Thursday, 6 December 2018

Perth's four-year housing bust is nothing like what Sydney and Melbourne's property markets face

Best Asia Real Estate Editor's comments:
Editor Lawrence with wife Azizah and son Darius
 on Bondi Beach Sydney July 2018
Perth may be immune from coming Australian real estate crash

As expected I am already being chastised for my Australian real estate blog predictions posted the past week. I learned decades ago if everybody thinks your wrong you're probably right and vice versa.

I also learned in Hawaii in 1980 when I owned a real estate company there and went bearish on the real estate market in Hawaii on my radio program, seminars and newsletter that you have to be ready for mass criticism, rude comments and even government backlash and loss of personal friends and associates when you predict a real estate crash in your home area. Bali realtors, agents and property owners  hated me. 


Even those who take your advice and get out before the crash, therefore saving themselves a lot of money, do not compliment you.

So I learned my lesson and here in Bali after I turned neutral and then bearish in 2014 on most Bali Real Estate when a minister made a negative remark about foreign ownership I kept my comments to myself. 

But I stopped marketing almost completely including my seminars etc. At one point I even sold my main residence which they failed to pay. 



I only started to promote Bali real estate again heavily a little over a year ago after I realized that the "blood was running in the streets" and it was time to buy Bali real estate once again. I coined the phrase "second best time to buy Bali real estate this century".

"Second best time to buy Bali real estate this century".

All indicators are that I've been right on my prediction and the market has turned around as properties that were severely discounted are now sold and property prices are increasing in several areas of Bali already.

This could be a similar situation in Perth, W.A.



In the last few days I've written  several articles  not only predicting that Australian real estate is going to fall as I have been for year but now that the economy itself may fail and go into a severe recession.


That remains to be seen and I will make a decision after I spend 10 Days in Perth December 25th. to the January 6th. while attending the prestigious Hofman Cup tennis tournament featuring stars such as Roger Federer and Serena Williams.

I will meet with local realtors, check prices and see if Perth now passes my acid test which is quite simple. Can I buy a three-bedroom home or apartment in Perth and rent it out for positive cash flow? 

I invite any Realtors in Perth or homeowners that have properties for sale that may make meet this criteria to contact me and I will inspect your properties personally. Contact me at lawrencebptbali@gmail.com

If I feel that you are correct and it passes my acid test I will be the first to recommend it on one of the largest blogs in Asia and in my Free seminars Coming up January's 17th and 19th in Bali.


This is the same challenge I put to Singapore real estate agents four years ago when I told everybody to get out of Singapore and agents working with me at the time in Singapore said I was crazy. I invited them to show me positive cash flow and nobody could.

So for the time being I will be neutral on Perth real estate while extremely bearish on Brisbane, Melbourne and Sydney and most of Australia urban areas.

Perth's four-year housing bust is nothing like what Sydney and Melbourne's property markets face

By Emily Piesse

VIDEO: How WA went from boom to bust (ABC News)
RELATED STORY: This property downturn is a different beast from the big one in 1989
RELATED STORY: 'It's not just bricks and mortar, it's home': The battle to keep your house while under mortgage stress
RELATED STORY: House prices in sharpest drop since GFC and 'will continue to trend lower'

As house prices continue their downward trajectory on the eastern seaboard, property owners across the Nullarbor are watching on with interest.

Key points:
Perth's housing market collapsed at the end of the mining boom in 2014
Since then, it has been on a constant slide while prices surged on the east coast
But experts warn Sydney and Melbourne's bust will be more significant, and swift.

Perth is more than four years into a housing downturn that is yet to bottom out after median house prices peaked at $585,000 in November 2014, according to Landgate figures.


As panicked owner-occupiers and property investors in Sydney and Melbourne try to predict what will happen from here, real estate observers and economists say the WA market may provide some clues.
Slow slide vs steep plunge

In WA, house prices were the casualty of a slump in population growth, triggered when a swathe of construction projects kicked off by the mining boom were completed.

