Market Sentiment may win this battle, but Fundamentals will win the War
Warren Buffet success is built on his investment logic “when everyone else is buying … he knows it is already too late!”
Fundamentals are Strong : “The time is now”
- The market is tight, evidenced by record demand and unprecedented low supply
- Demand for dwellings in the inner suburbs under $600,000 has never been so strong due to 60% of the populations affordability to own or rent a dwelling in this category
- Supply for this product cannot meet the demand
- Housing Industry Association Report (2012) state a predicted shortfall of 500,900 dwellings by year 2020
- Baby boomers downsizing
- Divorce on the increase – looking for down sized accommodation
- Generation X and now Y are moving out of home for the first time
- Rebound in net overseas arrivals will lift demand
- As interest rates fall, affordability improves
- As vacancies tighten, less rental property will be on the market resulting in Rent Increases – the rental market is stronger than ever
- Once market sentiment improves (and we both know it will), developers will increase the price of their new dwellings because demand will increase in a market with too low supply as it is. (Rental yield against a higher purchase price will drop)
One thing in life is Guaranteed : Paying Tax
You have a choice
- Continue to wait to see what happens to the property market
- Pay Full Income Tax never to be seen again
- Miss out on strong Rental Income to help pay for your Goals
- Fall behind in your own lifestyle goals and retirement planning
- Or minimise your Income Tax by owning an Investment Property
- Divert between $10,000 and $30,000 of Income Tax (you would otherwise 100% have paid to the tax man) into your own Investment Property
- Potentially receive a further $10,000 in Tax Credits over the next 10 years = $100,000 of dollar value in your pocket!
- Could result in around $20,000 savings per year in your own pocket!
- Potentially own an Investment Property valued at $500, 000 for less than $140 per week
- Ensure that you reach some of your own Financial Planning Goals
Or continue to listen to the media and subscribe to weak market sentiment … and in 2 years time say “I should Have!” just like those before you have said and just like those alongside you will say
REIV – Bernard Salt Presentation
Invest in Property – 80% of the Australian Wealth lies in Property – Investing in Property is creating new millionaires in people just like you and I
For more information Google : Goldman Sachs, ANZ, Australian Property Investor, Bernard Salt, HIA