All states across Australia have seemingly weathered the storm of financial devastation that has swept much of the rest of the world including America and Europe. So why is it that our property prices have held up so well and even risen in many areas (particularly in Melbourne and Sydney) over the last few years? Sure there has been some losses particularly in the above $1 million dollar price range, but this has more been a direct result of business failures and over extended finance commitments during the times when banks were throwing money at any property deal in the past.

However middle range well located properties have held up very well. I have always said that you are better off investing in 2 or 3 middle of the road older properties than 1 expensive executive residence for he following reasons:

• When times are tough average people still require average quality, well located properties
• and the rents on such properties more often pay a larger proportion of outgoings (i.e loan repayments and rates bills)

So where are Australian house prices headed?

I believe that in the short term investors will get the best returns from well located properties that are in cities which are seemingly undervalued and more affordable, but with strong growth prospects through employment and planned infrastructure improvements. For these reasons South Australia and Queensland are my two predictions for the largest percentage gains over the coming year.

I also believe that any houses, especially those on large blocks near hospitals across Australia will do exceptionally well over the next 5 years as local councils rezone these well located properties to allow for buildings suited towards aged care.

Australia has many fundamentals to support future sustained growth across the board in years to come and I believe that we will see average Australian house  prices in the vicinity of 1 million dollars by 2015.

Deputy Premier and Minister for Local Government Paul Lucas was today joined by Ipswich Mayor Paul Pisasale and local MPs Rachel Nolan and Wayne Wendt for the unprecedented simultaneous release of the proposed master plans for Yarrabilba, Ripley Valley and Greater Flagstone Urban Development Areas (UDAs).

“This is the first time a community building program of this size and scale has been undertaken in Australia and it coincides with the one year anniversary of our government’s Growth Management Summit,” Mr Lucas said.

“Today marks the start of delivering the necessary planning framework to progress development of these three key areas as model communities.

“Over the next three to four decades, Yarrabilba, Ripley Valley and Greater Flagstone will provide more than 130,000 homes for around 330,000 residents.

“These developments will deliver affordable and sustainable housing for first home buyers and key workers such as nurses, teachers and police.

“A percentage of homes in each UDA will be sold at or below the median house price for that region.”

Member for Ipswich Rachel Nolan said employment was a major focus of the planning for the three new communities.

“This is about creating vibrant communities where people can live, work and play,” Ms Nolan said.

“There are already substantial existing and planned employment generators for the western and southern growth corridors, including-Swanbank, Bremer, Ipswich Central, Logan Central, Yatala and the future enterprise precincts at Bromelton State Development Area and North Maclean.

“In total these employment areas and the employment generated within the UDAs are projected to create around 280,000 jobs in their lifetime.

“With so many new jobs coming online this is another great incentive for people to move to and live in a booming region like Ipswich.

“It will also ensure the sons and daughters of local residents have jobs for the future and can stay living in the area where they grew up close to their families.”

Member for Ipswich West Wayne Wendt said the flow on effects of these three new communities would benefit the whole Ipswich region.

“Not only are these new communities about improving housing availability and affordability but they’re also job generators,” Mr Wendt said.

“So far six development applications in early release areas for 1,400 lots have been submitted for approval across the three UDAs.

“Approval has already been given to for up to 132 new homes in Flagstone as part of the MTAA’s residential development, and construction is expected to start mid next month and pending approval, early civil works could be underway by the end of this year on most of these sites.

“This is great news for the local building and construction industry.”
Member for Bundamba Jo-Ann Miller invited the public to have their say on the draft ‘blueprints’ for SEQ’s three new master-planned communities.

“The public has 30 business days to make a submission on the proposed development schemes and I would urge anyone interested to do so,” Ms Miller said.

“It’s very important that these model communities are developed with the needs and the input of the local community in mind and that’s why this consultation period is happening.

“While development is necessary to manage the growth in SEQ, the government is also working to protect the environmental values in the area.

