many people get cold feet and do nothing at all.   Let’s consider the options for just one minute,  Renovators, Flips, Positive geared properties, Negative geared properties, Houses or Units, Land or no land, Rent to buy schemes, Developments, Subdivisions and the list goes on, the options are limited only to your imagination, affordability, self interest, comfort, knowledge and abilities. 

This story is not about the right or wrong way to go about investing, it is not about saying this method is better than any other method, it is merely one person’s way of achieving financial success.   I can hear the doubters and nay sayers now…. ‘Oh yes they were lucky, you can’t do that now the market is different’.   Well perhaps to some extent they are correct, you can’t emulate this example exactly, but I’m sure that the theory can be copied, but here is the catch.   You have to want to and you have to set a goal and stick to it….   They did. 

I first met this couple in July 1995 at an open house that I was conducting.   During the conversation it became apparent that they had a definite investment plan and the property that they were inspecting was way above where they felt comfortable beginning.  I arranged to show them a unit that I believed was a good buy; it was in a good location, new, and would rent well.   To my surprise they decided to buy two units one in each name in order to maximize tax deductions, and from then on as the need arose they added to their portfolio.   Apart from one block of flats (positive geared from day one) and one small lot development, all of the properties were either new or near new 2 bedroom units within 5k of the city.   A spreadsheet of their purchases can be seen in this table.   It shows original purchase price, weekly rent return, and current value with current rent return. 

As I am sure that many reading this will still be doubtful as to its validity, I have done a PIA analysis (Jan Somers program) on each property, and I have collated the results in the spread sheet here.   Please note that my clients applied for, and received, a tax variation certificate and have adjusted this variation as the need arose. 

In essence the results show that after 13 years and a personal contribution of $42,960 this young couple have achieved an asset value in excess of 3 million dollars.  As you can see from the projected years 14 and 15, if they do nothing else, these properties are now cash flow positive and they are actually beginning to earn an income (which they will have to pay tax on).   The next five or ten years look good, as the hard yards have been done, and now the compounding effect takes over.  

Should anyone reading this story wish to discuss any issues further, they are welcome to call me on (07) 3004 7141 or mobile on 0411 189 029.

As a buyer / agent are you aware that Real Estate Agents are not permitted to enter “Special Conditions” onto REIQ Contracts.  Should a buyer which to stipulate special conditions and include them into the contract, they must have thier own solicitor draw up the contract at the buyer’s expense.

Read more…..     http://www.news.com.au/couriermail/story/0,23739,22601254-27197,00.html

The more we get the more we want and no one respects anything that they get for nothing.

This is an excellent report and should be read by all in its entirety here. http://www.theaustralian.news.com.au/story/0,25197,23736397-25658,00.html

- FOR EVERY ACTION THERE IS AN EQUAL AND OPPOSITE REACTION -

If we take all of the negative press to heart, we would be tempted to jump of the Gateway which in turn would give the Press a real human story to talk about.   Why is it that people show more concern about a perceived loss than the joy that they show on a perceived gain?

If the reports in this article are true then it would be a fairly safe bet to deduce that now is a good time toinvest in Property.

http://www.theaustralian.news.com.au/story/0,,23688731-25658,00.html

This is a great report and one that I would recommend all Unit owners read - especially the ‘Pet Friendly’ section.

http://blogs.realestate.com.au/newsandviews/2008/02/maximising_your_apartments_pot.html

HOUSE prices have fallen in half of Australia’s capital cities, offering the first widespread evidence that interest rates are taking their toll on values.

http://www.theaustralian.news.com.au/story/0,,23620584-25658,00.html

Welcome to the 2nd edition of our fortnightly newsletter.  Thank you to all those clients who responded to our first edition !  It was wonderful to catch up with so many of you, and bring you up to date on the direction BrisbaneUnits.com is taking.  Please feel free to contact us at anytime with comments or questions you may have.Why rents must rise….