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THE PLACE TO BE
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Real Estate in the Cairns area
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This brief summary will enable you to get a sense of Australian property investment and how Australian off-plan or established [investment] properties can be a great asset to your investment portfolio.
Since of the popularity of Cairns as a residential hub, a lot of Australians, interstate/overseas property buyers/investors are looking to buy re-locate to this wonderful unique tropical world heritage gateway to the reef and rainforest.
Australian Property Investment a specialist in finding advising of Houses & land in the Cairns area. These can range from luxury villas, apartments, townhouses and penthouses to plots of land for you to choose from. Or built and bought by a landlord for someone else to live in. Owning the land and houses is a bonus. We provide information on exclusive investment property which are unavailable packages in the Cairns Northern Beaches one of the best places to be and...to buy or long term invest .
Aside from the wealth effect from the terms of trade, population growth in Australia has also been higher than other advance economies, mainly because of strong immigration. Australian Investment Institute: Wealth, Retirement, Superannuation.
Retirement Planning: Wealth Creation and Superannuation Strategies.
Australian Investment Institute through associates are advising to more and more people about how to manage their own wealth creation strategies as the government struggles to fund Australia's ageing population.
If you are planning investing in Australian property - take the time and do your own research: sure use local knowledge, hire your own lawyers and valuers so that they work for you. Often you can get important key figures and advice from local licensed real-estate agents.
We advice to find out information on tax planning to help make your investment in Australian property a successful one i.e. Australia's Investment Industry, Investment Opportunities, Financial Planning, Accountants, Banks, Fund Managers, Market Reports, Research, Investment Properties, Risk Management. Superannuation planning and wealth creation for your retirement strategy is complex.
Future:
Australia's unique ecology, vast swathes of wilderness and rich environmental diversity and the urgent need to protect it, have made it a world leader in the rapidly growing market in environmental and clean energy technologies. AIP offers exclusive plots in some of Australia's property hotspots.
Population
Strong population growth and high real income growth in the wake of record-high commodity prices this year will continue to support house prices. Aside from the wealth effect from the terms of trade, population growth in Australia has also been higher than other advance economies, mainly because of strong immigration. Population growth and rising incomes ensure the demand for housing outpaces current supply, causing prices to rise.
For more information or enquiry please contact API
Progress in small doses
The worst situation that you can find yourself in when the market is taking too much debt. Too much debt does not mean that he owns a House which have been given 120%. What it means is that cannot meet the cash flow after any reduction in rent or raise interest rates.
It is better to buy properties only one or two year and be able to cover any shortfall in their own personal income than to buy millions of dollars of property and constantly worried and stressed. Yes, it is good to take advantage or your own gear and small problems, pushing yourself to growth with slight pain, but it is very uncomfortable to be constantly looking over your shoulder for bad times that could jump on you.
High interest rates are not always a negative factor for the property investor. High interest rates since the developers who could not be sure the sale. They also retain prices; in many cases even reduce.
The number of people who can afford homes is also restricted. The above applies to you as an investor; However let's look at the other side of the equation. We see construction plans to be shelved, homeowners more having to rent and house prices falling.
As investors are several profitable avenues that we can exploit. Remember that as an investor is not about bricks and mortar but about dollars and cents.
His approach is returns from net income of exploitation and despite the appeal of the House or the area is one consideration is not an important issue as it would be the case if a family purchases a home.
Why prices rise so quickly?
Inflation is the most obvious cause of spiral price in-game property. Too much money chasing a quantity fixed land and in a time long time in development projects turned on prices.
Overseas Immigration has an important effect as more people pursuing a limited housing supply should raise the price. This shows more significant in less populated States such as West Australia and Queensland, which also have to attract people through migration internal while victory, for example, loses.
There are also factors more younger home buyers first move outside the homes of families and people already in this time of quasi-medical miracles.
As investors realize steady and substantial return on investment in real estate, overseas investors more they penetrate into the market and inflate prices through the purchase of real estate Australian relatively cheap. In addition, currency fluctuations give them the edge on local investors.
Renovating a property depressed inevitably he boost prices with its sweet equity and hard work, which contributes to the forced inflation. Also if the vacancy rate falls below 1% or 2%, then, have a lot of tenants desperate badly in need of buying a property or constantly moving as spiralling rents.
High interest rates make builders and developers of new housing placement should increase the prices of existing housing. You can also enable lower interest rates for easier home ownership and the supply of cheap money creates excessive demand as we have seen in the past.
Businesses, Governments and all stock markets have an effect on property market. But as new conditions arise more and more people are discovering the ownership of property estate is the key to a rich future.
The "herd mentality ' occurs when most people feel the price of housing will come and they rush to sell when prices fall causing its prices to leave." Normally one can presage this by watching TV and reading well informed press articles.