“The ULDA development schemes will ensure that development in the three areas will protect the ecological values and natural systems and maintain and enhance significant vegetation, including the retention of significant vegetation.”

Ipswich Mayor Paul Pisasale welcomed the new communities which combined represent almost 10 per cent of the project dwelling demand needed in SEQ by 2031.

“It is pleasing to see the extensive work that council and its key stakeholders had already done for the masterplanning of Ripley Valley have been incorporated in the ULDAs development scheme,” Mr Pisasale said.

“The Ipswich region is a growth region and a destination of choice for many people moving from interstate or even within Queensland.

“The release of the proposed development schemes is an important step to meeting the future housing needs of the western corridor.

“An infrastructure funding framework has also been devised to ensure that these areas can be serviced by appropriate infrastructure as the communities grow and major access roads are already being built.”
Logan Mayor Pam Parker said today’s release was good news for Logan residents looking to buy their own home.

“I want the people of Logan to be able to be able to realise the dream of owning their own home while still living close to family and friends,” Ms Parker said.

“Logan is a growing region and these new communities will take pressure off by increasing housing availability and affordability and ensuring our key workers can live close to where they work and play.

“These new communities themselves will be jobs generators as a result of all the homes that need to be built but they will also generate long term employment opportunities in their town centres and industrial areas.”

The three areas were declared as UDAs on 8 October 2010 as an outcome of the Queensland Growth Management Summit in March 2010 and in response to the growth needs identified in the South East Queensland Regional Plan 2009 – 2031.

Responsibility for planning and development within the UDAs lies with the Queensland Government’s Urban Land Development Authority (ULDA).
The declarations of the UDAs in October provided for ‘early release’ precincts that allowed for immediate lodgement of development applications so that development could start prior to the finalising of the development schemes, getting houses to market quickly.

These early release areas were chosen on the basis that they were consistent with the local councils’ previous consultation process or approved structure plans.

ULDA Chief Executive Officer Paul Eagles said a focussed consultation exercise had been undertaken in the run-up to the release of the draft development schemes.

“We have also held a number of meetings with state agencies and other stakeholders regarding these new master-planned communities,” Mr Eagles said.

“Workshops have been held with town planners, social planners, parks and reserves officers and specialist engineers from Ipswich and Logan City Councils.

“However, now broader community consultation will take place following the release of these draft documents.

“This consultation program will include community information sessions at various venues in Yarrabilba, Ripley Valley and Flagstone, plus website updates, newsletter distributions and public advertising.”

The draft schemes are available to download from the ULDA’s website at: www.ulda.qld.gov.au

Most real estate millionaires build there wealth through leverage. Its all about control, not ownership, and as soon as you understand this the better off you will be. Instead of buying one home and paying it off as fast as they can, the savvy property investor will leverage themselves into controlling as many well located properties as they can. Risky you say, well life is full of risks, but whats more risky doing nothing and failing, or doing something and risking temporary defeat.
A good way to negate the risk of making the wrong choices when investing in property is to have a good team around you. The costs involved in hiring the right property professionals are more than paid for in the services they can provide in helping you buy the right properties for your investing needs at the best possible price and terms. Well over ¾ of the worlds millionaires invest heavily in property, will you be one of them?

Ask most property professionals what to look for in a property investment and they will undoubtedly recite to you the tired phrase “Location Location Location.” Whilst location to transport, infrastructure and amenities is important in maximizing future growth, there are other factors that are equally as important. Certain types of properties will outperform other properties in the same location, so what are these properties?

Firstly nothing can beat a property that you can develop to a better and higher use. These properties include large sub dividable, or underutilized high-rise zoned blocks of land, properties situated on main roads and high traffic areas which can be used for commercial use, and ugly ducklings which can be transformed with a budget cosmetic renovation. All three of these development options can produce massive results to both the value of a property and the cash flow it produces in rents.

