John Fitzgerald - Sharing the 2018 Property Numbers!
Our 2018 Kickstart was a real eye-opener for me. Not only was it the highest attended event we have ever run, but the engagement and answers to questions were fascinating;
- As you would expect 77% of Custodians felt positive about 2018 - as you should with jobs and population growth in 2017 has been phenomenal.
- 92% of people said they are always looking for ways to tweak their diet - I’m a firm believer that the key to a healthy mind starts with what goes in and comes out of our mouths.
- Health was, as expected the number 1 goal and 43% are on the CATS challenge right now which is massive (no Caffeine, Alcohol, Tobacco or Sugar for 7-28 days) – the best way to reboot your health in my opinion.
- 90% were fully committed to their Goals, but nearly half this group are looking for tips to fine tune habits - daily habits make or break you and my greatest tip is to start every day from the inside out rather than any external stimulation(ie coffee, media etc)
- On strategy, 75% of Custodians said if their property added another $200 per week in income they would change their strategy - Time is the solution - both with rental growth or being able to build a granny flat.
- Yes lots of Custodians are investigating granny flats on their existing properties - I built them on 4 of my properties and will keep adding a few a year. They are great for cash flow.
- 59% said Brisbane will be the growth market this year followed by Melbourne and Adelaide - agree, agree, agree.
- and my favourite number 86% of Custodians are holding and building onto their portfolio - the biggest regret from older Custodians is they didn’t buy more ‘when they could have’.
I decided to shine the spotlight on Melton in Melbourne this month.
We hit Melton hard around 2015. The main reason was the numbers; population growth, infrastructure spending, existing infrastructure and good land size at an affordable cost per m2.
In fact, we picked it right as land prices are now sitting at $273,000 – that’s 70% in one year!
But more to the point clients paid $350,000 in total for their houses, which were cash flow positive and now they value over $550,000. If they used 20% deposit (most use 10%) their return on equity is around 100% per annum - and people wonder why invest in real estate.
Many of our Melbourne clients didn’t like Melton. They had a perception that it was the backyard country town it was 30 years ago. Sometimes we need to study numbers and how they relate to real estate, it’s enlightening!
On that same note, I’ve had a few clients who have no idea about the current value of their portfolio. One client wrote to me saying his 3 properties have gone up only $250,000 in total. Current comparable sales show that number to be around $750,000 or nearly 3 times his calculations. When the market moves it moves very quickly and we should move to take advantage of the momentum.
If you need to talk to someone about the above, contact email@example.com or call 1800 174 999 for further strategy session with John Fitzgerald on Property investment.