Notice that the Bayside area is leading the recovery, with an estimated recent increase in median house prices of $30,000 followed by the Eastern suburbs which increased $15,000 to $19,000.
Guess where I have been sourcing 80% of all properties for my clients since November 2022?
You guessed it!
The Bayside area and the Eastern suburbs of Melbourne!
So, what are you waiting for?
Reserve your place and join me and 55 like-minded property investors at the next Real Estate Investing Fast Track Weekend!
Seats are strictly limited so book NOW in order to avoid future disappointment…
I look forward to meeting you at the event!
Yours in Success,
KONRAD BOBILAK
Dear Fellow Property Investor,
Let me get straight to the point…
The best time to BUY from a ‘market timing’ perspective is NOW…
When the market booms in 12 to 24 months from now, don’t say I didn’t tell you so!
So, let me ask you; what’s really stopping you from investing in real estate, right now?
See, for most people it’s simply a lack of knowledge and lack of financial literacy.
Basically, it’s all a matter of education!
What you need to take heed of, is that in order to take advantage of opportunities and prevailing market trends, you must first become EDUCATED!
So, here are two of the smartest and cheapest ways to do that…
1. Access my 10-hour online video real estate investing course called; The Real Investing Fast Track Weekend valued at $497.00 for absolutely Zero!
That’s $0.00!
That’s the entire course, plus the full 265-page manual, no strings attached, no upsell, and nothing to pay ever!
The 10 Hour Real Estate Fast Track Weekend Online Video Home Study Valued At $497.00!
3 Speakers, 2 Days, and Over 10 Hours of Real Estate Education delivered by some of the sharpest minds in Finance and Real Estate Investing in Australia.
Both options are an excellent use of your time.
Always remember that the risk always lies with you, not with the market. The market is simply a vehicle that transfers wealth from the uneducated to the educated.
The sooner you gain the necessary skills and education to take advantage of the property market, the sooner you will be making money and taking advantage of rare opportunities such as what the current property and share markets are presenting right now.
So, what are you waiting for?
Reserve your place and join me and 55 like-minded property investors at the next Real Estate Investing Fast Track Weekend!
Seats are strictly limited so book NOW in order to avoid future disappointment…
To your success!
KONRAD BOBILAK
Don’t miss out, CLICK HERE to get up to date video education from Konrad Bobilak.
Dear Fellow Property Investor,
Did you know that Melbourne and Sydney have officially entered the beginning of the growth part of the next property cycle?
This CoreLogic graph perfectly captures the cyclical nature of the Australian property market – and suggests we may be entering another growth phase.
The share of Australian suburbs that recorded price growth over a rolling three-month period rose from 18.7% in December to 34.6% in March.
As the graph shows, the market started booming in late 2020, and, by early 2021, almost every suburb in Australia was experiencing quarterly growth.
The market then cooled sharply from early 2022, but this downturn appears to have bottomed out in October when 16.5% of suburbs posted quarterly growth.
Since then, the share of growth in suburbs has been trending upward.
So the first million-dollar question is…
Are you market-ready to take advantage of the prevailing circumstances?
And the next million-dollar question is;
Do you have the skills and knowledge to correctly identify the best-performing suburbs in Melbourne in 2023 right now?
Or will you simply wait by the sidelines and see other savvy property investors snap up the best opportunities?
Now I know what you are thinking…
But Melbourne is very expensive now, as the average 3-bedroom townhouse in the bayside area or the eastern suburbs costs between $1.5 to $2 million dollars.
And yes, that’s very true.
So If you have a budget of only $700K, where do you buy?
Well, the answer is in suburbs that are currently going through the process of gentrification!
The bad and ugly ducklings of today will become the trendy-hipster suburbs of tomorrow.
Case and point; Brunswick 20 years ago, Carlton 20 years ago, St Kilda 20 years ago, Northcote 20 years ago, and Yarraville 20 years ago, just to name a few.
Take Northcote for example, known as the poster boy of the Gentrification phenomena in Melbourne, from 2011 to 2023 Northcote boomed!