Sub dividable properties and high-rise zoned blocks of land are becoming more and more common, but most people do not know how to identify them. Each local council has different rules on what you can do with a certain type and size of property. A councils zoning restrictions are the best place to start if you want to find out if you can subdivide or build a multi-level building. The easiest ways to find out what you can do is jump on the councils website or phone them and speak to a town planner. A town planner can tell you the restrictions in place and the required size a block of land needs to be to subdivide or build that multi story development. Often councils will review zonings for areas every few years, so if you get a negative response it always pays to ask when they next plan on reviewing the zonings for that area.

Recently I was looking at purchasing property in an area that I felt had great potential for future development and was told by the local town planning department that I could not currently do anything with the block of land in question. Something told me to pursue the matter further so I asked “I have heard that you may be looking at changing the zonings for properties in this area soon” to which the town planner replied “I will put you through to the task force in place to rezone the area.” It always pays to ask lots of questions. When the call was put through and I talked to a member of the task force I was informed that the current mayor has told them to push through rezoning of the area before the year is out. I then asked still more questions to which I got the reply we are looking to rezone this area to high-rise development. High-rise zoning would have a major effect on the value of properties in this area. In the property game knowledge is definitely power. Other important info is freely available from your local council including access to flood mapping, and on council websites you can view plans and development approval documents of similar properties.

Two years ago I purchased a 3 bedroom unit in the desirable Queensland beachside suburb of Broadbeach. The reason that this property appealed to me as an investment was because it was one of only five units on a high-rise zoned block of land. After purchasing this property I made it known to the owners of the other four units that I would like to purchase theirs as well. At the time of writing my family is about to settle on the final one of the five units, thereby giving us full control of a high-rise development block. The interesting thing is that we paid no more money per unit in the building than similar properties sitting on blocks of land that are not zoned for higher use.

I believe that main road residential properties in built up areas are an untapped goldmine. Reason being that they are not particularly desirable dwellings in their present use so can often be bought for a song or under great terms and conditions, but the potential many of them have as a business premises is enormous. One such property I purchased in a joint venture has proven to be a perfect example of the potential of these types of properties. The property was listed for sale as the cheapest in the area due to the cosmetic state of the property combined with its position on a very busy road leading to the city of Brisbane. Locals knew the property as the ugly brown house on the hill and many stopped in to compliment us on the renovation that we undertook. Once renovated I secured a lease with an accounting firm who were very happy with the prominent exposure of the property for their business.

Renovation is by far my favorite way to add value to a property, and is the vehicle by which I built my portfolio in the beginning. The most important factor to consider when undertaking any renovation for profit is not to overcapitalize. Overcapitalization occurs when you spend more on the renovation costs than the increased value you add to the finished product. Always keep in mind when undertaking a renovation that your aim is to add much more in perceived value than you have spent. At the same time there is no use in trying to do everything yourself to save money thus taking forever to finish the job, because of the time cost involved. Time cost factors include interest payments on loans, rates bills and most importantly lack of rent you could be achieving to assist with these holding costs. If you are a hands-on person go for it, but know your limitations especially when it comes to electrical, plumbing and structural repairs. If you are someone who is good with delegation you may like to project manage the tradesmen or you can just hand the project over to renovation specialists.

When purchasing an investment property it is always good to have someone batting on your side. Buyer’s Agents can be a valuable asset to he property acquisition process. A good Buyers Agent is a real estate agent who does not sell properties, but has access to every property on the market and many that are not currently publicly listed for sale. They work on your behalf to source, negotiate and secure you a quality property at the best possible price and terms.
Investor’s Friend
Property Purchase Professionals,
Gold Coast, Australia.
Click Here to visit the website.