That caused the Perth median house price to fall 14.8 per cent from its peak, according to CoreLogic data.
EMBED: Datawrapper - Sydney, Melbourne and Perth house prices

For property owners, the past four years has been a constant stream of bad housing news, leading to a surge in mortgage stress.

But the decline has been gradual, according to Real Estate Institute of Western Australia (REIWA) president Damian Collins, in contrast to the wild fluctuations underway on the east coast.

"Sydney figures show that [prices are] down 9 to 10 per cent in 12 months alone, so it's much more significant and swift, the decline," Mr Collins said.

"The rapid downturn has certainly spooked a lot of people."

The reality is that Sydney has further to fall than Perth did, according to Bankwest chief economist Alan Langford.

"If you get that far out of kilter with incomes, you're going to have a steep fall," he said.
How households react to a property bust

In Perth, the retail sector took a hit as households cut back on spending.

"We've seen a big slowdown in retail trade on the back of this sliding housing market," CoreLogic head of research Cameron Kusher said.

"I wouldn't be surprised, particularly over the Christmas/New Year period, if we do see much weaker retail conditions than what we've seen over recent years, due to the fact that property prices are falling fairly rapidly in Sydney and Melbourne."
EMBED: Datawrapper - Sydney, Melbourne and Perth unit prices

Economists say the reversal of the "wealth effect", created by rising house prices, is to blame.

"If you've got houses and share prices falling at once, a household that has equity in a house plus a share portfolio — either directly or through their super funds — they're not going to be as inclined to spend, which is why we're seeing soft household consumption growth coupled with modest wages growth even in New South Wales and Victoria," Mr Langford said.

"You're more inclined to run your savings down to finance consumption if you think your wealth is being maintained or growing."

However, Mr Langford said household consumption was holding up in Sydney and Melbourne.

"A little bit worryingly, including for the Reserve Bank, is that it is being sustained by a run down in savings, because their labour market's quite strong and people are confident in their jobs, which is great.


"But we just need to be aware that households are maintaining consumption in the face of subdued wages growth by running down savings."
PHOTO: Building approvals in Perth have halved since 2014. (ABC News: Graeme Powell)

And that has a flow-on effect to the broader economy.

In WA, unemployment remained relatively stable, but underemployment ticked up, while building approvals have more than halved since their peak in 2014.

"Certainly now, there is a big downturn in the housing construction sector," Mr Kusher said.

"It has, obviously, a flow-on effect to real estate agencies as well."
Missing out on $1 million

As potential investors sit on the sidelines, those already in the market stand to miss out on more than capital gains.

Property commentator Gavin Hegney said while prices may drop by up to 20 per cent from peak to trough, the real, risk-adjusted loss facing investors may be closer to 40 per cent.

That is due to inflation and the opportunity cost of having capital tied up in loss-making assets, which could be invested elsewhere.
PHOTO: Perth house prices slumped after the completion of large mining construction projects. (720 ABC Perth: Emma Wynne)

"You could have taken $1 million out [of Perth property] in 2014 and taken it over to Sydney and now be sitting on an asset worth $1.8 million," Mr Hegney said.

"In Perth, that would now be worth $800,000.

"That's the missing million."
The cost of moving sidelines buyers

In a downturn, capital losses are not the only consideration keeping buyers out of the market. It becomes harder for homeowners to stomach the considerable cost of moving house.

"When you've been in a market such as Perth, where a lot of people haven't seen any capital growth at all for 10 years — in fact, some people have seen negative growth — all of a sudden, those transaction costs really start to bite and it puts people off moving," Mr Collins said.

"It is going to be a while before we see a return to the turnover in volumes that we saw.

"Ten years ago, [sales] volumes in Perth were 62,000 properties a year, now it's about 32,000.

