Episode 6: Investing in a Corona World
This episode features guest Terry Ryder of hotspotting.com.au
-Philip & Terry discuss how you need to read the news with a Filter.
-Mainstream Media Headlines are created as Clickbait. – Need facts not spin so now more than ever really need to be careful what you read, who you believe and what is their motivation in writing or reporting that?
Where is the Australian Property Market at right now?
What’s Happening with the Clearance rates?
What about Favourable Lending Conditions – We dissect some of the Key Factors for borrowers –
-APRA – Australian Prudential Regulation Authority reporting the already strong position of the banks pre Covid with lending policies becoming more relaxed.
-Tougher lending measures are now being shelved
-Low cost of borrowing will encourage spending and investment.
-Lender Cash Back Incentives for those wanting to refinance. Bonuse for those working in Essential Services.
-Time for a Reminder – The Government imposed shutdown – What was the Property Market like before the shutdown?
Word of Caution: Return of the Spruikers…
-Property Marketers and Developers offering increased incentives to buy.
-What will this mean for Valuations?
-Where then would you consider? What are the attributes of a good buy?
-Cities with Diverse Local Economies, Good Infrastructure.
-Beware of Local Supply Levels
-Clues…Cities/Regions with low vacancy rates.
-How can you add value to a property – We discuss a case study
-Where for a modest sum the return is now 6.5% Gross Yield. – Beats leaving your money in the bank!!
-Subdivision – How can you do this? What is the opportunity?
-As a result of the forced changes in workplace with people being forced to work from home how is this creating a change in Workplace Behaviour? What does this mean for the future of work? – With the shutdown as a result of the pandemic more and more people are realising they don’t need to work in the big cities that they have proven they can work from home remotely.
-We take a look at the impact on Commercial Real Estate.
-Because of this ability to work remotely we are also seeing those wanting the lifestyle change and more are choosing to relocate to regional centres.
Where are some of these places worthy of consideration as we come out of the Shutdown? We explore some examples ripe for Capital Growth beyond Covid-19.
-Terry summaries the new Government Incentives just announced – the $25k Home Builder Construction Grant.
-New Home Builders – Building a new home up to $750k with the proviso that the contract be signed this side of Xmas and work to commence within 3 months.
-Home Renovators – Home owners who are renovating. If spend is greater than $150k can qualify for the $25k Grant if their home is worth less than $1.5 mill and if they are improving the liveability, accessibility and safety of their home.
-What are the Income parameters for qualifying for the Grant?
Summary – We have a window of opportunity to get in now before the media starts talking up the market and people start following what the media says and buy after the upswing. Our suggestion is you want to get in before the demand lifts to take advantage of the lower prices.
-Remember that the Australian Property Market was on the rise before the Coronavirus Pandemic.
-Look for Diverse economies
-Low Vacancy Rates
-Houses with Good Real Estate Bones
-Opportunities to add value to the House