News & Updates
1st of November
Is this the best time to invest??
We think so, why?
The Weekend Australian Nov 2nd - Housing on track to wipe out losses
Property prices have recorded the biggest monthly gain since May 2015, putting the market on course to reverse the losses of the past two years by early next year.
Courier Mail Oct 27th - Government guarantees mortgages for workers
First home buyers in Queensland will be able to purchase properties worth up to $475,000 with a modest deposit under a new scheme which will see the Morrison Government guarantee loans.
HLH believes both factors will boost builders activity which will see increases in residential investment property contract prices. This is backed up by what CoreLogic says: (see below)
According to ABS housing finance data for August 2019, first home buyers comprised the largest proportion of national owner occupier mortgage activity since early 2012. The data showed first home buyers comprised 29.8% of the national market for owner occupier home loans; almost five percentage points above the decade average of 25%. A similar trend can be seen across every state, with first home buyers a larger proportion of the market relative to the decade average.
1st of October
The Weekend Australian Sept 28th - ' V-shaped’ housing recovery tipped
Australia’s housing market could be on the road to a ‘V-shaped’ recovery, according to property researchers who have predicted a sharper than expected recovery in home prices after the Reserve Bank indicated it was not concerned about the rises when settling interest rates.
Major developers said that credit was growing at about 4 per cent but there were signs of pent-up demand, with keen buyers camping out to buy lots in a Stockland estate in Sydney last weekend.
The Weekend Australian Sept 28th – Harvey sees signs of upturn.
The key drivers for consumer discretionary spending, population growth, consumer confidence, household income and property prices are not expected to represent an overall drag on the level of retail spending, with some key indicators showing early signs of improvement, says Harvey Norman.
1st of September
Mixed signals say welcome to spring (season of growth !!)
Home approvals down:
The Weekend Australian (Aug 31st) says: "Home approvals fell more than 9 percent in July - apartment approvals slumped 18 percent, led by Sydney and Melbourne, may be a sign that quality concerns may be having an impact on apartment supply."
At the same time, property listings (properties for sale) has come to life, with the largest seasonal surge of new homes hitting the market in five years.
The Courier Mail (Aug 31st) says in a double page spread, "Surge in home prices predicted." Brisbane's million-dollar club could more than double in the next three years if predictions for a massive jump in house prices come to fruition."
We at HLH have been saying for a few years now that conditions are firming up for a strong growth rate in residential property markets in SE QLD and NOW is the time to be a property investor. All these media stories are backing up that conviction, with low margins for builders, very low interest rates, excellent land developer offerings and strong renter demand have created the perfect conditions to build wealth via investment property. Let us show you how.
1st of August
Things are on the move up again.
"National Dwelling Values Stabilise In July As Five Of The Eight Capitals Record A Slight Rise In Value
The CoreLogic July 2019 home value index results delivered another sign that housing conditions are stabilising following improvements in credit availability and lower mortgage rates, with national dwelling values flat over the month, supported by a subtle rise across most of the capital cities".
1st of July
Welcome to the lowest interest rates in Australian history!!!!!
Now this story.
The Weekend Australian June 22-23
Off-the-plan buyers re-emerge
After a few flat years, owner-occupier and investor buyers are starting to look at off the plan markets in Brisbane and the Sunshine Coast, saying they are attracted by good prices as opposed to similar real estate offerings in the more expensive Melbourne and Sydney. "A common theme from those contacting us is they are looking for developments that offer high quality finishes, good amenity, a point of difference and are well priced. Certainly by comparison to the southern cities of Sydney and Melbourne, we feel strongly that Brisbane represents a genuine value proposition."
1st of June 2019
In over 37 years in this industry, we have never seen anything as dramatic as the story in this article from The Australian today:
"In the wake of the surprise May 18 election result Australia is experiencing one of the biggest sudden stimulations in its peacetime history.
The Chinese realise Australia's outlook has changed and have created a surge of buying that has skyrocketed Sydney apartment prices by 10 per cent in just two weeks."
Who pushed the reset button?
