Is better to rent or purchase your own home?

Recently there has been a lot of media about asking the question is it better to rent rather own property. The  Reserve Bank of Australia recently put out a paper that was based on the assumption that real house prices grow at 2.4 per cent per annum, which has been the annual average rate since 1955

“We find that if real house prices grow at their historical average pace, then owning a home is about as expensive as renting,” the paper said.

This may be the case, but if you are looking to grow wealth over the long term for your retirement it is not a great strategy. Do you really want to be renting when you are 70? Living on government pension and attempting to pay for rent may be very difficult.

 As you can see from the next graph, a well selected property usually sees rental growth over time while interest rates fluctuate in a range. Of course rent does not grow in a straight line, but the diagram shows that at some point the rental income will overtake and exceed the loan repayments due to the increase in rental return and you will receive a positive cash flow that may help fund your retirement instead of having to rely on the government. I know what I would rather do !

WA Business News Rising Stars awards

Momentum Wealth has been nominated in the people's choice category of the WA Business News Rising Stars awards and we need your support. The Rising Stars Awards recognises and celebrates the top 10 fast-growing, private companies in Western Australia. I hope from your interaction with us that we would be considered a “Rising Star” business!  Simply click the link below and select Momentum Wealth in the 'company vote' dropdown box.

 http://www.businessnews.com.au/Rising-Stars-2014-Peoples-Choice-Award

Thanks again for your support!

The finalists for the 2014 Real Estate Business Awards have been announced, and there are three finalists from Momentum Wealth. These are national awards and the winners and finalists are considered the best nationally.

Our Property Management team is a finalist for the Australian Property Management Business of the Year - Individual Office award.

Bianca Patterson and Sarcha Sagisaka are both finalists for the Australian Residential Mortgage Broker of the Year award, a great result to have two of the top four brokers in Australia.

Well done to all of our finalists!

http://www.rebawards.com.au/group-award-finalists/

With the start of 2014 many people have written their news years resolutions . This may included increasing their wealth via property. If you are looking for a few hints to where to start read the following article in Perth now
http://www.perthnow.com.au/realestate/news/no-time-to-take-rental-risks-property-pundits-warn-investors/story-fnhlgriw-1226796636409


If you are looking for help with the purchase of your first house a consultant can be contacted at
http://www.momentumwealth.com.au/how-we-can-help/consultation-request/default.aspx

  Many people write their news years resolutions at this time of the year and often they include purchasing an investment property. If you are looking for assistance the following article may help

http://www.perthnow.com.au/realestate/news/perth-property-buyers-to-start-2014-with-confidence/story-fnhlgriw-1226792662060

 

WA’s population is set to boom. The City of Stirling’s plans fly in the face of the reality. Sign our petition today!

WA Business news stated yesterday “Perth’s population is set to overtake that of Brisbane over the next 15 years, with experts forecasting the city will experience the highest population growth of all capital cities over the next 50 years .

Western Australia’s population is projected to almost triple in size by 2061, on medium growth assumptions, from 2.4 million people in 2012 to 6. 4million. The Australian Bureau of Statistics released its predictions yesterday.”

With these announcements, we would wonder why the City of Stirling would propose a planning change to ban all multiple dwellings (apartments) in low rise developments in areas zoned less than R60.Currently low rise apartments are only prohibited in areas zoned at R35 and lower. This goes against the state government efforts to boost housing affordability through urban infill. Help us stop this and sign our petition at http://www.stopstirling.com.au/

 

http://www.businessnews.com.au/article/Perth-tipped-to-be-fastest-growing-city

Property owners face significant losses if proposed City of Stirling planning amendments go ahead

 

Property owners face potential major financial losses under proposed amendments to the City of Stirling town planning scheme warns property investment consultancy, Momentum Wealth.

 Momentum Wealth managing director Damian Collins says the proposed planning amendment will prohibit apartment type dwellings in any areas zoned less than R60. Currently this is only prohibited in areas zoned R35 and below.

 This will have significant effects on the development potential of residential blocks in many areas of the city boundaries. Suburbs that may be affected include, Balga, Nollamara, Westminster, Joondanna, Innaloo, Yokine, Balcatta, Doubleview, Scarborough and Tuart Hill.

 

Mr Collins says if approved, the down coding will mean that sites that may accommodate six or eight apartments may now only be suitable for two or three villas or townhouses.

 He says Momentum Wealth is opposed to the City of Stirling proposed Scheme Amendment and is advising land owners to act now to preserve the development potential and value of their assets.

“While different styles of development are suitable for different suburbs, a blanket banning of apartments at zonings less than R60 is a blunt and ineffective way to run a planning scheme” says Mr Collins. “The State Government made changes to the residential planning codes to allow for this type of development in order to cater for a change in household sizes and to help slow down the never ending sprawl of the city. Every local council in Perth will have to accept some higher density and diversity of housing and the City of Stirling is no exception.”

 

Mr Collins says property owners are encouraged to contact Momentum Wealth’s planning and development team for advice on the types of things they can do.

 

“It is critical for property owners to be aware of the quite significant lost financial potential that these proposed changes will have for them,” Mr Collins says.

 

“A lot of people with R 40 zoned sites are likely unaware that they may not be able to develop the property to its full potential in the future.
“We are encouraging these property owners to speak to our planning and developments team who can lodge a development application for these sites now,” Mr Collins says.

 

“If the proposal is granted consent to advertise by the Minister for Planning, the City of Stirling can consider the proposed change in any development application they receive.  By lodging and having a development application considered before the proposed change is granted consent to advertise, this proposed change will not affect the development potential. If the application is approved, property owners will have two years to commence development of their site, even if zoning changes go ahead in the interim.”   

 

Mr Collins set up Momentum Wealth in 2006 after recognising a need to provide time-poor investors with a trusted and qualified source of advice.

 

Mr Collins is a buyer’s agent, a qualified chartered accountant who is a board member of the Property Investment Professionals of Australia (PIPA) as well as a Councillor of the Real Estate Institute of Western Australia (REIWA).   

 

Media contact: Evelyn Duffy 94476532 or 0439981505