In Northcote West, the median income is now $1216 per individual, an increase of 62 percent from 2011. In Northcote East, the median leaped 55 percent over the decade to $1130.
Footscray and Yarraville were also suburbs that were showing similar signs of gentrifying. Wealth has also increased rapidly in Thornbury, the median weekly income has risen from $641 in 2011 to $1041 by 2021, an increase of 62 percent.
So where are the Gentrification suburbs of tomorrow?
Join me for an exclusive 1.15-hour video where you will discover advanced property investing strategies to use in the current market to identify, with laser-like precision the best-performing Gentrification suburbs of tomorrow!
You will also learn specific real estate finance and due diligence methodologies that will give you the confidence and skills to start building your property portfolio as soon as you finish watching the video;
Many of you will be thinking right now…’ have I missed the boat? Especially on Suburbs experiencing Gentrification?
Well not really….
One of the most fundamental principles of property investing in Australia is to appreciate that the market moves in distinct cycles which are characterized by periods of strong capital growth and demand for properties, through to periods of a flat-lining market, following periods of distinctive falling median prices, lower demand for properties, and a decline in property prices.
The general rule of thumb is that these property cycles last 7 to 10 years, and can be segmented into 4 main parts, the ‘Peak of the Market’ being the shortest of the four;
Peak of the Property Market – High capital growth, auction clearance rates of 85% plus.
Decline of the Property Market – Declining capital growth, auction clearance rates dropping from 80% to 60% and 50%.
Bottom of the Property Market – Extended periods of low capital growth, auction clearance rates of 45% to 50%.
Growth of the Property Market – Increasing capital growth, increase demand for property, increased auction clearance rates, 55% to eventually 75%.
Would you like to know exactly where Melbourne or Sydney is located right now on the property clock?
I will be revealing the location of our major property markets on the property clock during this video.
Plus…
I will also reveal my TOP 10 Gentrification Suburbs of Tomorrow, those that are destined to experience double-digit capital growth over the next decade!
In fact, one of these suburbs is booming right now, and no one is noticing or even talking about it in the mainstream media.
The main thing to remember is that money is made by both the timing of the market, and of time in the market.
Finally, for those of you with deeper pockets, I will show you the top ten suburbs in Melbourne that have consistently hit double digits in Capital growth over the last 10 years, and more importantly, the top 10 areas that will have the highest potential to outperform the rest of the property market in 2023 and over the next 5 years!
I will also show you the exact type of properties, i.e. house and land packages, townhouses, or apartments to target in these areas, and why….this section will surprise many of you.
So what are you waiting for?
Check out this video NOW!
Dear Fellow Property Investor,
This CoreLogic graph perfectly captures the cyclical nature of the Australian property market – and suggests we may be entering another growth phase.
The share of Australian suburbs that recorded price growth over a rolling three-month period rose from 18.7% in December to 34.6% in March.
As the graph shows, the market started booming in late 2020, and, by early 2021, almost every suburb in Australia was experiencing quarterly growth.
The market then cooled sharply from early 2022, but this downturn appears to have bottomed out in October when 16.5% of suburbs posted quarterly growth.
Since then, the share of growth in suburbs has been trending upward.
So the million-dollar question is…
Are you market-ready to take advantage of the prevailing circumstances?
So, what are you waiting for?
Reserve your place and join me and 55 like-minded property investors at the next
Real Estate Investing Fast Track Weekend!
Seats are strictly limited so book NOW in order to avoid future disappointment…
I look forward to meeting you at the event!
Yours in Success,
KONRAD BOBILAK
Dear Fellow Property Investor,
These are the following reasons why NOW is the Perfect Storm!
1.Chinese buyers return to Australia's housing market and snap up properties, sparking fears prices could rise even further! Foreign buyers are returning to the Australian property market; the fear is, they could drive up the cost of homes for Aussies already struggling to buy one.