"That's been a big drop and I can't see it getting back to those turnover levels for many, many years ahead, if at all in the next decade."
PHOTO: Perth's housing price slide has yet to reverse course. (ABC: Emma Wynne)

While prices are falling in Sydney and Melbourne, Urban Development Institute of Australia (WA) chief executive Tanya Steinbeck said policy makers should "not to expect the downturn to fix the housing affordability issue".

"In WA, over the last few market cycles, it's now become a structural issue, not necessarily a cyclical one," Ms Steinbeck said.

"That's because increased supply doesn't always meet the needs of those who are on low-to-moderate incomes.

"I anticipate that it may not meet that need in Sydney and Melbourne, given the significant increase in the median house price over there."
A stagnant market becomes the 'new normal'

In Perth, even after four years the decline in market sentiment has yet to reverse course, plunging to new depths in housing data released this week.
EMBED: Home prices November 2018 Datawrapper chart

"[People] feel that's the new normal, that prices just stagnate or decline moderately," Mr Collins said.

"There doesn't seem to be any perception amongst anybody out there in the market, generally, that they're going to make any substantial capital gains, if any at all.

"Whereas you go back 18 months ago, in Sydney and Melbourne, there was the exact opposite. They just thought it was going to go up 15 per cent per annum as far as the eye could see."

Real estate observers say credit tightening, initiated by the banking regulator to tame investor activity on the east coast, meant Perth became collateral damage.

"Twelve months ago, it was actually starting to look like there was some green shoots in the market," Mr Kusher said.

"Once credit conditions tightened again at the start of this year, any hopes of a recovery in the market faded and that's why we've seen values falling again."
Making the most from a bust

However, the real estate industry says downturns can present opportunities, too.

"It's a great time to continue to invest in infrastructure in the downturn," Ms Steinbeck said.

"It's far more affordable for the state to invest in infrastructure in a softer market.

"You've got labour costs that are significantly lower, you've got more trade availability and it continues to boost the economy."
PHOTO: House prices in Melbourne are predicted to fall further. (AAP: David Crosling)

For now, CoreLogic expects prices on the eastern seaboard will continue to fall.

"Realistically, we see that the downturn's probably going to continue throughout most of next year and into early 2020," Mr Kusher said.

"Our view's always been Sydney and Melbourne will fall somewhere in the 15 to 20 per cent range and that's looking … very likely at this stage.

"People are still, in a lot of instances, well ahead, but I guess people have been accustomed over the last 25–30 years for property prices to go up, so when they're going down it's a bit of an uncomfortable situation."

Earn 10% to 20% per annum. The second best time to buy Bali real estate this century.

Buyers, sellers, brokers, agents, investors, lessors or renters will benefit from attending one of our two free Real Estate Seminars in Bali in January.



Free Seminar Schedules: Dates & Times: 1. Thurs. Jan 17th. 6:30 PM to 7:45 PM or 2. Sat. - Jan. 19th. 2:00 PM - 3:15 PM.

Location: Bali, Emerald Villas, Jl. Karangsari, # 5, Sanur, Bali, Indonesia.



Seminar Topics: At these seminars you will learn about:
  • The Past, Present and Future of Bali Real Estate.
  • Clarification of laws allowing foreigners total control up to 80 years. 
  • How to avoid legal problems and make sure a property is safe. 
  • How to avoid complicated laws - Indonesians married to foreigners. 
  • Why this is the second-best time to buy this century. 
  • Where are the best locations to buy for maximum profits? 
  • What properties offer the potential of *10% to 20 % per year? 
  • Discover how you can sell your property fast for the highest prices and lowest commissions on a brand-new web site.
  •  Free listing on B.A.R.E. First Class Beachfront property at almost 50% discount. 
  • Low cost properties with Luxury Villas starting as low as $158,000 for a three-bedroom 650 m² 3-bedroom, 4 baths with private 9 mtr. Pool. 
  • Ridiculously low-priced ocean view building lots $25,000 for 500 m². 
  • Brand new Bali Luxury Retirement Villas starting at $198,000.
Limited Seating & Free Parking:



Seating is very limited for these free seminars so please avoid disappointment and make reservations A.S.A.P. Click Here For a Reservation Or Email: seminarsptbali@gmail.com or Tel: Office: 62-361- 284069 – Bahasa Indonesia 62-8123632177

Wednesday, 5 December 2018

Australia may be heading into a prolonged recession as real estate, stock market, and currency sell off.


