Business & Investment

Where big profits can be seen in the real estate market

Dear reader,

No insight into beer investment after a round of golf can be expected.

But yesterday I was chatting with a few gentlemen overlooking the bay of the Mornington Golf Course.

Topic: The future of the office. One of the reasons for the debate is the rapid growth in home sales across the Mornington Peninsula.

Working from home and the idyllic country lifestyle are now within the reach of far more Melvanians.

But is the office dead as we all think? Probably not, according to my fellow golfers.

Two of them are project managers. There is an aspect of the office that they are missing out on.

You don’t have to type much on that side. I mainly work alone.

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Australian Real Estate Market Trends

All I can say is that commercial real estate players are pushing for a new CBD tower anyway.

Here are the two projects I saw last week. Australia’s huge Stockland plans a $ 1.3 billion office tower in North Sydney.

What’s inside? According to marketing, the “future workplace”.

The idea for the future seems to be a kind of hybrid office where multiple businesses and workers use the same space.

Big players obviously like the look of North Sydney.The· Australian Financial Review It is reported that a plan for a “super skinny” tower with a height of 33 floors and a width of more than 6 meters is also planned. The taste of Hong Kong is coming to Sydney!

This is a natural consequence of Australia’s tax system. We allow the value of land to be higher than ever … and buildings must be narrower and higher.

This is not unique to the CBD district. The average new land block on the outskirts of Melbourne is about 400 square meters.

And a large block of established suburbs is carved in two to make way for townhouses and units.

The other day, a friend told me about the requirements for finding a house.The large backyard is a must-see!

I told her to continue it. The backyard disappears every day in Melbourne.

Why do you care The above are signs that the Australian real estate cycle is progressing. Waiting for a crash can be very disappointing.

This is another reason why Australian real estate can be expected to continue to perform well (and, implicitly, banks are safe). Australia’s agriculture is booming!

Why is that so? According to Rabobank’s annual survey, commodity prices are high, the weather is good, and interest rates are low.

This trend is also noteworthy in the stock market. Perth-based real estate player Prime West is planning an agricultural real estate investment trust soon.

It can also be very profitable for companies that are exposed to high prices or own valuable land.

I took a look at almond growers Select Harvests Ltd [ASX:SHV] last week. Based on its history anyway, it looks pretty cheap.

Almond prices were hit in 2020, but they are still profitable. One of the pitfalls of an agricultural company like Select is that in terms of weather, you are in the hands of God.

The stock market is random enough without compromising the weather. I’m still thinking about this idea. But that’s something you might want to explore further.

I can tell you one thing: if you buy stock in this market, you need enough conviction in that idea.

Volatility is being cultivated for 2021. The outlook from this point is beginning to look quite uncertain.

President Biden and the stimulus have been priced so far. One notable move last week was that the Lithium name became a fuss after a major run.

Momentum and outlook can only carry you so far before earnings catch up.

However, 2021 turns out to be very beneficial for getting the stock you want to own in the long run at a discounted price.

The inevitable sold-out is intimidating at that point — they are always. However, if you do your homework, you can buy with confidence.

Above Cycles, trends, forecasts There is a list of stocks that will “accumulate” over the next two years.

These are companies that make perfect sense of the dollar cost averaging method.

The next 12 months will be choppy. However, the big returns will be in 2023 and 2024, as the investments these companies are currently making will be profitable in the future.

If you want to surf the big rides of Australia’s real estate cycle, call the customer service team at 1300 029 501 to join us. Cycles, trends, forecasts..

I told my subscribers to buy real estate during the COVID crisis. We had a lonely voice. The 2021 forecast is currently in the range of 10% capital growth.

Knowledge of this cycle is of great benefit. But don’t believe my words. Give it a try and decide for yourself!

I pray the best wishes,

Calm Newman signature

Column Newman,
Editor, Daily Reckoning Australia

PS: Australian real estate expert Catherine Cashmore reveals why she thinks we’ll see the biggest real estate boom in our lives over the next five years. Click here for more information.

Where big profits can be seen in the real estate market

https://www.dailyreckoning.com.au/aussie-property-cycle-where-i-see-the-big-profits-in-the-property-market/2021/02/01/ Where big profits can be seen in the real estate market

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