Empower Blog Property & Financial Investment

Negotiation Tactics in a ‘Sellers’ Market – Part One

It’s an understatement to say that the residential property market is ‘hot’, as values in almost all major locations are up on this time last year. Sydney, Melbourne and Perth are leading the charge, as supply is outstripped by demand from a growing population. In real estate terms, we are currently in a sellers market, whereby in most loc...

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Rental Yield Outlook Positive

2009 saw many first home buyers take advantage of the additional government stimulus schemes on offer to buy their first home and get out of the rental market. This impacted in less demand for this sector of the market. However this decline was offset against the overall population growth in the major cities centre's around the country. BIS Shrapn...

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Pressure on Housing—Long term

Last week the government released their third Inter generational Report forecast. It is forecasting the population to grow from current levels of 22 million people to 35.9 million by 2050.  An increase of 13.9 million people with the level of older Australians increasing as wills the average age they will be living too.  This means a double wh...

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Cash flow and Provisioning Critical

I am on record pretty much every week, talking about how property investing is a long term play and why would you sell if property values continue to grow and also provide immediate and on-going income via rent payable by tenants. Yet one of the barriers of entry for some to invest in property is the fear of borrowing money (debt) associated with ...

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RBA Rates Decision – February 2010

The RBA announced an increase in the cash rate from 3.75% to 4.00% today.  This is the fourth consecutive increase in rates (given the RBA doesn’t meet in January).  The cash rate has now moved up 1.00% from a low of 3.00% back in April last year. Most forecasters are expecting the cash rate to increase by another 0.75% by the end of the yea...

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Property Prices Rise Again

December median prices are in and guess what; values are up again across the country.  In fact the Oct – Dec quarter saw some really big percentage increases in some states and their respective suburbs.  For those of you who have been reading our newsletters for the past couple of years, you know my position on this; I’ve been saying certain ...

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2009 Review & Outlook for 2010….

Before we look at the prospects for 2010, let’s review the 2009 property year, as it was a wonderful year for ‘us’ property investors and for those of you who are new to our newsletter and my comment each month I just want to highlight some of the comments I made in previous newsletters to re-enforce the message regarding property as a wealth...

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Time to Add to your Property Portfolio?

2009 certainly was a better year for property than 2008, with some cities such as Melbourne recording high teen’s in capital growth for the year. Sure this is something every property investor gets excited about and you should, as your wealth base should have grown from your property investment over this period. Given this has been the case an...

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2010 Economic Outlook

Australia has defied the rest of the developed world and is looking at its 19th consecutive year of positive economic growth. Most economists are predicting that the economy will continue to grow this year and will fare much better than other economies. Gross Domestic Production (GDP) will be boosted by the planned Government infrastructure spen...

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Holiday Homes as Investment Properties

Its holiday season and that time of the year we all head to the beach or the bush for our Christmas and New Year breaks. It’s a time we get to read the paper from front to back and also even pick up the local papers for a catch up on what's happening in our favourite Christmas holiday destination. It’s also a time we get to wander up and down t...

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US Economy heading into the festive season and 2010

US consumer sentiment unexpectedly fell in November while the trade deficit widened by more than forecast in September, which appears to be in line with the Federal Reserve's view of a fragile economic recovery. Chicago Fed President Charles Evans said US monetary policy will remain "highly accommodative" for quite some time, and possibly beyo...

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Developing Property and GST

In a recent case at the Federal Commissioner of Taxation, Administrative Appeals Tribunal a taxpayer was fined over $160,000 for failing to disclose the sale of new townhouses in their business activity statement. If you are building a property with the intention of selling the property for a profit, then you are required to register and charge GST...

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RBA Rates Decision – December 2009

The RBA chose to increase interest rates by another 0.25% to continue its program of moving rates up from their emergency levers.  This is the first time the cash rate has moved up in three consecutive months, since the RBA starting announcing cash rate movements back in 1990. Brief Interest Rate Outlook for 1st Quarter of 2010 So will inter...

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