Property Solutions Archives - Lime Property Solutions

Dec 20

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Turn $15,000 into a staggering $10 million through property investment

By Hugh Frame | best investment, Investment, Properties, Property Research, Property Solutions, Real Estate | No Comments

$15,000 into a staggering $10 million through property investment

Scott and Mina O’Neill, aged 28 and 29, own 25 properties worth more than $10 million across the country
The married couple purchased their first home together in 2010 in Sutherland, south of Sydney
They have built their property portfolio by rentvesting, renting their own home and investing in others

A young couple in Sydney’s south have turned $15,000 into a staggering $10 million through property investment.

It’s a great Christmas story and one any young couple should be thinking of repeating starting in 2017!

(Please contact us at info@limepropertysolutions.com.au for further information or the chance to discuss this and other issues in the comfort of your own home.)

Scott and Mina’s story can be found here http://dailym.ai/2gNPBDS

It’s a story many other young couples could share and one many have shared, turning a relatively small savings account into a multi-million dollar portfolio. Their story is almost a perfect duplicate of the information to be found in the Lime property Solutions free eBook which you can download free from here: www.limepropertysolutions.com.au

To turn $15,000 into a staggering $10 million through property investment, the O’Neill’s have used the strategies Lime teaches and recommends, particularly with understanding markets and market timing. They have, in a relatively short period of time, built a portfolio of 25 investment properties while they continued to rent their own home. Lime Property Solutions can explain a few things to clients which would make their portfolio even less risky and almost certainly better performing than what the O’Neill’s advocate. For example, a better understanding of yield and return can make a portfolio much better performing over a relatively short time-span.

If you want to know more about how you can build a multi-million dollar portfolio through property investment, write to: info@limepropertysolutions.com.au.

This couple manage to make their millions through rentvesting.

Rentvesting refers to purchasing an investment property but continue renting. You could turn $15,000 into a staggering $10 million through property investment!

Dec 05

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Stamp Duty Must be Reduced

By admin | best investment, Economy, Financial, Investment, Negative Gearing, News, Property Solutions, stamp duty | No Comments

Stamp duty must be reduced

NSW Planning Minister Rob Stokes has recently broken ranks with his Liberal colleagues and suggested that the federal government should make changes to negative gearing. It’s all part of the Sydney ‘affordability’ debate but it is a reduction in stamp duty which is a much better way to improve affordability. Most studies into negative fearing show that its removal is unlikely to drop property prices by any more than half of one percent, yes just 0.5%.

(Please contact us at info@limepropertysolutions.com.au for further information or the chance to discuss this and other issues in the comfort of your own home.

On a very low-priced Sydney home at $550,000, the stamp duty payable to the State Government is over $20,000. Ion the same property, it would likely reduce in value by just $2,750 if negative gearing incentives were removed.

Mr Stokes argued that adding new supply to the market would not make property affordable on its own and suggested changing tax benefits for investors should be changed. In our view, it’s a pity Mr Stokes could not do the arithmetic in the last paragraph and then realise that he and his party can actually do something now to assist affordability rather than doing the political usual of putting it in the ‘too hard’ basket then passing the problem off to someone else. Read more : http://www.domain.com.au/news/stamp-duty-adding-years-to-the-depositsaving-plans-of-sydneys-home-buyers-20161202-gt2jjz/

Property Council of Australia chief of policy and housing Glenn Byres says the $40,000 an average home buyer in Sydney pays on top of their purchase price in stamp duty is a concern. In just four short years, the NSW Government’s stamp duty revenue has doubled from $4 billion to $8 billion. Stamp duty must be reduced if we are to help first home buyers.

If you want to know more about how you can save on stamp duty buying a new property investment contact: info@limepropertysolutions.com.au

Oct 13

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Life changes for the property investor to understand

By Hugh Frame | best investment, Investment, Properties, Property Solutions, Research | No Comments

Life changes for the property investor to understand

Today we are reading about how the housing boom is changing the way Australians live, quite important life changes for the property investor to understand for successful investment.

(Please contact us at info@limepropertysolutions.com.au for further information or the chance to discuss this and other issues in the comfort of your own home)

It hasn’t been a “long boom” as the writer describes it in the article link below but we certainly have seen significant price growth in our two largest cities, which not surprisingly, has some effect on the way we live and our behavioural changes.

Most of these changes would be very predictable we spent the time to think about them, but the primary question for the property investor should be how important it may be to understand the impact these demographic/life changes have on the demands of certain types of property?

