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Brunswick East: Transformed Property Landscape

Brunswick East is surrounded by hip and happening dining, entertainment and retail outlets.

PLENTY has changed for the Brunswick East neighbourhood. The suburb in Melbourne’s inner North has transformed into a gentrified area featuring some of the hippest and trendiest dining, entertainment and retail outlets in the city namely along the Fitzroy and Lygon Streets.

At its most basic, Brunswick East’s allure lies in its close proximity to Melbourne CBD. Australians, in general, prefer living out of the city – a segregation that draws a clear line between work and play, both geographically and psychologically. Conversely, Asian investors prefer to be at the heart of the action, but are compelled to invest in dwellings outside the city to accommodate the local rental market comprising mainly young Australians.

One can imagine how being only 3km – 4km from the city centre, with fantastic public transport accessibility, makes living in the Brunswick East locality extremely attractive.

Additionally, housing is bigger and comparatively more affordable to neighbouring North Fitzroy and Carlton.

Hot Market

Today, Brunswick East is known to be the most difficult suburb in Melbourne to buy a house, forcing local and international buyers and renters alike to look to apartments instead. Recent CoreLogic RP Data statistics show that median house prices have increased by 26.6% in the last 12 months as a result. In the year ending Nov 30, only 2.1% of houses in Brunswick East had been listed for sale – well below the Melbourne average of 5.3%.

Built in 1910, this Brunswick East house was recently sold for $3.4 million to a foreign investor.

To illustrate, a house built in 1910 sold for an incredible $3.4 million at a recent auction. The house, which began at a starting bid of $1.5 million and rose by increments of $100, 000 was sold to an international investor who bid via mobile phone!

Brunswick East is followed by Carlton, Fairfield, Carlton North and Fitzroy North as some the most difficult suburbs to buy into.

Conclusion

In a neighbourhood like Brunswick East, there is high potential for capital growth (5.06%) given the amenities in the locality.

But, the increase in property prices in Brunswick East has an undeniable knock-on effect on rental yields. After all, rental that is too high forces potential tenants to look slightly further afield for something better. Yes, it is a constant juggle.

However, as with the law of physics, so it is with the property cycle: what goes up will come down. Prices can only go so high before the market rights itself.

What will remain constant is the demand for rental housing. Here are 3 reasons why:

  • A 2.1% vacancy rate
  • 20% residents are students (Uni of Melbourne and RMIT are about 10 minutes away)
  • Good public transportation system with direct access to CBD
  • The incredible growth rate of Melbourne’s population – more people, more need for housing (100K migrants per year; Victoria’s growth rate of 1.8% surpasses W. Australia (1.6%) and NSW & Queensland (1.4%)
Capital Growth in the Lygon / Brunswick East suburb

Additional reading:

  1. Time Capsule House in East Brunswick to go Under the Hammer
  2. Brunswick East the Most Difficult Suburb to Buy a House
  3. The Melbourne Market Will Continue to Perform for Investors if you Know where to Buy
  4. Melbourne’s Little Italy A Guide to Lygon Street
  5. Buying into A Tightly Held Suburb of Melbourne

CSI Prop proudly promotes international investment property with high yields at low risk. Our portfolio comprises residential property in cities across the United Kingdom (London, Luton, Manchester, Liverpool, Newcastle, York, Glasgow, Scotland; Sheffield, etc); Australia (Melbourne, Perth, Brisbane) and Thailand (Bangkok). Our projects are concentrated in high-growth areas with great educational, infrastructural and job growth potentials. We aspire to make a difference in the lives of our clients by helping them achieve their investment goals through strong market research backed by third party experts. 

Disclaimer: CSI Prop does not provide tax & legal advice and accepts no liability. Readers are encouraged to consult a qualified tax or legal advisor for a thorough review.

Need advice or clarification? Call us for more information and/or to find out about our projects! Hotline: 03-2162 2260

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Investing in York: What the Experts Say

York is a quaint and picturesque city which has become a hot spot for property investment.

MENTION York and the first thing that comes to mind are cobbled streets, Georgian townhouses and medieval property steeped in Roman influence. Pretty. Idyllic. Serene.