As my readers are aware, I've been bearish on the Australian real estate market for over a year now. During the last 12 MTh’s It's gone from, I don't believe it stage, to, it will come back stage, to finally, how far is it going to go, stage. 


Dr Helena Studdert, Australian Consulate 

in Bali 2018 with Editor Lawrence



At dawn this morning before I went for a jacuzzi and swim I shorted the Australian stock market, ANZ Bank along with the Australian currency against the Chinese Yuan.

All because I believe Australia is in for a serious amount of pain in the next couple years.

There Is a good chance that they may endure the most serious recession in over three decades. 


As real estate continues to fall banks will start to call in marginal loans placing many people in bankruptcy. Some Australian banks may fall into insolvency.

This will hurt retailers as Australians have less money to buy.

There may be substantially large layoffs of workers.

The only thing that may be their savior is if the two largest economies China and United States turn around and start buying raw materials again. I don't look for that to happen in the very near future.

So unfortunately, the near future looks very pessimistic.

I have a lot of Australian friends and I hate to be the bearer of bad news.

You can put your head in the sand and wait for this all to pass or you can get out now with the knowledge that you've earned handsome returns already.

Remember the famous stock market saying, “bulls make money, bears make money, and pigs get slaughtered”. Don’t be a big don’t be greedy if you have made 30% to 50% return on your real estate investment in Australia over the last decade take the profit and run. There is not going to be any Chinese investors to bail you out this time.

If you are smart you will take your profits and invest or retire in much greener pastures such as Bali which has already had their worst real estate recession in recorded history over the past four years.

If you buy now when prices are down 20% to 50% from 2014 you should see increases of 30 % to 100 % over the next five to ten years. Because Bali’s economy is still blooming with record tourism every year since it is ranked the fourth most popular destination in the world by Tripadvisor. The Chinese are just starting to invest here, and you know what they did to Singapore, Melbourne, Sydney and Brisbane. As the saying goes follow the money or in this case follow the Chinese money.

If you want to learn from a real estate expert that’s made a fortune already in Bali real estate, has lived here for 22 years and is married to a professional Notaris who has a vast amount of knowledge about transactions in Bali real estate you will attend our free forthcoming seminars on January 17th. Or January 19th. See details below this article.
________________________________________________

Asian markets tumble ahead of closely watched OPEC meeting; Hong Kong falls more than 2.5 percent

  • Hong Kong's Hang Seng index shed more than 2 percent in the morning.
  • The moves in China came after Huawei's CFO, Meng Wanzhou, was arrested in Canada.
  • OPEC and other top oil producing countries are set to meet later on Thursday in Austria, with a series of issues on the line.
  • Chief among those is the discussion surrounding crude output policy.