The most obvious change is that we are finding that young adults to live in the family home for longer than in the past. We also have what has been described as the “boomerang generation” – the chicks leave the home only to return when they have to face the economic realities of not living with mum and dad. This trend is now showing up clearly in Australia’s demographic data.
Closely related with the above, is the fact that home ownership rates among those between 25 and 45 years has fallen markedly during the past two decades. If that decline is not reversed, the proportion of life-long renters in Australia will grow.
There has been a huge shift towards high- density living in our big cities. I’d comment that it is incorrect to assume that this is because of the price of well-located urban land increasing relative to incomes. I’d suggest it has a lot more to do with the choice the young in particular are making for the city and city-fringe lifestyle as well as the increasing number of older Australians who are downsizing into more manageable city units. It is interesting to note that 51 per cent of all dwelling approvals in Australia were for multi-unit houses and 62% in Sydney! Unsurprisingly, the number of small cottages with a yard is in decline.
House price movements have a “clear and consistent” influence on how much some people work. The economists recon there is a tendency for older females in particular to use any unexpected wealth gains from house prices to retire early.
High property values also affect the work choices made by younger women and men. Those between 20 and 40 years who own property cut back their hours of work, on average, following strong gains in housing wealth. At that formative stage of the family life-cycle many young couples use housing wealth gains to help manage the juggle between work and family.
There is another pretty predictable change – as prices rise, homeowners take on more debt.

If you want to know more about how these changes can affect your property investment choices contact us at info@limepropertysolutions.com.au

Or even better, why not give us a call at LIME and we’ll be happy to discuss with you.

Oct 05

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Guide to buying property with your partner

By Hugh Frame | best investment, finance, Financial, Investment, Property Solutions, Real Estate | No Comments

Guide to buying property with your partner

Today we have two very good articles which offer a guide to buying property with your partner and many other financial issues that are so often overlooked or completely ignored when two people decide to live together.

I have lost count of the number of couples I have worked with who tell me they are buying an investment property but ‘it has nothing to do with my partner, we keep our financial lives completely separate”.

It’s Spring again and love is in the air so it’s maybe a great time to sit down with your significant other and sort out some problems you may face if you decide to go your separate ways at some point in the future. Probably the two most important issues to recognise are:

If you have been living together for two years or more, then under Australian law you will be treated in the same way as a married couple.
Understanding point 1 above, you should try to steer clear of potential sexually transmitted debt.

Moving in together with a partner can triggers unexpected tax and financial consequences that are not all bad as there can also be unexpected financial gains from living together. Read here: https://goo.gl/ktYEYg

Relationship Australia research has found that disagreements over money are a stronger predictor of divorce than other commonly cited causes of marital disagreements.

Among other things, the 2015 online survey by Relationships Australia found 7 out of 10 couples said money causes tension in their relationships

A lot of people think that a pre-nuptial agreement is something that can only be done before an actual wedding but it makes a lot of sense to organise a pre-nuptial agreement before you move in with somebody. While it may be easy to keep separate bank accounts, what about the money your partner owes to the Bank? Half could easily become yours! Or what about your superannuation or even the inheritance from your parents that went towards paying off the house you both own or maybe its sitting in your long-term deposit or share portfolio; it may only be half yours!

There are other issues that can immediately affect you for good or for bad and they are all worth checking out. Make sure you do your guide to buying property with your partner. Here is a small list but further information on how they affect you can be found on the above link and below..

Medicare levy surcharge
Private health insurance rebate
Businesses and structures

Find out more at: https://goo.gl/pxcLUO

Sep 14

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Are holiday homes still a good investment?

By Hugh Frame | best investment, Economy, Investment, Properties, Property Solutions, Research | No Comments

Are holiday homes still a good investment?

There is an article in domain.com.au today which asks the question, are holiday homes a good investment? The author seems to support the notion that, on the whole, money can still be made from a second ‘holiday home’ but I do not think this statement actually answers the question. It is almost a certainty that any property will make you money over a period of time, this fact in itself does not make a good investment.

Gold Coast is prooving popular for Brisbane commuters

Holiday Homes do not always make a good investment.

I have the experience of a holiday home in Cairns, purchased new back in 2002. The complex was new and was awarded all sorts of awards as “the Best” in this and “The Best”. I could use it whenever I chose and at other times in was in the complex holiday rental pool; a very typical set-up for a holiday unit almost anywhere in Australia. The total cost, including a furniture package and stamp duty was around $300,000. As an investment, it held its own for the first few years and it gained from the large growth cycle witnessed in Cairns between 2002 and 2008, probably reaching a price point of around $420,000…… then came the GFC! The Australian dollar went through the roof, tourism disappeared, body corporate in far north Queensland almost doubled overnight due to insurance policies and Cairns city council rates became some of the highest in Australia.