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Here are the ten steps to developing true leadership

1.Find Your Own Path.
Many of us are great at something but not everything. There are big picture abstract people and those that are good with details. There are those who work best alone and those that excel in teams and are best placed in positions to motivate people. Working to your own strengths and surrounding yourself with people who have complementary strengths is a positive step to high achievement. Most people know what they are best at doing. If not a personality test may be helpful. There are many websites that offer personality tests which give you a wonderful insight to your strengths. Email us xenia@adprop.com.au if you would like us to recommend one to you. It doesn’t’ matter what tests you take the idea is to get you onto a path that is uniquely you and use your time to play to your strengths.

2.Build Your Knowledge
You just don’t know what you don’t know and it is sometimes what you don’t know that can make a difference between success and failure. Eskimos have twelve different words and meanings for “ice”. To them it is not just frozen water it is a way of life and they know their surroundings intimately. Whether you are in business or real estate investing or both you need to know your area well enough to alter your strategies with changing economic conditions and remaining proactive at all times. The average person will struggle to read one book per year…. don’t be average! Reading regularly, listening to audio books while you drive and attending three to four live seminars and workshops per year will not only accelerate your learning, it will put you heads and shoulders above the average investor. Live seminars and workshops offer the advantage of interaction and exercises designed to stimulate a more advanced way of thinking. They are also a quick way to get lots of information in one hit. I will usually read over 100 books and conduct two years of research to write just one two-day workshop.

3.Begin as Quickly as You Can
Knowledge is power but only when it is combined with action. Taking action as quickly as you can will allow you to build momentum to keep going. When I attend live seminars and workshops I book in an extra day away from the office to implement all the new information into my business plans. If the seminar is interstate, I will usually stay interstate one more day booked into a motel where I can plan to implement the information. Start at whatever level you can. If you plan to build a property portfolio don’t wait until you have the finance for a multi-storey enterprise, buy a unit or even form a unit trust or syndicate to purchase properties with other investors if you are not able to get purchase a whole property alone just yet. The idea is to just get started.

4.Develop Vision
Effective planning is better than just “seeing how it goes”. The most successful businesses including enduring property portfolios (yes they are a business) began with a written plan of action. Having long term vision is part of the mindset of a successful person. Rich people plan ahead and have a vision for the next year, 5 years and 10 years. Poor people live day by day and have short sighted vision.

5.Work Only on High Priority Items
Wealth is created by what you choose to do in your spare time. While relaxation and down time is essential, those who choose to create their life in lieu of watching television, or wasting time with small talk will do much better than those who don’t. Brian Tracey has published a book called Eat That Frog which suggests prioritising tasks and only dealing with the biggest and most valuable tasks or projects each day. Tasks that do not contribute directly to your success or plans, such as mindless chatting, television or other people’s priorities should be minimised.

6.People Before Profits
No business (including real estate investing) will succeed long term if it is just about making money. All business missions need a strong focus on service and a people before profits attitude. Real estate investing like businesses are about people, looking after the people, tenants, professionals etc will ensure that your business withstands the pressures of time enough to profit in the long term. When was the last time your properties were renovated? Are they air conditioned and comfortable? Providing a great service to clients and focusing on that will increase the chances of a longer term lease and that means no losses through vacancies.

7.Develop an Abundance Mindset
Abundance is a value, it is the mindset behind a win/win attitude and ethics in business. It is the mindset that recognises opportunities and wealth in your environment. In the absence of abundance there is a scarcity attitude that focuses on win/lose and threats in competition and successful people. People with a true abundance mindset will view competitors as a valuable source of education and networking opportunities. They are truly happy with other people’s successes and wins and are not threatened by others.

8.Build a Wealth Network
Networking with wealth-minded people ensures that you work to your strengths and builds a support team of people with complementary strengths that are happy to do what you are weak at. Wealth-minded people are those who are focused on success in their own life and have a true abundance mindset. They are able to provide insights, opportunities, ideas, finance and support to help you to grow to the best that you can be. In today’s turbulent economic times, businesses and individuals with valuable relationships with a wealth network are those who are succeeding the most. When economic times are down, quality people relationships can keep you afloat.

