If you had a win on the Melbourne Cup and invest in property – Tuesday 1 November would have brought you extra good news.

Weak inflation leading into the September quarter for 2011, down to 0.6% from 0.9% assured investors good news on Melbourne Cup day – a drop in the interest rate by 25 points.

The big four banks were quick to act with three of the four major banks dropping their rates by the Reserve and the nab slightly less.

Inflation is low and likely to stay that way for now – retail figures are flat, people are saving rather than spending.

The Good News

But its good news for property investors with competitive property prices, excellent rental yields across the country and the rising confidence in property prices.

The mining boom rolls on with a seemingly insatiable demand for our resources coming from the nations that seem to have unlimited demand – Asia.

In the next issue we will discuss the state of the Australian property market leading into the new year and our informed prediction on where we think things are headed.

At Portfolios we are committed to property investment as a long term process – with great rental yields and flattening prices now is a great time to buy. Give us a call to find out how we can help you.

Most markets are at the beginning of a long term growth cycle. Property remains an excellent asset class for long term investment and definately offers more stability than the volatile share market.

Once confidence returns, Australia will be in good shape. Unemployment remains relatively low and rents are very strong.

A key factor is interest rates.

Buyers have been concerned about interest rates increasing and we really need to see a rate reduction. With three year fixed rates now below the variable, this indicates the banks belief that interest rates are on the way down. A great relief for home owners.

Some market observations:

* In RP Data’s June results, Canberra was the best performing capital city with property values up 0.50%. Prices are now beginning to stabilise after 3-4 years of substantial growth.

• Vacancy rates are very tight with renters competing strongly in the markets with little stock. Some renters are offering higher rents or advance payments. According to RP Data, there were 9,000 less new advertised rentals in July 2011 vs July 2010 nationally.
• There has been a record number of refinancing which indicates buyers are taking advantage of better deals so they can upgrade or at least reduce the interest rates on existing properties.
• An increasing number if young people are choosing to buy an investment property ahead of their first home.
• Many consumers have de-leveraged by paying down their loans. Whilst not good for retail, they may have more cash in the bank and their super fund. In some markets, people are downsizing to a more affordable home specifically to reduce the size of their mortgage.People are conscious of debt and are acting accordingly.

Source: John McGraths Market Review – Spring 2011

Click here to read McGrath Market Review Winter 2011.

As we enter into the fifth month of 2011, are you wondering whether the market is going to gain traction and build upon some early positive signs? Positive key drivers are indicating that we are now in one of the most important selling periods of some time. What are the 8 key drivers that are making 2011 a strong year in property? Read on to get McGrath’s in depth Market Review for Autumn 2011.

Read the John McGrath’s Market Review – Autumn 2011 here.

You can have it all from $7 per week in Kingaroy

July Property Of The Month, Kingaroy, is still offering a great entry into the property investment market with the potential for fantastic returns both in rental and capital gains.

Find out how to purchase an investment property for under $280,000, costing you from $7 per week depending on your financial situation.

Kingaroy is a busy, and popular little town located in the northern Darling Downs positioned as a regional centre with a strong and diverse economy.

The town is located approximately two hours North West of Brisbane and just 90 minutes from the burgeoning Sunshine Coast.

Over the past ten years the region has had an average capital growth in excess of 12%  with forecast growth of 8% being predicted over the next ten. Like all areas of the Darling Downs there is a predicted strong growth over the coming years as new industry moves into the region including coal mining, wind-farming and a 400 MW power station, alone in the immediate proximity.

With rentals fetching $260 per week this property might cost you as little as $7 per week, depending on your tax situation.

Portfolios is offering turn key investment properties in this region including 3 bedrooms, 2 bathrooms, double lock up garage and air conditioning.

You can purchase a property in Kingaroy through Portfolios for as little as $260,000  for a brand new 3 bedroom home on a large block.

To find out why we think this is such a great deal have a look at the properties at www.portfoliosproperty.com.au or follow the link directly to the property.

What if you could own your own investment property from just $32 per week? *

You could be realising return on invesmtent in excess of 700%.

Portfolios investment property of the month is Chinchilla.

Chinchilla, located in the Surat Basin Region is undergoing a massive build up of workers and their families, with a strong capital growth over the last 3 years and with the newly signed LNG deal with China this is a place to buy.

Chinchilla is located about 200km west of Brisbane with ever increasing job opportunities. Tightening rental availability has driven up rents sharply and will continue to do so.

The region has hospitals, schools and many amenities of normally much larger towns. Over $10 Billion being spent on Coal mines, a gas pipe line, rail links, gas exploration and waste water purification projects.

The government is also investing in rail in the Darling Downs, linking this region and its rich, diverse production with export ports such Gladstone.

According to investment sources the region around Chinchilla enjoys a 98% employment rate and a rental vacancy rate around 1%.

If you earn over $80,000 per anum we’d love to talk to you about this deal. We have turn key, brand new, four bedroom homes ready to be tenanted today.

If you earn under $80,000 then you might find this deal to be worth while with low property price entry, expected capital gains and expected rental hikes in the coming 12-24 months.

Chinchilla presents a great opportunity. You can view this and other properties in this region at www.portfoliosproperty.com.au or just go to Featured Properties.

Calling all astute property investors…

Get set for great predicted returns, high rental yields on the back of a regional resources boom.

The largest Australian company to company deal ever has been signed between a UK owned Queensland based company and a Chinese resources company that will see over 3.6 million tonnes of LNG exported to China from the Surat Basin.

