We are very pleased to be able to offer you the opportunity to early access to a development in Greenwich on the Lower North Shore – just 8 kilometres from the Sydney CBD.
This prestige development consists of a great variety of one bedroom, one bedroom + study and two bedroom apartments all with storage and parking.
There are 130 apartments in total across six boutique residential buildings positioned discreetly in a whisper quiet cul-de-sac.
It is ideally located close to St Leonards railway station, TAFE NSW North Sydney Campus, a short stroll to the Pacific Highway for additional public transportation and just a few hundred metres to the Royal North Shore and Royal North Shore Private Hospitals.
This offers investors excellent value on a price per square meter basis, strong projected rental returns and high level of finishes.
The development is due to commence construction in July 2012 with completion towards the end of 2013/early 2014.
Paramount to the success of any residential development is the makeup development team and we have a team second to none;
• The Developer is the Balmoral Group owned by the Oatley Family who are synonymous with success, style and quality. The Oatley’s have owned and operated Hamilton Island since 2003 reinvigorating the iconic Island over that time. In addition, five years ago they developed and continue to operate Waterbrook a premium resort-style retirement property which is close by. In addition to their development activities the family were former owners of Rosemont Estate wines and now operate Wild Oats Wines and of course supermaxi Wild Oats XI which has taken line honours in the famous Sydney to Hobart Yacht Race on five occasions.
• Architects Marchese Partners are internationally acclaimed and widely recognised for their innovation and excellence. Marchese’s highly qualified team have designed a signature urban development responding to the natural topography and discreet location of the development by creating a series of boutique apartment buildings to capture the intimacy of the natural garden setting.
• Interiors Designers Meli Studio is one of Sydney’s leading interior design firms. Inspired by Scandinavian design elements, Meli Studio has created a fresh, innovative approach. Two interior schemes combine classic, neutral colour palettes and finishes to create tranquil, light and airy living spaces.
Pricing;
1. One bedroom apartments from $500,000 (remember zero stamp-duty for purchases under $600,000)
2. One bedroom + study apartments from $550,000
3. Two bedroom apartments from $755,000
Process;
• The VIP launch will be held on Saturday 17th March 2012. There is available a “Purchasing Procedure” document for a full explanation of the process for the lead-up to launch day and the day itself.
• $5,000 Expression of Interest (fully refundable) deposit will be required.
We can assist you with more detail such as sample floor plans, rental appraisals, outgoings and images of the development.
We can also include some sample cash-flow analyses for your review.
If you think you may be interested in the development please do not hesitate to call us on 07 3848 1088.
Alternatively you can email us info@wealthcoach.net.au
John McAuliffe
Thank you Richard
Thank you Richard for helping us implement the big idea we had after viewing an episode of ‘Selling Houses Australia’.
We are very happy with what we did as it added to our lifestyle & maybe increased the capital value by a multiple of the 2k we spent.
We also were keen to see another episode in Wonderland & where Neville Shute wrote about.
This was a classic reason why the house had to be sold. It was too big & they wanted to unlock some capital to have a lifestyle & downsize now that he was to retire.
The numbers were fascinating.
It had been on the market for nine months @ 985k & hadn’t sold. So the team added their big idea of renovating the house & block for 30K.
This included removing minskips of knick knacks stuff some of which large $ would have been spent.
If only this had been invested over time then there would have been a large capital sum as well there & maybe not the trauma required in house selling.
It was sold at 830K & then there are the sale costs out of it. I.e. ‘lost’ 155K + 30k +21k RE com + SD.
Say 20% loss.
Scary & some early discipline would have reduced the waste.
Would this be you later? The baby boomers are there NOW which suggest house prices will deflate.
Lets remind ourselves that if you want to enjoy a lifestyle later then some discipline is required today.
Remember a 50k income later requires a 1M capital. This is almost twice as important as the house. So a 75K retirement lifestyle income needs 1.5M.