Due to real estate is an imperfect market there is no exact set value for a property, rather there is a value of valuation or approximte; You can maintain an asset if you can read these signs ahead of the pack. Just before and after a cycle can be many profitable businesses.
Plan for profit
Calculated risk gives you confidence to launch an action plan, which, after a certain period of time, will return a profit. Most people are willing to try and beat the odds, but the shrewd investor rather always goes with the odds.
Only has to look at the millions spent on Lotto every week where the odds are against you to such a degree that the chances to win Lotto are three million to one or the equivalent of winning Lotto every 15,000 years! You might get old just thinking about it!
The casino is interesting in the sense that if you look at their five years of benefit there projection is a cash flow positive and definitive that all odds and history books tell us is correct. Is how many players are aware that they have a solid plan of five years of sustained??
The Japanese not available tomorrow for instant; benefits with patience, hard work and positive cash flow projections have risen to the slot number one in the world.
Lost World War II military and socio-politically but it has won the economic competition from. We should also be made by odds of winning through the study of trends in real estate. History shows ranging upwards in the long term.
Do you know who has lost money while that possess a property for 10 years?
Risk his money is poor thinking and acting, but risking money from others about the poor odds is very dangerous. You may not completely eliminate risks, but can have many waiting in preparing contingency plans. Once can respond to a bad twist turn the tide, and the investment will be the secret of its success. This is probably the basic principle underlying the saying "money is the money".
Remember that the conditions are never 'just'. The time always is 'a little wrong'. If you expect everything to be perfect to take action, he is in possession of an infallible excuse to leave. Make this tiny commitment, take that first step and remember a phrase shortly that will move mountains - I can do it!
Author Brian Norton is an investor highly respected and astute, real estate, agent, promoter home auctions and author Brian Norton is highly respected lecturer and consultant, is an industry expert and coach and Advisor, sign up for their early released book "Dare to Dream" at http://benjimite.com or comment on http://blog.realestate-profit.com section
Real estate professionals have been urging property investors to get in quick to purchase investment property and beat the rush as cashed up baby boomers transfer their wealth from the stock market to the real estate market. This may seem like a reasonable claim as many Australians; especially those around retirement age feel that they understand real estate as in investment. It is something that they can see and touch where as the stock market is something that works in mysterious ways that they do not fully understand. The decline in share prices across the globe over the last 18 months have entrenched this position and there is a desire to protect what is left of their retirement savings rather than being burnt by further declines in the stock market.
However based on the latest lending dates the anticipated increase in property investments is yet to materialise. Rather than real estate investors it is first time owner occupiers who are racing into the market helped in part by government stimulus spending. So why are real estate investors not doing the same? There are a number of reasons why investors may not be entering the property market.
Tougher lending criteria
As a result of the Global Financial Crisis (GFC) banks have been setting higher Sweeper for investors (and owner occupiers) to qualify for a mortgage. No deposit loans which are in part blamed for causing the sub-prime crisis are increasingly rare with many lenders looking for a minimum 20% deposit and proven lending history before providing mortgage finance. With funding harder to come by there will be investors who wish to purchase property but are unable to do so. It has been suggested that these more stringent lending standards will help protect the Australian real estate market from suffering the kind of falls that have been seen in the US and UK property markets. In reality it will be the banks providing the mortgage finance that are protected by the tougher lending criteria not the real estate investors. If an investor or owner occupier finds they are unable to meet mortgage loan repayments because of unemployment or rising interest rates to gearing level (percentage of debt compared to the value of the property) at 80% or lower is not going to provide any assistance. The tougher lending criteria will mean that should the bank need to sell the property to recover the amount it had lent in mortgage finance they will still be able to recover the full loan amount even if they need to sell at a discount to the original purchase price, either because the large real-estate market have fallen or they want to recover their money quickly.
Loss of equity
The magnitude and speed of the downturn in equity markets have wiped out trillions of dollars in shareholder equity (The ASX All Ords index fell more than 40% in 12 months). Until the start of the Global Recession stock markets around the world had enjoyed significant gains year on year back as far as the tech wreck of the early 2000s. Investors had been able to invest in the share market and take profits to fund real estate acquisitions. In a financial double whammy these investors now find themselves not only without a source of investment income but have also having to provide cash to cover margin calls on loans secured on their share portfolio. With many shares at rock bottom fire sale prices many investors would be reluctant to sell and may therefore look to sell their investment property to raise funds, raising the possibility of to falling real estate market.
Job security fears
Despised record low interest rates and rising rents many investment properties are still negatively geared (net rental income after real estate agent fees does not cover mortgage repayments and other costs meaning that the investor has to cover the shortfall in the hope that this will be repaid in the form of capital growth). With rising unemployment some real-estate investors may have already lost their jobs and finding themselves unable to cover their existing mortgage shortfall they are forced to sell the property, again raising the possibility of to falling real estate market. Other investors may not have lost their jobs but the possibility of being out of work may make them hesitant about taking on additional liabilities that will need to be serviced.