China was the largest source of investment for residential real estate investment proposals by number and value ($0.6 billion), as it was in 2021-22 and 2020-21. The next two largest sources of residential investment were Hong Kong ($0.1 billion) and Vietnam ($0.1 billion).
The investment figures that were recently released by the Australian Government’s Treasury, in its Quarterly Report on Foreign Investment, cover the last quarter of 2022.
Total foreign investment in Australia fell sharply but Chinese buyers remained the most significant, with $600 million of approved investment, even though that was down $1 billion.
With Hong Kong investment included in the Chinese total, Chinese investment this quarter accounted for $700 million of Australian property. After China, the next largest investors were Vietnam, Singapore, and the United Kingdom, each of which invested $100 million in residential real estate.
In this quarter, the largest target sector for proposed investment for the quarter by value was commercial real estate, with a total value of $19.3 billion.
The United States was the largest source country for commercial investment proposals by number and value ($16.7 billion), as it was in 2021-22 and 2020-21. The next four largest source countries by value were China ($6.7 billion), Singapore ($5.2 billion), South Korea ($4.2 billion), and Canada ($3.8 billion).
While the overall numbers are down, the return of Chinese students to Australia, an end to pandemic travel bans, and warming relations between the two countries, are driving a rise in property inquiries from China.
Juwai IQI Co-Founder and Group Managing Director Daniel Ho said that at the current rate, China would invest an estimated $3.2 billion in Australian residential real estate this year, which would be up from $2.4 billion in 2021-22.
With the inclusion of Hong Kong, China would invest $3.8 billion, which would be up from $3 billion last year.
Source: Juwai IQI.
So, what are you waiting for?
Reserve your place and join me and 55 like-minded property investors at the next Real Estate Investing Fast Track Weekend!
Seats are strictly limited so book NOW in order to avoid future disappointment…
“In 2022 and so far this year, Australia is the most popular country for Chinese homebuyers, for the first time ever, according to Juwai IQI Chinese buyer enquiries,” Mr Ho said.
“In January, Chinese buyer inquiries for Australian real estate surged by 24 percent compared to December, due to the announcement that borders would be reopening.” The latest data from national removalist booking platform Muval has revealed Australians are continuing their exodus from Sydney, looking strongly in favor of Melbourne.
2. Inbound inquiries show the laneway capital remains streets ahead of the rest according to the platform; Melbourne was the most popular city to move to in 2022, with the February figures showing the city accounted for the most eyeballs. 28% of all major metro inbound moving inquiries were for Melbourne. This is an increase from last January when Melbourne accounted for 24%.
3. Melbourne homeowners are holding back from listing properties in the declining market, resulting in almost a 30 percent drop in the number of homes for sale in some regions year on year.
House hunters have fewer properties to choose from as falling property prices prompt vendors to rethink plans and some to delay selling until the market improves.
Buyers in Melbourne’s north-east have seen the biggest drop in homes on offer, as new listings in January – properties marketed for 30 days or less – were down 28.2 percent year on year. This fall was closely followed by the inner south, where new listings dropped by 28.1 percent.
The inner region was down 21.9 percent, the outer east 19.7 percent, and the west 15.4 percent.
New listings were down more than 10 percent across Melbourne, but the number of homes hitting the market on the Mornington Peninsula rose 3.3 percent.
The total number of homes for sale was also down in most Melbourne regions except in the northwest and west of the city, where numbers were up 13.9 percent and 8.2 percent respectively. In the Mornington Peninsula, they were up 27.8 percent.
4. Melbourne rents have rocketed to record highs, jumping as much as 20 percent in a year and prompting fears of homelessness and housing stress for low-income households. In fact, there has never been a tougher time to be a renter in Melbourne, where vacancy rates are just 1.4 percent and rents have hit record highs.
The median weekly cost of renting an apartment in Melbourne last week hit $450 – a 20 percent increase on 12 months earlier – while in inner Melbourne rents have reached a weekly median of $490 a week, according to the Domain Rent Report for the December quarter.