Now the election is over, seems like the lights went from red to green. Consider this:
- The RBA is talking up a rate cut in June - watch this space
- Core Logic (property research) tells us that Brisbane is now growing faster than Sydney with our
growth rate at 1.7% PA and Sydney at 1.5% PA
- Brisbane's current rental yield is 4.68% while Sydney's is 3.85% and Melbourne's is 3.5%.
And general public and business confidence is up across the board, get ready for increased demand and growth.
1st of May 2019
18 days to go, then we can get on with life.
No matter which party wins office, residential investment property, especially in SE QLD will be a hive of activity with near record population growth in the northern Gold Coast, record low inflation (holding interest rates / build costs etc down) and all the infrastructure projects coming on line and already happening come together to offer some wonderful opportunities.
To ensure we can present accurate figures and put together the best package we can, once the election is over we will all know where we stand with negative gearing changes (or none to be made, depending on which party is controlling things), bank attitudes and lending criteria (although that has not been a constraint for HLH) and then we all can celebrate the balance of 2019.
Then there is this story:
QLD's rental as anything (Courier Mail Sat May 4th 2019)
Property experts are predicting a surge in investor activity if Labor wins the federal election- and it's got nothing to do with buyers supporting the party's policies.
A Shorten Labor Government wants to restrict negative gearing to investors who buy newly built dwellings and halve capital gains tax, with the changes expected to start from January 2020.
Properties purchased before then will be grandfathered, with industry experts predicting investors will move swiftly to ensure they retain the current concessions.
1st of April 2019
Things are hotting up!!
QUEENSLAND is on the cusp of a housing boom fuelled by Sydney and Melbourne’s property woes, with a leading analyst predicting interstate migration to hit a record high by next year — putting upward pressure on home prices.
New research provided exclusively to The Courier-Mail forecasts gross interstate migration to the state could surge to more than 120,000 by the end of June 2020, if current trends continue.
That would surpass the level reached in 2002, which was a catalyst for double digit house price growth.
There are a lot of media articles supporting what we at HLH have been saying for more than 2 years now, which is that SE QLD is headed for a strong residential property value growth cycle, similar to that experienced in Sydney and Melbourne over the last decade or so and property investors can look forward to some great wealth growing opportunities via HLH.
This coupled with the hype building up due to the upcoming federal election, especially for possible changes to negative gearing, must have some people asking just where do they stand.
Via the Courier Mail and The Weekend Australian of Sat March the 30th, some interesting stats emerge:
Around 58,000 teachers / 42,000 nurses and midwives / 39,000 retail workers / 19,000 police & emergency service workers / 54,000 IT workers / 35,000 office & practice managers negative gear.
ATO figures released yesterday revealed the number of landlords with five investment properties grew at nearly six times the rate of those with just one property over the 2017 financial year.
There are now more than 20, 350 investors with at least six investment properties.
1st of March 2019
Prepare for EOFY
With just 4 months to go to the end of the financial year, now IS the time to set up for the maximum tax rebates available via investment property depreciation allowance schedules.
We have excellent financial services personal and property lawyers on board as a part of our consortium which ensures we can provide the very best investment property strategies on a bespoke basis to all our clients.
As a part of our service we provide the initial Deprecation Schedule report via the quantity surveyors free of charge to allow your accountant (or one sourced by us for you) to prepare your submission to the ATO on your new investment property, this is to ensure it is lodged correctly and provides the maximum tax rebate allowed.
1st of February 2019
Window of opportunity
A whole month gone already, just 11 more till Christmas. First few months of the year may be an excellent opportunity for investment property –
A combination of anticipation of a Labor victory in the next election, continued low interest rates and good bargains as builders compete in the post banking commission and bank induced credit squeeze atmosphere.
Property window of opportunity – The Weekend Australian Dec 8-9th 2018
Note: “To put that another way, there will be a clear window of opportunity for people to invest in property and avoid being caught by these new rules.”
“the best buying will probably be between now & May” – Domain Property Research 24th January 2019
Brisbane’s affordability relative to the southern capitals, along with its climate and lifestyle, would help drive interstate migration. “And the very prospect of capital growth of circa five per cent versus a decline of high single digits in NSW and Victoria will help drive investment money into Queensland,” – Brendan Whipps, CEO of Harcourts Queensland.
