The property landscape is littered with facts and figures from so many sources; it becomes difficult to wade through the hype, the assumptions and the catchy headlines to really understand what the property market is doing.
The information that I get is direct from real estate salespeople and real estate agents telling me what is going on at the coalface. What the numbers are at open for inspections and the level of interest, how the bidding was at the auctions and what the competition was like and how the prices are doing. This I can rely on.
So if I tell you that the market is still strong – it is. And it still is.
There will always be the doomsayers that love to create fear and they are out in force right now about the market and about negative gearing.
Let’s look at the facts. Do you remember the last time the government mucked around with negative gearing? Maybe I need to remind you that many investors stopped buying and all of a sudden there was pressure on the government to provide more housing. So, what happened? They brought it back very quickly.
If you are an investor investing in property; you are in the property business. If you are in a business, you are allowed to claim expenses against your business. So, is there any reason why a property investor should not claim some expenses that he incurs in his property business? And I think that you will find that the average property investor is not claiming that much, anyway.
The other important fact that people forget is that in Melbourne there is an established ‘Property Cycle,’ and it generally is about a ten-year cycle. So all you have to do is look at the history and learn from that. Very simple!
We know that in the last ten years property values in Melbourne averaged a 7.24% growth per annum. Surprised? You should not be! Just check the last 50 years and it is not that much different.
The median value of a house in Melbourne today is around $740,000. Not bad when you consider that in 1973 when I started selling houses in Boronia and Ferntree Gully they were around $15,000. Yes, that was for house and land and that was 43 years ago. So, if what I am saying is true the median value in Boronia should have doubled at least four times in 43 years.
Do the maths. The median price in Boronia today is around $580,000.
$15,000 doubled five times is $480,000. I have said it a hundred times or more, property in Melbourne doubles every 7 to 10 years.
This means; if you bought your home over ten years ago, it should be worth double what you paid for it.
My question to you is; ‘what are you doing with the equity that you now have?”
If you are like the majority of people; you will say “Nothing!” I say you are missing an easy and safe way to create wealth for yourself.
How? Just ask me. It is safe and simple.
Q: What makes money?
It is there, it is yours, it is easy and you are not doing anything with it. Say no more!
As I said in my previous blog post; this year I will be harping on creating wealth through property, because it saddens me to see so may people missing out on what is ‘easy money.’ It is easy when you know how and if you do not know how; all you have to do is ask by emailing email@example.com.
Also, if you want to keep abreast of the current trends and information like this, you can like us on my Facebook page ‘Property Advocacy Melbourne’
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Till next time