Secretary General of OPEC, Mohammed Barkindo (R), Russia Energy Minister Alexander Novak (L), Saudi Arabia's Minister of Energy, Industry and Mineral Resources, Khalid Al-Falih (C) hold a joint press conference during the 173rd Ordinary Meeting of the Organisation of Petroleum Exporting Countries (OPEC) in Vienna, Austria on November 30, 2017.
Omar Marques | Anadolu Agency | Getty Images
Secretary General of OPEC, Mohammed Barkindo (R), Russia Energy Minister Alexander Novak (L), Saudi Arabia's Minister of Energy, Industry and Mineral Resources, Khalid Al-Falih (C) hold a joint press conference during the 173rd Ordinary Meeting of the Organisation of Petroleum Exporting Countries (OPEC) in Vienna, Austria on November 30, 2017.
Stocks across Asia slipped during Thursday afternoon trade, continuing a decline in markets worldwide ahead of a closely watched meeting by the Organization of the Petroleum Exporting Countries (OPEC).
Hong Kong's Hang Seng index fell 2.62 percent in the morning session, with shares of Chinese tech heavy weight Tencent falling more than 3.6 percent.
The mainland Chinese markets, in focus due to Beijing's trade dispute with Washington, also saw losses. The Shanghai compositeslipped 1.28 percent while the Shenzhen composite shed 1.32 percent.
The moves in China came after Huawei's CFO, Meng Wanzhou, was arrested in Canada. Meng faces extradition to the U.S., Canada's Department of Justice said on Wednesday. That arrest could represent a new frontier in U.S.-China relations, according to the Eurasia Group.
"The arrest and extradition request by the US government represents a new and major escalation in what has been a series of US efforts to hold Chinese companies accountable for violations of US law, some dating back years," the note said.
Another Chinese phone maker, ZTE, saw its Hong Kong-listed shares plunge 5.94 percent by the morning session's end. Both Huawei and ZTE are restricted from selling telecoms equipment in the U.S. due to what the U.S. describes as national security concerns.
Japan's Nikkei 225 fell 2.4 percent in the afternoon while the Topix index declined by 2.16 percent. South Korea's Kospi also shed 1.41 percent, as shares of industry heavyweight Samsung Electronicsdropped 1.93 percent.
In Australia, the ASX 200 slipped 0.52 percent in afternoon trade, with its sectors mixed. The energy subindex fell by 0.51 percent ahead of Thursday's OPEC meeting. The Australian dollar was at $0.7223 after sliding from the $0.735 handle yesterday.
The moves Down Under came after the country's trade surplus for the month of October missed forecasts, coming in at around 2.3 billion Australian dollars (approx $1.67 billion) instead of the expected 3.2 billion Australia dollars (approx. $2.32 billion) from a Reuters poll.
Meanwhile, futures pointed to substantial declines for the U.S. market. Dow Jones Industrial Average futures showed an implied decline of 354.07 for the index at Thursday's open, as of 11:24 p.m. ET Wednesday. S&P 500 and Nasdaq futures also pointed to declines. The U.S. stock markets were closed on Wednesday in honor of former president George H.W. Bush.
Best Asia Real Estate Editors Comments:

After living in Bali for 22 years and observing the rapid growth of the real estate market in our neighbour to the south, Australia, I was always bullish.

A little over a year ago I started to see Australia violate my number one acid test for real estate.My acid test is simple when a real estate market is at a point where you cannot buy a three-bedroom home or apartment and rent it out for a positive flow cash flow the market will probably end and go down.

Last year I wrote a series of articles (see below) and talked about a crashing real estate market in Australia’s major cities of Melbourne, Sydney, and Brisbane.


Past 12 Month Articles :

At first nobody believed me.

I argued that the Chinese were pulling out because the Australian government was making it more difficult for them to buy therefore, they would lose their main source of extraordinary demand.

At first Australians laughed at me. Then they began to scorn me believing that I had something to do with the real estate market decline when in fact all I was doing was reporting the obvious.

Now a full year later and prices are in a freefall.

As I predicted they are falling exponentially faster and faster.

When we arrive at the stage where everybody believes that Australian real estate is the worst real estate in the market in the world and when I can buy something, rent it out for positive cash flow, it will be time to test the water. I don’t expect that to happen anytime in 2019 or even 2020.

So those that did laugh at me instead of selling their real state they would’ve saved 10% or more if they sold one year ago when I first issued my sell signal. If they’re still holding, they may lose another 30% to 50% of their value.

Those that sold and purchased Bali last year when everybody was saying it was the worst real estate market in the world after a 30% to 50% decreases since 2014 not only would have saved money on their Australia properties but also, they would have seen their property rise 10% to 20% already.

In just a week or so I will publish my, “Good, Bad and Ugly of the Worlds Real Estate for 2019”.

