While property market overseas suffered following the financial crisis last year, the Australian property market has proved to be resilient compared to countries like UK and US. Quoted in a report by The Age on the 25 June 2009, it was reported, ‘While house prices in most other developed economies have tumbled significantly since the global financial crisis, Australian house prices have been resilient, softening only 1.2 per cent in the year to May 2009,” ANZ said, citing data from property value monitoring group Residex.’

While the first homes owners’ grant has fueled the demand for housing in the mass market. the property market is further boosted by record levels of emigration levels due to a large number of Australians returning back to Australia. With major development projects stalled due to shortage of funds, the rental market is set to skyrocket.

For a full report, click Home prices to ‘edge up’ despite job losses

A number of property investors asked me if there’s a need to purchase parking lots in developments in or near to the CBD. My answer is a straightforward ‘YES’. My business partner told me he hasn’t known any Australians without a car. In fact, ALL the Singaporean friends who have migrated over to Melbourne or are currently working there on a long-term basis own a car. The reason is pretty simple. Australians have a certain lifestyle to upkeep and geographically it’s impossible to travel around the state in public transport within a short period of time.

What if someone lives and work in the CBD? Does he need a car?
YES!!

What’s he going to do over the weekend? Only 5% of the population works in the CBD. It’s not a huge proportion compared to those working in the suburbs. Most Australians work outside the CBD. The tenant wants to have the luxury of moving around over the weekend. If you have bought an apartment along Chapel Street, or St. Kilda road without a car space, your tenant base will be significantly smaller. Having been in this business for the last 5 years, I have learnt that as property investors, the two most important group of customers you have to aim to satisfy are the banks(1st) and your tenants(2nd). If you choose to ignore what your tenants really want, you will be in for a surprise - not a pleasant one I can guarantee.

Good luck folks!

I am back blogging about the Australian property market. Ever since the SMART expo in the March, I have been busy preparing plans for clients. Well, the good news is my biz partner Steve will be back in Singapore in July 2009 for a seminar together with a great pal of mine, Mr. Alexander Wong, director of SAGE private clients pty ltd. My friendship
with Alex went a long way back to 2004-5 when I first met him in Melbourne, Australia.

This time both of them will be present to tackle issues that property investors are concerned with - Taxation and property investment strategies. They come hand in hand because one affects the other. Like what Stephen Covey says,’Begin with the end in mind’. That’s exactly what property investors should do to maximize tax benefits(eventually profits) with a property plan. Both will be discussed and as property investors, you are highly encouraged to attend. Mark on your calendar, 15 July (Wed) at 61 Robinsons Road, ERC Robinson Centre. My clients know I am not really into seminars but I do all these to help equip them with more information so that they understand what they have done ever since they started investing in the Aussie property market.

It will be busy times ahead for me till end of the year. The AUDSGD has recently transacted above 1.1900 which is a sign of recovery. With rising commodity and oil prices, there can only be one direction the AUDSGD is heading - northwards! Baring any unforeseen circumstances, industry analysts are looking at new levels of AUDSGD at 1.2000 by end of the year. Gone were the days where AUDSGD are on par. For those of you who have procrastinated and missed out on the 1:1 levels, you can still capitalize on the exchange now; however time is really not our friend.

Back to work, see you soon!