Have to admit it's getting better

Late last week I saw Louis Christopher from Australian Property Monitors present his little box of property tricks to a conference in Queensland, and the overwhelming message was that the east coast real estate market is getting better.

Sydney on the mend
Sydney has been a big dropper, off 9.2% from its peak but the signs are pointing to a gradual turnaround. Auction clearance rates are improving and the rental market for landlords is on the mend, with the prospects for rising rents and therefore yields on the investment all on the up.

Aussie roundup
Melbourne hasn't fallen as far as Sydney and while the signs are all better than a year ago, Christopher thinks Melbourne will be a slower improver.

Brisbane was another that did not see a fall like Sydney and, in fact, it pretty much held up its price gains of the previous boom. The northern capital is showing good signs that a recovery is in train.

The Perth picture
Across the country and Perth shows us how different markets can be driven by unique drivers. The West is in the grip of a resources boom, which has given birth to a real estate boom.

Many of you might have heard of how prices have been increasing. Over the past five years, the per annum increase has been 18.6%! But get this, rents last year in Perth were up 26.6%!

This, of course, can't last but as long as the resources boom has strong legs, we could see it keep rising but a fall is on the cards.

Beware of clichés
This is why you have to be careful of clichés that try to sum up investment markets. While property could be the big improver as the stock market slows, especially in Sydney, Perth will find it hard to keep rising when resource share prices slide.

Bottom line is: do your homework and don't invest off simple rules. They can work but test them out before you invest your hard-earned money.

Ten good points
For those thinking about a property play, here are 10 reasons to go for it.

1. There's money in it!
Make sure you look into government money. Not long ago, Victorian first homebuyers who qualified for the Federal Government's $7000 First Home Owner Grant (FHOG) were eligible for an additional $5000 grant paid by the Victorian Government under the First Home Bonus.

Every first homebuyer should check state government websites for what is on offer for first homebuyers.

2. It's all in the timing
It's a great time to buy when real estate prices have been falling and in many parts of Australia they have been. Always think of your investment as a long-term venture, where over 10 years the play generally pays off handsomely.

3. On the up
Prices seem to be on the way up.

4. Tax treatment can be OK
It is a capital gains tax-free investment when it's the property you live in. Many people have bought well and at the right time and have sold with a lot of capital gain that's not taxed.

5. It's your asset
You can borrow against it, which can be great for business ventures or lifestyle adventures.

6. First step
It's an important first step along the path to wealth creation.

7. Loans and rates in your favour
It's the best loan market of all time, with lots of choice and low interest rates.

8. Safe as houses
Bricks and mortar are safer than shares as their prices are less volatile.

9. Moving in the right direction
Property prices in all capital cities on a 5, 10, 15 and 20-year basis have risen by over 10% a year. (Some years were negative or small gainers but the big ones have pushed up the average.)

10. The first of many
It's not your only investment, but it should be your first!

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