Entry-level Bargains in Best Perth Suburbs

With WA expected to remain a buyers’ market for the next 12 months, 2016 has been badged the year of the upgrader by industry figures. Read more here

 

Entry-level Bargains in Best Perth Suburbs

With WA expected to remain a buyers’ market for the next 12 months, 2016 has been badged the year of the upgrader by industry figures. Read more here

 

Q&A with JPG Managing Director and Principal - Andrew Johnson.

Andrew Johnson, brings over 27 years’ experience in Real Estate and Accounting and was instrumental in the creation and evolution of the Johnson Property Group Australia Pty Ltd. He gained significant expertise in the Real Estate sector whilst lecturing property professionals in Perth, Western Australia and has previous experience in banking and accounting following the completion of his Bachelor of Commerce. Andrew has extensive experience in all areas of the property sector including acquisitions, subdivisions, property development and construction, property syndication, sales, leasing and overall management roles. 

Q&A with AJ

What motivated you to begin investing in property?

To create wealth in a safe low risk environment and to provide for our retirement, as superannuation is artificially controlled by the government. To be in control of my/our own destiny.

What was your first investment property?

An investment unit in the western suburbs that we still own today.  It has more than doubled in price and pays for itself.  It provided the leverage to acquire more properties as time has gone on.  We chose a low risk property with views that can never be built out. When buying property always look for a point of difference and something that is unique, in that way you mitigate risk and maximise return.

What’s the worst investment you ever bought and why? 

The worse investment I ever bought was shares in Australia.  An accountant friend gave me the tip and said it could not go wrong, unfortunately it did and I lost $20,000.  Lesson learnt - always stick to what you can control and know and be aware of speculative advice.

How do you identify the next area in which you want to invest? 

We do extensive research into Government planning policies and rezonings throughout WA.  With property you need to be able to add value outside of the norm (e.g developing).  If you choose normal properties in average suburbs your growth will always be just that, average.  One thing I have learnt when investing in property you always have your property investments in Perth and your lifestyle investments out of Perth.  Regional areas can go up and down and can be fickle, regional areas do not have the sustained population to be able to ride out the bumps of each cycle, Perth does. 

How has your Property Investment strategy evolved over time? 

My strategy over time has been to always watch the trends and enter the market after someone else has.  Never be the first person to enter, lets someone else enter first and make the mistakes and learn from their mistakes.  Watch, be patient, be educated and importantly know when to strike and when to hold back.

What’s the biggest mistake you see novice investors make? 

Novice investors make rushed decisions, do not do their homework and importantly do not take advice from professionals. Far too often people think they know it all and proceed down the wrong path.  My view is to give them advice and help.  If they choose not to listen that’s fine, the more of them that make mistakes and do not enter the property market again the better, that gives more opportunities for those who do listen.

What is your greatest professional achievement? 

My greatest professional achievement has been seeing the development of my staff. My staff members have been with me for up to 18 years and to see their development and achievements has given me the greatest satisfaction.

How do you think people view you in the workplace?

I have actually asked my staff to answer this question honestly...to quote directly from them "Honest, Ethical, Reasonable, Fair, Personable, Knowledgeable and Reliable"

What 3 values do you rate highly in others?

Honestly, Integrity and Ethics.

What is your most prized asset (other than your family)? 

We are lucky enough to own a boat.  The water is my/our passion and anything involving our boat is what we love doing.  We love spending time at Rottnest and also down south, it is fantastic to be able to get away and enjoy the sea and country air and regroup together.

  

 

 

What Sort Of Property Should An Investor Buy?

  

Time to invest in Safe Havens

The instability in global equity markets caused by Greece’s debt defaults and China’s burst stock market bubble has increased caution among investors and put the attention back on seeking out where today’s safe havens lie.

The situation in Greece is not likely to have an apparent impact on Australian property demand, however there is expected to be a move by some investors to safe haven locations. When it comes to buying property, Australia is considered a safe location. 

With the Australian dollar recently reaching a fresh six year low of $US72 cents – this is likely to contribute to the increasing demand for Australian property assets as they become relatively cheaper for both domestic and offshore investors. This includes China, which is now the strongest offshore investor in Australian property.

What sort of Property should an Investor Buy?

