Investment in residential property remains the safest bet since twenty years
Posted on | June 23, 2010 | No Comments
A study carried out by Australian Securities Exchange Long Term Investment Report and Russell Investments led to certain significant revelations. The study revealed that property delivered outstanding results for the last two decades, to December 2009. In addition, residential property returned to an average of 7.2% and 9.8 % during the same time-period.
The performances are based on actual returns that consider the costs involved in every investment and tax paid on income. Russell consultant Stanley Yeo maintains that after-tax results are extremely important to investors. However, many investors do not include their impact while evaluating the overall returns.
“It is important for investors to consider that tax is essentially a cost of investing. Our results show what a significant difference it can have on the end outcome for investors,” Mr Yeo says.
For instance, the latest results were switched on a pre-tax basis. The maximum average annual return of 9.8 % was attributed to property sector. The returns were slightly greater than the return of 9.7% from shares.
During a short time-period of ten years, residential property also assured the best returns, before as well as after tax.
Mark Forytarz and Paul Castran, the two renowned people associated with the famous real estate enterprise Castran Gilbert have a lot of experience in the industry. Both of them have presided over many real estate sales. Paul Castran and Mark Forytarz share their views about the events taking place in the real estate segment.
Investment returns (20 years to December 2009)
After tax (Top tax rate)
Australian bonds 4.5%
International shares 3.4%
Listed property trusts 5.6%
Residential property 7.2%
Australian shares 7.8 %
(Lowest tax rate)
International shares 4.3%
Listed property trusts 6.7%
Australian bonds 7%
Residential property 8.8%
Australian shares 9.9%
Before tax
Australian shares 9.7%
Listed property trusts 7.5%
Residential property 9.8%
Australian bonds 8.9%
International shares 4.8%
Tags: mark forytarz > mark forytarz realestate > paul castran > paul castran realestate
Right time to renovate
Posted on | March 15, 2009 | 2 Comments
Susan Cowen over at the Herald Sun, thinks that it is the right time to renovate your house: http://www.news.com.au/heraldsun/story/0,21985,25139346-5013926,00.html
TIP-TOEING around the real estate market as the financial crisis sinks its teeth into the property market?
Now could be the ideal time to make do and fix up what’s already yours, HIA spokeswoman Nassim Khadem says.
That means a makeover.
“Now is a good time to renovate because the cost of borrowing is cheap,” Khadem says.
“And the cost of some building materials is coming down, so if you’re doing a major renovation you could be better off.
“There is still a shortage of trades people, but the shortage isn’t as acute as it was some years ago.”
Khadem says lower building and borrowing costs have translated into record consumer spending on renovations.
“HIA research shows renovations investment increased 9 per cent in 2007-08,” she says.
“A steady 2008-09 is forecast, with some downside risk. But by 2010-11 it’s expected the renovations market will have grown 7 per cent and be worth nearly $7.4 billion.”
Though anecdotal evidence suggests large-scale renovations have largely been put on the backburner because of economic instability, kitchen and bathroom renovations remain popular.
“Kitchen and bathroom renovations are among the most popular renovations people do,” Khadem says. “Kitchens have become the jewel of the home.
“The kitchen is a central feature in open-plan living and consumers are willing to spend a lot to make their kitchens appealing.”
She says glass splashbacks, stone benchtops and European appliances remain in vogue.
Her tips for bathroom renovations are simple designs, big tiles and stone benchtops.
New environmentally friendly designs and products are also gaining popularity.
Renovation costs differ, depending on the extent of the makeover, but big renovations and high-end jobs such as installing a new kitchen with the latest European appliances and stone benchtops can cost upwards of $20,000.
Simple renovations such as paving, general repairs and landscaping can cost $5000 to $15,000.
For more information visit www.hia.com.au
Tags: financial crisis > forytarz > house > mark forytarz > paul castran > real estate > renovate
Smart customers are buying now
Posted on | March 15, 2009 | 2 Comments
Susan Cowen over at the Herald Sun, thinks that the right time to get into the property game is now: http://www.news.com.au/heraldsun/story/0,21985,25139349-5013926,00.html
CAN’T decide whether to buy property as the financial crisis sinks its teeth into the local real estate market?
Now could be the ideal time to give landlords the flick forever and secure land at one of Melbourne’s many estates, experts say.
