IPSWICH NEEDS 116,000 NEW HOMES BY 2031

The number of new homes in the Ipswich local government area will treble over the next 20 years if the Queensland Government's forecasts are right.

Its draft regional plan for southeast Queensland, released on 7 December, predicts that the Ipswich region will need 116,000 new dwellings by 2031.

Ipswich Mayor Paul Pisasale's reaction was to declare: "Bring it on."Ipswich wasn't ready 10 years ago, but we are now."

The new regional plan, which will be open to public comment until April next year, proposes that Brisbane's western corridor be the area's next major population growth.

The state's new draft regional plan for southeast Queensland forecasts that 735,500 dwellings need to be built in the region by 2031, a 65 per cent jump on the current number of 1.1 million.

I'm Bernard Kelly http://www.retirelaughing.com/

Source: The Courier Mail 8 December 2008

SUPER INADEQUACY FINALLY ACKNOWLEDGED

Politicians have finally acknowledged what most of us have known for some time – it will not be possible for superannuation to provide us with an adequate income for 20-25 years of dignified retirement for the vast majority of us.

Which is why I have been urging my private clients to build a portfolio of investment properties.

When the Australian Government announced the review of Australia's tax system in May 2008, the review was to look solely at the current tax system and make recommendations to position Australia to deal with the demographic, social, economic and environmental challenges of the 21st century.

This study – the Henry Review – was to consider (among other topics) the tax benefits afforded to superannuation, but now the terms of reference have been amended to provide for consideration of the adequacy of existing superannuation arrangements.

Of course the Association of Superannuation Funds of Australia have long advocated that the employer contributions should be 15%, and the major wealth management company AMP now believes that a target for “adequacy” is 65% of an individual’s pre-retirement living standards.

COTA Over 50s – reflecting the less affluent socio-economics of its membership base - has long advocated a retirement incomes system based on the actual cost of living in modest circumstances commensurate with contemporary Australian standards. A pension of 35% of male total average weekly earnings seems a good place to start, they say.

However none of these institutions have the solution to outliving our wealth, and inflation-protecting our income in retirement.

Which is why investment properties are so attractive.

If you would like me to help you explore your options, feel free to contact me – Bernard Kelly – anytime on admin@retirelaughing.com

SUCCESSFUL PROPERTY INVESTING

Lance Winslow writes:

Despite what you might think success is never an accident.

Oh sure, you might have some luck along the way that puts you in a nice situation for a while, but it's not long term.

Success is achieved by those who capitalize on their luck and reduce their risks or turn-around their failures and challenges.

If you look at some of the most successful folks in the world, you will realize that they often came from nothing.

Many were orphans and didn't even have a pot to use for their bathroom needs. But how can this be, how is it that someone can have such bad luck and turn all that around and become successful?

Simple, because success is never an accident, many of these people because they worked hard, they had no choice, it became a habit and they just never stopped once they achieved a comfortable lifestyle.

Working hard, working smart, making lots of friends and never giving up were just part of who they are.

These same elements of success are available to everyone, even if so many people choose not to accept these principles.

After all, we have free choice, free will and we live in a free society.

You are allowed to succeed beyond your wildest dreams or fail, but it is your choice.

Success is no accident, no one I know is successful over the long-haul without working to attain it.

No one should feel guilty for being successful, just like no one should make excuses for choosing not to be successful.

The fact is that it is up to you, so please consider this.

If you have innovative thoughts and unique perspectives, come think with Lance; http://www.WorldThinkTank.net/.

Bernard Kelly http://www.retirelaughing.com/

INVESTMENTS TO AVOID

Occasionally I’m told “Those south west suburbs of Brisbane are so far away. I’d prefer to buy an investment locally – so that I can inspect it at any time”.

That’s fine by me – if a prospective clients wishes me to help, I bring my years of professional expertise into play, and do my utmost to achieve an outstanding result for them. But if they want to do it on their own, I’m not upset (except when they ring me a few years later and say “we really should have listened to you.”)