The most recent Australian Bureau of Statistics figures, taken in August, showed the median weekly income in Melbourne was $1300 (across Victoria the median was $1250). Rental stress is defined as paying more than 30 percent of one’s income in rent, meaning for a single renter on a median wage in Melbourne, anything more than $390 a week would put them in rental stress.
For houses, the median rent reached a record high of $480 and grew 7.9 per cent in the 12 months to December.
The increase comes amid growth in demand as tenants make pandemic living habits permanent and eschew share houses for their own space, at the same time as international borders reopen.
While rental increases are bad news for tenants, its great news for landlords, especially for those who purchased their investment properties in the inner east and Bayside where rental yields have increased over 16 and 17 per cent respectively, far beyond any increases in interest rates over the same time period.
5. Record Low Vacancy Rates;
6. Financial markets think rate hikes are done... now pricing is in a rate cut through the second half of the year.
So, in summary, despite the ‘Doom and Gloom’ portrayed by the media, we have the following factors that make this a perfect buying opportunity for savvy, educated, and market-ready property investors;
We have record levels of foreigners coming to Melbourne to live and buy property, record high rental increases in key suburbs, combined record low vacancy rates of 1.2 percent, coupled with a low volume of current stock available for sale, some 30 percent less than the same time last year.
To further aggravate the situation, there is a record low volume of a future stock in the pipeline, as developers and builders keep shelving future projects indefinitely, due to uncertainty in the ever-escalating cost of materials, critically low number of skilled labor, and the risk associated with entering into fixed contracts for off-the-plan sales, not knowing if there is going to be any profit upon completion of new projects.
Plus, it is highly probable that we are approaching the peak of the interest rate cycle, and as soon as Australian inflation is under control, which it will be, the RBA will start to cut interest rates to their recent low levels!
This will be great news for property investors as their investment properties will soon become cash-flow neutral and then positive!
All these factors have contributed to a unique situation wherein savvy educated and market-ready investors have taken advantage of the prevailing circumstances and are going in hard, negotiating deals, and securing investment properties at the very bottom of the Melbourne property cycle…
Permit me to get straight to the point…
The best time to BUY from a ‘market timing’ perspective is NOW…
See below;
The best time to BUY is NOW…
In fact, I believe, that many property investors who are currently staying out of the property market will look back retrospectively and realize that November and December 2022 were in fact the lowest and most opportune times to enter the Melbourne property market from a ‘Market Timing Perspective’…
So, what are you waiting for?
Reserve your place and join me and 55 like-minded property investors at the next Real Estate Investing Fast Track Weekend!
Seats are strictly limited so book NOW in order to avoid future disappointment…
Kind regards,
KONRAD BOBILAK
Dear Friend,
The latest data from national removalist booking platform Muval has revealed Australians are continuing their exodus from Sydney, looking strongly in favour of Melbourne.
Inbound enquiries show the laneway capital remains streets ahead of the rest According to the platform, Melbourne was the most popular city to move to in 2022, with the February figures showing the city accounted for the most eyeballs. 28% of all major metro inbound moving enquiries were for Melbourne. This is an increase from last January when Melbourne accounted for 24%.
Brisbane took second place with 21% of inbound enquiries, Perth was third with 18%, Sydney was 17%, and Adelaide was 9%.
Adelaide’s inbound migration is a slight improvement, up from 8% last month, but down from the 11% seen through most of last year.
Perth averaged around 19% last year, slightly higher than the latest figure of 18%.
Sydney’s inbound figures were slightly higher, the latest showing 17% between December and February, up from the 2022 low of 14% seen in April. Muval said ‘moving season’ (meaning the busiest time to move in Australia) is typically between November and March.
Finally, Brisbane saw figures dip to 21% from 24% last February. While it took second place, the report noted Brisbane was neck and neck with Perth as the place to move to throughout 2022. ). The inbound traffic is no longer coming from Melbourne (when thousands headed north during the pandemic), but mostly from Sydney.
The report found that Melbourne recorded the lowest level of outbound enquiries in three years, at 27%. It was also found that Melbourne is nearing positive net migration again, with net migration to Melbourne going from -16% in December to -8% in February. The city last had a positive net migration of +3% in January 2020, according to Muval.
