The budget predicts our GDP or our combined wealth to leap from a 2.5% increase to a 3% increase next year.
Obviously the wealthier we are, the happier we are, the more money we spend and the more jobs we create. Over two hundred thousand new jobs last year and over three hundred thousand the year before. It means we are on track.
The $10,000 subsidy for businesses employing people under twenty five or the unemployed is a great move. The saying is "idle hands are the hands of the devil". I am sure there are a lot of people in prison now for petty theft who wouldn't be there had this operation started years earlier.
A buoyant, wealthy economy means continually rising property prices. APRA's foolishness is causing a drop in supply of twenty thousand properties, according to the figures. For some reason the experts are applauding this move as putting downward pressure on prices. They obviously don't know about the law of supply and demand. With a rising population and a falling supply it must feed into prices being bid up.
The supply is even worse than the past five months of downward trend would indicate. The oversupply of inner city high rise feeds into the figures, but what about the supply of wanted dwellings? Since 2009 the population has risen 8% but the supply of low and medium rise units and townhouses has dropped fifteen and twenty percent respectively. Too few of the right bananas!
I see that the latest monthly figures have Brisbane now leading the country in property price growth. Soon all the media "experts" will be wowing that there is a property boom and bust in Brisbane.
What these "experts" lack is experience, or they deliberately ignore history. City property prices have always doubled every seven to ten years. Now we have low inflation that will take longer, probably ten to fourteen years. However with low inflation you need less capital growth to get to the same wealthy lifestyle.
What is a wealthy lifestyle? On my figures it is seven to ten investment properties held with interest only loans for this ten to fourteen year period. You then have a safe bricks and mortar nest egg to carry you through to the now expected ninety-two years old. Now we will enjoy more years in retirement (if we're wealthy) than we actually spend working!
We have my “Book of tips and traps – 100 Fast Facts". You will need this to avoid the traps in property that ninety percent of property investors fall in to. This stops them moving past one or two properties. As we have said many a time, one or two properties is only enough to knock you out of getting a full pension down to a part pension yet you are open to the sudden unexpected costs of maintenance and repairs.
Hence, you need seven to ten properties.
Regards,
Kevin Young
Property Club Founder
The Queensland rental market is set for a significant shake-up, and as a property investor, it’s crucial to stay ahead of the curve. The state's new minimum housing standards, which began taking effect in September 2023, are more than just a regulatory update—they represent a shift in the expectations tenants will...
Mould, it’s the unwelcome guest no one wants in their home. It’s unsightly, potentially hazardous to your health, and dealing with it can be a real headache. But when mould creeps into a rental property, the big question arises: Who’s responsible for cleaning it up, the tenant or the landlord? The answer isn’t...
When managing your mortgage as an Australian property investor, understanding the benefits of offset accounts and redraw facilities can greatly enhance your financial efficiency. Both tools offer strategic ways to reduce the interest you pay and accelerate your mortgage repayment, but they function differently and...
Our mission is to help the average Australian learn the property market dynamics and discover the amazing opportunities that exist in real estate.