WHY I DISLIKE DEFENCE FORCE HOUSING

What attracts many investors to Defence Force Housing is the 10 year rental “guarantee”.

Of course, when you understand the fine print, what this “guarantee” really means is that DFA will only keep paying you the rent while they need your investment property to house defence force personnel.

Investors still recall when the RAAF base in Bairnsdale, Victoria, was closed, all those local DFA homes were then no longer required. With a glut of houses for sale, investors couldn’t exit, and of course there weren’t tenants to occupy all of those ex-DFA houses.

Now the Rudd government has commissioned an audit by the Boston Consulting Group to slash $2 billion from the Defence Department’s budget.

Late in the Howard years, there were proposals to close the Woodside Army Barracks in South Australia and the Richmond RAAF Base in New South Wales. These proposals could be readily reactivated.

A far better investment strategy is to avoid such obvious risks and only acquire investments properties in a growth corridor adjacent to a major, diversified economic zone.

If you would like me to help you explore your options, contact me – Bernard Kelly – anytime at

admin@retirelaughing.com

PROVEN WAYS TO INVEST IN PROPERTY

Many people agree that buying property is an excellent investment. However not many know where they should start or who to turn to for investment guidance.

Then there are those who fear doing the wrong thing and end up doing nothing. In light of this hesitant attitude, here are a few tips and property investment advice that would help you embark on your investing journey with confidence.

Firstly - why property investment?

Property investment remains a popular alternative for many people who consider it a stable and conservative investment vehicle especially in the long term.

Investing in property is seen as a route by which: income returns can be produced throughout the period of possession; relatively safe capital gains can be earned on an eventual sale; and mortgage finance is covered in repayment terms by the security of the eventual property sale and by the rental income in interest terms.

Different factors contribute to the growth of property investments. These include: huge population growth, increasing migration, slow government housing policy that results in chronic undersupply of housing, rising numbers of single households, and a mobile labour force that demands short term accommodations to meet more flexible needs.

All these issues are expected to sustain and boost average property prices and step up the need and number of rental properties in the coming decade.

I share residential investment properties with my private clients that match all of these requirements, and then package them so that they can be certain of “least money in, maximum money out”.

My focus is on assisting you achieve 20-25 years of dignified retirement.

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