Uncertain profits
Most real estate investors are investing to make a capital gain (i.e. to sell the property at a profit at some time in the future). In the last 12 months the property market has at best been flat or has been falling. The real estate industry has been quick to call the bottom of the market but as real estate agents have a vested interest in this being true many investors are sceptical about this advice especially as these claims have been made many times before. It is true that there has been an increase in demand at the bottom end of the market driven in part by government stimulus payments to first home buyers however this effect is likely to be temporary. Other evidence such as rising unemployment and reduced availability of mortgage finance suggests that the real estate market is likely to head lower
Potentially larger gains elsewhere
Despised the worsening economic outlook some forecasters are claiming the equity markets have bottomed. Share markets around the globe have rallied in recent weeks with many more than 10% up off their lows. Not all investors have been frightened away from investing their money. Some heed Warren Buffett's advice to be "fearful when others are greedy and be greedy when others are fearful" Any cashed up investors with a strong appetite for risk will be tempted by gains that may be larger than the lacklustre performance expected from the real estate market.
Over the last decade it seemed that all one needed to do was borrow money and buy shares or property to make a profit, many were fooled into thinking that they were wise investors by these easy gains. Unfortunately this debt fuelled spending could not last and like any bubble it had to burst resulting in the economic melt down and Global Recession that we see today. The GFC have both reduced investor's ability to purchase new investments and their appetite for risk. Many will prefer to hold cash or bonds until the markets become less volatile and to capital gain looks more morally.
Worldwide investors have lost billions of dollars by placing their money in investments that they did not fully understand. There was an expectation that investors would switch to real estate as an investment that is tangible and easily understood. But the latest data shows that the rush of real estate investors is yet to materialise. Why?
Nicholas Butler is part of the smartvendor.com.au team
smartvendor is an Australian For Sale By Owner (FSBO) site - The site is committed helping property vendors in Australia save thousands on real estate commission.
smartvendor is proud to partner owner2owner the private sale real estate search engine
While the property values in the United States, United Kingdom and many Western European countries have significantly declined during the financial crisis world - Australian property values have held relatively well. In fact in some Australian markets House prices actually increased during 2009.
It is interesting to note that Australian property prices experiencing some correction, while the prices in other Western countries continued climb hastily in preparation to the global financial Crisis. 1999 Sydney average house price was $295,000 and a peak was experienced in 2004, when the average price of Sydney reached $596,000. Today is approximately $566,000.
There are many factors influencing the property in any free market prices. These include underlying demand and supply, as well as the interest rates and policy of the Government and regulation. Australian property prices have experienced upward pressure from all these sources in the past 24 months. These factors have contributed to avoiding a significant drop in values in Australia.
Demand for Australian property course
There is a net increase in the demand for housing in Australia. The most important source of this demand is for persons migrating to Australia. Between 2007 and 2008, the Australian Bureau of statistics informs that Australia population grew by more than 400,000 people (or 1.9% of the total population). More than 60% of this increase was overseas migration to Australia.
More anecdotally, there is also a constant structural change in the composition of Australia, home to fewer occupants by housing. I.e. There is a growing number of housing single-ocupante and dos-ocupante.
Net migration of Australia entry and moving to less than occupants by housing provide a structural course of Australia housing demand. This demand from owners of new homes and lessors, puts a pressure rising rents and property prices.
Source Disequlibrium
A large proportion of the population of Australia lies in their capitals and the East Coast, from Melbourne to Sydney and North Queensland Sunshine Coast. While Australia is one of the largest in the world, there are important limitations in the availability of land for new housing in the more populated areas. The result, in places like Sydney, has been a trend towards a higher density of housing, representing apartments and chalets in the interior of the island and smaller batches of home in the newer suburbs, further away from the city.
The costs associated with the new housing development are great, because the Governments of the States and local authorities need developers finance local infrastructure. These 'at-cost', the actual construction cost reduce the profit margins of the developers and well pass to the final consumer through the highest prices, or result in the project be shelved as little profitable.
Banks and other financial institutions have declined dramatically their loans to Australia of builders and developers, which results in less new houses and apartments in construction.
Low interest rates and Government policies
Rates of historically low borrowing from the cheapest mortgages, have helped keep a floor on Australian property prices. There are also some switching of investments by some Australians from the start of the global financial Crisis of values in property markets roots, which often is perceived as less risky.
Addition, the Government has provided financial assistance to eligible Australians to buy their first home. This had a direct impact on the prices of the property up to around $ 600,000 and less directly on the rest of the market as other owners update their homes.
Where from here?
