Fundamentals

Property Fundamentals have never been so strong!

Give some thought to ‘The Fundamental Role of Property‘ in our society today.

Property play’s a fundamental role in our society by creating jobs for hundreds of thousands of Australians, including Developers, Builders, Contractors, Electricians, Plumbers, Chippies, Suppliers, Transport, Architectures, Estate Agents, Convayancers, Valuers, Mortgage Brokers, Accountants, Solicitors, Quantity Surveyors, Removalists … to name a few.

Property also provides a basic need of a roof over millions of people’s heads and plays an important role in helping those that put up their hand to invest in the property market to achieve financial security and in most cases prosperity. This in turn reduces the drain on social security. WoW!

I suppose in a nutshell, Property generates necessary income and stimulus for our economy and our communities too … this being one of the main factors ensuring that the property market remains in a healthy state. Another note of confidence supporting the property market is the statement made by the RBA saying “it believes the housing market is ‘exceedingly well placed today’ and there is no bubble; any talk of a bubble is future-looking, with the bank determined to avoid ‘a pronounced asset price boom that could lead to economic instabilities in the future’.”

Yet another reason brought to our attention by RP Data which sees Rental Growth accelerating. Affordability constraint issues are keeping most prospective buyers out of the market and ensuring that rental rates continue to improve through 2010. Additionally, ongoing strong population growth creates additional demand for rental accommodation.

According to the National Housing Supply Council – the undersupply of dwellings across Australia has jumped from around 80,000 to close to 180,000 over the past year … new projections are sounding a significant wakeup call to state and territory governments. Their report states that the undersupply in the housing market had worsened significantly over the past year, adding that Australia could face a housing supply gap of more than 300,000 dwellings by 2030.

Another well documented fact is the ongoing strong population growth we are experiencing and will continue to experience right through to 2030, all new migrants and emigrants need a roof over their heads, which is compounded with an acute undersupply of housing ensuring that Property Prices will not only remain healthy but will continue to rise.

Investors are recognising these fundamentals and are taking full advantage of this opportunity in line with what the banks are willing to lend them to help them build their own property portfolios. Financial planners are also advising their clients to utilise the higher equity values in their existing properties as security on the back of growing their Investment Portfolio’s. Accountants are urging their clients to take full advantage of the incredible tax benefits of owning Investment Property. Why pay full taxes when you can simply redirect some of these taxes into an Investment Property which the taxman and a tenant will fund the majority of your investment! How good is that?

By utilising Negative Gearing, from as little as $50 dollars per week, you can own an investment property to the value of close to Half a Million Dollar$ and have the tax man and your tenant fund the rest! We can show you how. And if you want to achieve Financial Freedom we can demonstrate an Investment Property Plan that will comfortably support owning between 6 and 8 investment properties in the next ten years. (Dependent on personal financial circumstances and a willingness on your part to want to become financially independent).

If you chose to go it alone, we can confidently predict that you will spend 4 to 6 months doing your own research, giving up hours of your own time and still question your decision and commitment throughout the process.

You will want to buy the right investment at the right price to maximise your returns and only hindsight will prove whether your decision was correct. On the other hand if you choose to utilise our untold hours of research, market knowledge and our network of reputable suppliers we know we will save you a fortune of time and stress. We provide you with a selection of ‘best fit’ properties plus supporting information from which you are able to make an informed decision! It is as easy as that, a service which investment advisors and property advocates charge a fortune for at your fingertips.

Can you remember what the average Mortgage Interest Rate was prior to the GFC? Since 1994 it was @ 7.6%. The RBA are perhaps looking at a further .5% to further historical lows. This is well below the average of 7.6% since 1994.

An intelligent sign for investors who are looking for strong fundamentals, underpinning their decision to increase their property portfolios.

Take into consideration higher rentals (around a 5% yield is achievable today), an undersupply of dwellings, the fact that most people would rather rent 8km to 10km from the CBD than buy where they have to commute an hour or more each way and an affordable interest rate and we are sure you would agree that …

“Property is proving to be an incredible Investment Opportunity! Possibly a once in our life time opportunity?”

 

Fundamental Role of Property