After spending too much time on our block & assisting Richard with implementing our Big idea we are in sympathy with those clients who are downsizing to smaller blocks.
As we discussed with Matt this week unless a family is earning a gross 105K+ then you can’t afford a house.
Simply a family needs 60K+ to live on. It has a mortgage demanding 25K+p.a. to pay. Then the income to earn all that is taxed say 20k.
We also recalled when we didn’t want a 2nd car.
So is a struggle for most who are not in the public service.
This is indicated by the 50B on credit cards. Matt is contributing to that. Do we buy or sell bank shares for that reason?
Hence every one with a mortgage needs a big idea to escape the rat race.
Is there anything bigger than having the taxx man subsidise your mortgage payments over time.
That is what our PCMS* does.
It also builds towards that 1M you need to have some lifestyle.
Will your super provide you with all that?
However it can’t be done online by yourself even though the concept is very simple.
Sorry Kevin.
There are also some parameters that you must have to qualify.
E.g. can you save $10+per day & are you prepared to take some risk as you don’t want to end up as others do.
We have had other events recently.
E.g. Sam falling off a ladder, yep a Molly, & smashing his leg. He is self employed & with no income protection it is now up to his diminutive wife to clean the trucks. Hard to do when 2 young children & mortgage & business debts.
There is an insurance estimator on our sites to help you with the concept & investment.
We also met Ruti from www.bullion1.com.au who reminded us why gold is money.
We added two other big reasons for gold & invested some for the future. We had recently attended a Hunter Hall presentation where they have 5% of their portfolio in gold. They aren’t the only fund manager to do so.
We read that Visa payments have increased by 10% p.a since Visa listed. Inflation is 10% & Not 3% so you need to do better.
We also discussed with Ruti that those who have had a second relationship generally have bigger mortgages & much less time to achieve an escape from the rat race. They especially need the big idea to accelerate their financial progress.
Here we are to provide the big idea that may help you out of the rat race.
Today we read ‘FAMILIES will pay about $150 a year more for health cover from April 1 after the government approved an average 5.06 per cent premium rise’.
Is there a solution for that? Yes 2.
Big ideas generally provide Leverage to you. A little in today & a bigger multiple later.
Is that what you want?
As Julie wrote today ‘Procrastination is the grave in which opportunity is buried’.
Welcome to call on 07 3848 1088 or email info@wealthcoach.net.au or visit our websites & we are willing to help the willing.
John McAuliffe
We are very happy with what we did as it added to our lifestyle & maybe increased the capital value by a multiple of the 2k we spent.
We also were keen to see another episode in Wonderland & where Neville Shute wrote about.
This was a classic reason why the house had to be sold. It was too big & they wanted to unlock some capital to have a lifestyle & downsize now that he was to retire.
The numbers were fascinating.
It had been on the market for nine months @ 985k & hadn’t sold. So the team added their big idea of renovating the house & block for 30K.
This included removing minskips of knick knacks stuff some of which large $ would have been spent.
If only this had been invested over time then there would have been a large capital sum as well there & maybe not the trauma required in house selling.
It was sold at 830K & then there are the sale costs out of it. I.e. ‘lost’ 155K + 30k +21k RE com + SD.
Say 20% loss.
Scary & some early discipline would have reduced the waste.
Would this be you later? The baby boomers are there NOW which suggest house prices will deflate.
Lets remind ourselves that if you want to enjoy a lifestyle later then some discipline is required today.
Remember a 50k income later requires a 1M capital. This is almost twice as important as the house. So a 75K retirement lifestyle income needs 1.5M.
After spending too much time on our block & assisting Richard with implementing our Big idea we are in sympathy with those clients who are downsizing to smaller blocks.
As we discussed with Matt this week unless a family is earning a gross 105K+ then you can’t afford a house.
Simply a family needs 60K+ to live on. It has a mortgage demanding 25K+p.a. to pay. Then the income to earn all that is taxed say 20k.