Adelaide recorded 9% of outbound enquiries, with the report noting the city of churches was going through its seventh straight month of negative net migration. While it is going through negative net migration, the numbers show some slowing, December recorded -23%, while January saw -18% and February -11%. Muval said that the levels of outbound enquiry were in line with the second half of 2022, “suggesting the negative net migration is being driven by a lack of interest to move to Adelaide rather than a mass exodus out of the city. This may change as more people go in search of affordable housing close to a CBD.”
The western capital recorded an 8% outbound enquiry and has consistently done so since October. Muval data shows that Perth is the ‘standout’ city for positive net migration, with Darwin second at +13%. The data for February showed +95% for Perth, with a 2021 pandemic high of +181% and a 2022 peak of +149%.
Sydney continues to see swathes of people looking to leave the city that harbours sky-high property prices and living costs. Outbound moving enquiries were consistently above 30% in 2022, with the latest data showing 33%. Negative net migration is at -54%, the report said it was in line with the -50% to -60% seen throughout last year.
Finally, Brisbane saw outbound enquiries at 18%, a figure last seen at the start of Covid in March 2020. Muval said: “… Brisbane’s pandemic boom appears to be well and truly over, with rising house prices and cost of living pressures forcing people out of the city.” According to the platform’s data, Brisbane is being affected by intrastate moves with an uptick in moves to regional Queensland towns and cities.
Negative net migration is on the horizon for Brisbane, with figures dropping from+32% in December to +14% in January and +3% in February. Last February, positive net migration was recorded at 64%.
So, what are you waiting for?
Reserve your place and join me and 55 like-minded property investors at the next Real Estate Investing Fast Track Weekend!
Seats are strictly limited so book NOW in order to avoid future disappointment…
Here’s a Sneak Preview of What You Will Discover By Attending This Unique 2 Day Live Event:
The likely impact of tighter lending controls brought about by APRA and how this will impact your serviceability as the RBA continues to increase interest rates.
What you need to know about Australia's housing market’s ability to perform in an inflationary and rising interest rate environment.
Why now is the ‘PERFECT ECONOMIC STORM’ for property investors and learn what you need to do NOW to make sure you collect your slice of the profits that will be made by savvy property investors in Australia.
How to understand property cycles, state by state, and how to hone in, with laser-like precision, on Melbourne’s Hot Spots in 2023 and beyond.
Learn how to identify the exact type of properties (Apartments, Townhouses or Detached Houses) you should be buying in different areas in order to maximize capital growth in the shortest period of time…
The exact way to build, structure and automate your property portfolio, that is virtually the exact opposite of what the banks and lenders want you to do.
Learn the exact formula that is used by all the banks to assess your borrowing capacity, the DSR Ratio (Debt Serviceability Ratio), and understand the importance of buying a combination of Cash-Flow Positive Properties and Negatively Geared Growth Properties. This alone will save you years and even decades of frustration, and countless possible rejections from banks and lenders.
The huge difference between property ‘OWNERSHIP’ and ‘CONTROL’ via the use of corporate trustees and trusts, that the rich exploit and the poor do not…
Learn which properties to buy first, Cash-Flow Positive Properties OR Negatively Geared Growth Properties; this is essential if your plan is to continuously buy property year after year. If you get this wrong you will hit a brick wall with banks and lenders very quickly. The order that you buy them in will determine how quickly you can build your property portfolio and achieve your financial goals.
And truckloads MORE insider secrets to catapult your property investing success….
I look forward to meeting you at the event.
To your success,
KONRAD BOBILAK
Dear Friend,
Did you know that foreign buyers are returning to the Australian property market, with fears they could drive up the cost of homes for Aussies already struggling to buy a home?
China was the largest source of investment in Australian residential real estate, with $1.6 billion invested in the six months to the end of December last year, according to official figures.
