A big thank you to Tim Lawless from RP Data and Scott McGeever from Property Searchers who presented last night at our 4th Property Education evening. And thank you to our clients and the Investec clients who came along. We have certainly had a lot of really positive feedback from our clients in the past few hours since the event. If you were unable to attend and would like a copy of the slides please contact us.
Tim’s summing up of the market is below:
On the positive, some green shoots are starting to appear
• Value declines are broadly easing and transaction numbers have leveled
• Recent data flows have shown a positive trend:
• Improving consumer and business sentiment
• Unemployment @ 5.2%
• Modest improvement in retail spending
• Interest rates stable or potentially falling further
On the negative side:
• Effective supply levels are high
• Clearance rates remain around the 50% mark
• Global uncertainty weighing down confidence
He doesn’t feel the bubble is about to burst but feels a gentle deflating is more likely. Interestingly he commented that even once prices have stabilised he doesn’t see large capital gains over the next 10 years, more likely prices going up in line with or slightly ahead of wages growth. This is consistent with our view.
Scott has negotiated the purchase of over 900 properties and bid at over 100 auctions in the 12 years Property Searchers has been in existence. He has done this without the inherently conflicted model of ‘free advice’ where a buyer’s agent conjuncts with the seller’s agent. Scott explained the issues with conjuncting last night and he will be writing more about this in our blog shortly. Scott asked the question. Would you buy $500,000 of shares without advice? Fortunately no one said they would. He then explained that many people spend far more than this on property without the help of someone offering sound conflict free advice. He summarised what getting proper advice will provide:
• Risk minimisation
• Ensure a sound investment is purchased
• Maximising capital growth potential
• Capitalising on current market conditions
• You make your money when you buy the property – so it’s important to get it right
We partnered with Scott earlier this year to ensure our clients are helped to make smart choices around property and to avoid the many traps that exist in this area.
Our first educational event for 2012 will be Setting Up in Private Practice, which will be followed in June by one of our Australian Value Shares Manager presenting on how to achieve steady, growing tax effective income from blue chip Australian shares. Michael from Fireworks Gallery has also offered to do a session on emerging Aboriginal Artists to watch.
Thanks again for your continued support.
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