State Of The Nation Compiled By Kevin Lee of Smart Property Adviser

www.smartpropertyadviser.com.au E: kevin@smartpropertyadviser.com.au T: (02) 9980 1311 M: 0416 083 995

Disclaimer: This document is a compilation of recent articles published in the media. The media sources are quoted beneath their respective article capture. Smart Property Adviser does not claim to be the author of any articles included within this document.

Investors ‘too late’ For Hotspot Mining Town, QLD Jennifer Duke wrote in her article about investors having missed the boat on one current mining ‘hotspot’. Placing Queensland's Gladstone at between 9 and 12 on the property investment clock, Matusik Property Insights’ Michael Matusik recently told Smart Property Investment that while there is still some growth to be had, the major acceleration is over. “Gladstone is a good example of a market where everyone wants to buy now,” Mr Matusik said. Hotspotting.com.au founder, Terry Ryder, also told Smart Property Investment that, despite many investors now showing interest in the region, the savviest of buyers were already in the market 12 to 18 months ago and are now selling up leading to high sales volumes. Read more: www.spionline.com.au/home/10936-investors-too-late-for-hotspot-mining-town-qld, 13 August 2012 Are Housing Sales Ready To Bloom This Spring?

The spring selling season typically sees a lift in listings activity, with more properties available for sale and

subsequently an increase in auction activity. This is especially the case as the spring season usually follows a bleak winter sales period. Cameron Kusher said that although economic conditions are not as strong as they were before the financial crisis, generally most indicators are stronger currently than they were at the same time last year. Read more: www.smartcompany.com.au/property/051203-are-housing-sales-ready-to-bloom-this-spring-2.html, 14 August 2012 For Sale: An Entire Suburb That Has Developers Salivating An entire undeveloped outer-west Melbourne suburb adjacent to Mt Atkinson has been listed for sale. Mt Atkinson is a "dormant shield volcano" – a volcano made up of runny magma that forms a cone that has a flattened dome-like shape – and it together with nearby Mount Cottrell, also a dormant volcano, are the only elevated parts of otherwise flat terrain in the

region. The volcano itself sits on private land, rising just 100 metres, with the intended suburb to be developed on the contours of Mt Atkinson. The property benefits from uninterrupted city and Port Phillip Bay views. Read more: www.smartcompany.com.au/property/051075-a-new-suburb-that-has-developers-salivating.html, 7 August 2012 Shops Finding Bricks And Mortar Their Best Investment According to Carolyn Cummins, a Commercial Property Editor, WOOLWORTHS, Harvey Norman and Coles are among the new breed of retailers creating a wave of property investors, with each accumulating more than $1 billion in assets. In time they will give the traditional retail real estate investment trusts and landlords such as Westfield some stiff competition in attracting investors. These assets will possibly be split off into a separate listed vehicle, in the way Wesfarmers has done with the Bunnings Warehouse Property Trust. Read more: www.smh.com.au/business/shops-finding-bricks-and-mortar-their-best-investment-20120812-242ta.html, 13 August 2012 Developers Warn Against Allowance Fiddle Scrapping building depreciation allowances would hit the struggling residential property market as mum and dad investors realised negatively gearing an investment property was no longer as attractive, according to Grant Thornton Australia tax partner Sian Sinclair. Read more: www.theaustralian.com.au/national-affairs/treasury/developers-warn-against-allowance-fiddle/story-fn59nsif-1226449617705, 14 August 2012 If You Buy A Unit Because Of A Developer’s Incentive, You Deserve Your Dud Investment: Terry Ryder Terry Ryder accounts in his article that people who allow themselves to be lured by developer incentives into buying new apartments deserve the dud investment they’re getting. Read more: www.propertyobserver.com.au/developments/if-you-buy-a-unit-because-of-a-developer-s-incentive-you-deserve-your-dud-investment-terry-ryder/2012081455998, 15 August 2012

Issue # 002 August 17, 2012

State Of The Nation Continued…

E: kevin@smartpropertyadviser.com.au T: (02) 9980 1311 M: 0416 083 995 Disclaimer: This document is a compilation of recent articles published in the media. The media sources are quoted beneath their respective article

capture. Smart Property Adviser does not claim to be the author of any articles included within this document.

Read Between The Lines To Get The Most Out Of Property Investment Advice Was it the Greek tragedian Sophocles who said “no enemy is worse than bad advice”? If he’d lived in the 21st century, he’d no doubt be aiming his words at media reports from the property or finance industries. He may have followed his words with “no bad advice is worse than ‘expensive’ bad advice”. Because in both these industries, the consequence of bad advice costs exactly that – a good deal of expense. Read more: www.propertyobserver.com.au/residential/read-between-the-lines-to-get-the-most-out-of-property-investment-advice-catherine-cashmore/2012081355991, 14 August 2012 Best Deals Are Outside Sydney House hunters looking for cheap property to invest in might need to consider a tree-change - the country's best real estate investments are in regional parts of the state. Only two of NSW's 34 "best-performing'' locations with median property prices under $350,000 were in the Sydney metropolitan area, a national report has found. Among the best performing areas in NSW are Medowie, Scone, Muswellbrook and Cessnock for houses and Dubbo, Campbelltown and Cabramatta for units. Read more: www.news.com.au/realestate/news/best-deals-are-outside-sydney/story-fnd91nhy-1226448156450, 11 August 2012 STAY AWAY From Henry Kaye!! Notorious Melbourne property spruiker Henry Kaye is facing a showdown with the corporate watchdog as he seeks to regain control of two of his companies. Last week Kaye began proceedings in the Supreme Court to be reinstated to two of his companies, an application that will be opposed by ASIC lawyer Peter Paleologos, the Herald Sun reported. Kaye gained notoriety in the early 2000s for claims he made in investment seminars that he could turn ordinary Australians into millionaires and convincing thousands of mum and dad investors to invest in his property schemes. Read more: www.smartcompany.com.au/property/051145-heeeee-s-baaaack-property-spruiker-henry-kaye-attempts-to-regain-control-of-companies.html, 10 August 2012

Hitting The Sweet Spot There's an art to buying investment property. House prices may be treading water, but a good investment can still be found if investors focus on yield and are realistic about the prospects for price growth. Michael Yardney, an author of books on property investing, generally favours apartments over houses and older apartments over new apartments. Why? Older apartments can be bought more cheaply because buyers are not paying a developer's margin. There are also opportunities to improve them, he says. Sydney has the better prospects for investors. The principal of Smart Property Adviser, Kevin Lee, favours outer suburbs such as Campbelltown, St Marys and Werrington. Lee does not like negative gearing, in which the rent does not cover the interest costs and other expenses, and the investor claims the shortfall as a tax deduction. He says it means rent is not high enough and the landlord is supporting the tenant's lifestyle. Read more: www.smh.com.au/money/hitting-the-sweet-spot-20120814-245bp.html, 15 August 2012

Controversy Corner PICKERING Defamation – on Facebook Australia’s most political and notorious cartoonist Larry Pickering has caused a stir when he published an article on his blog site and via other social media sites the explosive account on the Gillard Government as he reveals as a creation of corrupt unions. “The silence is deafening from the Left wing law firm, Slater & Gordon, as accusations continue to fly from credible sources,” Mr. Pickering said. “It seems strange that a law firm would not immediately sue or at least take out an injunction against its accusers. Well, here you go boys, I’ll make it easy for you.” Read more: www.facebook.com/pages/Larry-Pickering/236991276355038, 30 July 2012

Until Next Time…. Kevin Lee

www.smartpropertyadviser.com.au