It’s never too late to jot down your financial resolutions for the year ahead. And you may want to consider putting money in the property market this time.
Made your New Year resolutions yet? While weight loss and holiday planning usually take priority in the list, it’s good to also draw up financial resolutions to make the most of the months ahead. Time and again people tell me they want to start the year by making great investment plans. So I first ask them their current financial situation. They usually respond with a blank stare. Just like when you want to lose weight you first need to know your current weight, when you want to become wealthy, you first need to know what assets and liabilities you have.
Get a piece of paper and draw a line vertically across the middle. On the left side, put down the assets that you own free and clear and on right hand side, jot down your liabilities. Be honest with yourself and write down exact figures. If you keep avoiding this step, you will have a difficult time planning your investments.
Should I worry about what lies ahead in the property market?
Have you heard the saying “The fearful die a thousand deaths and the brave only one”. Just like in 2015 you will hear a lot of negative messages from the media, friends and family about how the property market is going to crash, and we are headed for a recession. We been hearing for a quite a while. But haven’t we crossed the treacherous path of negative messages over the last decade, watching all the while from the sidelines as investors double their money in real estate. Not much is going to change in the coming year.
Highlights over the last quarter of 2015
- Best Performing Capital city : Brisbane +1.3%
- Weakest performing capital City Sydney -2.3%
- Most expensive city Sydney with a median price of $800,000
- Most affordable capital city: Hobart with a median price of $350,000
Change in Dwelling Prices in 2015
- Combined capital cities : +7.8 percent
- Canberra : +4.1 percent
- Darwin : -3.8 percent
- Brisbane : +4.1 percent
- Perth : -3.7 percent
- Melbourne : +11.2%
- Sydney: +11.5%
Change in Dwelling Prices since 2009
- Combined capital cities : 46.8%
- Canberra : 21.6%
- Darwin : 21.1%
- Brisbane : 12.3%
- Perth : 13.3%
- Melbourne : 62.4%
- Sydney : 72.5%
Top 10 Suburbs to watch for in 2016 (SYDNEY)
- Dulwich Hill
- Potts Point
Top 10 Suburbs to watch for in 2016 (Melbourne)
- Mount Waverley
- Coburg North
- Geelong West
Small is the next big thing in real estate
Even though Australia has taken over from America as “home to the world’s largest houses”, one bedroom apartments are fast becoming popular Down Under.
The Aussie dream of years past to own large homes with big backyards in the outer suburbs is changing with many buyers and tenants looking at one bedroom apartments. In the coming decade, we will see good capital growth for one bedroom or small apartments especially from young investors who want to live close to the city but cannot afford to buy or rent a house.