Hi Guys,

Many of you have access to RP Data due to the amazing deal we offer our CCLUB members exclusively. Well we’ve decided to fill you in on their latest views about how things are fairing out in the property market. RP Data’s national research director, Tim Lawless believes that falling interest rates, increasing affordability, rising rental rates, improving investment yields and a shortage of housing are some factors that will act as market drivers. Locations that have these factors driving their markets will perform best in 2009.

RP Data have recently released a list identifying the suburbs the firm believes will present opportunities for investors over the coming year.

State Suburb Property type Median price
QLD Redcliffe (House) $335,000
QLD Salisbury (House) $410,000
QLD Keperra (House) $415,000
QLD Coopers Plains (House) $405,000
QLD Chermside West (House) $430,000
QLD Banyo (House) $393,000
QLD Zillmere (House) $377,000
QLD Mt Gravatt East (House) $450,000
QLD Rocklea (House) $340,000
QLD Halifax (House) $200,000
QLD Loganholme (House) $350,000
QLD Nambour (House) $359,000
QLD Thuringowa Central (House) $342,000
QLD Esk (House) $245,000
QLD Tully (House) $265,000
QLD Cranbrook (House) $338,000
QLD Wooloowin (Unit) $307,500
QLD Annerley (Unit) $336,000
QLD Albion (Unit) $365,000
QLD East Brisbane (Unit) $339,000
QLD Fortitude Valley (Unit) $365,000
QLD Moorooka (Unit) $329,000
QLD Camp Hill (Unit) $345,000
QLD Greenslopes (Unit) $365,000
QLD Clayfield (Unit) $351,500
QLD Chermside (Unit) $385,000
VIC Deer Park (House) $255,000
VIC Collingwood (House) $556,250
VIC Reservoir (House) $388,000
VIC Oakleigh East (House) $529,500
VIC Kensington (House) $540,000
VIC Cape woolamai (House) $267,500
VIC Ocean grove (House) $390,000
VIC Flemington (Unit) $303,500
VIC Carlton (Unit) $324,000
VIC Brunswick West (Unit) $314,000
VIC Abbotsford (Unit) $347,500
VIC Prahan (Unit) $411,000
NSW Granville (House) $345,050
NSW Toongabbbie (House) $386,000
NSW West Ryde (House) $635,000
NSW Canada Bay (House) $777,500
NSW Crows Nest (House) $930,000
NSW Iluka (House) $380,000
NSW Ballina (House) $422,500
NSW Woolgoolga (House) $330,000
NSW Marquarie Park (Unit) $395,000
NSW Greenwich (Unit) $338,000
NSW Ultimo (Unit) $365,000
NSW Chippendale (Unit) $372,000
NSW Chiswick (Unit) $472,000
SA Mount Barker (House) $343,000
SA Hayborough (House) $299,000
WA Wonthella (House) $339,500
TAS Upper Burnie (House) $180,750

View the list as a guide to areas worth exploring for future investment rather than a set list of performance suburbs. You should still perform your own detailed research about the area you’re going to invest in.

Remember;
Over the next couple of years we will see some phenomenal success stories. This is when millionaires and even billionaires are made, the smart investors are jumping right in and taking advantage of the phenomenal opportunities sitting in front of us all. Unfortunately this is only a small group of people, for the masses will be sitting at home waiting for word that its safe to go out again. Don’t be the masses, jump in and play the game.

The CCORP Team!

G’Day,

Some of you may have seen an article I was asked to write for thinkBIG magazine on Property. For those who didn’t let me share it with you….

Unless you live in a cave you would be aware that apparently we are in a financial and property crisis at the moment. Hmm, I beg to differ.

I mean, yes, I acknowledge that the current economy is not quite what it used to be; the share market has been shook up and finance doesn’t appear to be as easy to access as it was this time last year. But crisis? I don’t think so…unless they mean the OTHER definition of crisis.

The Chinese say that there are two meanings to the word crisis;

1. Danger
2. Opportunity

Well if they mean opportunity, I would have to agree! I have seen all sorts of property opportunities from Darwin to Perth, Sydney to Brisbane and back again. I have negotiated property deals in crash markets, boom markets and emerging markets. But I have NEVER seen the kinds of opportunities and deals that are landing on my lap right now. This isn’t a property crisis, this is Property Christmas!

So what exactly is going on then? Well this is my view in nutshell…You can’t deny the fact that the American market has crashed. When the superpower of the world starts to buzz this much about a “crisis” the rest of the world listens. So the Australian media start to buzz about the crisis and our masses listen.

Most Aussies are not taught about the property market, financial markets, investment strategies etc. So without a base knowledge and with most media outlets spreading the message of the crisis, the feeling of doom and gloom spreads through out the population. Feeling uncertain about what to do, most people freeze up,do nothing and just sit on the fence to watch it all play out. They stop spending, they stop investing and suddenly we see a drastic decrease in demand. However the products are still on the market, and still need to sell. So the owners have no choice but to drop their prices to try and appeal to the few people who are still buying. And therein lies the opportunity.

