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Investing in Property is a Great Tangible way to take Control of your Financial Security

Monday, May 05, 2014

 

When you invest in shares your money buys small piece of a company, whose board members you probably don’t know, who can use that money to make mistakes and you have no ability to control the board.

Investing in property provides far more security for investors. For one thing, your investment is ‘tangible’ you can touch it, feel it, paint it and tend to it. The fact that your investment is actual ‘bricks and mortar’ makes many people feel much safer.

Because property is tangible it is also able to be insured thus allowing investors to protect their financial security. You can insure property from fire, floods, tenant damage, rental arrears and accidental damage. Unlike stocks, property is unlikely to just disappear and if it does (such as through fire) it can be replaced using your insurance money.

Unlike investing in shares, a property investment is controlled by the investor.

The investor decides how much they pay for the property, the investor decides the rent they will charge tenants, the investor selects the tenants,  the investor decides if renovations will be made and when and how much to sell the property for.

Investing in property is a great tangible way to take control of your financial security.

Australia has Record Growth Population Forecasts

Monday, April 07, 2014

 

At the same time that building starts were dropping Australia’s population was growing at the fastest rate in 200 yrs*. In fact, our population is predicted to grow by 350,000 people per annum*.

(* Australian Bureau of Statistics)

Australia is predicted to grow at a rate of 65% well above the global average, a survey by the Washington based private research body, the Population Reference Bureau. 

This puts Australia’s growth rate at second only to India.  

Why is this?

1)      Migration:

I am no economic expert but many I have talked to have commented that the GFC has rapidly escalated the number of people wanting to migrate to Australia.  The old adage of Australia being the ‘lucky country’ has become a ‘world-wide’ slogan.  Australia was one of the only countries to escape a recessions.  Actually, oops I think Prime Minister Rudd announced a recession for only a few days.  During the GFC that crippled many countries, Australia continued to grow at a rapid rate.  In addition, a factor that strikes at the heart of many Australians is that Australia is coined to become ‘the resource hub’ of the new world.  Australia’s natural resources are in ample supply and whether we like it or not, we are a target for a continued resource boom. 

The final verse of Australia’s Anthem makes it clear that migration is a fundamental part of Australia’s mindset.

For those who’ve come across the seas
We’ve boundless plains to share;
With courage let us all combine
To Advance Australia Fair.

(Advance Australia Fair)

2)      Increasing birth rate:

 

Australia’s birth rate is on the increase for the first time since the post-war migration baby boom saw it explode in the 50’ and 60’s. 

According to (Reuters – Aug 6, 2010 (Canberra)) - Australia's birth rate has hit a 25-year high, and government has urged "have one for mum, one for dad, and one for the country".

And further increases in the birth rate could worsen the problems of an ageing population, driving new mothers out of the workforce and reducing the tax base, the nation's productivity watchdog said.

"Much of the recent increase in the fertility rate is likely to reflect the fact that over the last few decades, younger women postponed childbearing and many are now having those postponed babies," Productivity Commission author Ralph Lattimore said.

Australia's 21 million population was boosted by 285,000 births in 2007, the highest level in 25 years, and up from 261,400 births in 2005.

The population is expected to hit 31.6 million by 2050, driven to a small extent by the higher birthrate and almost 10 million new immigrants.

3)      Increasing health and longevity

Australia is well known for its healthy and active lifestyle, clean living and fresh, open air spaces.  Coupled with our reasonably good health system and we have Australian’s living longer. 

According to www.aag.asn.au/filelib/Economic_implications_of_increasing_longevity

The Life expectancy at birth has been steadily increasing.

 

Male

Female

1970-72

67.8

74.5

1980-82

71.2

79.3

2004-06

78.7

83.5

2056 Low

85

88

2056 High

93.9

96.1

 

The above facts combined are seeing our population rate continuing to escalate. Whether it’s a good thing, or a bad thing, it just is.  The good news is that it provides a fundamental support system for continuing house price rises.

Do you want to know more? Click here to watch five free webinars on - ‘Proven, Must Know, Property Investment Advice’

Anyone Can Invest in Real Estate

Friday, March 21, 2014

Anyone can do it?  Are you sure?  Anyone? 

Well let’s look at some facts?

Of the 1 in 10 Australian tax payers that Invest in Property

 

 60% earn less than $50k pa,

 85% earn less than $80k pa.

 

So perhaps not anyone can do it.  But anyone, or any couple jointly, earning more than $50,000 per annum can do it. 