But there’s more to York than mere charm. Property experts have touted York as the top rental cash cow in the UK — and it’s on paper, folks!

Investing in York?

CBRE released a report highlighting alternative cities for rental property investment (fig 1), and York is top on the list. Savills published a report of top 10 UK capital growth hotspots for 2015 – 2016 (fig 2) and York sits on top of the list – again .

Savills’ Top 10 Cities Capital Growth Hotspots 2015 – 2-16 Credit: Select Property
CBRE Top 5 Cities for Buy-to-let

The report cites that rental prices in York increased by a whopping 26% over 1 year, which is 7% more than the anywhere else in the UK (including London). Demand from students, who flocked to both of York’s universities (University of York and York St Johns University), and young professionals drove up monthly rents to £901pcm.

Why is York a Sought-After Market?

There is an excess of 21,000 students in York, but only 1,200 dedicated student beds available. York is experiencing a critical undersupply of student accommodation, which is why rental rates are rising and demand for student property is soaring.

This clearly supports our belief that London, while still presenting good capital growth (and particularly attractive for the cash-rich foreign investor), is overpriced and unable to provide the kind of rental yields that cities further afield are offering.

York’s housing supply is also limited by its natural beauty, national heritage and rich historic importance, thus making it a very sought-after market, and CBRE expects to see continued population growth there.

In summary:

  • York has been named as the UK’s highest performing property market & the best place to make a buy-to-let investment (rental property investment)
  • There is limited supply and strong demand for property from young professionals and students
  • Rents increased by 26% last year to £901pcm – 7% more than anywhere else in the UK
  • Average house price growth: 3% to £228,907

Video credit: Select Property Group

Basically, if you want short-term liquidity and rental income, York is another fabulous option for the savvy investor. What investment opportunities are there in York? Find out here.

More Reading:

  1. Buy-to-let Investors Should Forget London and Head to York
  2. The 5 Best Cities for Rental Growth
  3. Property Investment: The Superstar Agents Who Put Buyers First
  4. London House Prices Most Overvalued, Says UBS
  5. Investment by Degrees: The Growing Market for University Pads

CSI Prop proudly promotes international investment property with high yields at low risk. Our portfolio comprises residential property in cities across the United Kingdom (London, Luton, Manchester, Liverpool, Newcastle, York, Glasgow, Scotland; Sheffield, etc); Australia (Melbourne, Perth, Brisbane) and Thailand (Bangkok). Our projects are concentrated in high-growth areas with great educational, infrastructural and job growth potentials. We aspire to make a difference in the lives of our clients by helping them achieve their investment goals through strong market research backed by third party experts. 

Disclaimer: CSI Prop does not provide tax & legal advice and accepts no liability. Readers are encouraged to consult a qualified tax or legal advisor for a thorough review.

Need advice or clarification? Call us for more information and/or to find out about our projects! Hotline: 03-2162 2260

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Time to Invest in Manchester

Planning to invest in Manchester? The £800m NOMA scheme near Manchester city centre spans 20 acres and when completed will feature four million square feet of offices, homes, shops and leisure amenities.The first phase of the project is a £100m headquarters for The Co-operative Group. NOMA will be developed over a period of 10-15 years.

EVERYONE loves London and wants to live in London. That’s understandable: after all, London is one of the world’s most historical cities and the capital of the world’s greatest empires of all time. It is also a cultural epicentre and one of the most exciting places in the world.

But #DidYouKnow that Manchester has been named by the Economic Intelligence Unit (EIU) as the best UK city to live insurpassing London – for the second year running?

Manchester has now become the UK’s powerhouse city – its fastest-growing to date, and the largest economic area outside of London with £56 billion gross value added (GVA) whilst London’s annual residential rent growth slows down with property prices hitting an affordability ceiling.

We are firm believers that the time has come to invest in Manchester. And here’s why:

 

3 REASONS TO INVEST IN MANCHESTER

1. Higher rental returns than London

With its population rising at three times the pace of the national average and exceptional transport links, Manchester is now the UK’s number one city for property investment. Average rental yields are 2.78% higher than the highest yielding London borough of Newham thanks to sustained demand for rental accommodation and one of the lowest levels of housing stock in the country.