I will also talk about the world’s real estate markets at my free seminars coming up as per the seminar schedule listed below the article below.

Earn 10% to 20% per annum. The second best time to buy Bali real estate this century.

Buyers, sellers, brokers, agents, investors, lessors or renters will benefit from attending one of our two free Real Estate Seminars in Bali in January.


Free Seminar Schedules: Dates & Times: 1. Thurs. Jan 17th. 6:30 PM to 7:45 PM or 2. Sat. - Jan. 19th. 2:00 PM - 3:15 PM.

Location: Bali, Emerald Villas, Jl. Karangsari, # 5, Sanur, Bali, Indonesia.

Seminar Topics: At these seminars you will learn about:
  • The Past, Present and Future of Bali Real Estate.
  • Clarification of laws allowing foreigners total control up to 80 years. 
  • How to avoid legal problems and make sure a property is safe. 
  • How to avoid complicated laws - Indonesians married to foreigners. 
  • Why this is the second-best time to buy this century. 
  • Where are the best locations to buy for maximum profits? 
  • What properties offer the potential of *10% to 20 % per year? 
  • Discover how you can sell your property fast for the highest prices and lowest commissions on a brand-new web site.
  •  Free listing on B.A.R.E. First Class Beachfront property at almost 50% discount. 
  • Low cost properties with Luxury Villas starting as low as $158,000 for a three-bedroom 650 m² 3-bedroom, 4 baths with private 9 mtr. Pool. 
  • Ridiculously low-priced ocean view building lots $25,000 for 500 m². 
  • Brand new Bali Luxury Retirement Villas starting at $198,000.
Limited Seating & Free Parking:


Seating is very limited for these free seminars so please avoid disappointment and make reservations A.S.A.P. Click Here For a Reservation Or Email: seminarsptbali@gmail.com or Tel: Office: 62-361- 284069 – Bahasa Indonesia 62-8123632177

Tuesday, 4 December 2018

HOW TO GET BOOKINGS FOR YOUR BIG BALI VACATION RENTAL

Best Asia Real Estate Editor's comments. 
Editor Lawrence relaxing Jacuzzi at beachfront resort only Bali Paradise Beach Estates
I could have and should have written the article below 10 years ago after we discovered what is the perfect combination for vacation rentals and Bali.

Our current 55 Bali Luxury Villas enjoy an average occupancy rate of over 75% for the year and short-term rentals paying an average of $130 per night.

We are a Seven-time Consecutive Certificate of Excellence recipient on the Worlds Largest Travel Site. This places them among the top 10 % of hotels and villas listed by Tripadvisor worldwide.
"Recipients Hall Of Fame Award, awarded to only 2 % of the Hotels listed on TripAdvisor World Wide"

Right off the bat it was obvious to me that as it says in the article below  bigger is better "demand for unique accommodations like castles and estates rocketed by 55 and 25% respectively" and that "vacationers staying in rented homes tend to make much better use of the property as a whole. In fact, many vacations revolve around the property itself – common activities include spending time with family by the poolside, preparing group dinners in the full kitchen or chilling out on the sofa with a good book or movie"


The smallest size of our Bali Luxury Villas is 350 For a two-bedroom Private villa and up to 600 m² for a 3 to 4 bedroom.

As this article also points out when renting out a two or three bedroom private villa "costs are shared between multiple friends or members of a group, the nightly rate reduces while the quality and amenities are often far superior" 

And finally one thing that we've known since the very first Villa we built 15 years ago that " The HomeAway report also states that the most desired vacation home feature is a private swimming pool."


Our 9 m private swimming pool 600 m² of land is a big hit with our guests
_________________________________________


Vacation Rental Owners


Jess Ashworth
on November 30th


Blog /
Vacation Rental Owners / How to Get Bookings for Your Big Vacation Rental


Bigger isn’t always better, but the recent HomeAway Trend Report suggests otherwise when it comes to vacation rentals. Their data shows that, in the last year, demand for unique accommodations like castles and estates rocketed by 55 and 25% respectively.