We also recalled when we didn’t want a 2nd car.
So is a struggle for most who are not in the public service.
This is indicated by the 50B on credit cards. Matt is contributing to that. Do we buy or sell bank shares for that reason?
Hence every one with a mortgage needs a big idea to escape the rat race.
Is there anything bigger than having the taxx man subsidise your mortgage payments over time.
That is what our PCMS* does.
It also builds towards that 1M you need to have some lifestyle.
Will your super provide you with all that?
However it can’t be done online by yourself even though the concept is very simple.
Sorry Kevin.
There are also some parameters that you must have to qualify.
E.g. can you save $10+per day & are you prepared to take some risk as you don’t want to end up as others do.
We have had other events recently.
E.g. Sam falling off a ladder, yep a Molly, & smashing his leg. He is self employed & with no income protection it is now up to his diminutive wife to clean the trucks. Hard to do when 2 young children & mortgage & business debts.
There is an insurance estimator on our sites to help you with the concept & investment.
We also met Ruti from www.bullion1.com.au who reminded us why gold is money.
We added two other big reasons for gold & invested some for the future. We had recently attended a Hunter Hall presentation where they have 5% of their portfolio in gold. They aren’t the only fund manager to do so.
We read that Visa payments have increased by 10% p.a since Visa listed. Inflation is 10% & Not 3% so you need to do better.
We also discussed with Ruti that those who have had a second relationship generally have bigger mortgages & much less time to achieve an escape from the rat race. They especially need the big idea to accelerate their financial progress.
Here we are to provide the big idea that may help you out of the rat race.
Today we read ‘FAMILIES will pay about $150 a year more for health cover from April 1 after the government approved an average 5.06 per cent premium rise’.
Is there a solution for that? Yes 2.
Big ideas generally provide Leverage to you. A little in today & a bigger multiple later.
Is that what you want?
As Julie wrote today ‘Procrastination is the grave in which opportunity is buried’.
Welcome to call on 07 3848 1088 or email info@wealthcoach.net.au or visit our websites & we are willing to help the willing.
John McAuliffe
Selling Houses Australia
Selling Houses Australia
Selling Houses Australia is apparently the most popular program on the Lifestyle Chanel. After spending a wet weekend afternoon watching it we picked up a few ideas ourselves.
We spent the day doing so because we couldn’t spend time outside doing some outside work on the house. There is always maintenance on houses & they require money & makeup of 1% to 2% of house value p.a.
How much per day do you spend on it e.g. water filter, citrus fertilizer, new vanity & labour,…
Of course whilst watching Selling Houses Australia we have ideas on what to do to ‘improve’ our house. It was right in front of us which is usually the case for males.
It appears the average suggested by Selling Houses Australia is 14K. Most don’t have this 14k as cash ready to use.
We observed that the 14k has been spent on stuff in general & hence is unable to unlock out of the house.
What the vendors also don’t have is the big idea to help them sell the house. After all the vendors would have sold their house if they did.
What is the big idea that frequently required.
We would generalize & say a miniskip for the outside & a miniskip for the inside would be a very good start. Make that two for both.
A little cash saving for the rainy day makes sense as Cameron from the NAB suggested.
The next big idea is many want to DYI themselves. They believe they can do it themselves or object to the commissions paid. As Jon once said ‘what part of my services do you want us to leave out’.
Let’s face it if it was easy everyone would be doing it. Rachel is a surgeon earning 250k for 3 days work. Is that excessive? Not if you are the patient.
Remember ‘dentists don’t pull their own teeth.
Martin discovered this week that he is 29.5K better off because of the super plan we put in place in 1994.
Commission & it wasn’t zero was & is not an issue.
Yes we did consider that RE agents could be more proactive in advising the vendors what they need to do to sell the house. We could suggest 10 basics that vendors could follow to help themselves. All common sense but sense is not common.