Even with the higher 4% depreciation that can be claimed on this type of ‘commercial’ property, the out of pocket after tax holding costs were quite substantial. The Cairns housing market also collapsed by up to a staggering 50% in some cases. Fourteen years after the purchase, I can still say I love visiting this unit (each time now seems to involve a fridge replacement or a lounge suit replacement or something else), it almost looks after itself and, if I chose to sell, I’d probably just get around the $300K I originally paid for it.

Had I purchased a unit on the gold coast around the same time for the same purpose, the history would just be about the same, maybe slightly better.

For a good investment, stick to areas where you can minimise your risk and maximise your return. Stick to the major capital cities of Melbourne, Sydney and Brisbane and do not try and kill two birds with the one stone; if you want a good investment property, buy a good investment property: if you want a good well-located holiday home then that is what you buy – but don’t look for this being a great investment!

Aug 15

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Census meltdown does not help investment property research

By Hugh Frame | best investment, domain, Economy, Market, Property Research, Property Solutions, Research | No Comments

Census meltdown does not help investment property research

Census data is one of the most important sources of information used by property researchers and the census meltdown does not help investment property research. The big question now is just how complete is the new data acquired in the 2016 census going to be in assisting planning over the next 10 or 20 years?

Regardless of the culture described as “Reckless” at the top of the Bureau of Statistics, it is essential that trust between the citizens of this country and the ABS be renewed as quickly as possible in order that the necessary information used for the development of the future of this country is collected fully and accurately with the blessing and trust of every Australian.

Even before the on-line debacle of census night the ABS was not prepared to explain why it now wanted to retain names. It would save millions by posting login codes to most of the population rather than delivering forms. Had it delivered, or even posted, forms it would have had a backup. Instead it gave most of Australia only one way to submit census forms and threatened fines of $180 per day for people who didn’t comply. The result is we have now a group of elected representatives declaring to the masses who vote that they will not comply to filling in the form, even if it means paying a fine. What chance now of having anything like a 95% return on census information?

Lime Property Solutions Property Research, like other property research groups, plays a critical role in finding the best property investment for clients. Much of the research is analysing professional data supplied or purchased from Australia’s most respected property research agencies such as Australian Bureau of Statistics and BIS Shrapnel. Much can also be found by daily scrutiny of quality media such as the Financial Review. This outsourced research involving the growth and development prospects of different regions and locations, is assessed by Lime by visiting areas and increasing our knowledge through meetings with local developers, real estate agents and local Chamber of Commerce representatives. Once our research is satisfied with an area or suburb we seek out suitable property that meets our strict selection criteria. Like all research bodies, full and accurate census information is an essential resource to do this job. The census meltdown does not help investment property research!

Buying an investment property before the boom

By Hugh Frame | best investment, Investment, property cycle, Property Solutions, Research | No Comments

Buying an investment property before the boom

The goal of all property investors is to ensure they are buying an investment property before the boom and not at the very top of a growth cycle.

At Lime Property Solutions, we have always believed that good research is key to ensuring that you are buying your investment property before the boom.

Stick to a selection criteria and buy property before the boom

We always start with the ‘big picture’ statistics. It is these State by State and city by city statistics and forecasts that will inevitable point us towards the city with the highest probability of being at a point before the boom. Once we have the ‘proof’ of best city, it’s then good to have a very close look at the macro factors of general areas. These include transport links and ease of access and egress, infrastructure growth, educational facilities from child care to university, medical facilities including hospitals, shopping, entertainment, leisure areas such as parks and entertainment centres, infrastructure growth, job growth and population growth just to mention a few.

When we get down to the suburb we research the micro including a suburb’s population growth, its major existing attributes (like a train station or sought-after school), and any plans for change in the short term (like an expanded shopping centre), then drill down to the market trends that will tell you what’s happening right now. Specifically we are looking at very short drive or walk-to facilities including child care, schools, convenience stores, cafes, salons, pools, sports ground, etc.

We do not agree that you should stick to your own home area. While this may give some peace of mind, as an investor you can be missing out for many years on excellent growth opportunities by diversifying to different cities. For example, remember, we had no growth in Sydney between 2003 and 2010/11. In this same period investors in Brisbane saw a 150% increase in house prices and in Perth it was close to 200%.

The research outside of your own area can be done by professionals like Lime Property Solutions; this is exactly the service we provide.

John McGrath has written a very good article on this topic although we believe he is contradicting himself and not helping any investors by suggesting investment in your own back yard only!

Call us at Lime for more information on how you can be buying an investment property before the boom! Read more: http://goo.gl/Z30w1W

Apr 04

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Population increase – more property investment required?