Over the years I have learned that a genuine investment decision is based on an analysis of the numbers – nothing else. There is no place for emotion in any form of serious investing.

And the fact is - once you've acquired an investment, very rarely do you ever visit it again.

My focus is on helping my private clients retire with more. And in my years of experience, there is nothing that can compare to the benefits of investment properties for late career couples who have inadequate retirement funding.

The formula is: who is the Ideal Tenant? what do they want to live in? how much can an typical investor afford?

These questions guide us to the Product.

Then we ask: where should the Product be located?

The answer combines 1) a growth corridor 2) where rents are higher 3) where land tax is lower 4) close to a major cluster of jobs.

The Conclusion - an off-the-plan four bedroom home in the south west suburbs of Brisbane is the ideal investment property for you.

Other forms of property investment – and other locations - carry hidden problems that investors should best avoid.

In particular, I would mention that we do not normally share with private clients investments that are

· Existing housing stock
· Inner city apartments (either high rise or low rise)
· Serviced offices or serviced apartments
· Student accommodation
· Cluster housing and/or gated communities
· Defence Force housing
· Locations distant from a capital city
· Factories or commercial office space
· Postcodes that the banks dislike
· Locations dominated by one industry e.g. mining, tourism
· Suburbs not adjacent to a major economic zone

as each of the above “opportunities” carries hidden problems which slow the accumulation investment program, and consequently are not as attractive as a brand new stand-alone family home in an established suburb in a growth corridor adjacent to a major and diversified economic zone (i.e. where the jobs are).

Let me know if you disagree. Simply hit the reply button on this email.

Or email me – Bernard Kelly – admin@retirelaughing.com

NSW LAND TAX WILL RISE

Because the economic difficulties faced by the government of New South Wales are increasing, it is casting about for more revenue streams.

Now the Independent Pricing and Regulatory Tribunal has thrown the government a lifeline.

The Tribunal’s view is that stamp duty is one of NSW’s “most inefficient taxes” and the state should consider boosting revenue from a more efficient tax - land tax.

Now you can see what is about to happen. Yep.

You don’t have to be very bright to realise that land tax in NSW will soon increase.

Which underscores the value of the investment strategy that I share with my private clients.

If you don’t have enough for 20-25 years of a dignified retirement, I can help you explore your options.

Contact me – Bernard Kelly – anytime via my email admin@retirelaughing.com

WHAT IF THE ECONOMY CRASHES?


I was recently asked “What if the economy crashes?”

My reply was along the following lines:

“Thanks for voicing your reservations – if you didn’t have some concerns then I’d be reaching out to take your pulse to see that you’re still with us.

“You must remember that property investments are for the long term – you told me that you have only $100,000 in super. So you should consider putting one in place now, so that in five years - when you come to retire – you will have at least one running for you. Then if you live off your super for two years, then an investment – one that a family would pay say $400,000 today to live in – should be well in excess of that value.

“Since records began, property has increased three times in every 21 years. Which is why the commentators say ‘property doubles every seven to ten years’.

“And if you have ever thought ‘how will young couples ever be able to afford a family home?’ then you too know that property values increase over time.


“Over this past 150 years, there have been depressions and recessions, world wars, 22% interest rates, change of governments, financial meltdowns, stock market crashes, you name it. Even the impact of the ‘recession that we had to have’ in 1991 only lasted four years before property values exceeded what they were in 1990.

“Don’t let the current crop of bad news distract you from taking action to ensure some form of dignified retirement.

“I know it’s a watershed moment for you – but whether you invest, or if you don’t, there is definitely a foreseeable outcome either way. Destiny is a matter of choice, not chance.

“Which outcome would you prefer?”

Phone me Bernard Kelly anytime on 0414 778 518 cell 61- 414-778 518

or visit the website http://www.retirelaughing.com/

WHY YOU NEED A FUNDING STRATEGIST


Banks are in the business of lending money. They are not in the business of helping you put something extra aside for your retirement.

So they try to tempt you with “the lowest interest rate”. Unfortunately, as an investor, you will find that generally such loan products won’t let you make extra repayments nor will you have an offset account.