The Chinese government has also instructed its students to return to foreign campuses for face-to-face teaching. Chinese property experts believe that Australia is the most popular destination for people from China who are after foreign property. And one leading expert has warned that the increase in foreign property purchases could lead to trouble for Aussies in the long-term.
John Kehoe, Economics editor of the Financial Review, told Today that prices could rise because of the foreign investment.
'What it means for property prices, I think in the short term, they're going to be more determined by interest rates and we expect them to continue to fall down.
'But over time, when you've got more people buying from abroad, more people coming here from immigration, that will support property prices upwardly in the medium term.'
Juwai IQI co-founder Daniel Ho believes Australia is the most popular country for Chinese homebuyers.
'In January, Chinese buyer inquiries for Australian real estate surged by 24 per cent compared to December, due to the announcement that borders would be reopening,' he said.
'Total foreign investment in Australian real estate fell significantly this quarter. Chinese buyers remained the most significant, with $600 million of approved investment, even though that was down $1 billion in Q1.
'When you include the city of Hong Kong in the Chinese total, Chinese investment this quarter accounted for $700 million of Australian property.
'At this rate, China will invest an estimated $3.2 billion in Australian residential real estate this year, which would be up from $2.4 billion in 2021-22. With the inclusion of Hong Kong, China would invest $3.8 billion, which would be up from $3 billion last year.
'In 2022 and so far this year, Australia is the most popular country for Chinese homebuyers, for the first time ever. That's according to Juwai IQI Chinese buyer enquiries.
'In January, Chinese buyer enquiries for Australian real estate surged by 24% compared to December, due to the announcement that borders would be reopening.'
So, what are you waiting for?
Reserve your place and join me and 55 like-minded property investors at the next Real Estate Investing Fast Track Weekend!
Seats are strictly limited so book NOW in order to avoid future disappointment…
Here’s a Sneak Preview of What You Will Discover By Attending This Unique 2 Day Live Event:
The likely impact of tighter lending controls brought about by APRA and how this will impact your serviceability as the RBA continues to increase interest rates.
What you need to know about Australia's housing market’s ability to perform in an inflationary and rising interest rate environment.
Why now is the ‘PERFECT ECONOMIC STORM’ for property investors and learn what you need to do NOW to make sure you collect your slice of the profits that will be made by savvy property investors in Australia.
How to understand property cycles, state by state, and how to hone in, with laser-like precision, on Melbourne’s Hot Spots in 2023 and beyond.
Learn how to identify the exact type of properties (Apartments, Townhouses or Detached Houses) you should be buying in different areas in order to maximize capital growth in the shortest period of time…
The exact way to build, structure and automate your property portfolio, that is virtually the exact opposite of what the banks and lenders want you to do.
Learn the exact formula that is used by all the banks to assess your borrowing capacity, the DSR Ratio (Debt Serviceability Ratio), and understand the importance of buying a combination of Cash-Flow Positive Properties and Negatively Geared Growth Properties. This alone will save you years and even decades of frustration, and countless possible rejections from banks and lenders.
The huge difference between property ‘OWNERSHIP’ and ‘CONTROL’ via the use of corporate trustees and trusts, that the rich exploit and the poor do not…
Learn which properties to buy first, Cash-Flow Positive Properties OR Negatively Geared Growth Properties; this is essential if your plan is to continuously buy property year after year. If you get this wrong you will hit a brick wall with banks and lenders very quickly. The order that you buy them in will determine how quickly you can build your property portfolio and achieve your financial goals.
And truckloads MORE insider secrets to catapult your property investing success….
Dear Friend,
Permit me to get straight to the point…
The best time to BUY from a ‘market timing’ perspective is NOW…
See below;
The best time to BUY is NOW…
Don’t say 2 years from now that I didn’t tell you so…
I often get asked by property investors; ‘What’s more important; the timing of the market or time in the market?’, and my answer is, and has always been the same for the last 20 years…
It’s always time in the market rather than the timing of the market, that will make you money, as property investing is a long-term game! Hence, don’t wait to buy an investment property, rather, buy an investment property and wait’…
Having said that, I am a big believer that you can combine the two if you want to significantly accelerate your property portfolio growth, but there is a twist to this…
And that is, practice counter-cyclical investing!