In comparison to other types of investment such as stocks, bonds, forex, commodities, etc Real estate investment makes a lot more sense to a lot more people.
Along with the basics of fresh air, food and water – shelter or a roof over our head, is one of the most basic human needs.
It is for these basic reasons that real estate is a simple and attractive investment.
All wealth creation strategies require discipline, commitment planning and a long term focus

As the old saying goes "you've got to be in it to win it" and you will never make any money as a real estate investor if you never actually invest in real estate.

And once you’re in it – you need to hold on tight for it’s not also a smooth road.
Along with every positive piece of press you may come across about real estate investment, there will probably be a negative article on the facing page of that newspaper.

I have often advised client’s simply to not listen to the press.  In fact, don’t even read the newspapers or watch the news.  By the time it is in the news it is too late.  BY the time the press are talking about a housing boom, it has already boomed.  By the time, they are talking about a housing slump, it has already slumped.

A real estate investor has to be ready to ride out the ups and downs of the Australian economy, just like any other investor.  Rule one – BUY.  Rule two – HOLD as the housing market rises.  Rule three – HOLD as the housing market slackens.  Rule four – SIMPLY HOLD.

Sometimes residential house prices will go a sky high. At other times, prices will hit rock bottom so fast you will want to jump on the nearest bargain before the end of the day.


The fact of the matter is, real estate investment is a viable option for most of us, and once you get started -- the hardest part is usually done.


The key to becoming a successful real estate investor, no matter who you are, is making the right decisions from the outset.  This book will give you all the education and information you need to make your real estate journey a safe and enjoyable experience.


Before you buy learn how

1)      Assess the residential property market in the area, the demand and supply, the demographics, the average rental prices and vacancy rates, the infrastructure (both existing and planned) and much, much more.  The later chapters of this book will take you through all the things you need to consider in detail.

2)      Work out how to get finance, how much can you borrow, how you should structure your finance. More on this later.

3)      Decide your strategy – are you looking for positive or negative geared properties, cash flow or capital gain. 

4)      Work out whose name to buy in? Your’s? Your Partners? Joint? Or a Company, Trust or Super Fund.

5)      Understand the basic steps in the real estate purchasing transaction

6)      Learn how to do due diligence on a property

7)      And much more…..

 

It may sound overwhelming but if you work your way through this book you will know everything you need to know.  So hang in there.

So yes, anyone who is willing to learn all the basics of Investing in Real Estate can do it.

Do you want to know more? Click here to watch five free webinars on - ‘Proven, Must Know, Property Investment Advice’


Queensland Property Industry is the most Confident

Tuesday, January 21, 2014
  1. While positive sentiment improved across Australia to the highest level since the Property Council/ANZ Property Industry Confidence Survey began in 2011, Queensland was the knock-out.

The results revealed a 10 point spike in Queensland's confidence for the March Quarter, up to 152 on the index, the highest in the country.

A score of 100 is considered neutral.

The state also had the highest expectation of economic growth in the nation over the coming year.

"We have seen a dramatic shift in confidence among Queensland's property industry over the past two surveys, driven primarily by the ongoing recovery of the residential market," Property Council executive director Kathy MacDermott said in a statement.

"The previous quarter's survey results exhibited first signs of a residential revival.

"During the past three months, industry's house price growth expectations have grown to the highest levels in the country, and to historic levels for Queensland."

Queensland's retail capital growth expectations have also been building over time and now sit at the most positive levels seen in Queensland.

The retail sector has experienced 15-point growth over six months and is now second only to the Northern Territory.

Premier Campbell Newman said the results show confidence in the reform programs being undertaken by his government, including restoring the principal place of residence stamp duty concession, and a $15,000 grant for new homes.

"We've seen a 13 per cent increase in housing finance commitments in the year to November and a 4.9 per cent increase in November in trend dwelling approvals," Mr Newman said in a statement.

The survey polled approximately 2600 property and construction industry professionals from across the country in December 2013.

 

By: news.com.au 16th January 2014

Real Estate Market at Start of a New Growth Cycle

Friday, July 05, 2013

Estate agent John McGrath says Sydney’s recovery is well underway, with increasing buyer demand and strong prices being achieved across all property types under $2 million.

He has noted weekend clearance rates have been consistently above 70% for several months and that home loan applications are rising.

"Official interest rates are at a record low, with fantastic deals such as a three-year fixed home loans now on offer at 4.83%," he told his Switzer blog readers.

"We’re on track to achieve 5-10% growth in prices this year, with more buyers coming off the sidelines as they see more and more evidence of stronger sales in their neighbourhoods," he said.

McGrath reckons investors are very prominent in the market.

"Many are choosing to purchase through their self-managed super funds, which continues to be one of the most significant changes in the Australian residential marketplace today."

"We are at the start of a new growth cycle which will play out over the next three to five years."

 

By Jonathan Chancellor
Thursday, 04 July 2013


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