According to Savills’ Matt Oakley, Manchester has the highest number of graduate retentions of any city in the UK. In 2014, Knight Frank’s Rental Revolution report states that rental return growth in Manchester increased by 5.27% – 13 times faster than yields in London.

Manchester has experienced capital growth of 21% in the last 18 months, with growing population and shrinking property supply forecast to drive property prices up by 22.2% over the next 3 years.

2. Government investments amounting to billions of pounds

The UK government plans to build an economic powerhouse in the north of England, with the creation of enterprise zones with favourable tax conditions and devolved local government powers designed to encourage investment.

To date, a £1 billion expansion of Manchester’s airport has been announced, which will drive an additional 10 million passengers annually, while connecting Manchester to more destinations around the world. Meanwhile, the construction of the HS2, the high-speed rail, will cut the journey time from Manchester to London to only one hour

3. Strong demand for short-term rental

The relocation of the BBC, ITV and Co-Op Bank headquarters to Manchester and the growth of NOMA reaffirm Manchester’s economic growth in the UK. As more corporations move their headquarters to Manchester, there will be positive job growth in the region, thus leading to a greater requirement for both long term and short term housing.

Manchester clocked the highest demand for property and accommodation with a short-term rental in the UK in June 2015.  About 43% of letting agents reported a significant increase in interest among prospective tenants in the region.

Manchester records about 10.3 million staying visits each year, with occupancy levels at hotels in the city hitting record levels in May 2015. This demand for short term accommodation has placed a strain on the already limited number of hotels and apartments in the city, particularly as more traveling business executives look for such accommodation types as the city continues to expand economically.

If you are looking for a viable investment in the UK, it’s time to start looking to Manchester. This city, with its huge student population and growing workforce, is definitely the place to plonk your pounds and pennies.

Call us at 03-2162 2260 or 016-228 8691 or 016-228 9150 for a chat. Our advice is free but valuable.

Additional reading:

  1. George Osborne intervenes to bring Chinese Premier & Investment into Manchester
  2. Chinese Agree Investments in Manchester
  3. PM Pushes China Investment in Manchester
  4. Manchester Rising as an Investment City

CSI Prop proudly promotes international investment property with high yields at low risk. Our portfolio comprises residential property in cities across the United Kingdom (London, Luton, Manchester, Liverpool, Newcastle, York, Glasgow, Scotland; Sheffield, etc); Australia (Melbourne, Perth, Brisbane) and Thailand (Bangkok). Our projects are concentrated in high-growth areas with great educational, infrastructural and job growth potentials. We aspire to make a difference in the lives of our clients by helping them achieve their investment goals through strong market research backed by third party experts. 

Disclaimer: CSI Prop does not provide tax & legal advice and accepts no liability. Readers are encouraged to consult a qualified tax or legal advisor for a thorough review.

Need advice or clarification? Call us for more information and/or to find out about our projects! Hotline: 03-2162 2260

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Top 10 Buyers’ Market in Perth (Part 2)

In the second part of this blog, we touch on what the market players say about some of the suburbs listed in the Top 10 Perth Buyers’ Market List. These include top personnel from Properties Invest, Perth Property Partner, Harcourts Vogue, LJ Hooker and Midland Real Estate Plus. As we say, there are some upsides to the softening of the market!

 Click on the icons in the map above to learn the locations of these areas and their proximity to Perth’s Top 3 universities.

PERTH’S TOP 10 BUYERS’ MARKET LIST

  1. Beeliar
  2. Southern River
  3. Midland
  4. Piara Waters
  5. Harrisdale
  6. Burswood
  7. Jane Brook
  8. East Perth
  9. Spearwood
  10. Coogee

Source: Realestate.com.au

 

The top markets for negotiating is calculated using supply and demand rations, average discounting and days on the market.

Beeliar

A good opportunity for owner-occupiers.  Fantastic location as it is close to Fremantle, Murdoch University, Coogee Beach etc, but further out from Perth city area.  Softening of prices noticeable in homes in the A$500,000 and under category but there has been a slight pick-up in recent weeks.