This Property Christmas may never happen again in our lifetimes. Over the next couple of years we will see many millionaires and even some billionaires emerge from this. Don’t be the one sitting on the fence, jump down and come play!

Carly

G’Day,

The ‘Property Investor’ recently launched a ‘Property Market Health Check’ report that detailed the many issues facing today’s market and the thoughts and views of economy experts. I have taken some interesting snippets from the report that may interest those of you who have not seen it.

Researching the target area and market are vital steps in making a development a success. You’ve got to have tracked property cycles and really had your ear to the ground in terms of monitoring supply. Then you’ve got to look at the demand.

For those starting out in property development there are clauses, taxes, loopholes, financiers, design issues, open space contributions and market fluctuations at every turn just waiting to trip up a beginner.

‘The sentiment around whether it is a good time to buy a property is at the highest level since March 2002, when the housing boom was well established in Australia’. - Westpac chief economist Bill Evans.

‘Housing starts in NSW are at a 50 year low. Housing starts nationally are running at around 140,000 properties per annum whereas the treasury and others estimate we need to produce around 185,000 – 200,000 homes per annum as a function of property growth and so forth. So we have a huge deficit between the demand for housing and the supply of housing and that ordinarily means house prices ca only head in one direction – and that is up.’ – Christopher Joyce, Reserve Bank of Australia.

In the US, the rise in house prices elicited a very strong supply response so that by the end of 2007, there was almost one year’s supply of newly built unsold houses overhanging the market. US house prices stopped rising essentially because the supply of houses overtook demand. In Australia, the rise in house prices didn’t elicit such a strong supply response. There were pockets of overdevelopment in apartments in 03/04 but by and large there was never a serious oversupply of unsold new houses in Australia. – Battellino

Housing Industry Association policy chief executive Chris Lamont says interest rate cuts have rescued more than 350,000 Australian households from mortgage stress.

While the weaker economy, growing job losses, increased worker anxiety and the global credit crunch in general will continue to work to put downward pressure on home prices, further falls in the ABS House Prices Index will be limited by our lack of overbuilding, by our much more disciplined mortgage market – both borrowers and lenders – and especially by our central banks ability to drive mortgage rates lower. – Rory Robertson, Maquarie Bank interest rates strategist.

One difference between Australia and the UK is that Australia’s banking system has been relatively well insulated from the global financial crisis. Their banking system has more or less collapsed whereas ours is incredibly strong. You’ve seen three major banks nationalised in the UK and none here nationalized. - Joyce

The sharp interest rate cuts create a much more inviting market for homebuyers and investors alike. Lower rates have improved affordability and reduced mortgage stresses. The doubling and tripling of the First Home Buyers Grant has also created renewed interest from that market segment according to the report.

The RP Data – Rismark Hedonic Property Value Index, which reports on value movements more rapidly than the ABS’s index suggests house and unit fell 0.8% over the year to October 2008. However their figures show prices climbed 0.3% over the three months to October 2008. RP Data head of research Tim Lawless believes that up-tick in price growth signals the start of a new cycle. The number of home loans climbed 1.3% in October to 48,299 while the number of first homebuyer loans was up to 9901 from 9347 according to ABS data. Westpac saw the figures as ‘the beginning of a recovery’ in housing finance

Residex’s five-year annual growth predictions for the capital cities are as follows;
Canberra - 3.18% pa
Adelaide - 2.45% pa
Brisbane - 3.06% pa
Darwin - 4.80% pa
Hobart - 4.60% pa
Melbourne - 3.75% pa
Perth - 2.56% pa
Sydney - 4.95% pa

Housing continues to demonstrate its long-term low-risk status, having adjusted very little and is unlikely to adjust much further as Government and the Reserve Bank take action to put a floor under housing prices. John Edwards, Residex chief executive.

Monique Wakelin says the early months of 2009 present a unique opportunity to investors. “For investors ready, willing and financed, the first three months of 2009 is a golden opportunity but one only open for a short time.” The key areas to target are those with good infrastructure and access to employment, schools, recreation and shops. Well-located, quality established apartments and compact homes on the right streets consistently deliver increases in market value and rental income ad are the least exposed to market vagaries.

Carly & the CCORP Team

Gday guys,

Just thought I’d give a quick update on the American side of things!

I am having a great time over here though very intensely busy. I have finished the work I came here to do in record time! I have to do a speech this week in front of a really massive crowd, I’m a little rusty though, I hope Americans get my little jokes! Lol. And now I have an extra ten days left in Florida so I am doing a course, which usually take about 6 weeks but hey, why not challenge myself.

I am right by the beach and we walk down there sometimes on the weekend, there are heaps of dolphins that play right next to you! It’s so cool.

I have been busy doing some business while here. I have bought some properties and joined a syndicate for a development of 39 units here. They have a very interesting market here, ill tell you all about it when I get
back.

Its pretty cold here, cant wait to get back to 45° days, Hope you are all doing well.

Carly