Buying land represents value for money, with the average land price in Melbourne hovering at $166,000.
For less than $300,000 you can buy a four-bedroom house with two bathrooms and two car spaces, within 40 minutes of the city, in an up-and-coming neighbourhood where schools, shops and public transport are in good supply.
Spend that $300,000 in Carlton — or a similar inner-city suburb — and get a shoebox-like apartment for your trouble, if that.
Infochoice chief executive officer Shaun Cornelius says now is the time for families who rent to consider bidding their landlord goodbye forever by entering the property market.
“If you are ever going to buy now is the right time,” he says.
“Buy if you know you will have a job; if you are in the market you are much better off.
“Having money salted away in the bank that’s hardly earning any interest at an average 3.3 per cent is no good.”
In the scramble to attract new faces to up-and-coming communities, developers are also throwing increasingly enticing bonus features at buyers.
VicUrban’s Karen Attard says environmentally friendly extras top developers’ lists.
“Water recycling, (optical) fibre to the home, high-quality open spaces and urban orchards are some of the special features developers are throwing in to make buying land more attractive,” Attard says.
“Stamp-duty savings, higher first-home buyer grants and the opportunity to select a home that suits your needs also make building a good idea.”
HIA spokeswoman Nassim Khadem agrees that the current economic climate has helped make building an attractive option for families.
“Now is a good time to build because the cost of borrowing is much cheaper,” Khadem says.
“The cost of some building materials is coming down so you could be better off.
“There is still a shortage of tradespeople, but the shortage isn’t as acute as it was some years ago.”
Add to these factors the federal government’s $14,000 boost to the $12,000 metropolitan Victorian first-home builders’ grant (for houses priced less than $500,000) and landowners will be laughing all the way to the bank.
Tags: buying > financial crisis > house > interest rates > mark forytarz > paul castran > real estate
Young home buyers are being pushed to outer fringe
Posted on | March 15, 2009 | No Comments
Interesting article over at the Herald Sun from Craig Binne - http://www.news.com.au/heraldsun/story/0,21985,25149517-5013926,00.html
FIRST home buyers are being being forced to buy a record distance from the city as low interest rates and higher first homeowner grants push up prices in once affordable suburbs.
Only 316 of Melbourne’s 2720 suburbs and towns have a median price below the average first home buyer’s budget of $277,000, new figures released by home seeker website Our Home Sweet Home.
“Interest in properties in the $250,000 to $350,000 bracket is intense, with demand often outstripping supply, fuelling bidding wars in some areas,” said the firm’s chief executive, Peter Boehm.
“It is driving up prices and pushing many first-time buyers out of the market.”
Many traditional first home buyer suburbs have moved out of reach, including Derrimut, Caroline Springs, Bacchus Marsh, East Geelong, Sunshine North and West, St Albans, Hallam, Dandenong South and Campbellfield.
The median price in Caroline Springs, for example, rose 16.4 per cent to $324,500 last year while in Derrimut it rose 7 per cent to $365,500.
Mr Boehm said many first-time buyers were being forced to look farther out to find a home they could afford.
Many were being forced to buy up to 40km from the city in places such as Cranbourne, Frankston North and Melton.
The figures show that between the September and December quarters last year 46 Victorian suburbs or towns moved out of reach of the average first home buyer despite across-the-board affordability improvements. Only 19 new areas became affordable.
“It is a bit of a surprise that more suburbs are coming off the list than coming on to it,” Mr Boehm said.
He expected strong buying by first home buyers to continue to push up prices in their favoured areas as long as interest rates remained low.
Tags: first home buyer > interest rates > mark forytarz > paul castran > young
Missed it by that much - Mark Forytarz narrow escapes
Posted on | March 15, 2009 | 2 Comments
Paul Castran has just posted a link about Mark Forytarz’ narrow escape from the colapsing scaffolding in Commercial Rd, Prahran.
Have a read of Pauls blog here: http://www.paulcastran.com.au/2009/03/09/lucky-agent-mark-forytarz-dodges-bullet/
Or have a read of the original Age article here: http://www.theage.com.au/opinion/the-gospel-according-to-ray-on-collins-st-20090302-8lkg.html?page=2
Tags: castran gilbert > mark forytarz > narrow miss > paul castran > scaffold