Wednesday, June 20, 2018

10 unforgettable quotes from Jim Rohn

Jim Rohn was one of my early personal development mentors.

When he passed away in 2009, he left an incredible gift: his encouraging, uplifting messages and inspiring, thought-provoking quotes.

Here are 10 great ones:

1. “Don’t wish it was easier, wish you were better. Don’t wish for less problems, wish for more skills. Don’t wish for less challenge, wish for more wisdom.” 

2. “The challenge of leadership is to be strong, but not rude; be kind, but not weak; be bold, but not a bully; be thoughtful, but not lazy; be humble, but not timid; be proud, but not arrogant; have humor, but without folly.”


4. “Days are expensive. When you spend a day you have one less day to spend. So make sure you spend each one wisely.”

5. “Discipline is the bridge between goals and accomplishment.”


7. “Motivation is what gets you started. Habit is what keeps you going.”

8. “Success is nothing more than a few simple disciplines, practiced every day.”


10. “Learn how to be happy with what you have while you pursue all that you want.”

Bonus Quote:

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Tuesday, June 19, 2018

Vacancy Rates Steady in May

Data released by SQM Research this week has revealed the national residential vacancy rate was unchanged at 2.1% in May 2018.

The number of vacancies Australia-wide sitting at 69,152 properties, though the vacancy rate inched higher in Sydney and Melbourne, while it fell in Brisbane for the fifth straight month.

Sydney’s vacancy rate rose to 2.5% in May, up from 2.3% in April, and higher than 1.7% a year earlier.

Vacancy Rates

Key Points

  • Nationally, the vacancy rate was steady at 2.1% in May.
  • Hobart recorded the lowest vacancy rate of 0.7%.
  • Perth recorded the highest vacancy rate of the capital cities at 4.1% in May, but that was down from 5.1% a year ago as the surplus of rental properties eases.
  • Melbourne’s vacancy rate inched higher to 1.4% from 1.3%.
  • Sydney’s vacancy rate rose to 2.5% from 2.3% and up from 1.7% a year earlier.
  • Capital city asking rents for houses fell over the month to 12 June 2018 by 0.6% to $551 a week

Melbourne also saw its vacancy rate inch higher to 1.4%, up from 1.3% in April.

Canberra’s rate was steady at 0.8%, though down from 1.0% a year earlier. melbourne

There was good news for property investors in Brisbane, where the vacancy rate fell to 2.9% in May, down from 3.0% in April and 3.5% in May 2017.

The decline in Brisbane represents the fifth straight monthly decline in rental vacancies.

Hobart’s vacancy rate was steady at 0.7%, but up from 0.5% a year ago.

Darwin’s vacancy rate rose to 3.5% from 3.3% in April.

Perth’s vacancy rate was steady at 4.1%, but down from 5.1% a year earlier as the oversupply of rental properties eases in that city. 


Adelaide’s vacancy rate was also steady at 1.3%, but down from 1.7% a year ago.

Asking rents had eased in Sydney with greater supply of rental accommodation, giving some relief to home seekers.

There are considerably more vacancies in Sydney now compared to a year ago, so landlords have lowered their asking rents slightly, which is favouring renters.

Meanwhile, we have more evidence that the worse is over for Brisbane property investors with vacancies falling for five straight months and even the Brisbane CBD is now recording consistent decline in vacancies.

We believe that a rise in interstate migration is lifting population growth rates in Brisbane plus the peak in unit completions is creating this turnaround in the rental market.

Asking Rents

Capital city asking rents for houses fell over the month to 12 June 2018 by 0.5% to $551 a week.

Unit asking rents slipped 0.2% to $444 a week.

Over the year, asking house rents rose just 0.4%, while unit asking rents rose modestly by 0.9%. Talk The Talk On Commercial Rents

While the asking rent for a three-bedroom house in Sydney remains the highest in the nation at $715 a week, rents fell 1.6% over the month to June 12, with the upward trend in the vacancy rate easing pricing pressures.

Asking unit rents now stand at $523, down by 0.5% over the month.

Canberra is catching up to Sydney with housing asking rents now standing at $631 a week and $451 for units, after growth of 2.1% for houses and units over the month.

In Melbourne, asking rents for houses were down over the month to June 12 by 0.8% to $529 while unit asking rents rose by 0.5% to $412.

In line with the fall in vacancies, Brisbane rents registered a rise for the past 30 days with rents for houses rising by 0.8% to $450 a week and units rising by 0.4% to $369 a week.