John Fitzgerald, author of ‘7 Steps to Wealth’: History proves that when Sydney tanks, the pendulum swings to the Gold Coast, according to Mr Fitzgerald.
He expects the city’s median house price (currently $655,000) to jump 50 per cent in the next three years.
“The great northern migration is back on, with Sydneysiders leaving in droves and moving north,” Mr Fitzgerald said.
“In 2016-17, the Gold Coast added another 7000 residents courtesy of internal migration according to the Bureau of Statistics, picking up a healthy portion of the 15,160 people that fled NSW at the height of Sydney’s property boom.
“The Coast is unique in that it has the highest population growth in the country, while having a land supply that will be fully exhausted in this property cycle.”
Mr Fitzgerald said land on the Gold Coast was the “golden egg” for investors because it was ripe for growth.
He predicts two in three new residents to the Gold Coast — 66 per cent of its future population — will reside in attached dwellings.
“If the state government presses the button on a new casino license on the Gold Coast and an operator commits $2 billion to $3 billion to get it up and running, then that’s a gamechanger for the city,” Mr Fitzgerald said. Springfield and Greater Brisbane are also among his top picks for 2019. “Brisbane outperformed Sydney and Melbourne this year and I expect that to continue in 2019 at an even greater pace as listings tighten and competition from buyers pushes prices up,” Mr Fitzgerald said.
31st December 2018
Happy New year to you all. Get set, ready, go - 2019 will be a great year for those in the know !!!!
It seems to us that some people are “fence sitting” on the question “To buy or not to buy” regarding residential investment property. Not that we can blame them with the upcoming election and what may be seismic changes if Labor is elected and the sliding property prices in Sydney and Melbourne and will that effect SE QLD property at all?, but let’s look a little closer.
First, if Labor is elected. Story by Stuart Wemyss of The Weekend Australian of 8th/9th December.
“I think we are very close to bottom of the property market - if not already there.
First I was very interested to read the Reserve Bank of Australia governor, Phillip Lowe’s comments: “A few years ago, credit standards were way too loose, there has been a correction of that, but I am starting to be a bit concerned the pendulum might be swinging a bit too far the other way.” This is the first signal from the central bank that it is worried that credit is too tight. - the more likely scenario in the coming months will be a move by both the RBA and the Australian Prudential Regulation Authority to take measures throughout 2019 to loosen credit. - The ALP has proposed to ban negative gearing on ESTABLISHED property (not new property - our notes) and increase the capital gains tax (CGT) by 50% (or to be precise, to cut the discount on CGT from 50% to 25% if an asset is held for more than one year).
To put that another way, there will be a clear window of opportunity for people to invest in property and avoid being caught by these new rules.
Labor’s policy will hit renters hard. Courier Mail Saturday 22nd Dec.
- renters across Australia paying more. “Anything that reduces investment momentum in housing is likely to very much increase rents in the long run.” Independent economist Clifford Bennett said.
Brisbane is Australia’s quite achiever as property market surges to all-time high - Courier Mail Saturday December 8th 2018
Brisbane’s median house price has hit an all-time high, recording slow and steady growth over the past year despite the downturn gripping the national housing market. The latest Real Estate Institute of Queensland Market Monitor, to be released today, reveals the city’s median house price has increased 2.3 per cent in the past year to hit a record breaking $675,000. Dubbed Australia’s quite achiever, Brisbane house prices have risen almost 30 per cent in five years thanks to steady, sustainable growth, making it one of the most stable capital city markets in 2018.
Seal deal on surging SEQ - double page spread Courier Mail 15th Dec
The need for a 15 to 20 year agreement between all levels of government was the top item of a 20 point action plan developed from the Courier-Mail’s recent Future SEQ series examining challenges and exploring the opportunities for the region in the next quarter-century as the population balloons an extra two million to 5.5 million.
30th November 2018
There is still some confusion in the market place following the Royal Commission into the banking industry and the credit squeeze being applied by the banks as a result. So we repeat what we said last month.
Here at HLH we have always believed in offering alternatives to the big four banks and still do. WE HAVE LENDERS KEEN TO WRITE BUSINESS, INCLUDING SMSF LENDERS.
