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Property Investment Opportunities In 2009The 2009 calendar year could be a significant year to resume or begin property investment. Prices have stabilised while rental demand and yields remain solid. Interest rates are falling and are expected to continue to fall for the first half of the calendar year and to remain low for the duration of the year. As for growth and yield, we expect growth to slow but rental yields are making well chosen property, purchased and managed within the right financial structures, an important part of a sound portfolio. In such a low-rates and solid-yield environment, some investors are enjoying cashflow positive returns or near-positive returns. We advise clients on most aspects of property investment – residential, commercial and industrial – because these remain a viable midterm and long term investment. For instance, we’re seeing sound residential-property opportunities located near an employment hub, good transport, infrastructure and amenities. Building approvals are still relatively low and supply still very low. Toward the end of last year in Brisbane, houses had grown 10% or more in the year to October. Rental yields were between 4 and 6 percent depending on which suburb you looked at. One report recently suggested the supply of housing was a year’s worth under the demand for housing. Industrial and commercial property is requiring a closer consideration of the details before acting but there remain opportunities here. To learn more about how investment property can work within your financial plan, for wealth accumulation and tax considerations, contact us today. We can help you choose and develop your property portfolio, help evaluate specific properties, help advise on specific strategies including holding versus selling-on and on when to buy the next property, and we can advise you on financing, taxation and depreciation and on the best ownership structures. Phone: (07) 3808 7588 ABN AMRO Morgans Limited A.B.N. 49 010 669 726 AFSL 235410A Participant of ASX Group A Principal Member of the Financial Planning Association |