But, what’s the reason for this increase?

In general, vacation rentals offer much more space at a lower cost per person than traditional hotel-style options. Unlike travelers staying in hotels who only use the room as a base to sleep and shower, vacationers staying in rented homes tend to make much better use of the property as a whole. In fact, many vacations revolve around the property itself – common activities include spending time with family by the poolside, preparing group dinners in the full kitchen or chilling out on the sofa with a good book or movie.

HomeAway’s deep dive into the demographics of travelers who are booking larger properties found that millennials are driving this trend forward. Those 20 to 40-somethings who are maturing, starting families and opting to travel with their parents (children’s grandparents) in tow. According to the report, the number of families traveling with children has grown by 325% in the last 12 months.

Knowing how to market your big vacation rental can dramatically improve booking numbers and drive more guests to your home. Follow our advice to increase reservations for your oversized property!
TARGET THE RIGHT GUEST TYPES

In the very initial stages of launching your vacation rental business, you should spend some time identifying who your target market is in terms of guest types. For those who boast large and unusual properties, there is a whole range of people you can aim to attract.
FAMILIES

Vacation rentals offer a convenience factor for traveling families that many other accommodations cannot. Space, entertainment options, kitchen/dining areas, and a washer dryer are all great reasons to opt for an Airbnb. Providing family-friendly amenities for your guests – such as cots, highchairs and a selection of toys or games – can give your property a competitive edge and persuade families into booking.
GROUPS

An increasing number of non-family groups are also booking large vacation rentals as a result of the more “bang for your buck” effect. When costs are shared between multiple friends or members of a group, the nightly rate reduces while the quality and amenities are often far superior to any competing accommodation offering. So, make it known on your website that your home is suitable for these guests by showing photos of other groups enjoying your space and be sure to ask previous groups for reviews and showcase these on your site, too.
BUSINESSES

Plenty of companies hold annual off-site activities for each team or even the business as a whole. As well as providing a comfortable place to sleep for a corporate weekend trip, you can partner with local services to offer catering, activities and a concierge service. Savvy company owners will appreciate saving on accommodation as it will free up some of the budget to spend elsewhere.

ESTABLISH YOUR PROPERTY AS AN EVENTS VENUE

If you have a distinctive property in a desirable area, there is another highly effective method for achieving a full booking calendar: transforming your vacation rental into a venue for special events.
WEDDINGS

Destination weddings now account for one-quarter of all marriage celebrations. Considering couples spend around $16 billion on weddings each year, it’s a prosperous market to tap into. If you decide to use your property as a wedding venue, however, be sure to have the right kind of insurance in place, always ask for a damage deposit and adhere to any local laws and restrictions of event planning.
TEAMBUILDING

Besides overnight stays, many companies and startups get together for teambuilding events throughout the year. If you have a low season with typically fewer bookings, think about renting your place out for a daily rate to host these types of activities for local businesses. This is especially effective if your property is a unique accommodation, like a castle or farmhouse, as it will make it even more memorable for the invited guests!
PARTIES

It may be a 50th birthday, a silver wedding anniversary or a newborn child’s naming ceremony – whatever the occasion, there is never a shortage of reasons to throw a party! In particular, vacation rentals with ample outdoor space can really make the most of this business opportunity for hosting summer parties. Pitching your home as an ideal party location can attract event planners who are looking for something a bit more special than a stale hotel conference room.
GO ALL OUT ON AMENITIES

The HomeAway report also states that the most desired vacation home feature is a private swimming pool. While many big properties boast this amenity already, for some owners, it may even be worth considering installing a pool in order to attract more guests and reservations. Although it is a hefty investment at first, the return will be seen (and enjoyed) for years and years to come.

