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BRISBANE-based author and property Investor Leonard Barnes is predicting a long awaited property boom in and around Brisbane and the Gold Coast.
Mr Barnes said history shows that south-east Queensland benefits around 18 months to two years after similar booms in Sydney and Melbourne.
“What we are seeing is a ripple effect.” he said, an opinion shared by other industry observers including BlSShrapnel and Paul Clitheroe.
Mr Barnes has just released a new book, Property Power, in which he explains a Short Term aggregate gain (STAG) approach to property investment.
He argues that this approach will produce earlier and better returns than the “hold and hope” strategy others may prefer.
The book explains his 27 principles of buying and selling real estate, a strategy that made him a millionaire in just eight years.
Not surprisingly, in a STAG approach, the key concept he emphasises is one of timing and working the property cycles.
Barnes can point to the last property boom in south-east Queensland, around 1989 to 1991.
“At that time, cashed up interstate investors had just made a bundle in Sydney and Melbourne.” he said.
“They came to Queensland for lower cost property that had not been maximized”
“They were effectively twice dipping and looking for that double whammy of another capital gain. This was no longer feasible in Melbourne and Sydney because that bubble had already burst.”
“After 1991 the developers produced too many homes in southeast Queensland and the window of opportunity was lost. Going back further to the previous boom cycle back in 1981 to 1982, there was once again a ripple effect occurring just after the property boom in Sydney,” he said.
Barnes is recommending a hold and buy strategy for south-east Queensland property for the next two years.
“After two years it may be, opportune to cash in. Then investors could even consider buying into what is likely to be a depressed market interstate.” he said
In a time when many purport the stock market to be the only real way to secure financial independence, Property Power turns eager eyes back to the potential of property.
Leonard is decidedly selfless in his quest to share his wealth-creating secrets, presenting all aspects of the process that helped his family achieve their first million.
With detailed, incremental steps, Property Power is more of a guide (and less of a get-rich-quick scheme, so alongside careful planning and unwavering ambition, you will be well on your way to securing a fiscal fortune.
by Ellisa Jenkins
By ELISSA JENKINS