COVID-19 and rental property

COVID-19 and rental property AMP Capital looks at what the coronavirus outbreak means for Australian rental property investors Australians love property. From beach houses to city apartments, suburban blocks to trendy townhouses, our continuing love affair with real estate shows no sign of fading, particularly when it comes to investing in rental property. But the coronavirus has thrown property investors a curveball that no-one saw coming. So, whether you own a rental property or you’re …

Property development in an SMSF: direct ownership | AMP Capital

Property development in an SMSF: direct ownership In the previous article on property development in an SMSF, we covered the main things that should be considered no matter what type of structure is used for the property development. This week we will look at a fund that has been instructed to purchase a property and owns it directly. When a decision is made for an SMSF to purchase or acquire a property, who the property …

Exploring long-term opportunities in real estate as we work through COVID-19

Exploring long-term opportunities in real estate as we work through COVID-19 Investment markets have taken a hit during the COVID-19 pandemic, and real estate is no exception. But as we get a clearer look at economic data, local market dynamics and Australia’s position as a global leader in fighting the infection could present local and APAC markets with opportunity. Our chief economist, Shane Oliver, often refers to the crisis economies and investment markets are in …

The residential property market won’t escape the fallout from COVID-19 | AMP Capital

A cloud of uncertainty is hanging heavily over the Australian residential property market, as it is over most parts of the global economy. The simple truth is that we don’t know the end destination for this COVID-19 health crisis, and until we do, it is hard to predict the long-term effects on asset values. We can, however, read the indicators as they arise and at least gain an understanding of the dynamics currently driving the …

Navigating the ‘new normal’ – managing client capital in times of extreme volatility | AMP Capital

WEBINARS Navigating the ‘new normal’ – managing client capital in times of extreme volatility 16 Apr, 2020 As a result of the current uncertainty, many investors should be questioning the resilience of their portfolio, the underlying assets most at risk in the near-term, and any fundamental disruptions COVID-19 could cause in the future. For listed real estate, we believe it is important to focus on 1) cash flow certainty, 2) balance sheet strength and 3) …

Making the most of record low interest rates

Making the most of record low interest rates The Reserve Bank of Australia (RBA) took the cash rate to a record low of 1% in July, bringing mortgage rates to their lowest level in more than half a century. However, the low cash rate also means your money in the bank could be earning less interest. Why did the RBA cut rates? Rate cuts are a way for the RBA to help stimulate the economy. …

Fussy buyers snub houses that don’t present well

Fussy buyers snub houses that don’t present well If presentation isn’t on point, many buyers keep looking, which is an important point to remember for those wanting to sell in the current market. When property prices boomed, buyers would look past the 1970s bathroom and the untidy garden, but with prices coming down, those looking to sell need to go the extra mile if they are to maximise the sale price. As prices move down …

Aussie housing facing strong headwinds

Aussie housing facing strong headwinds The Australian housing market is in a more precarious position than the United States was before the global financial crisis (GFC), according to a new analysis from AMP Capital which shows households have frittered away record income rises by taking on debt to buy housing. Our mortgage-related debt is higher, property gross rental yields lower (suggesting over-valuation) and our prevailing interest rates are much lower leaving less buffer for interest …

Proposed changes to negative gearing and capital gains tax hit house prices

Proposed changes to negative gearing and capital gains tax hit house prices Australia’s house prices have fallen for 13 consecutive months, with average Australian capital city prices now down 4% from their peak. The once booming cities of Sydney and Melbourne have led the falls over the last year; while falls in Perth and Darwin, which started several years ago as the mining investment boom ended, have continued. Bucking the national trend, prices in Brisbane …

How to invest in property without actually buying one

How to invest in property without actually buying one You don’t have to be a landlord, deal with tenants or put a deposit down on a home to get your foot in the property market. While investing in property may be a dream of yours, saving for a deposit, dealing with tenants and paying off a mortgage mightn’t be. The good news is there are opportunities where you can invest in property without actually buying one, with …