Southern River & Harrisdale

Good opportunity for owner-occupiers. An extension of Canning Vale, the most Malaysian-populated suburb in Perth.  The market in Southern River has softened and may possibly continue for some time. Harrisdale is a decent area, close to an older established area that is being built out.

Piara Waters

An extension of Canning Vale, the most Malaysian-populated suburb in Perth. Good location because closer to the freeway and the facilities associated with the growth in the Southern Corridor of Perth.

Midland

The suburb has shown strong growth over the years because a lot of money has been spent on it. It is the link between the farmers and the city; farmers prefer to stop at Midland rather than go all the way into Perth as Midland has everything they need. The state government is also redeveloping the area with new hospitals and schools and moving some of the public service operations out there, so there is more growth to come.

Coogee

The state government is injecting a lot of money into the area. Land in Coogee Marina that was bought for A$3.2 million at the top of the market can be bought today for A$1.5 million.

Spearwood

Spearwood presents the best investor opportunities, even though it is ranked at no. 10 on the list. Historically, this suburb has done very well in long-term capital growth. It also has a number of old ‘60s and ‘70s style houses on development sites.

CSI Prop proudly promotes international investment property with high yields at low risk. Our portfolio comprises residential property in cities across the United Kingdom (London, Luton, Manchester, Liverpool, Newcastle, York, Glasgow, Scotland; Sheffield, etc); Australia (Melbourne, Perth, Brisbane) and Thailand (Bangkok). Our projects are concentrated in high-growth areas with great educational, infrastructural and job growth potentials. We aspire to make a difference in the lives of our clients by helping them achieve their investment goals through strong market research backed by third party experts. 

Disclaimer: CSI Prop does not provide tax & legal advice and accepts no liability. Readers are encouraged to consult a qualified tax or legal advisor for a thorough review.

Need advice or clarification? Call us for more information and/or to find out about our projects! Hotline: 03-2162 2260

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Top 10 Buyers’ Market in Perth (Part 1)

Perth Yacht Club, Fremantle

There are upsides to the softening of the property market in Perth.

IT’S a buyers’ market now in several areas in Perth, including Beeliar, Southern River and Piara. With increased supply of newbuild apartments and houses, buyers can now haggle over pricing and purchase property at below replacement costs.

News.com.au recently published a list of Perth’s Top 10 Buyers’ Market allowing property hunters to negotiate on pricing.

 

PERTH’S TOP 10 BUYERS’ MARKET LIST

  1. Beeliar
  2. Southern River
  3. Midland
  4. Piara Waters
  5. Harrisdale
  6. Burswood
  7. Jane Brook
  8. East Perth
  9. Spearwood
  10. Coogee

Source: Realestate.com.au

That said, the Commonwealth Bank CoreLogic Home Buyers Index suggests that while there is still a continued high level of discounting, demand at Perth is at an equilibrium – a situation with implications that is described as “good” by Commonwealth Bank general manager of home buying, Dan Huggins.

This is because, with more new developments on the market, rents will start to fall and the fluctuation cycle is inevitable. Property valuer and commentator Gavin Hegney explains it best:

“There are always fluctuations, but when it’s truly not a buyers’ market any more you’ll see listings down, you’ll see a lot more sold stickers on signs, rents will improve and values will have lifted more than 5 per cent. But as a buyer, you don’t want to wait until it’s obvious the market has turned.”

As all property markets go through a cycle, it may work to a buyer’s greatest advantage to get into an area that might temporarily be in a low, but popular in the long term.

Read on here: http://bit.ly/1k6fkcH

Part 2 of this blog posting will cover some of the suburbs listed in the Top 10 Perth Buyers’ Market List. Watch this space!  

CSI Prop proudly promotes international investment property with high yields at low risk. Our portfolio comprises residential property in cities across the United Kingdom (London, Luton, Manchester, Liverpool, Newcastle, York, Glasgow, Scotland; Sheffield, etc); Australia (Melbourne, Perth, Brisbane) and Thailand (Bangkok). Our projects are concentrated in high-growth areas with great educational, infrastructural and job growth potentials. We aspire to make a difference in the lives of our clients by helping them achieve their investment goals through strong market research backed by third party experts. 