Vacancy Rates2.jpg


National Housing Market Update | June 2018

This month CoreLogic will focusing on how the housing market has tracked through to the end of May as well as taking a look at factors that are placing downwards pressure on housing market activity and dwelling values.  28803914_l

Australian dwelling values slipped 0.1% lower in May, taking the annual change, at negative 0.4%, into negative territory for the first time since October 2012.

In a sign that the housing market is becoming more entrenched in a downturn, May marked the eighth consecutive month-on-month fall since the national market peaked in September last year taking the cumulative decline in dwelling values to 1.1% through to the end of May 2018.


The negative headline growth rate is attributable to weakening housing conditions across the capital cities, led by Melbourne and Sydney, where previously capital gains were nation-leading.

Sydney and Melbourne comprisr approximately 60% of Australia`s housing market by value, and 40% by number, so the performance of these two cities has a larger effect on the headline market performance.


With housing affordability remaining a challenge in the largest cities, demand is naturally transitioning to the medium and higher density sector, where the market entry point is typically more affordable and housing stock is often more strategically located along transport spines and close to major working nodes.

This broader demand base has seen unit markets in Sydney and Melborne outperforming the detached housing sector, despite the significant number of units that been built over recent years.


Most other cities, where affordability constraints aren`t as pressing, continue to see house values outperform the unit sector.


The combined regional markets have helped to offset a broader decline, with dwelling values consistently rising outside of the capital cities, albeit at a much lower pace relative to the growth seen in Sydney and Melbourne over the previous growth phase.


The combined regional markets index nudged 02.% higher over the month to reach a new record high in May.

Across the regional markets, Geelong maintained its position as the best performing area outside of the capital cities with dwelling values up 10.2% over the past twelve months.


Across the top ten performing regional markets is a mix of satellite cities such as Geelong, Ballarat and Newcastle, as well as lifestyle markets such as the Sunshine Coast, Southern Highlands in NSW, Shoalhaven and Coffs Harbour.

Regional housing trends are also now seeing less drag from the mining regions.

Although the weakest performing areas are generally still linked to the mining and resources industry, the declining trend has eased off actually even levelled across many of these markets.

Apart from our hedonic indices, a wide range of other measures provide further evidence of weakening housing markets.

Advertised stock levels have been trending higher across the capital cities, up 4.2% on a year ago, once again being driven by Sydney, where advertised listing numbers are 20.4% higher than a year ago, and Melbourne, where stock levels are almost 8% higher.

A7Every other capital has seen an overall reduction in advertised listing numbers. melbourne

More listings in the market means more choice and less urgency for buyers.

This lack of urgency is also evident in auction clearance rates which have consistently trended lower since the middle of last year.

Over the first week of June, Sydney`s auction clearance rate dipped below 50% for the first time since 2012 and Melbourne`s clearance rates have fallen below 60% for the first time since 2014 over recent weeks.


Transaction volumes have continued to trend lower, with CoreLogic`s estimate of settled sales tracking 7.7% lower year on year.

While this figure will revise higher as off the plan unit sales move through to settlement, it`s clear that market activity hs reduced substantially since the first round of marco prudential policies was announced in December 2014.


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Monday, June 18, 2018

How to Use Bridging Finance to Grow a Property Portfolio Quickly

Bridging loans are a way of leveraging money. The more access you have to finance you have the more projects you can take on at any one time and the more money you can make. But you need to make sure you understand the terms and conditions of these loans properly. If you make a […]

Why this experts believes a property crash is unlikley

Although “overall”property prices recently fell for the first time over any 12-month period since 2012, leading economist Shane Oliver believes a property crash is unlikely. 

Over the years there has been talk that the Australian housing market is a giant speculative bubble propelled by tax breaks for greedy property investors, low interest rates fuelling speculation andhouse-price-drop-property-market-crash-loss-low Australians overcommitting themselves financially  with “liar loans” which will lead to massive mortgage stress  that will bring down the banks and our economy with it.

The recent  fall in national prices was driven by a drop in Sydney prices values and the recent drop in property values in Sydney has brought with it a slew of spectacular headlines.

But when you look into it more carefully national property prices dropped 0.4 per cent for the year ended to 31 May 2018, according to data from property analytics group Core Logic.

Sure this is the first time there has been an fall over any twelve month period since October 2012, but that’s not the stuff that makes property markets crash.

Index Results

So what is a property crash?

There is no doubt the Sydney and Melbourne property markets did get a bit bubbly and therefore we are going to go through a pretty weak patch in those two cities, but we don’t see a property crash according to Shane Oliver, chief economist at AMP. 


He says a property crash should be defined as a situation where prices come off 20-25 per cent on average, not just in one suburb or one house but across the market.

