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Hi Sanctuary for my two bobs worth…
If you are just looking at getting into the market with your PPoR, I think your $$ would be best served in the mortgage against this property, which can be leveraged for future investments at a 5x ratio!
My own experience of other seminars, is that generally you get much more out of the presenters books (not DVDs) that are for sale elsewhere.
I have found the greatest treasure trove of knowledge available to be my local library. Can you believe they have more information than you would probably ever need to know about investment, development, town planning, buyer behaviour, markets and pretty much everything you could ever think of…and its free!
But again this is just my opinion.
I know of several people who have been uplifted and fully motivated at seminars like this one and it has turned there life around. But they are in the minority.
You need to assess where you are today on your journey, what you need to know, how you will motivate yourself and make your decision from there.
Interesting times here in WA.
We are at the peaks of record highs in the property market, with a very very thin volumes of supply. There are massive delays in the construction of new housing stocks, caused by a greater demand for labour than can be met.
One of the unseen effects of these housing construction delays is an unusually high number of “transient renters” who are forced to rent for longer periods than normal as a result of their new houses taking longer to build than they plan (18- 24 months is normal at present).
When construction times get back to a more normal level (6 – 12 months) then there should be an excess of rental housing stocks available, which will have the normal supply / demand consequences…all other things being equal.
Another and more serious impact of this shortfall is the delays it is causing in the investment decisions made by the mining companies for major infrastrucutre projects. These include the multi billion dollar expansions propoed by Alcoa – Wagerup, Chevron – Gorgon, Worley and of course our incessantly spending. These shortfalls are exacerbated by our own state government rolling out some of the largest infrastructure projects in our state’s history…all at once – the Mandurah rail, Mandurah bypass/freeway, Tonkin highway extensions and champion lakes redevelopment.
How this will all play out is difficult to see, but I see two distinct possibilities:
1. We kill the goose that lays the golden egg and infrastructure projects and the real wealth they can bring to this state are delayed indefinitely (read cancelled) and we are left with little more than a housing bubble which will burst.
2. The delays in the aforementioned projects is temporary and we manage to extend the period of growth we are currently experiencing over decades rather than years causing long term value growth in the real estate market at a more sustainable level.
Either way, an interest rate hike is a positive thing for WA, in that it should calm some of the “irrational exuberance” found in our local real estate market, although we will probably need another 0.5% for the speculative buyers to really get the message.
In doing this, we run the risk of pushing up the $A, causing our production costs (in $US terms) to increase, and again killing the goose that lays the golden egg.
It may all seem a bit complex (well it does to me anyway), but we operate in a global interconnected marketplace.
As to what this means to astute Western Australian investors…now is a great time to be looking for bargains on the Eastern seaboard and hedging your positions in WA.
Do good, and do well!