We have been keen to point out why we believe that the SE QLD property market is poised for some great growth over the next 5 – 10 years. One reason is that as per the Springfield area example shows, the old saying of “build it and they will come” is alive and well, and there are some amazing things in the pipe line and being planned for SE QLD. Here are two as reported in the print press in November –
The Weekend Australian - $9bn Star tourism plan wins approval
The Star Entertainment Group and its Chinese joint-venture partners are on track to own about $9 billion worth of assets across Southeast Queensland, after approval of their future vision for the Gold Coast. Consists of an additional $2bn–plus investment in a further four towers and associated resort facilities on Broadbeach Island. “The 3000 hotel rooms and apartments would exceed what the world-renowned Marina Bay Sands in Singapore offers and be on a scale to compare with the largest integrated resorts in Las Vegas. We have never seen anything this big in Australia before. It is an exceptionally significant and large investment”.
The Courier Mail – We will Rock you
American gaming giant Hard Rock International will make a bold $2 billion bid for a second casino on the Gold Coast. It would replicate its Barcelona integrated resort on the Gold Coast, with 1000 rooms, a shopping precinct, major entertainment centre and casino.
The residential real estate market slide is virtually limited to Sydney and Melbourne -
The Weekend Australian (24th Nov) - Builders challenge
The banks (ANZ) economists recast their September figures of a 10-15 per cent fall in Sydney and Melbourne, peak to trough, to a 15-20 per cent drop. Investment bank HSBC also cut its outlook this week, predicting home prices could fall up to 16 per cent, peak to trough, in the two capitals. ANZ head David Plank said prices would only be back at 2015 levels, and the downturn had followed the biggest boom that those cities had experienced. Prices in Sydney surged more than 70 per cent in the five years to mid-2017 while Melbourne saw a near 60 per cent run-up, according to researcher Corelogic.
Sydney real estate identity John McGrath argues that the price slide in the city’s real estate market could be almost over, since it has suffered falls of 10 to 15 per cent already. “I think we’re getting towards the bottom of the market.”
30th October 2018
There is some confusion in the market place following the Royal Commission into the banking industry and the credit squeeze being applied by the banks as a result.
Here at HLH we have always believed in offering alternatives to the big four banks and still do. WE HAVE LENDERS KEEN TO WRITE BUSINESS, INCLUDING SMSF LENDERS.
All the talk of a downturn in the property market has some people concerned, we have two things to say about that.
1. Sydney and Melbourne are the cities taking a small drop, this is to be expected after one of the strongest growth cycles in these cities in recent memory and is largely caused by the decline in Chinese money (by around 45%) which had been pouring into the apartment markets in Sydney and Melbourne and especially for off the plan sales. Those of you who know us a little will know we have never recommended apartments, including in Brisbane, as one of our Investment Property Strategies.
2. Brisbane and SE QLD (where we concentrate) has according to the latest stats had a rise of around 1% on a national basis and if you know where to look, there are much better results than that in our part of the world. Take the Logan City area which is showing strong growth, along with the northern growth corridor (Griffin/Mango Hill/Narangba) and the western corridor around Ripley is also growing well. Then there is the Northern Gold Coast - almost boom times, now that the Westfield Coomera Town Centre is open the Gold Coast is tipped to reach a population of 1,000,000 by 2034, nearly a decade earlier than previous forecasts (up by some 427,000 people).
Another thing that we have noticed is that now the Sydney and Melbourne markets are flat, many people are using some of their equity to purchase investment properties in SE QLD as this area is great value compared to their cities or are selling their homes and relocating to SE QLD.
It's all about supply and demand so once again the demand is up for SE QLD investment properties, right at a time when the possible labor party policies re negative gearing (should they become the next government) will according to many experts further slow down the building of new homes. This will drive up rents (which we are already seeing) which will be great for investment property owners.
With all the new infrastructure being implemented and planned for SE QLD, you can just feel that our area is poised for a strong growth cycle for the next 5 - 10 years, an exceptional time to become a residential investment property owner or to expand your portfolio.
HLH -"Putting the HOME into investment property" - better choices, better value, better long term results.