Australian Property Growth Fund

As we approach June in Byron Bay, I remember what a great place to be in autumn or spring - perfect climate with bright sunny days with warm ocean water and good surf - who could ask for anything more. This is the place to be!

Wash

Everyone involved in property in Australia thought we were about to enter a period of prosperity for the new year 2008. Then a storm of financial crisis and pushing interest rates of 10% was sufficient to take the shine off the market - especially the luxury end that is usually very strong here. So the new government, elected in November 07, although they have presented nothing concrete yet, is determined to keep prices under control property. Australia has the highest rate of affordable housing in the world after London. It is 7.5 times the average annual income to buy a median value of the dwelling house. Some of the measures they can take are to release more land on the outskirts of towns or cutting some of the onerous taxes - some say state stamp duty is likely to go.

My own "Mea Culpa" is to say sorry to the few people I remember being told not to sell to the end of last year to organize your thoughts is the best investment strategy. I am reminded how it is foolish to try to guess the market - in any situation. Especially now when everything is so volatile and unpredictable!

Weakness

Most capital cities have experienced a slight decline in median home values from the previous quarter. Sydney, Melbourne Perth and Canberra all dropped between 0.3 to 0.5%. Hobart was the worst drop of 3.4% while Adelaide the best going up 3.1%. "This is the first widespread fall in four years," says APM general manager Michael McNamara. "It seems to have all stopped on a 10c piece. He also said "there are other signs of weakness, with the number of homes for sale rose by 39 percent from 180,000 in February last year to 247,000 in February this year."

Growth area

A scenario where there is growth in the housing market is to purchase condominiums. This is where one person on their own, can not afford a landfill. But if they team up with a friend or relative they can share something halfway decent. The same concept has now its own website - does anything not have a website? You can go online and find a partner to help the bond and mortgage - or, as in most cases where friends and relatives gather - You can access practical and legal advice.

Debt Consolidation

If it must be a time of constriction may be preferable to consolidate debt. Any investment loss is probably the best cast. Check your current loan to see if you are getting the best deal. If you have been stolen and the plastic credit cards are maxed - they often operate at an interest rate 0f 18 to 20%, more than twice that of home loans. If it could be some time before you get a chance to clear those debts, it may be desirable to consolidate the home loans. Please e-mail or phone for a free consultation to make sure that you are the best deal.

Present Mood

Even estate agents are admitting it is very slow there. They are usually so consistently ebullient and Up Beat, it is difficult to know the truth. Most of them have to do these marketing / manifesting / positive thinking affirmations its hard to get to the real story. The buyers are there but they are picky and price sensitive market and especially the owner-occupier. Some astute investors I know think it is a market for bargain hunting and interest rates remain high and buyers stay away many people will start selling for less than market value. For the rich of you to take note of mythical investor Warren Buffet, who advises: "Get greedy when everyone els.