Disclaimer: CSI Prop does not provide tax & legal advice and accepts no liability. Readers are encouraged to consult a qualified tax or legal advisor for a thorough review.

Need advice or clarification? Call us for more information and/or to find out about our projects! Hotline: 03-2162 2260

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The State of Melbourne and Sydney Property Markets

Property investment is viable in Brisbane as the market is more affordable than Melbourne & Sydney, and has entered into an expansionary/ growth phase.

Speculations on the Melbourne & Sydney property market following the Australia Bureau of Statistics’ (ABS) latest figures on home prices in the June quarter, have been pretty disparate.

According to the ABS, Melbourne & Sydney had posted home price rises of more than 1% in the June quarter, with prices rising by almost 9% in Sydney – more than twice Melbourne’s 4.2% gain. This comes on the back of a tighter regulatory environment, including the crackdown on errant foreign investors.

Experts from Morgan Stanley and Goldman Sachs have pointed out that a recession could be imminent as auctions for homes in Sydney and Melbourne soften.

Conversely, some of Australia’s leading economists say that there is no bursting bubble in the near future, predicting that Melbourne & Sydney could enjoy strong growth this coming year. An exclusive Fairfax Media survey of 25 leading economic forecasters reveals that most believe house prices have risen for fundamental economic reasons and NOT over-exuberance from investors.

Apparently, only a third of economists (7 out of 25) believe that there is a housing bubble in Sydney or parts of Melbourne.

Despite the woes of rising house prices, housing investment is deemed the only really bright spot and, perhaps, the wisest option for saving.

However, it seems that the more widely held view is that growth is set to moderate. UBS economist Scott Haslem says that the banks see a “moderation of strength”, not a “downturn”, and that “the outlook for housing depends on who and what you ask” while at the same time cautioning that some factors are hard to quantify.

At the end of the day, it is imperative that you read and do your research while keeping in mind the various methodologies used by the different experts in interpreting data. Be sure to questions and talk to as many people as possible to make informed decisions.

There is, for sure, a sound alternative. The housing market in Perth and Brisbane are more affordable, with prices expected to appreciate as they enter into an expansionary/ growth phase in the property cycle.

Looking for Australian property? Need to speak to someone? Call us at 03-2162 2260.

CSI Prop proudly promotes international investment property with high yields at low risk. Our portfolio comprises residential property in cities across the United Kingdom (London, Luton, Manchester, Liverpool, Newcastle, York, Glasgow, Scotland; Sheffield, etc); Australia (Melbourne, Perth, Brisbane) and Thailand (Bangkok). Our projects are concentrated in high-growth areas with great educational, infrastructural and job growth potentials. We aspire to make a difference in the lives of our clients by helping them achieve their investment goals through strong market research backed by third party experts. 

Disclaimer: CSI Prop does not provide tax & legal advice and accepts no liability. Readers are encouraged to consult a qualified tax or legal advisor for a thorough review.

Need advice or clarification? Call us for more information and/or to find out about our projects! Hotline: 03-2162 2260

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Capital Gains and Depreciation Facts for Australia Property Investors

If you have invested in, or are planning to invest in property in Australia, it may be useful to find out about Capital Gains Tax (CGT).

CGT was introduced in Sept 20, 1985 and is the tax payable on the difference between the cost of a purchased asset and the amount received for that same asset upon disposal. In property investor-speak, this simply means the difference between the original purchase price of a property (includes capital buying costs) and the price the property is sold for (includes selling costs).

An investor claiming property depreciation can affect a change in the cost base, thus changing capital gain or loss. What implications does this hold for the investor? Would you like to find out the following:

1. What is property depreciation?
2. How do capital works deductions affect CGT?
3. How does plant and equipment depreciation affect CGT?
4. What CGT exemptions apply for a principal place of residence?
5. Are property investors eligible for a discount?
6. Is it still worthwhile claiming property depreciation if it will later add to the capital gain?

Click here to know more.


CSI Prop proudly promotes international investment property with high yields at low risk. Our portfolio comprises residential property in cities across the United Kingdom (London, Luton, Manchester, Liverpool, Newcastle, York, Glasgow, Scotland; Sheffield, etc); Australia (Melbourne, Perth, Brisbane) and Thailand (Bangkok). Our projects are concentrated in high-growth areas with great educational, infrastructural and job growth potentials. We aspire to make a difference in the lives of our clients by helping them achieve their investment goals through strong market research backed by third party experts. 