So what is counter-cyclical investing?
Well, in essence, it is doing the exact opposite of what the vast majority of property investors are doing in the market.
When the consumer sentiment is low, characterized by low clearance rates of 50% or lower, smart investors buy. When the market is booming, which is usually the shortest part of the property cycle, sophisticated investors focus their energy on revaluing their properties and locking in their lines of credit (LOC) at the highest possible level, waiting once again for an opportunity to snap up a bargain at the low point in the market.
Essentially, your job as a property investor is to watch the market for any higher references of properties that have sold in the last 90 days or less, in the same postcode, similar in size and architectural style. Once you find a higher reference in the market, you have the ability to request a valuation via your lender, based on the new comparable sale, to have your investment property revalued and subsequently increase your line of credit (LOC) or redraw facility, freeing up more equity to buy more property.
This practice of counter-cyclical-investing will take discipline but you will gain more confidence as you become financially literate. Perhaps the best example of counter-cyclical investing is that of the infamous Warren Buffett who, by age 79, built Berkshire Hathaway into a $198 billion company, averaging an annual growth of 20.3% in book value to its shareholders for the last 44 years, while employing large amounts of capital and minimal debt. Warren’s famous style of investing was encapsulated in a quote;
“I will tell you how to become rich. Close the doors. Be fearful when others
are greedy. Be greedy when others are fearful.”
- Warren Buffett
Remember that the risk always lies with you, not with the market. The market is simply a vehicle that transfers wealth from the uneducated to the educated. The sooner you gain the necessary skills and education to take advantage of the property market, the sooner you will be making money and taking advantage of rare opportunities such as what the current property and share markets are presenting right now.
So, what are you waiting for? Reserve your place and join me and 55 like-minded property investors at the next Real Estate Investing Fast Track Weekend!
Seats are strictly limited so book NOW in order to avoid future disappointment…
Here’s a Sneak Preview of What You Will Discover By Attending This Unique 2 Day Live Event:
The likely impact of tighter lending controls brought about by APRA and how this will impact your serviceability as the RBA continues to increase interest rates.
What you need to know about Australia's housing market’s ability to perform in an inflationary and rising interest rate environment.
Why now is the ‘PERFECT ECONOMIC STORM’ for property investors and learn what you need to do NOW to make sure you collect your slice of the profits that will be made by savvy property investors in Australia.
How to understand property cycles, state by state, and how to hone in, with laser-like precision, on Melbourne’s Hot Spots in 2023 and beyond.
Learn how to identify the exact type of properties (Apartments, Townhouses or Detached Houses) you should be buying in different areas in order to maximize capital growth in the shortest period of time…
The exact way to build, structure and automate your property portfolio, that is virtually the exact opposite of what the banks and lenders want you to do.
Learn the exact formula that is used by all the banks to assess your borrowing capacity, the DSR Ratio (Debt Serviceability Ratio), and understand the importance of buying a combination of Cash-Flow Positive Properties and Negatively Geared Growth Properties. This alone will save you years and even decades of frustration, and countless possible rejections from banks and lenders.
The huge difference between property ‘OWNERSHIP’ and ‘CONTROL’ via the use of corporate trustees and trusts, that the rich exploit and the poor do not…
Learn which properties to buy first, Cash-Flow Positive Properties OR Negatively Geared Growth Properties; this is essential if your plan is to continuously buy property year after year. If you get this wrong you will hit a brick wall with banks and lenders very quickly. The order that you buy them in will determine how quickly you can build your property portfolio and achieve your financial goals.
And truckloads MORE insider secrets to catapult your property investing success….
Seats are strictly limited so book NOW in order to avoid future disappointment…
Kind regards,
KONRAD BOBILAK
Don’t miss out, CLICK HERE to get up to date video education from Konrad Bobilak.
