By Leon Gettler >>
ANYONE wanting to dip into the Australian property market needs to treat it like any business, says Jayne Robbins, the owner of Brisbane-based buyer advocate firm, The Informed Buyer.
She said buyers need to look at the micro-levels behind the macro-numbers that the media like to talk about, at a time when the market is softening.
“So yes, we are seeing a downturn, particularly in Sydney and Melbourne but I still think there are markets that are performing so that’s getting into the finer details behind that overall number,” Ms Robbins told Talking Business.
“If you look at houses versus units and then down to the different suburbs, you will find there are still markets that are performing well.”
She said there are many issues to consider and even looking at the performance of a suburb, there will be some pockets that are outperforming other areas of the same suburb. That takes highly specialised information.
She said investors needed long term property goals, whether it was capital or yield. And while everyone wanted to have both, investors needed to be strategic and understand their own risk profile.
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Investors also needed to understand their target market.
“Like any good business decision, understanding what potential future renters would be looking for in your property and making sure you’re buying a property that fills those needs,” Ms Robbins said.
For example, if investors are looking at the family home market, they need to make sure the schools in the area are of good quality and that the property is in the right school catchment.
Similarly, if the investor was looking at accommodation for young professionals, they needed to look at issues like commute times and access to the city and workplaces.
These strategies would ensure they had long term tenants.
There were still opportunities for investors, Ms Robbins said.
“If you look at maps and things of average to medium prices, and work out what suburbs are closer in that have those sort of commute times and good schools … those are areas that are on the growth,” she said.
She said investors also needed to be right across their accounts because banks were now much more rigorous.
They needed to run various scenarios to show the bank it was affordable if things do change in the market
“It’s no longer just a budget you provide them, they’ll go and look at your history over the last three to six months to ensure what you’re saying you’re spending is actually what you’re spending your money” Ms Robbins said.
Hear the complete interview and catch up with other topical business news on Leon Gettler’s Talking Business podcast, released every Friday at www.acast.com/talkingbusiness.
QUEENSLAND can thank its buoyant resources sector for its better-than-expected employment performance, according to the Queensland Resources Council (QRC).
QRC chief executive Ian Macfarlane said the resources sector had created more than 8400 jobs over the last 12 months – “the equivalent of a new job every hour” – and this was effectively a 0.4 percent cut to Queensland’s unemployment rate.
“Without the contribution of the resources sector, Queensland’s unemployment rate would be 6.7 percent,” Mr Macfarlane said. “Without the contribution of the resources sector, Queensland’s unemployment rate would be the nation’s highest by 0.5 percent at 6.7 percent.
“Our industry needs stable and predictable policy to give it the confidence to invest more, export more and ultimately employ more in the sustainable, competitive and safe development of our coal, minerals, petroleum and gas,” Mr Macfarlane said.
“Without that, our sector’s confidence to invest, export and employ will be severely constrained.”
Mr Macfarlane said if the Palaszczuk Government continued to back the resources sector, the resources sector would continue to back Queenslanders, with more jobs and more opportunities.
“Every hour our industry is creating another job and investing another million dollars. Every week our industry is exporting another billion dollars and we are returning almost $100 million to the Palaszczuk Government in royalties,” Mr Macfarlane said.
“In regions like Mackay, the jobs impact has been significant. The unemployment rate has more than halved to 3.3 percent. Mackay is a critical services centre for the Bowen Basin.”
Queensland Premier Annastacia Palaszczuk has indicated her government’s long-term support for industry in the Bowen Basin, Mr Macfarlane said, and was reported as saying at a recent local event: “For as long as the world needs steel, it will look to the Bowen Basin as its pre-eminent supplier of metallurgical coal.”
DEFENCE will have new arrangements in place to deliver health services to Australian Defence Force (ADF) members from July 1, 2019.
Defence Minister Christopher Pyne MP announced that Bupa Health Services Pty Ltd was awarded the ADF Health Services Contract, which was signed today, for the provision of health services to Defence members.
These arrangements support the delivery of a range of primary and specialist health services at both on-base health facilities and through a comprehensive network of off-base service providers.
“Delivering health services to over 80,000 ADF members and reservists is a complex and important undertaking and after a rigorous procurement process Bupa demonstrated it is able to deliver Defence’s requirements,” Mr Pyne said.
“Under the new contract, ADF members will continue to receive the full scope of health services they currently receive.
“Defence remains committed to maintaining continuity of care in delivering high quality health services for ADF members.
“Defence thanks Medibank Health Solutions for the service it has provided to ADF members under the existing contract.”
Bupa is now the second largest healthcare insurer in Australia, with just under a third of the market, slightly behind Medibank Private. UK-headquartered Bupa entered the Australian market over a decade ago, first buying Melbourne-based insurer HBA, then in 2008 merging with Sydney-based MBF in a $2.4 billion acquisition.