ONLINE GUIDE TO OWNERS CORPORATIONS

The government of Victoria has published a 52 page guide to Owners Corporations.

If you are an investor in a high rise building, you should download and keep this book for reference.

While the Guide relates specifically to Victorian legislation (the Owners Corporation Act 2006) the content is widely applicable.

Owners corporations, which manage the building and common property of shared properties, serve up to a quarter of all residential housing in the state of Victoria and manage significant financial assets on behalf of owners.

If you own a unit, apartment or townhouse, you need to know about the laws that affect the management of your property.

Owners corporations now have more legal responsibilities for matters including financial management, record keeping, dealing with complaints and meeting procedures.

You should read this Guide if you own, manage or live in a property that has an owners corporation.

It is FREE to download. Go to http://www.consumer.vic.gov.au/

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

IPSWICH TO REVIVE INNER CITY

The good news for my private clients – and other residential real estate investors who target Ipswich – just keeps getting better.

Now the Ipswich City Council has purchased the major – but outdated – Ipswich City Square Shopping Centre and will guide its redevelopment.

Built over 30 years ago, the Centre has been neglected by its owners, and has suffered badly with competition from the new RiverLink shopping centre, just across the Bremer River.

The Council will plan the redevelopment, and will call for tenders to complete the works. It will not become the developer itself.

When completed in four years, the site will be able to accommodate 10,000 workers in high rise buildings, as well as both retail and commercial space.

Ipswich has 43% of all industrial land in south east Queensland, and experts predict that the surging support sector will ensure that this development will be a success.

If you want me to help you explore options to expand your investment portfolio, contact me anytime via email: 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

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

ANOTHER REASON TO DISLIKE APARTMENTS

Over the past 10 years, house prices have increased 150% but home units and apartments have only increased 120%, says Australian Property Monitors.

Regular readers of this newsletter know that I dislike apartments as an investment – you’ll remember that I go on about the unnecessary expense of on-going management fees but of course the real killer when you run the numbers is your exit strategy.

Off-the-plan family homes in a growth corridor where rents are higher, where land taxes are lower, and adjacent to a major economic zone, are what an astute investor is after.

And now we have this confirmation that their capital growth is slower compared to family homes.

My private clients are delighted with the results they have achieved following my strategy, and notwithstanding all the doom and gloom in the newspapers at the moment, I truly can’t see why history won’t repeat itself, and housing values will continue to increase over the long haul.

If you don’t have enough for 20-25 years of dignified retirement, I can give you some options.

Contact me – Bernard Kelly – anytime at admin@retirelaughing.com

WHY DO GIVE INFORMATION AWAY FOR FREE?

During the past month, someone asked me why do I do what I do.

The simple answer is that I enjoy helping people protect what they have, and also enjoy helping them put something extra aside for retirement.

And it's becoming increasingly obvious that every one of us will need more then just one investment property if we are going to retire graciously and avoid struggling on the aged pension.

My educated guess that we will need an (inflation protected) retirement income of say $50,000 to be comfortable. That's with today's purchasing power.

So we'll need a pool of (inflation protected) assets worth $1,000,000 that -at a 5% yield - will generate that $50,000 for us.

My job is just to show you the code to get that $1,000,000.

I'm Bernard Kelly of retirelaughing.com mobile 0414 778 518