And Oliver does not see that happening for several reasons.

The first is that for that to occur, you would expect to see Australians forced out of their homes en masse; and for that to happen you would have to see much higher interest rates or much higher unemployment, and I just don’t think we are going to see that.

The Reserve Bank of Australia is not likely to raise rates until at least 2020 and the next move being a cut cannot be ruled out.

Oliver says what we will see though is ongoing weakness in the Sydney and Melbourne property markets over the course of the next couple of

Oliver thinks prices are going to come down on average by 15 per cent from top to bottom of which they have already fallen 4 per cent or so.

Some areas a little bit more, some areas a little bit less, particularly as tighter bank lending standards continue to impact.

The Australian Prudential Regulatory Authority has asked banks to strengthen lending standards around borrower’s income and expenses and limit loans to high debt to income borrowers.

That combined with the likely transfer of interest-only loans to principal and interest loans going forward could pressure the property market further.

Looking across the rest of Australia though, the outlook is a mixed bag.

Oliver believes that house prices in Darwin and Perth look like they are starting to bottom out after going through several years of price weakness. Australia Market

Elsewhere Oliver believes we are looking at moderate gains.

Places like Canberra, Brisbane, and Adelaide didn’t experience anything like the boom that Sydney and Melbourne had, and therefore they are not going to have the same downside according to Oliver.

Likewise, Hobart is still doing really well.

Oliver don’t see a property crash unless we get much higher interest rates or much higher unemployment and that’s not really on the cards

Sunday, June 17, 2018

More Warren Buffett Inspiring Quotes

Warren Buffet is one of the world’s most influential people.

He’s an American business magnate, investor and philanthropist.

Here’s some of his inspiring quotes on investing and success:

1. Great Investors Don’t Diversify – “Diversification is protection against ignorance. It makes little sense if you know what you are doing.”

2. On Finding Honesty in Others   “Honesty is a very expensive gift. Don’t expect it from cheap people.”


4. Give Back to Society  – “If you’re in the luckiest 1% of humanity, you owe it to the rest of humanity to think about the other 99%.”

5. Don’t Make Investing Difficult –“There seems to be some perverse human characteristic that likes to make easy things difficult.”


7. Actions vs. Results – “You know… you keep doing the same things and you keep getting the same result over and over again.”

8. Invest Only in Companies You Know and Trust – “An investor should act as though he had a lifetime decision card with just twenty punches on it.”


9. Seize Great Opportunities and Load Up the Truck  “Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble.”

10. Make Long Term Investments Over Short Term Ones  “If you aren’t thinking about owning a stock for 10 years, don’t even think about owning it for 10 minutes.”


12. Spend Time on Personal Development “The most important investment you can make is in yourself.”


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Values falls led by most expensive properties

A recent study by CoreLogic using deciles to analyse dwelling value falls for properties at the top end of the market compares growth across the most affordable 10% of properties (1st decile) and the most expensive 10% (10th decile) by splitting the market into 10 even segments. risk investment market

The research shows that over the past 12 months, dwelling values have fallen by -0.4% nationally.

While most people are aware of differing city-tocity value changes within a geography, properties within different value bands can also see quite different changes in values.

While national dwelling values are -0.4% lower over the past year, the most affordable 10% of properties have seen values rise 1.8% while the most expensive 10% of properties have recorded a fall of -5.0%.

Change In Value 1

Across the combined capital cities, dwelling values have fallen – 1.1% over the past 12 months. 


Looking at the 1st decile, values have increased by 1.3% over the past year while across the 10th decile values have fallen by -5.7%.

Of note is that when values move down over recent years, declines across the most affordable properties have been significantly smaller than the declines across the most expensive properties.

The opposite is generally the case during the growth phase, where the most expensive properties have generally outperformed the broader market.

Change In Value 2

Combined regional market values increased by 2.2% over the past year with the most affordable properties recording growth of 4.9% and the most expensive recording a rise of 2.1%.

The most affordable 10% of properties have consistently outperformed growth across the median and the 10th decile over recent years.

In fact over the 20 year period shown the most affordable 10% of properties have never recorded an annual decline in values.

Change In Value 3

Sydney has seen the largest declines of all capital cities over the past year with values -4.2% lower.

Across the 1st decile, values are 1.0% higher while the 10th decile has recorded value falls of – 7.3%.

Over recent downturns, the declines across the most expensive properties have been much greater than those across the most affordable.

For example in the 2008 downturn, the 1st decile recorded peak to trough falls of -2.1% while the 10th decile saw values fall -14.3%.

