CITYLIFE INVESTOR NEWS

The Australian Investor and Property Buyers

Newsletter

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21^st  July 2009

In this issue:

1.

Australia's on the rebound!

2.

The turnaround is everywhere...new loan approvals soaring in every city, especially Melbourne and Sydney.

3.

Prices are rising everywhere

4

What type of investor are you? 

July 2009 The Australian Financial Review:

"Australia's median house price has recovered almost all of last year's falls and is approaching a new high, latest figures from RP Data show. In contrast to forecasts of weak house price growth this year and the potential for double digit losses, prices in every capital city other than Perth have risen since January"

At Citylife, we have now completed our own analysis of the RESIDEX official house price figures, and this is the result:

SYDNEY:

The lowest point in the market was recorded in January 2009. Growth since then has been over 3%. Prices are now just 2.2% off their all time high.

MELBOURNE:

The lowest price was in February 2009, with last years highest price being recorded in September 2008. Since February prices have already eclipsed last year's highest price, and have reached a new high.

BRISBANE:

The previous highest point was recorded in May 2008, with the low point being March 2009. Prices have risen since March and are now just 0.75% away from their record high in early 2008.

PERTH: 

Even Perth could be on the rebound. The lowest point was March this year, but prices have rebounded by nearly 4% since then, although are still down by over 5% from their previous high point in January 2008.

NOW is your chance to invest near what history is likely to show was the bottom of the market, in early 2009.

"In the 5 months to May 2009, we can officially say the market has recovered"   RP Data's Tim Lawless AFR, July 2009

If you were thinking of making JUST ONE investment in Australia in the next 12 months, you would have to seriously think about moving sooner rather than later.

We have several excellent options for you, all of which are completely different, and will suit different investors

Which type of investor are you?

1.

OFF-PLAN, LONG COMPLETION INVESTOR

This is someone who wants to just put down 10% deposit, and make no further payment for a few years. This investor is either using their cash for something else, wants time to save a further deposit, or will make other shorter term investments in the meantime.

This strategy is very popular with many people, and we have a perfect property that will suit in Melbourne.

www.melbournecitylife.com

2.

HIGH RENTAL RETURN INVESTOR

This investor is chasing higher than normal rental returns, and also wants capital growth. Therefore they will not buy student housing (high rental, no capital growth) or serviced type apartments (low capital growth, hard to resell) and will look "outside the box."

Our new release of warehouse offices could offer the solution. Affordable commercial property, offering high rental returns and great prospects of capital growth.

Visit:  www.southmelbourneoffices.com for more information.

3.

IMMEDIATE COMPLETION INVESTOR

This investor is looking for something they can buy and settle on shortly, to take advantage of their own financial situation, a loan they may have approved, and who wants to get a better return than leaving money in the bank.

We have something coming up shortly in Sydney, that not only offers this, but also has the benefit of (unlike older property) strong tax advantages that investors can use immediately.

Also ideal for those changing jobs, (so may not qualify for a loan later) setting up their own business, migrating, or returning to Australia to live.

4.

PRIME LOCATION INVESTOR

This type of investor understands that it is prime locations that not only are the last to fall in a downturn, but hold their value better and  usually generate strong capital growth in a upturn.

They know there is a premium to pay for this type of property, and that rental returns are a bit lower, but they also understand that this is more than off set by the ease of resale, the security of holding value, and the tenancy demand.

Our forthcoming project in Sydney's exclusive Neutral Bay could fit the bill here.

www.NeutralBayApartments.com

Copyright 2009 The Citylife Property Group.     All rights reserved.

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