By Hugh Frame | best investment, Investment, News, Properties, Property Solutions | No Comments

More overseas-born Australians today than in the last 120-years

The percentage of Australian residents born overseas has increased every year for the past 15 years and, in June last year, reached 28.2 per cent, or 6.7 million people. This is the highest percentage rate since the late 1800s.

population

Data from the Australian Bureau of statistics released this week shows that the percentage of people born overseas has increased again. Little wonder, with these still very large new migrant numbers the demand for housing is growing and we see more and more of our suburbs in the larger cities with median prices going over $1 million. Little wonder that low income earners are finding it almost impossible to find and rent affordable places and little wonder that our vacancy rates for investment property are still very low and below what most would term a balanced market.

A surprise for some shows that residents from the UK remain the largest group of overseas-born residents at 5.1 per cent of the population. Kiwis make up the next largest group at 2.6 per cent, followed by 2% China, 1.8% India and 1% for both the Philippines and Vietnam.

Victoria, again, welcomed the largest number of interstate migrants with a net gain of 10,200 people making it our fastest population growth state, followed by Queensland with a net gain of 8800. NSW suffered a loss of 6600 although it did received the highest number of overseas migrants totalling 66,100 last financial year so the population of NSW is still growing strongly even although we have the highest number of people leaving the state to go interstate.

Little wonder the demand for rental of investment property is increasing in various parts of the country. Keeping an eye on these figures is important in choosing the best suburbs for property investment but the numbers should also give property investors confidence in finding permanent renters for their property investment. Read more: http://goo.gl/nbrirR

Follow us on Facebook: https://goo.gl/qlVppi

Twitter: @LimeProperty1

~ Lime Property Solutions

Apr 04

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Australian Real Estate Agents Aren’t so Bad!

By Hugh Frame | best investment, News, Properties, Property Research, Property Solutions, Real Estate | No Comments

Australian Real Estate Agents Aren’t so Bad when you view some of these headlines from overseas!

Some Terrible Real Estate Headlines

Government introduced the Fair Housing Enforcement Program – helps rid Real Estate industry of discrimination and ensures a level playing field for buyers of all ages, races, disabilities and economic positions!
Property is resold multiple times, making profit each time for the agent!
Government is cracking down on Airbnb rentals.
Huge Increase in Stamp duty for properties over 1.8 million!
Prices May crash as World Cup Finals move location!

All of the above are recent stories from around the word concerning property and property investment; fortunately non are from Australia! To read the full story go to : http://goo.gl/14EmKh

Follow us on Facebook: https://goo.gl/qlVppi

Twitter: @LimeProperty1

~ Lime Property Solutions

Apr 04

0

Good information for your next investment property

By Hugh Frame | best investment, Investment, News, Properties, Property Solutions | No Comments

Good information for your next investment property – choosing the best design for an investment property

An increasing number of Australians over the age of 40 are turning to share housing, with this in mind we have some good information for your next investment property.

As house prices and rents climb, more and more 40 plus year-olds are finding that the only way they can really afford to rent, particularly in the inner suburbs of our cities, is to move in with a flat mate.

This should guide clients interested in property investment in their selection criteria for a good apartment. Of course, the first thing we look for is a property that will be most appealing to future owner-occupiers in the area; we consider our exit strategy before we purchase. Another critical factor to consider is the investment property’s appeal to local renters. Now with an increasing number of single mature people looking for shared housing, as well as the very significant numbers of young professionals also looking for share accommodation, it is essential to ensure that your new property investment has at least one bathroom for each bedroom.

A recent Domain article highlights the increasing number of Australians over the age of 40 turning to share housing. Their data comes from share house listings service flatmates.com.au.

Between the start of January and end of February this year, the number of people over 40 looking for accommodation on the website jumped – relative to the total number of people looking – 20 per cent year on year.

It’s not surprising when we see the median rental price for an apartment in Sydney is $500 a week and it’s not much less for a well located apartment in our other major cities.

The concept of Share accommodation is no longer just housing for those moving out of the family home or for students; sharers have become far more diverse and include anyone from young professionals, single mums to retirees and or downsizers.

It’s information property investors should note when looking for that new investment property.

Property Solutions

Turn $15,000 into a staggering $10 million through property investment

Stamp Duty Must be Reduced

Life changes for the property investor to understand

Guide to buying property with your partner

Are holiday homes still a good investment?

Census meltdown does not help investment property research

Buying an investment property before the boom

Population increase – more property investment required?

Australian Real Estate Agents Aren’t so Bad!

Good information for your next investment property

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