Similarly in the 2010-12 correction, the 1st decile saw values continue to rise while the 10th decile saw values fall -9.9%.

Change In Value 4

A surge in first home buyers taking advantage of stamp duty concession is likely helping to keep a floor under housing demand across the more affordable valuation bands which is supporting the stronger conditions across the lower valued end of the market. Propertyupdate Victorian Property Melbourne

Over the past year, Melbourne dwelling values have increased by 2.2% with the 1st decile recording an increase of 10.3% while the 10th decile has seen value fall -3.5%.

Like Sydney in recant downturns the most expensive properties have fallen much more than the most affordable.

During the 2008 downturn, values across the 10th decile fell -17.5% while values in the 1st decile continued to grow.

During the 2010-12 downturn, the 1st decile recorded peak to trough falls of -6.0% compared to a -12.7% decline across the 10th decile.

Change In Value 5

Similar to Sydney, first home buyers have become more active since July last year, likely supporting stronger housing market conditions at the more affordable price points. Brisbane Table

Over the long-term, values of the most affordable properties in Brisbane have increased at a much faster pace than the median and the most expensive 10%.

Over the past year, dwelling values are 0.9% higher however, the 1st decile has recorded an increase of 1.1% compared to a 0.5% increase across the 10th decile.

Like Sydney and Melbourne, during the 2008 downturn, the 1st decile recorded a more moderate decline (-6.6%) than the 10th decile (- 11.5%).

Where Brisbane differs is during the 2010-12 downturn, the 10th decile actually reordered a slightly more moderate fall (- 11.9%) than the 1st decile (-12.6%).

Change In Value 6

Although Adelaide values are still rising, the 10th decile has actually recorded a decline in values over the past year while 1st decile values have continued to rise.ultimate_adelaide_tour_big_0

Over the past 12 months, 1st decile values have increased by 1.1% while 10th decile values have fallen by -1.1%.

Like most other capital cities, in recent downturns the 10th decile has recorded much larger value falls than the 1st decile.

During the 2008 downturn values fell 1.6% across the 1st decile compared to -6.9% across the 10th and in the 2010-12 downturn 1st decile values fell -5.9% compared to a – 12.0% fall across the 10th decile.

Change In Value 7

Over recent years, values across the 10th decile have typically underperformed in terms of growth compared to the median and compared to the most affordable properties.

The performance has changed somewhat over the past 12 months with the 1st decile recording a fall in values of -2.8% while the 10th decile recorded an increase in values of 2.1%.

The Perth housing market has been consistently weak over recent years, over the past decade, values have fallen by -4.9% with the 1st decile seeing values increasing 12.4% while to 10th decile has seen values fall -14.5%.

Change In Value 8

Hobart dwelling values are currently rising faster than any other capital city in the country however, values across the 1st decile are rising at a more rapid pace than those across the 10th decile.

Over the past 12 months 1st decile values have increased by 18.4% while 10th decile values have increase by a substantial, but much more moderate rate of 9.4%.

Over the past decade, 1st decile values in Hobart have risen by 53.3% while 10th decile values are up by less than half of that at 21.3%.

Since their peak in May 2014, dwelling values in Darwin have fallen by -21.3%.

Over the past 12 months, values across Darwin’s first decile have fallen by -5.3% compared to a decline of more than double that (13.5%) across the 10th decile.

Outside of a short period in 2016, the 1st decile has consistently recorded stronger value growth than the median and the 10th decile.

Compared to their historic peak, 1st decile values are -24.9% lower whereas 10th decile values are -35.0% lower.

Change In Value 9

Historically, the 1st decile properties in Canberra have recorded much greater increases in values than the 10th decile. Darwin

Over the past year, he said the long-term trend has held true with 1st decile values 2.1% higher and 10th decile values increasing by 2.0%.

Throughout the recent housing market downturns, the 10th decile has typically experienced greater value declines than the 1st decile.

In the 2008 downturn, 1st decile values fell by -2.3% compared to an -8.0% decline across 10th decile values. Similarly in the 2010-12 downturn, falls across the 1st decile were fairly moderate (-2.8%) compared to much greater falls across the 10th decile (-14.5%).

Change In Value 10

Overwhelmingly, the data shows long-term values at the more affordable end of the housing market increased at a faster pace than the most expensive properties and highlights that when there is a housing market downturn lower-valued properties typically experience much more moderate declines than the higher valued housing stock.

With values now falling in Sydney and Melbourne, much greater value falls are already being experienced at the top-end of the market and this trend is expected to continue as values continue to recede.

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