ANZ Economic Update 2012

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

  1. Continue to wait to see what happens to the property market
    1. Pay Full Income Tax never to be seen again
    2. Miss out on strong Rental Income to help pay for your Goals
    3. Fall behind in your own lifestyle goals and retirement planning
  2. Or minimise your Income Tax by owning an Investment Property
    1. 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
    2. Potentially receive a further $10,000 in Tax Credits over the next 10 years = $100,000 of dollar value in your pocket!
      1. Could result in around $20,000 savings per year in your own pocket!
    3. Potentially own an Investment Property valued at $500, 000 for less than $140 per week
    4. 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

Off the Plan Investment Property


 ANZ Economic Update 2012

REIV – Bernard Salt Presentation

Housing Demographics to 2020

State of SupplyReport_2010

 

 

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

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