CITYLIFE PROPERTY NEWS
15 May 2009
CITYLIFE INVESTOR NEWS The Australian Investor and Property Buyers
Newsletter
**************************************************** 15 May 2009
In this issue: - 1. Newsletter Archives 2. Links 3. There's profit in new 4. House or apartment? 5. Prahran sales explode 6. All systems go 7. Commercial for investment?
1. NEWSLETTER ARCHIVES
If you are a keen student of Australian property trends, you may like to note we have our newsletters from 2009 now archived, so you can refer to them at any time. These can be found on the Citylife website, under "THIS MONTHS NEWSLETTER".
2. LINKS
Under the "LINKS" section on our website, we have access to lots of the latest Australian property news, graphs etc.
3. THERE'S PROFIT IN NEW
There's often additional profit to be made by buying brand new, or "off-the-plans".
As well as the obvious benefits of locking in at today's prices on a low 10% deposit in a recovering market, there are the additional benefits of high tax deductions, new appliances, the latest in construction and building methods, the latest internet technology incorporated in each apartment, new facilities and designs etc.
In tax relief alone, the tax office will allow you to claim the whole construction cost of the apartment in tax benefits, as well as every single item inside in the way of fixtures and fittings. This can equate to over 50% of the cost. Always buy a property built after 1985 to get this benefit, although the newer the better.
If there is a long completion, your funds may be used for other investments in the meantime. And you have plenty of time to sort out financing. Tenants tend to flock to new properties.
Some analysts rate all these factors, plus the fact you only require 10% deposit initially, as being worth around $60-$100,000. In other words, if you are comparing an older property with a brand new off plan property, unless you are able to buy the older property in the same location at $100,000 less, it can make better investment sense to buy the new one.
4. HOUSE or APARTMENT?
If choosing between a house in an outer or "new" suburb, or a more expensive, but better located apartment, as a general rule go for the apartment, especially in the larger cities. Our data shows that capital growth between apartments and houses does not differentiate much any more, as more and more people in Australia move into apartments.
The maintenance on apartments will be less. Management will be easier. Rentals will be higher.
If you can find it at a reasonable price, buy waterfront, near city, inner areas, or Harbour or beachfront property.
The real problem (overlooked by most investors in the current market) will in actually being able to find something to buy. Our Parkside apartments in Brisbane launched 6 weeks ago, has just one apartment left, and our new Prahran apartments in Melbourne have seen over 70% sold in the first month. (see story below)
5. PRAHRAN SALES EXPLODE
Prahran Apartments are proving to be extremely popular with local investors and owner occupiers...the project is selling extremely quickly in the local Melbourne market… This small boutique type of project seldom comes along in this location.
Sales Manager Stewart Shaw said "April has been a very good month in terms of the number of sales in the Prahran Apartments project"
He goes to say "The project is proving to be extremely popular with locals who know the area and are familiar with how much it has to offer…most clients see this project as a great opportunity to secure at today's prices in a great location from a quality developer with a huge shortage of supply of new property."
Don't miss out on what local investors are taking advantage of…
Currently available from a deposit of just A$38,000 one bedroom. Two bedrooms, from just A$66,000.
6. ALL SYSTEMS GO
Government Grants, low interest rates and other incentives have now made Australian home ownership as cheap as renting, bringing new buyers out in droves and despite economic uncertainty home sales across Australia are being seen at levels not being experienced for years. Home sales in West Australia rose to their highest level in 9 months. The turnaround was not just in WA. For the first time since 2007, sales in every city rose, up to their best levels since mid Feb 2008.
The only real downside to this is the Banks are inundated with loan applications, so if you are trying to buy a property now, you absolutely MUST allow many weeks extra time for processing.
7. WHY INVEST IN COMMERCIAL PROPERTY?
High yields (7% Net and above).
RENTS INCREASE EACH YEAR WITH INFLATION. (or market, whichever is higher).
Freehold Title.
Long Leases, often 3 years or more.
Tenants pay outgoings.
Low initial deposit cost from as low as AUD $17,370 (until sold).
Excellent tax benefits with over 50% of the purchase price available to be tax deductible.
Scarcity. There are no other new off plan offices available in any prime location to our knowledge in the whole Melbourne market.
No restrictions on Foreign investment. Resale to Foreigners allowed.
Huge Stamp Duty Savings. Huge Tax incentives.
www.CitylifeProperty.com Copyright 2009 The Citylife Property Group. All rights reserved.
~~~~~~~~~~~~~~~~~~~~~~~~~~~ Hong Kong Office tel: (852) 2525 5680
Singapore Office: (65) 6550 9696 ------------------------------------------------------------------------------ Contact Us: If you have specific requirements, wish to ask any questions relating to your personal situation, or have any questions, email us direct at:
info@citylifeproperty.com
-------------------------------------------------------------------------------
This message and any attachments may be confidential and/or legally privileged. If you received this message in error, please do not copy or distribute it. To the extent that this email contains information for investors Citylife does not warrant that it is accurate or complete and no responsibility or liability is accepted for the consequences of any actions taken on the basis of this email. Information provided is of a general nature only, and investors should seek their own advice.
| 