9.Limit Your Interaction with Poverty Minded People
While surrounding yourself with wealth-minded people is important, it is also important to recognise that not everyone is wealth minded even if they own properties or business or are in a professional position. I have met a few accountants and solicitors as well as property investors who are very poverty minded. They have a definite “ceiling” on their own growth and can also limit your success if you allow them to. Because these people are not able to mentally conceptualise continuous growth and immense wealth they tend to have a cynical, sarcastic and often controlling or suppressive attitude to people who are successful. They will either overtly or covertly disempower your plans of action by making them wrong to justify their own acceptance of mediocrity. Do not allow yourself to become the subject of other people’s imperfections and allow poverty-minded people to mess up your life.
It’s not that they are bad people they are just the average person who has been conditioned for poverty and working from pay cheque to pay cheque and find what you do “risky” or “greedy”. Limit the discussion of business ideas with these people and focus your time on the high priority item of building a wealth network instead.

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10. Become a Person of Influence
Truly successful people are an inspiration to those who are ready and prepared to be inspired. While surrounding yourself with poverty minded people should be limited, I would not recommend ever burning bridges with any individual, everyone does the best they can with the information they have. Deep down everyone is perfect, powerful and successful it is only circumstances and conditioning that create a poverty attitude. If you truly lead from the front and provide and example of wealth, it may be just the thing poverty conditioned people need to encourage them to take action but only when THEY are ready.

Xenia Ioannou – is a Director of AdProp.com.au – Advanced Property Management, and two other businesses, she is a strong advocate on wealth creation through property investment and business growth and the creator of the high powered Millionaire Mindset Workshops Xenia is also a business coach and mentor to many entrepreneurs and property investors, a member of the property management committee at the Real Estate institute of South Australia protecting the interests of AdProp property management clients through changing legislation and runs the Real Estate Wealth Network a meeting and greeting place for wealth-minded property investors and business entrepreneurs. Over 100 investors attend the Real Estate Wealth Network meetings each month, to be part of this unique and positively charged group and receive our newsletters subscribe for free at Adprop

Well located properties are currently being snapped up by first home buyers who have suddenly found that owning a home is now often  cheaper than renting. First home buyers are the ones to watch as they affect the market more than any other group. In a typical property cycle upswing first home buyers will hit desirable suburbs by purchasing the affordable properties within these areas. Investors will then follow, then once that area becomes seemingly less affordable due to competition the first home buyers turn to the next affordable surburb,  and on it goes.  The cycle always starts close to capital cities and then ripples out.

So if we are  now at the bottom of the next upswing, it makes sense to start buying property in well located areas before the herd arrive. Once they do, move to the next well located suburb you can find, always staying ahead of the first home buyers.  I do believe that we will see double digit growth again by the end of this year. If you wait until property becomes the flavor of the month again  you will most likely miss the boat as many did in 2003. Stick to the basics by purchasing the best possible located properties you can at the right price and watch your asset grow.

To find cash-flow positive investment properties in last six years, you would have to go a fair way inland to areas of low population, no jobs and little infrastructure. Not the best mix of attributes to base a secure property portfolio on. But in recent month the tables have started to turn. Lack of supply in sort after areas with great fundamentals, such as schools, employment and transport has increased rents significantly.

I have just fixed a few of my property loans with one of the big four banks  at 4.99% for 3 years, and in coming months we may see other lenders offering similar rates or even lower. I am finding properties on the market now in areas with  great fundamentals between Brisbane and the Gold Coast for sale that achieve 6%+ rental yields. With figures like these the rent achieved could cover the mortgage, rates, and outgoings, leaving you with a property that takes care of itself.

  Throw in the mix some creative strategies, like a quick cosmetic renovation to boost the rent and property value even more and then just count the dollars coming in week after week. Ah, isn’t residual income sweet.