Another idea is that the vendors may not want to ‘let go’.
Recall ‘if nothing changes then nothing changes’ & it is frequently described as the height of silliness.
Similarly with many on their financial matters.
This is reflected with the scary sum that 50 Billion is owed on credit cards. We understand that 50% of this amount is on the highest interest rates.
Do we buy bank shares or do we sell them?
It is also reflected that the QLD government collects 2.5 million per month on late fees for car registrations.
There is a need for each to do a stock take of what they have & what they owe.
What do they need & what they need to prioritise. It is well understood that to achieve measurable results this needs to be written down as otherwise it is a vague wish.
Paul just asked us today ‘what do you think of income protection for the self employed’.
‘Can you stop work today?’
No.
Then we did suggest a simple solution to keep the income protection cover he has.
Gary did ask for some similar cover himself which with a large mortgage372K & 3 children makes sense. When he further mentioned BMI then it certainly makes sense as the odds are not zero.
We do offer a No 1*other solution if insurance is unattainable as part of our holistic approach.
What Gary also needs to do is get a financial coach to help advise on how pay down his mortgage before he retires. The bank or the broker isn’t going to help him & Gary is running out of time.
He needs to let go but somehow we doubt it & he will need the pension to pay his rent to the bank.
Our PCMS* might work for him if he can save 10+ per day & has the right attitude & self discipline.
Our websites have happy clients who let go.
Lester who is on our panel of preferred mortgage brokers advised us that he had 4 enquires for refinance last week. Three were from separating couples.
We would suggest that many separations are for financial reasons & no doubt a lack of cashflow or overuse of ‘wants’.
When we switched from lifestyle we watched the tennis.
Isn’t it strange all the top players have coaches & have a team helping them achieve their goals.
Remember also that the cricketers have also new coaches.Craig did get 291 test wickets we heard today.
We also wondered how much a super fund was spending on advertising at peak viewing times. Is that information available & where do they get their money?
We certainly wont be doing our own DYI after the Selling big Idea.
You are welcome to call on 07 3848 1088 or email info@wealthcoach.net.au or visit our websites
We are non-aligned & helping where we can for 27 years. As Jim suggested 12 years ago ‘we match energy with energy’
John McAuliffe
Selling Houses Australia is apparently the most popular program on the Lifestyle Chanel. After spending a wet weekend afternoon watching it we picked up a few ideas ourselves.
We spent the day doing so because we couldn’t spend time outside doing some outside work on the house. There is always maintenance on houses & they require money & makeup of 1% to 2% of house value p.a.
How much per day do you spend on it e.g. water filter, citrus fertilizer, new vanity & labour,…
Of course whilst watching Selling Houses Australia we have ideas on what to do to ‘improve’ our house. It was right in front of us which is usually the case for males.
It appears the average suggested by Selling Houses Australia is 14K. Most don’t have this 14k as cash ready to use.
We observed that the 14k has been spent on stuff in general & hence is unable to unlock out of the house.
What the vendors also don’t have is the big idea to help them sell the house. After all the vendors would have sold their house if they did.
What is the big idea that frequently required.
We would generalize & say a miniskip for the outside & a miniskip for the inside would be a very good start. Make that two for both.
A little cash saving for the rainy day makes sense as Cameron from the NAB suggested.
The next big idea is many want to DYI themselves. They believe they can do it themselves or object to the commissions paid. As Jon once said ‘what part of my services do you want us to leave out’.
Let’s face it if it was easy everyone would be doing it. Rachel is a surgeon earning 250k for 3 days work. Is that excessive? Not if you are the patient.
Remember ‘dentists don’t pull their own teeth.
Martin discovered this week that he is 29.5K better off because of the super plan we put in place in 1994.
Commission & it wasn’t zero was & is not an issue.
Yes we did consider that RE agents could be more proactive in advising the vendors what they need to do to sell the house. We could suggest 10 basics that vendors could follow to help themselves. All common sense but sense is not common.
