Market Insights by Kevin Young

Wage Growth – Low And Slow!

Property Club Property Market Insights

It has been an interesting week with the announcement that the average Australian wage is barely enough to cover the costs of living. While 50% of this is possibly just parliamentary propaganda, there is often some truth behind their statements.

This got me thinking of how the struggling average Australian can benefit from low wage growth.

Going through historical wage growth records, you can clearly see the decline in wage growth starting in late 2012.

But why is wage growth so low? Well, it can be observed that slow or low wage growth is directly associated with unemployment. The property sector, for example, has seen a massive reduction in property sales, from the investor market this year.

This slow down has seen developers and builders shut their doors which as we know causes them to lay off staff, contractors, salespeople and many others, forcing them into unemployment. The decline in wage growth in late 2012 follows the trend where the unemployment rate begins to increase.

We also see the trend of high inflation leading to higher wage growth and inversely periods of low inflation lead to slower wage growth. So how do you protect your income in periods of low inflation, Property! It seems so simple and yet it is vital you are wise, continuing to buy the right properties. On average nine out of ten investors don’t invest wisely, and subsequently, Australia Tax Office records show that 90% of property owners reach retirement age owning only two or fewer properties.

So what are our clubs secret to successful investing?

We educate our members to persist through market corrections and keep accumulating properties but be careful to diversify, not across regionals and states, but growing capital cities. Each and every one of our properties are carefully selected to ensure your protection. We provide our members with accurate and detailed cash flow.

It is essential when starting on your wealth creation journey that you identify your long-term goals to ensure that each succeeding property continues to help your portfolio grow. Our Property Mentors and Research Department spend weeks identifying the property and correctly selecting property which is right for you.

Tailor-made property selections for free, this is why we have been able to make more millionaires than all the others combined.

Happy investing,

Kevin Young