As an investor, one should be looking at properties that are strong (will increase in value at above average capital growth) and stable (should not fluctuate in value much if we hit some economic turbulence.) In particular, buying properties in areas where disposable income is high and increasing above average. In general this will be because people are working in the services industries. Despite what's happening overseas there will always be people getting married, having babies, divorcing and needing accommodation.

There is nothing new about investing in these markets, but they have stood the test of time through multiple property cycles.

So what are you doing with your money?

If you are considering investing in Australian Property and would like some advice on strong and stable property investment matters, please contact Andrew Johnson direct on +61 418 194 101 or Jenny Quek on +61 419 968 870 or register your interest for a complimentary, no-obligation consultation here.

 

Looking for a little certainty with your home loan? NAB Homeplus announces lowered fixed interest rates.

NAB Homeplus 3, 4 and 5 year standard fixed rates reduced!

The following Homeplus Standard Fixed Rates are effective from Friday 25 July 2014.  Get the benefit of a great rate and the certainty of knowing what your repayments will be for the next 1, 2, 3, 4 or even 5 years. 

Homeplus Package

Interest Rate

Comparison Rate

Change to Interest Rate

1 Year Standard Fixed Rate

4.79% p.a

5.51% p.a
-
2 Year Standard Fixed Rate
4.84% p.a 
5.47% p.a

3 Year Standard Fixed Rate

4.94% p.a

5.45% p.a

- 0.11% p.a

4 Year Standard Fixed Rate 4.99% p.a 
5.43% p.a
- 0.45% p.a
 5 Year Standard Fixed Rate 4.99% p.a
5.40% p.a - 0.70% p.a

No other major bank can claim:

The lowest standard variable rate of the majors for 5 years running.
The lowest fixed home loan rates of the majors across the 1, 2, 3, 4 & 5 years.
 
To take advantage of this opportunity or to find out more information, please contact our office and we will put you in touch with our Finance Representative.
 
The above rates are subject to change.  Terms and Conditions, and Fees and Charges apply to all NAB Homeplus products and are available on application. Lending criteria applies. NAB Homeplus (formerly Homeside Homeplus) is a division of National Australia Bank Limited ABN 12 004 044 937 and Australian Credit License /AFSL 230686.
 

Lowest Interest Rates in 60 Years Stimulates WA Property Investor Buyer Activity

Thinking of starting an investment property portfolio? Now is the perfect time.

Interest rates have hit their lowest point in 60 years. Low interest rates, stamp duty benefits and a drop in new housing construction are causing investors to turn their head toward the WA property market. Whilst first-home buyers dominated the WA market in the past 18 months, investors and trade-up buyers are now emerging as the new front runners in property sales.

 

First Home Buyer purchases hit historic lows in December 2013. Diminishing numbers of first time purchases means the tenant pool is growing ever larger – which is good news for investors.

 

Johnson Property Group (JPG) Managing Director, Andrew Johnson commented "as property prices lift, First Home Buyers are finding it difficult to afford to purchase property and are choosing to rent instead."

 

An article by The West Australian, published today by Economics Editor, Shane Wright advised "first time buyers are being squeezed out of the market even though unaffordability levels are well short of the highs reached before the Global Financial Crisis."

 

A recent report released by the Australian Bureau of Statistics shows an 8.7% rise in Perth housing prices in 2013.  While this is positive for growth, indicators suggest that Australia is moving to a situation where many families will be renters and potential investors may need to take a long-term approach and look outside the CBD. “With this likely to become a long term trend - now really is a good time for would-be property investors to get moving on developing their investment property portfolio.” Andrew commented.

 

“Increasingly we are seeing a shift from the larger homes to the smaller, more well-appointed homes on small blocks, with limited gardens and the ability to ‘lock-up and leave’, ideal for the fly-in-fly-out workers and busy couples”.  Andrew commented. The interest in Apartment living has also risen with Andrew confirming an overwhelming response in enquiries for Stage 2 INVITA one and two bedroom apartments recently released in Perth’s fast growing southern suburb of Wellard.

 

With the outlook for investor purchases positive, JPG have also recently appointed additional staff to the Property Management Services team to keep well resourced to manage newly acquired investment properties for their clients.

 

Find out more about JPG’s Property Management Services here

 

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