Chinchilla – The Next Property Boom Town?

Chinchilla, small town turned property hotspot, lies in the middle of the Surat Basin approximately 4 hours drive north west of Brisbane. Chinchilla has always been a location we have been watching keenly as the prices are still relatively low whilst the rents seem set to climb considerably.

Chinchilla, in my view is a good bet not just because of the low prices and higher than average rents. The future of the area is bright thanks to this deal and the rich diversity of industry the area enjoys.

I understand that over $10bn (AUD) is being spent in the region on coal mining, a gas pipeline, rail linking rural Queensland, further gas exploration and waste water purification.

Has The Horse Bolted?

In short no! – but surely it cant last long.

In areas where this kind of boom has occurred in the past property prices have sky rocketed and the rental market has soared. To date Chinchilla remains highly affordable even on current rentals with the best expected to come.

Low House Prices – High Rentals – Great Capital Growth Potential

Portfolios Property has properties for sale in the Chinchilla area for around $350,000 already yielding rentals of $460 per week.

And dont get me started on the potential capital growth in the region which is already running over 14% on a ten year average.

You can get involved by contacting www.portfolios.net.au to see if this opportunity suits you. We also recommend you fill out a portfolio review so we can be prepared.

Make sure you visit www.portfoliosproperty.com.au for details on Chinchilla and other opportunities like it.

Will the market go up?

Will the market go down?

Will it stay exactly as it is?

What is happening out there?

Without predicting the next market movements lets talk about the state of play.

Currently in Australia the economy is looking good, growth is abounding, people are sensing a greater level of confidence in the market as evidenced in a recent news article. CommSec’s National Performance Guage shows that those who owned shares and property have increased their wealth by 8% in the last year and 40% in the last decade.

The way I see it there  are two sides to the property market – what is going on locally and what is going on globally. I just want to focus on the local market for now.

The Australian Economy is performing well. Growth indicators are up, interest rates are climbing in response to strong economic growth and there has been a considerable jump in house prices.

In the favour of property investors is the growing housing shortage facing Australia. It is predicted that Australia will need an additional 800,000 properties than it is currently supplying if nothing changes between now and 2030. This is a phenominal claim, and even if something is done this is great news for property investors.

A shortage of properties means great potential capital gains, as well as increased rentals driving more cash flow positive property, or at least swallowing the gains in interest rates.

Finally, on the economy, banks continue to be tight in their lending – so getting money for that investment property is a challenge without someone like Portfolios to work for you. We have sound long term relationships with a number of banks and financial institutions , with our level of understanding of the finer details of their policies and ways we can often help you where others cannot.

So boom or bust? – the age old question is when is the right time to buy, but a long history of capital growth has taught us that now is always the right time to buy in the long run.

In the property investment market buying the right investment property should be more about where should I invest not so much when should I invest.

See what Portfolios has to say about the current market and where you should be looking.The Portfolios Property team has many developers and project marketers present their best offerings nationwide each month. It allows them to scour the Australian property investment market place to find you the best properties to a set criteria.

So lets look at an area of Australia we see great potential now as a good property investment opportunity. Gladstone NE Queensland.

Gladstone should become Australia’s next super infrastructure town. If all the projects are confirmed, it very well could be. The number of future projects (15 in total) means that Gladstone is rightly classified as a ‘super infrastructure town ‘, which will struggle to cope with the enormous influx of future workers.

Where Gladstone differs from other resource “ boom towns” is in the medium house prices. In other infrastructure towns the medium house prices are from $800,000 to $900,000, not so in Gladstone where the media house price is currently $360,000 with plenty of potential for growth.

Portfolios Property has investment properties available in and around Gladstone including the Stoneybrook and properties in nearby Calliope.

Paul Pritchett himself has been investing in Gladstone for the last 5 years with a few spec builds and some buy and hold. Paul is also planning to add more property within Gladstone to his own portfolio.

To view these and other great property investment opportunities go to Portfolios Property and view our Monthly Top 10 Properties.

In its monthly review of the Australia property market, Herron Todd White has given us a broad picture of what has happened in January in Australian capital cities both in houses and unit dwellings.

We have focused here on the Australian housing market. For the full report – you can download it here.The report looks at a number of factors including:

• rental vacancy snapshot
• the rental vacancy trends
• demand for new houses
• trend of new home construction
• volume of house sales
• stage in the property cycle
• and whether new properties are sold at prices exceeding their potential resale value.

The report shows what we all expect – a somewhat strong capital city market leading into 2010. However there are some exceptions.

In Melbourne for example the figures show the volume of house sales to be declining.  This could be the conservative market that Melbourne is with rising interest rates.

The worst performer is Hobart – where the writers believe that in terms of its stage in the property market cycle that it has reached its peak. Not great if you are considering the Hobart market or thinking of capitalising there and selling out. (Unless of course you purchased at the turn of this century. )

In terms of the position on the property cycle, Brisbane is showing recovery trends whilst Sydney, Darwin, Perth and Canberra are all trending as rising markets.

Perhaps Canberra, that city no Australian ever wanted, is the surprise entry, showing strong growth indicators throughout 2009 and into 2010. High rentals are also said to be contributing to the investor market in Canberra.

What are your observations of the property market?

Why not drop us a line and tell us what is happening in your area? The hotspots and the “not” spots.  You can comment below.

In the coming weeks we will look at some of the areas we have chosen to offer you properties through Portfolios Property.