Negative Gearing Investment Property

People often talk about “negative gearing” as being a good reason to invest in property, but it’s not always clear what the term actually means. “Gearing” simply means borrowing money to invest.  The “negative” part comes into the picture if the rent you get from the property is less than the interest part of the loan repayment plus the costs of maintaining the property (like repairs and council rates).  In contrast, positive gearing is when the rental income is more than these costs. You might also hear the term “neutrally geared” which is when the costs equal the income. The bonus of negative ... read more...

Property Demand in Melbourne and Sydney

Australia is in a two-speed property market with continuing strong demand in Melbourne and Sydney and uncertainty elsewhere, says leading real estate group Ray White. Ray White Joint Chairman Brian White said the group’s results for July reflected the “uneven forces at work” in Australian real estate markets as the nation heads to a federal election on August 21. Mr White said sales for July 2010 were down three per cent on the corresponding period in 2009. “As the end of July approached, fears were high that our results could be sobering as the calling of an election in Australia always results in ... read more...

Sydney Housing Property Market Strong

The Australian Bureau of Statistics has given a surprisingly strong reading for Sydney’s housing market, with prices up 4.9 per cent in the three months to June. However analysts say the market has indeed slowed, only it is not yet reflected in the figures. House prices rose nationally by 3.1 per cent over the June quarter, ABS house price indices for June found. Sydney was the top contributor, with price growth running at the same pace as the March quarter, with Melbourne close behind at 3.2 per cent. Nationally, house price growth has slowed each quarter after peaking at 5.5 per cent ... read more...

House Prices Reach a Ceiling Australia

Australia’s house price boom came to a halt in June, weighed down by rising interest rates, deteriorating affordability and global financial turmoil. National houses prices dropped 0.7 per cent in the month, the first decline in almost 11/2 years, according to the RP Data –Rismark Hedonic Home Value Index released on Friday. Luxury housing was worst affected. The top 20 percent of house prices fell 1.9 per cent from March. The managing director of Rismark International, Chris Joye, said buyers and sellers had lowered their price expectations as interest rates crept up. “We do not expect to see the market rise much further over ... read more...

National Tax Firm Opens First Queensland Office

Expanding taxation business Tax Today has opened its first Queensland office at Logan Central on Brisbane’s southside. The tenancy located in the heart of Logan on Wembley Road is the seventh nationwide outlet for Tax Today, which already has five offices in Sydney and one in Melbourne and is also planning to set up an office on the Gold Coast. The three year lease with a three year option at 94 Wembley Road was negotiated by Deepen Khagram and Shamir Patel, the co-principals of the newly opened Ray White Commercial office at Upper Mt Gravatt. Mr Khagram said Tax Today decided to expand ... read more...

Property Buyers Waiting for Spring

WE'RE only halfway through the winter, but at the top end of the country's housing markets sellers are waiting for the spring. Early this year, the stock market rebounded and shook off the global financial crisis malaise. Top-end buyers thought they had waited long enough and a flurry of sales took place. The May sale of private equity investor Patrick Keenan and his wife Elizabeth's three-level European-style villa in eastern Sydney's Vaucluse was the last big top-end sale, for $26.75 million. In March, developer Zig Inge sold the former Baillieu family's estate in Melbourne's Toorak for nearly $25m. And late last year the sale ... read more...

Warrnambool Beach Property Sale

THE prestigious home built for accomplished children's author Paul Jennings yesterday sold at auction, more than two years after being put on the market. The Warrnambool clifftop property, which has 180-degree views of Logans Beach, sold to an anonymous buyer for an undisclosed sum at an auction in Melbourne. Ray White director Leanne Mugavin said four people made bids for the 13-hectare Hopkins Point Road property, which was ownedbyJennings' former wife Claire. "The vendor and the buyer were really happy with the result," Ms Mugavin said. The property, known as Reverie, was on the market for about $2.5 million when it was first floated ... read more...

Geelong Property and Home Loans

Strong recent sales and leasing activity has highlighted the renewed confidence in the commercial property market in Geelong, according to Ray White Commercial. Ray White Commercial Geelong’s Andrew Crowhurst said there had been a rise in demand for Geelong property from Melbourne investors attracted by the potential to earn returns of around seven per cent from purchasing in the area. “Geelong is definitely losing that Sleepy Hollow tag,” Mr Crowhurst said. “The recent results in our commercial property market have shown increased activity from both investors and owner occupiers alike. “They indicate a renewed confidence from local business owners and strong interest from Melbourne ... read more...

Property in Australia

RAY White joint chairman Brian White has rubbished claims of a bubble in the property market. The group boss was responding to Edward Chancellor, of US investment management firm GMO, who labelled Australia as 50 per cent overvalued. Mr Chancellor, who tipped the tech wreck and the global financial crisis, described the situation as a once in 40-year event. But Mr White, during a recent visit to Geelong, labelled such comments as "dangerous". "We've been hearing that now for some time. Even over a year ago, when it was at its worst, they still were predicting huge declines," Mr White said. "There's two types of ... read more...

First Home Buyers – Owners Building Homes

Almost half of Victorian first-home buyers who have obtained state government assistance are building new homes. Figures released today show 14,179 first-home buyers have successfully applied for state grants so far this year. Of that number, 6873 of the applicants, or some 48.5 per cent, were building new homes, mostly in Melbourne’s outer-urban areas. Not surprisingly, the overall number of applicants has slipped from the same period last year, when the year-to-date total was 15,295. Since the high point last year, the federal boost for first-home buyers, which was additional to the state grants, have been wound back. Property analysts, and the ... read more...

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