The same goes for “honeymoon rate” loans. The banks don’t give money away, so after the initial honeymoon period you’ll be paying a high variable rate, and there will be solid penalty exit fees if you try to go to another lender. They will make the same off your loan – over time – as off every other client’s facility.

The only way to obtain the best package is to talk with a funding strategist.

I can introduce you to a funding strategist at the peak of their profession.

Phone me Bernard Kelly anytime on 0414 778 518 cell 61- 414-778 518

or visit the website www.retirelaughing.com

I ENJOY CHATTING WITH SOULMATES WHO SHARE MY HOBBY


So let me say at the outset (in the tone of an unemotional consultant) most of us fail with our efforts at property investing because you don’t have a goal, and without a goal you can’t possibly have a long-term strategy. At best what you would have is a haphazard strategy.


My long term strategy used to be that when my estate event occurred, the kids would say “the old man did pretty well, didn’t he?” Now that I’m 63 and the kids are mid 20s – early 30s, my goal is now to teach them Wisdom. So that when I die I hope that they’ll say instead “Mum and Dad, as a partnership, did pretty well, didn’t they?”


So what is your long term goal? A mate of mine wants to be able to pay the taxman $100,000 each year in his retirement. Because if he achieves this, he knows that he’ll be earning $400,000 pa.


My strategy is better than yours because I have a goal (which is to own a substanial investment portfolio before I’m 78) and have worked out a simple strategy how to get there.


But even your haphazard strategy is better than the 95% of the population – who have none. My typical clients come to me in cruise mode – but they have suddenly realised that in their mid-50s they just don’t have anything like what they’ll need for 20-25 years of dignified retirement. They are now trying desperately to avoid the cliff.


So I give them a goal – which is to own three investment properties before they retire.


But if your younger, I would suggest that your goal could well be to have an income in retirement of say $100,000. Which means having wholly owned assets (in today’s money) sufficient to give you a 5% return. So the goal that I offer to you is wholly owned investment assets worth (in today’s money) $2,000,000.


The only reason why my strategy is better than yours is because I have been chatting to soulmates who share my hobby for 20 years longer than you have. So I have learned from them. My hobby – and yours – is really no different than any other hobby. When you’re keenly interested in something, you find soulmates in the most unlikely places, or you see something on TV or in the press and you run it around in your mind until you work out how they did it.


If you go to the bookshop at the airport, you’ll see that there are perhaps 18 books there on investment property, each offering a different strategy. As a generalisation, I’d say they’re all OK, but that mine is far better. Those authors are writing to make money – and that is a very different goal to giving you the best advice.


All those 18 strategies are OK, because property is forgiving, and even if you make a mistake, over time any investment will rise in value. Capital city properties have risen three times in value during each 21 year cycle over the past 150 years. Which is why they say “property doubles in value each 7-10 years”. This is true even in Perth, although the Perth market goes through long droughts – ten years or more – before it has explosive growth for a few years to catch up the moving statistical trend line.


My focus is on “least in, most out”. So I have determined the demographic of the ideal tenant, how to attract that ideal tenant, where would this ideal tenant be willing to pay an above normal rent, and how much can the average investor afford each week. These elements determine what the accommodation is, so then I look for the ideal location – a family suburb near to a solid cluster of basic non-boom jobs, in a growth corridor, where land taxes are lowest. And the exit strategy determines that the price should be up near, but under, the median so that you can exit into the broadest market (families).


Congratulations! You are ahead of the field, and you’ll keep increasing your lead. Over time you’ll gradually develop a goal and then a strategy, and don’t worry about the past. Just keep chatting to soulmates and you’ll find your way.


Regards


Bernard Kelly www.retirelaughing.com mobile 0414 778 518 cell phone 61 414 778 518


PS As I don’t spend my advertising budget on traditional media, I’m able to pay you $1000 for successful referrals

I would be delighted to be your personal financial coach over the next five years and share a strategy that will dramatically reduce your learning curve.