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Why you should get busy investing in Moreton Residential Property in 2013

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Is now the right time to be investing in Moreton rental property?

Terry Ryder has some interesting insights for Moreton Property Investors on ways to pick the ideal time to get into the market.

The biggest twits in real estate are the people waiting for the trough.  moreton investor moreton property investment

Many tell me they’re not going to act until “the market bottoms”. I ask how they think they’ll be able to identify the bottom when it arrives. They don’t have an answer.

Primarily, I think, they’re waiting to read about it in a newspaper.

Here’s the problem. There’s nobody writing for newspapers with sufficient expertise to know a trough from a peak.

Here’s another. By the time journalists start writing about the market bottoming, after receiving a press release from an attention-seeker, it will be too late. It will have occurred six months earlier.

And here’s the biggest problem. While people have been scratching their bottom waiting to pick the bottom, the bottom has already happened. In many key markets, it’s already part of history.

It may not feel so for some people, but 2012 has been a much better year in real estate than last year. Darwin and Perth have had huge rental increases and prices have started to follow. The bottom has long since passed in those two cities.

The latest figures for Sydney and Moreton also indicate the declines of 2011 and early 2012 have been arrested, and those markets are also moving forward. 

Around Australia, many regional markets have left their troughs in the distant past and have had strong growth years in 2012. There are dozens where prices grew 5% or more in the past 12 months.

The trough-seekers have been piling into markets like Gladstone this year, having missed the trough which happened two to three years ago.

As I wrote in a Property Observer column earlier this month, it doesn’t get any better than this for property buyers. All the indicators – including rising sales activity, increased lending levels, improved clearance rates, six interest rate reductions and seven consecutive quarters of improved affordability – declare that now is the moment.

So, following an improved 2012, next year will be better again. I’m expecting growth in all the capital cities except Melbourne (Hobart I’m not sure about – weak economic fundamentals may be counter-balanced by the advancement of key construction projects and state government spending packages).

The regions will again provide the most upside for property investors. Many regional towns and cities have been solid in 2012 and some have been very strong.  There will be more growth markets in 2013 than this year.

It’s important to pick the right ones. The key factors to look for include diverse economies, proactive local councils, spending on infrastructure and expansion of jobs-creating businesses.

The best capital growth will be found in those that experienced significant rental growth in 2012, but not the same level of price growth – yet.

Most likely these will be regional areas touched by the resources sector but not dependent on it. Toowoomba in Queensland and Tamworth in NSW provide a couple of pertinent examples. These places have been important, prosperous regional centres long-term but have an additional powerful element to their economies with the emergence of resources activity in their area of influence.

These are safe places to invest – you’re getting the benefit of the mining sector without the risk of buying in a mining town.

So here’s the best tip for getting the best out of 2013: get busy now. Don’t be a herd animal. Most investors follow the pack and end up like pigs feeding at the trough, in a shambolic frenzy – except, it’s not a trough any more. By the top everyone’s gorging themselves, it’s well on the way to the peak – or has already passed it.

This article was originally posted on propertyobserver.com.au and written by

Terry Ryder who is the founder of hotspotting.com.au and can be followed on Twitter.

For more, watch Terry’s free webinar Regions vs capital cities: Where to invest in 2013

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Investment Advice

SEQ Population Growth needs 12 Springfield-style mega cities to cope: Planner

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Southeast Queensland needs a dozen mega-developments like Springfield if it is to cope with the extra 2.2 million people over the next three decades, a respected urban geographer has told Fairfax Media.

Springfield is expected to be home to 80,000 people by 2030. Photo: Glenn Hunt

Springfield is expected to be home to 80,000 people by 2030. Photo: Glenn Hunt

Professor Bob Stimson, Emeritus Professor in Geographical Sciences and Planning at the University of Queensland, told Fairfax Media there would be 5.5 million living between Noosa and Tweed Heads within three decades.

Professor Stimson – an analytical human geographer and regional scientist for 49 years – said Southeast Queensland could no longer rely on increasing densification with the existing area.

Population growth will require up to a dozen mega-planned communities to cope with an extra 2.2 million people. Photo: Glenn Hunt  Read more: http://www.brisbanetimes.com.au/queensland/seq-population-growth-needs-12-springfieldstyle-mega-cities-to-cope-planner-20150626-ghyxzb.html#ixzz3fdZRqltR

Population growth will require up to a dozen mega-planned communities to cope with an extra 2.2 million people.Photo: Glenn Hunt

Professor Stimson said between “10 and 12” large master-planned communities like Springfield or North Lakes – on Brisbane’s northern-edge – would be needed for the extra 2.2 million people.

“There is no way that all of the growth that is going to occur can be accommodated through urban infill,” Professor Stimson said.

“You are still going to need greenfield growth, fringe growth,” he said.

“So the big issue for Southeast Queensland over the coming decades is that you are probably going to need 10 or 12 of those types of developments to be occurring.”

Greater Springfield is a privately-owned 2680 hectare master-planned community south of Ipswich that has around 20,000 residents in two suburbs; Springfield and Springfield Lakes.