Apart from a pool, make sure you invest in the essential amenities that every guest looks for. This can include everything from a welcome basket prepared with local treats from the region and an abundance of nice-smelling toiletries, to robes and slippers for every guest and a stack of board games for whiling away the evenings!
BIGGER VACATION RENTALS = BIGGER VALUE AND BETTER FOR GUESTS

A big vacation rental can be so much more than a home away from home for travelers. When you know what guests are looking for, you can capitalize on this to bring in more revenue by offering the best amenities, most value for money and a better overall guest experience than any of your nearby competitors can.I

Saxo Bank's # 1 Prediction for 2019 -Binge no more – 2019 sees the "Australian Dream" implode in spectacular fashion"




OUTRAGEOUS PREDICTIONS 2018-12-04 15:30
OP 2019: Australian central bank launches QE on housing bust Down Under
Eleanor Creagh

Australian markets strategist, Saxo Bank


Summary: Binge no more – 2019 sees the "Australian Dream" implode in spectacular fashion afters decades of galloping house price inflation.
Share



For the full list of Saxo's 2019 Outrageous Predictions, click here.
The debt-fuelled surge in Aussie house prices has led to one the longest rallies in the world, with prices gaining a monstrous 6,556% (373% after adjusting for inflation) since 1961. 

The “Australian Dream” was financed through an epic accumulation of debt as interest rates collapsed, with household debt standing at 189% of disposable income.

The Great Financial Crisis was responsible for deflating housing bubbles in other advanced economies, but not in Australia. In a bid to stave off the crisis’ effects, Canberra’s “economic security package” further fuelled the spectacular run-up in leverage, kicking the proverbial can down the road.

In 2019, the curtains close on Australia’s property binge in a catastrophic shutdown driven most prominently by plummeting credit growth. In the aftermath of the Royal Commission, all that is left of the banks is a frozen lending business and an overleveraged, overvalued mortgage-backed property ledger and banks are forced to further tighten the screws on lending.

The confluence of dramatic restrictions in credit growth, oversupply, government filibusters and a slowdown in global growth cement the doom loop ; property prices Down Under crashing by 50%.

Australia falls into recession for the first time in 27 years as the plunge in property prices destroys household wealth and consumer spending. The bust also contributes to a sharp decline in residential investment. GDP tumbles.

The blowout in bad debt squeezes margins and craters profits. Th e banks’ exposure is. It's too great for them to cover independently and to skirt the risk of insolvencies and collapse, the RBA moves in to purchase securitised mortgages and fund the government’s recapitalisation of its major banks with a whopping AUD 300 billion QE/TARP programme.

The grand irony is that Governor Lowe’s hand is forced toward unconventional monetary policy and he implements QE1 Down Under. With the banks at the forefront of financial stability they are deemed “too big to fail”, not least because Australia’s baby boomers and superannuation investment pools rely heavily on the banks’ consistent dividend yields.

Best Asia real estate editor's comments:

I just received the above predictions from my online trading platform Saxotrader and I thought I would share them with you

I have found them to be very professional and have some great analysts.

Since no one has a crystal ball these are their predictions and not mine.

My specialty is real estate and I have a track record of over 90% accuracy for forty years on predicting major trends in real estate.

It is very interesting that although Saxo Bank has very little to do a real estate on their trading platform their number one prediction for 2019 is a prediction that I made in 2017 that the "Australian real estate market was going to collapse" and cause calamity throughout the Australian  economy.

They say in 2019 " Australia falls into recession for the first time in 27 years as the plunge in property. Prices destroys household wealth and consumer spending. The bust also contributes to a sharp decline in residential investment. GDP tumbles."

For my 2019 predictions for world real estate, I'm calling "The Good. Bad and Ugly of world real estate for 2019" I suggest you attend my free seminars coming up on the 17 and 19 of January in  Bali.

See details below

Perth's four-year housing bust is nothing like what Sydney and Melbourne's property markets face

Best Asia Real Estate Editor's comments: Editor Lawrence with wife Azizah and son Darius  on Bondi Beach Sydney July 2018 Perth...