Disclaimer: CSI Prop does not provide tax & legal advice and accepts no liability. Readers are encouraged to consult a qualified tax or legal advisor for a thorough review.

Need advice or clarification? Call us for more information and/or to find out about our projects! Hotline: 03-2162 2260

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The Changing Face of Melbourne

There’s no denying Melbourne’s reputation as the Most Liveable City in the World. Bestowed on this beautiful city four times, this ranking holds merit, evidenced by the population growth over the years. What was once a backwater town has boomed into a world class city.

And there’s no stopping this growth, by the looks of it: Melbourne is slated to overtake Sydney as the biggest city in Australia in the near future. What does this mean and what solutions are being explored to accommodate such growth?

7 News highlights this in their special two-part report:

Part 1: 7 News | The Changing Face of Melbourne 

Part 2: 7 News | The Changing Face of Melbourne 

An increased population will lead to a continual sprawl in the city and drive the demand for housing. And as migrants continue to move into Melbourne, there will be a greater need for rental accommodation.

Timing is just as important as location and other factors when it comes to investment. Are you now thinking of exploring options in Australia?

Need advice? Call 016-228 9150 or 016-228 8691 to arrange for free consultation at your convenience.


CSI Prop promotes international investment property to investors in Malaysia and Singapore. Our portfolio comprises residential property in cities across the United Kingdom (London, Luton, Manchester, Liverpool, Newcastle, York, Glasgow, Scotland; Sheffield) and Australia (Melbourne, Perth, Brisbane). Our projects are concentrated in high-growth areas with great educational, infrastructural and job growth potentials. We aspire to make a difference in the lives of our clients by helping them achieve their investment goals through strong market research backed by third party experts. 

Disclaimer: CSI Prop does not provide tax & legal advice and accepts no liability. Readers are encouraged to consult a qualified tax or legal advisor for a thorough review.

Need advice or clarification? Call us for more information and/or to find out about our projects! Hotline: 03-2162 2260

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2015 Statistics: Best Buy-to-Let Investment in the UK

The ringgit has plunged. You’ve been saving diligently but the value of your savings is a fraction of what it once was. So you’ve decided to take matters into your own hands – you are investing in rental property to hedge against the ringgit (and get something back for your investment!).

Best Buy-to-let Investments in the UK

Congratulations! A wise decision, indeed.  But, where to invest?

Back to basics: invest in property located in countries/locations with

  1. stronger currency
  2. stronger economy
  3. job growth
  4. education opportunities

This help increases the value and ‘rentability’ of a property.

For most landlords with one or two properties, the key to success is capital growth. If the property you invest in grows in value, you will increase your total profits.

One market that has remained a haven for property investors is the UK. But, as London property prices soar higher and yields go lower, property in cities outside London are now showing great yield potential. The Brits, themselves, are beginning to look outwards of London as well. These places, really, are where you should put your money.

If you haven’t done your homework yet, take a look at HSBC’s annual research on rental yields around Britain. Their data show that Manchester is leading the pack on rental yields. The report has listed several profitable locations for investment.

London-lovers, don’t worry… HSBC has done a survey on rental yields in the various pockets of London, too. Read more here: http://bit.ly/1J5P4co


CSI Prop proudly promotes international investment property with high yields at low risk. Our portfolio comprises residential property in cities across the United Kingdom (London, Luton, Manchester, Liverpool, Newcastle, York, Glasgow, Scotland; Sheffield, etc); Australia (Melbourne, Perth, Brisbane) and Thailand (Bangkok). Our projects are concentrated in high-growth areas with great educational, infrastructural and job growth potentials. We aspire to make a difference in the lives of our clients by helping them achieve their investment goals through strong market research backed by third party experts. 

Disclaimer: CSI Prop does not provide tax & legal advice and accepts no liability. Readers are encouraged to consult a qualified tax or legal advisor for a thorough review.

Need advice or clarification? Call us for more information and/or to find out about our projects! Hotline: 03-2162 2260