In an article for the Property Update, Michael Yardney talks about 7 tips (read investment strategies) by John McGrath, offered by him on the Property Millionaires Tour. Here are the pearls for you:
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Invest keeping the property cycle in mind
Property values behave depending upon the phase of the cycle they are in. One of the truly long-standing gospels of property investment is that you should seize a deal at the right stage of the property cycle. This way, you come out paying the best price for a property deal.
At different times property prices may behave differently; sometimes they may languish well below the long-term trend, at other times shoot up a lot higher than the trend or remain closely attached to it. Careful evaluation of the property cycle then remains your first line of attack. Let me elaborate on this.
Drawing Up A Will For Your Estate? Read This
Death is not a pleasurable thought but if you have worked all your life to build an estate, you should give death some thought. The idea is not to die intestate or without having drawn up a will. I have seen various cases where those beyond the circle of spouse, siblings, children and close relatives have taken advantage in such situations. In the light of this fact, I confess liking an article by Ken Raiss on the Property Update.
Dissecting Costs Of Property Investment
My leanings towards property investment are an extension of my childhood perceptions. The way I read the world did not leave too much space for liquid assets and till today the regard for this non-volatile, “two-fold benefit” asset class has remained. This is also partly why I chose the career I am in.
While properties can offer extremely sound returns, I will be the first one to agree that they can be difficult to maintain too. There are the upfront costs along with a host of maintenance expenses. Let me take you through them.
AFS License A Must For Realtors Advising On SMSF
All is good till the real estate agents stick to purely property based advice. The problem begins when they start advising on financial products like Self Managed Super Funds (SMSF) for investing in real estate. Australian Securities and Investments Commission (ASIC) has taken the issue by the scruff of its neck, warning real estate brokers to procure Australian Financial Services License (AFSL) before making financial recommendations. Brendan Wong for the Real Estate Business sheds light on the topic.
ASIC also believes that certain financial advisors are receiving commissions from real estate agents for exhibiting their properties in a positive light to the clients. This is not tolerable and should be banned under the heading “conflicted remuneration”, feels ASIC.
You can read the original article here.
Do you think real estate agents have the know-how to advise on financial products?
Sydney Robustly Placed In This New Property Cycle
Michael Yardney, while writing an article for the Property Update, talks about a few things we have already heard but the perspective is fresh and the article quite engaging nonetheless. According to him, we have just hit the expansionary stage of the property cycle and this will cause a ripple effect. To explain, property prices will grow in the inner suburbs and slowly but steadily capital growth will move outwards, ending in the growth of the outer suburbs.
