The Australian government has declared a fiscal deficit of $12 billion but the situation does not warrant the abolition of Negative Gearing. Stacey Moseley for the Real Estate Business writes that the proposition to abolish Negative Gearing in order to redeem the Federal Budget could have some serious consequences for the property market.
All Commentaries
These are all commentaries on articles and videos on the web that are interesting, relevant or simply entertaining to people interested in Sydney Real Estate.
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The Best Way to Insure Your Property Investment Portfolio
The property market has so much to offer, but you have to be prudent in your understanding of the market-scene. The real estate world moves through a series of crests and troughs and hence it is in your best interest to diversify your property investment portfolio. Mark Armstrong for the Property Observer writes that you can do it in two ways.
The best and the worst property investment advice
Property investment is not easy. If someone claims it is easy, he is lying through his teeth and it might just be the worst property investment advice that he has to offer, says Michael Yardney for the Property Update.
Get Rich with Property Investments
If you only work hard on your job, you’ll never get rich – that’s a fact! Michael Yardney, director of Metropole Property Strategists, discusses the importance of capital gains, how it can make you rich, and how to minimise risks. The US Internal Revenue Services reported that of the hundreds of big earners in America, 45.8% got their wealth from capital gains.
Yardney also shares his 4 strategic approach to property investing that’ll reduce risk and increase your chances of getting higher capital gain. His strategy includes choosing unique or special properties priced below their intrinsic value located in areas where there’s a long history of high capital growth and refurbishing them to maximize gain.
Although you can’t succeed most of the time, by following Yardney’s strategy, you can minimise risk and profit from your property investment. You can also try and revise other property investor’s advice to become your own. You can learn how to do it only if you do it.
You can read the whole article here.
What criteria do you use when choosing your property investments?
The least and the most trusted professions
In a survey undertaken a fortnight ago, 645 respondents gave their vote of confidence to different professions. The results once more reaffirmed our belief that the car salesmen are the most untrusted profession around, says Gareth Hutchens for the Sydney Morning Herald. While only 4 percent of respondents trusted car salesmen, the figure was 12 percent for the real estate agents, putting them at the 28th spot, just one ahead of advertising agencies.
FYI, nurses topped the poll closely followed by doctors and pharmacists.
More people have reposed their trust in the property market
The faith shown in the real estate agents has not taken a beating and there is an increase of 3% (compared to the previous poll) in the percentage of respondents trusting them. You can read the full article here.
Conflict of interest
Being a property agent is like walking on a tightrope. The public perception is almost always prejudiced because people do not associate fair-play with those who are expected to make a fortune out of selling you a plot (or selling your plot). It is not to say that the agents involved in the game are saints. Sometimes, they suffer from conflict of interest and facilitate a property sell-off simply because they typically need the seller to reduce their price and the buyer to increase their offer. At such times, some might argue they do not work in the best interests of either the seller or the buyer.
More transparency required
In my opinion, a little more transparency is required to win the public trust. For instance, off-the-shelf properties or pre-construction units promise a lot but more often than not fail to deliver even half of what is promised. At any rate, various hidden clauses emerge on a later day. This has to change and pretty quickly too.
Small apartments may make great investments
Australia is living its dream of being the land of the largest properties but at the same time it is doing equally well for a horde of small one-bedroom units. Michael Yardney for the Property Update writes how such properties are appealing to the 4 chief types of buyers:
