Property Investing Seminar Recap

On Wednesday I had the opportunity of watching a Rich Harvey webinar Property Investing in 2016 - Where are the opportunities, here is a recap focussing primarily on the Brisbane real estate market.

National and Brisbane Real Estate

• National owner occupier home loans are currently on the rise and have rebalanced the market, now sitting at 62/38 ratio which is normal market level.
• Nationally, first home buyers account for 25% of all real estate sales (so much for the "lock out" of first home buyers in the market).
• Nation wide, 73% of home loan borrowers are ahead on their mortgage by an average of two years. 
• Those articles on the "Australian Property Bubble" are just click bait articles as a crash in the property to occur as the Australia economy is unlikely to happen similar to the United Stated as the critical conditions in Australia don't exist and the APRA regulations ensure stability in the housing market.
• People have asked why has the Sydney property market boomed and not states such as Queensland, South Australia or Western Australia? The NSW state economy is currently the strongest in Australia especially with their current infrastructure spending and in the prime growth areas there is a significant absence of property oversupply.
• Brisbane has lots of upside for the future.
• Brisbane homes are currently at 2.9% growth rate, apartments are at 2.1% growth rate.
• Currently 69 growth suburbs and 128 steady suburbs.
• More growth in the market than what is anticipated in Sydney (measured through price prediction index).
• Areas to look out for are in Brisbane South East and North:
• North side: Deagon, Enoggara, Gaythorne, Northgate (top performe, Nundah, Taigum, Wavel Heights and Chermside.
• South Side: Macgregor (top performer), Robertson, Rocklea, Sunnyback, Tarragindi, Fairfield, Mackenzie and Rochedale (top performer).

Mistakes - How to Avoid Them

• Herd mentality - Following the pack.
• FOMO Syndrome - Eg. Late comers to Sydney Market.
• Sound Byte Method - Investing based on media propaganda.
• 75% of property investors fail because they don't prepare and don't have a goal and plan in place.
• Research and quality advice is the key through (successful investors use a buyers agent - please note this webinar was sponsored by a buyers agent..)
• Have to know what your goals are, what is my strategy, my tactics, risk profile and borrowing capacity?
• Have to ask why this investments? Who is providing the information Who is paying for the advice? Is this the best investment current available?
• Conduct sufficienct research.
• Use successful negotiation techniques.
• Don't buy with emotion.
• Understand the property market.
• Don't buy for a tax deduction.
• Conducting poor investment analysis.
• Procrastinating.