It started around 1995 and is planned to have 80,000 residents by 2030.

Professor Stimson said “green belts” between the Gold Coast, Brisbane and the Sunshine Coast were under pressure, but he believed would be protected because of the state government’s Southeast Queensland Regional Plan.

He said there was land near Beaudesert and Ipswich and between Brisbane and the Gold Coast for residential development.

“There is plenty of land that is not prime agricultural land, that is not ecologically important land, national park or high conservation-value land that could be taken up for that sort of growth.”

On Friday Australand launched a $400 million master-planned community for 25,000 people over 25 years called The Rise at Park Ridge in the Logan City Council area.

Australand’s Queensland general manger of  residential growth Cameron Leggatt said the development targeted low-cost home and land packages ($280,000) and provide 13,000 local jobs over 25 years as part of 2450-hectare project.

“With housing affordability throughout Brisbane and South East Queensland out of reach for many Australians, The Rise is keeping the dream of home ownership alive,” Mr Leggatt said.

Professor Stimson warned that jobs growth needed to accompany residential growth if it pushed further west than Ipswich.

He said jobs growth remained concentrated in the Sunshine Coast to Brisbane to Gold Coast line.

“Over the years I have been quite a critic of the Southeast Queensland planning process, which has tried to force growth into that western corridor because all the economic data demonstrates all the jobs growth is along the linear corridor that stretch to the north and south of Brisbane.”

Unemployment figures show Ipswich’s unemployment rate marginally higher in May 2015 than Brisbane’s western suburbs.

Unemployment – May 2015

Brisbane’s southside – 5 per cent

Brisbane’s inner-city – 5.5 per cent

Brisbane northside – 5.6 per cent

Gold Coast – 6.1 per cent

Brisbane West – 6.3 per cent

Moreton Bay – 6.3 per cent

Sunshine Coast – 6.8 per cent

Ipswich – 7 per cent.

However Ipswich Mayor Paul Pisasale said Professor Stimson appeared to be unaware of new job developments in Ipswich.

Ipswich’s labour market statistics show unemployment beginning to fall from 9 per cent to 7.4 per cent, with 2600 jobs created since March.

“We have a massive amount of industrial, commercial and retail development including the largest concentration of transport and logistics companies in Australia with DB Schenker, Northline and TNT at Redbank,” he said.

Cr Pisasale said jobs were being created at the new HOLCIM project underway at Swanbank, the new GE Electrical building at Springfield Central and with the Orion Shopping Centre doubling in size.

“RAAF Base Amberley is also continuing to expand with a workforce of more than 5000,” he said.

“Ipswich and the western corridor has a major role to play in satisfying growth in Southeast Queensland.

“We can’t continue to simply concentrate growth within Brisbane and the coastal fringe if we think we will maintain the same quality of life.”

In May 2010 former premier Anna Bligh announced plans for three mega-cities in Southeast Queensland to provide homes for 250,000 people.

Those three cities – at Ripley (near Ipswich), Yarrabilba (south of Logan) and Bromelton – about six kilometres south of Beaudesert – are all underway

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Investment Advice

Low interest rates cuts negative gearing ATO investor claims in 2012-13

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Low interest rates cuts negative gearing ATO investor claims in 2012-13

Low interest rates cuts negative gearing ATO investor claims in 2012-13

 

Record low interest rates have shown up in new statistics from the Australian Taxation Office, in a sizable drop in negative gearing tax claims by property investors.

Claim for rental properties fell from around $13.8 billion to $12 billion between the 2011-12 and 2012-13 financial years.

The latest statistics for 2012-13 show that 1.26 million people deducted losses made on investments (including mortgage interest) from their overall income, from the 12.7 million lodged individual tax returns.

The overall cost of negatively-geared rental properties has fallen by $2.4 billion, or 31 per cent, in 2012-13, due to record low interest rates and higher rents.

The Tax Office’s latest statistics shows 1.9 million landlords.

The value of rent returned was up 8.6 per cent to $36 billion but the value of interest claimed was down 6.7 per cent to $22 billion.

While the number of landlords with negatively-geared properties increased by almost 60,000, their tax deductions fell 13 per cent.

​The highest number of property investors claiming tax deductions had a taxable income – after tax deductions – of between $37,000 to $80,000 a year.

By JONATHAN CHANCELLOR

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Nearly two milllion negative gearing investors across Australia: ATO

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Nearly two milllion negative gearing investors across Australia: ATO

Nearly two milllion negative gearing investors across Australia: ATO

Negative gearing property investors now total 1,967,260 across Australia, according to the ATO latest data.

That’s up from the 1,895,775 in the previous tax year, 2011-12.

There were 1,811,175 investors claiming rental income in the 2010-11 year.

The ATO has a investor rental video series on working out your tax correctly.

The statistics for the 2012–13 income year were sourced from 2013 individual income tax returns processed by 31 October 2014. The statistics are not necessarily complete.

This data is not representative of the total number of properties.

By JONATHAN CHANCELLOR

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