Dear Fellow Property Investor,
Deepest house price falls on record won’t make property more affordable:
The deepest housing downturn on record is unlikely to make the property market more affordable over the next 12 months because mortgage repayments are rising so fast, experts warn.
The rising cash rate will reduce buyers’ borrowing power more deeply than house prices fall, economists predict, leaving many still unable to get into the market because of rising repayments.
Many recent home buyers will also be hit with a jump in their repayments once their ultra-low fixed-term deals roll off this year.
Senior economist at investment bank Barrenjoey, Johnathan McMenamin, said the affordability challenge for first home buyers has shifted from saving for a deposit to making higher repayments each month.
Barrenjoey predicts peak-to-trough property price falls of 16 per cent nationally, but expects the amount of money that buyers will qualify to borrow will fall between 30 per cent and 35 per cent.
National home values have so far fallen 8.4 per cent from their peak, on CoreLogic data. Several bank economists forecast peak-to-trough property price falls between 15 per cent and 20 per cent.
“Prior to the pandemic, the biggest hurdle for first home buyers was deposit affordability, but that has now shifted to mortgage serviceability,” McMenamin said. “It’s just shifting the affordability issue from an upfront one, to ongoing.
“Ultimately, we’ll have a housing market where it’s more difficult for homeowners to service on a month-to-month basis,” he said. “So there won’t be a huge amount of relief for affordability.”
RateCity research director Sally Tindall said potential buyers had already faced cuts to their borrowing capacity.
For an average single-wage earner, paid $92,030 a year, who has no dependents, no additional debts and minimal expenses, their borrowing capacity has already fallen by $138,900 since April.
Another affordability challenge this year will be that homeowners on fixed interest rates are facing a mortgage cliff, or higher repayments when their fixed term ends.
A homeowner who took out a fixed-rate loan of $500,000 that finishes in July would face a rise of $1,365 per month in repayments if they don’t renegotiate, RateCity’s analysis showed.
Those who borrowed $1 million face a jump of up to $2,722 per month in repayments from July.
“The housing affordability issue is a double-edged sword really,” Tindall said. “Basically prices are dropping which is ultimately a good thing for people looking to buy.”
But falling house prices were an issue for homeowners looking to refinance, including those on a fixed rate that expires this year, she said.
Some will be facing the tough reality that their home is worth less than they paid, making it difficult to qualify for another loan at a better rate.
Homeowners on fixed rates should speak with a mortgage broker or bank to see if they can secure a better deal once their fixed rate ends, and make extra payments now to get ahead, Tindall said.
Melbourne-based 40Forty Finance director and mortgage broker Will Unkles said borrowers should plan for rising repayments.
Clients were already getting in touch to discuss options for when their fixed term ends, he said, and some are considering fixing their loans.
“Some clients are saying we need to pull our heads in on spending because our mortgage is going to be taking up 50 per cent of everything, and that’s a very stretched position to be in,” Unkles said.
“My best advice is two key items – do the numbers on what your repayments are expected to be and then pay the loan as if it was that rate.
“Then it’s not a shock when your rate jumps to that level and if you need a buffer, then you’re not going to be on your knees,” he added. “If it is going to be too much to repay, then look at selling near the end of your fixed term and downsize into something more affordable.”
While housing affordability will be a challenge in 2023, ANZ senior economist Adelaide Timbrell said there may be some relief in sight because she expects interest rates will be cut by the end of 2024.
ANZ is predicting house prices will have fallen nationally by 18 per cent, after the cash rate peaks in May next year at 3.85 per cent.
The cash rate could then be cut by the Reserve Bank of Australia by the end of 2024, to 2.5 per cent, Timbrell said.
“I don’t think rates will go back to [the record lows] they were during COVID,” she said.
Kind regards,
KONRAD BOBILAK
Dear Fellow Property Investor,
According to the latest The CoreLogic Research Monthly Report, the Australian Housing Market Has Just Hit The Bottom Of The Property Cycle And Is Starting to Moving Up!
See below.
What are you going to do about it?
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