The RBA has already increased the Australia interest rates by 0.25%. And the Government has begun to return their first house grants wind. While these factors have an influence on the rise in prices in 18 months, no one is anticipating a drop in the price of housing in Australia as a result of these two changes.
Demand Australia and supply imbalance is expected to continue. Australia has a permanent migration policy of encouraging overseas, still there is more than the natural growth of the population of Australia (i.e. births in Australia). And there is no structural change which is known that in the pipeline dramatically increase new housing supply in most Australia populated centres.
Some commentators consider the prices of property Australia as too high at affordable prices and with regard to the fall of prices in other countries during the global financial Crisis. This can be simplistic, however, if no attention is paid to the underlying demand and supply factors influencing the price of housing in Australia.
Mark Butterworth is the owner and administrator in http://www.gettingdownunder.com launched in January 2006, the site has become one of the most popular sites and complete website providing free information and advice for those interested in migration to Australia.
Invest in real estate is not child's play. Home ownership is an important factor of influence when it comes to this type of investment. You don't need to sell a property quickly once you have obtained if he is able to provide a constant and decent cash long term flow. Location is always important to attract demand.
It sounds so simple to make money real estate investing. It is seen as a viable and reliable sector to get involved with even the light of the current economic downturn and the consequences of the global financial crisis. Many people have decided to try his hand in this field, but there are some things that need to know they can be useful when you want to invest in Australian properties.
Home ownership is one of the cornerstones in the real estate investment. Buying a home means that the person has assured themselves of a reliable asset possession. Not only is an important addition to its scope of ownership of personal property, also has the potential to become something more in the future. That is the first investment company.?
Invest in properties is not only buying and selling quick changeover them. There are a number of options to make money real estate when you've bought a piece of property. One of them is rented. Rent of a House is a great additional and stable source of income to make money investing, especially when times are difficult.
Not only will the rental eventually go towards investment in another piece of property, you can take advantage of the current demands of property. This means that additional revenue not originating in a given level, unlike if you worked in a cubicle.
Thus you owns a beautiful piece of property and intends to make a profit out of it. But this is where demand? Although it has been repeated so many times it has become a cliché, the location that a property sits is vital if you need to obtain some significant benefits.
Market value and value of the investment depends largely on where it is. Properties in larger cities are of course more profitable than something in a remote area outback. More people live and work in the city require housing, so it is an investor in property in a better position to obtain a more favourable price.
Investing in real estate is a way to make real money, but it is not for the faint of heart. The situation tends to be gross when you are just learning the ropes. However, everything is possible with determination, knowledge and resources.
Cannot afford the risk of bad investments in real estate! If you are serious about wanting to make money real estate investing, you must obtain your training course free video that explains how the wealthy use control in investment property estate. Visit http://realestateuniversityonline.com to see the buildings now free investment videos.
Property estate in Australia has been described as the national passion ? especially among the baby boomer who attend property investment seminars mass estate in large numbers.
The Australian embrace technology to find real estate
In recent years, internet has become the preferred source for real estate investors Australian to seek information, replacing traditional media such as newspapers.
The beauty of the Internet is that real estate investors can find what they want quickly and easily.
Many Australian property investors I have met with have an opinion low real agents estate largely because they work in the industry and still not that many have more than a property.
They think that it is as a physician who says he doesn't believe in medicine.
Australian real estate professionals warn that the path to the riches of goods estate is fraught with dangers.
Collective advice is that if something sounds too good to be true, it probably is.
That said, literally tens of thousands of Australians prefer property ownership roots on actions that aim at the fact that on average, Australian price of the real estate in many areas is doubling about every ten years.
See property root as something safe.
Many Australian property investors are seeing the value of networks and do their due diligence.
Successful Australian property investors underline the importance of creating a professional advisory team to help you achieve your goals.
These include:
-Accounting (not any counter but one which includes goods roots)
-Mortgage agents
-The expert property
-Interior designers
-Landscapers
-The expert renewal
-Property managers
-Agents of real estate
Real estate investors Australian are hungry seminar and several experts in real estate like Dolf Roos and Robert Kiyosaki have seen a number people record to attend their seminars Australian real estate.
A friend of mine recently described the Australian property market as products as a friendly version of the old Wild West. There are still a fortune in them there hills, but these days, you can really enjoy life on the road.
The best point of departure in the Australian real estate is to educate yourself. Read books, attend seminars, talking with success with investors and ask them who share their ideas with you.
You may consider attending a meeting of the Club of investors, as propaganda on their Web site provides eternal support through all stages of your trip investment. This includes everything from buildings of researched investment and obtain finance through a current property management. All this without cost to ? the supplier pays. (http://www.tic.com.au)
Chris Bloor is an Australian property investor and the owner of part of the popular Australian property directory roots [http://PropertyTalkAustralia.com]