Another idea is that the vendors may not want to ‘let go’.
Recall ‘if nothing changes then nothing changes’ & it is frequently described as the height of silliness.
Similarly with many on their financial matters.
This is reflected with the scary sum that 50 Billion is owed on credit cards. We understand that 50% of this amount is on the highest interest rates.
Do we buy bank shares or do we sell them?
It is also reflected that the QLD government collects 2.5 million per month on late fees for car registrations.
There is a need for each to do a stock take of what they have & what they owe.
What do they need & what they need to prioritise. It is well understood that to achieve measurable results this needs to be written down as otherwise it is a vague wish.
Paul just asked us today ‘what do you think of income protection for the self employed’.
‘Can you stop work today?’
No.
Then we did suggest a simple solution to keep the income protection cover he has.
Gary did ask for some similar cover himself which with a large mortgage372K & 3 children makes sense. When he further mentioned BMI then it certainly makes sense as the odds are not zero.
We do offer a No 1*other solution if insurance is unattainable as part of our holistic approach.
What Gary also needs to do is get a financial coach to help advise on how pay down his mortgage before he retires. The bank or the broker isn’t going to help him & Gary is running out of time.
He needs to let go but somehow we doubt it & he will need the pension to pay his rent to the bank.
Our PCMS* might work for him if he can save 10+ per day & has the right attitude & self discipline.
Our websites have happy clients who let go.
Lester who is on our panel of preferred mortgage brokers advised us that he had 4 enquires for refinance last week. Three were from separating couples.
We would suggest that many separations are for financial reasons & no doubt a lack of cashflow or overuse of ‘wants’.
When we switched from lifestyle we watched the tennis.
Isn’t it strange all the top players have coaches & have a team helping them achieve their goals.
Remember also that the cricketers have also new coaches.Craig did get 291 test wickets we heard today.
We also wondered how much a super fund was spending on advertising at peak viewing times. Is that information available & where do they get their money?
We certainly wont be doing our own DYI after the Selling big Idea.
You are welcome to call on 07 3848 1088 or email info@wealthcoach.net.au or visit our websites
We are non-aligned & helping where we can for 27 years. As Jim suggested 12 years ago ‘we match energy with energy’
John McAuliffe
A fantastic opportunity for prospective purchasers.
A fantastic opportunity for prospective purchasers.
We have just been advised of some revised pricing for apartments in Lane Cove
In addition the vendor has agreed to pay stamp duty (rebated at settlement) for the next five purchasers of two bedroom apartments if exchanged prior to the end of February 2012.
This represents huge savings for purchasers of between $24,515 to as much as $29,240
Lane Cove is just minutes from Chatswood’s flagship retail hub and only eight kilometres from the Sydney CBD.
This is a small boutique development of just 58 apartments offering a great range of investment or owner-occupier options including; one bedroom, one + study, two bedroom and two bedroom + study apartments.
All apartments offer at least one car space; many two bedroom apartments come with two car spaces on title.
It is another quality project with the key focus on delivering exception properties in Sydney’s most desirable locations, & is certain to be valuable addition to their already impressive portfolio.
The delivery team is rounded out by the very experienced and accomplished Wolski Coppin Architects with designers BHK creating smart and sleek interiors.
The development is due to commence construction in the first quarter of 2012 with completion approximately 18 months later in mid 2013.
Note that Home Builders Bonus will expire on the 30thJune 2012 so the window of opportunity to take advantage of these huge stamp-duty concessions will be over in no time!
If you are interested in the development please do not hesitate to call us on 07 3848 1088.
Alternatively you can email us at info@wealthcoach.net.au
We will be pleased to speak to you and assist you with your enquiries.
John McAuliffe
We have just been advised of some revised pricing for apartments in Lane Cove
In addition the vendor has agreed to pay stamp duty (rebated at settlement) for the next five purchasers of two bedroom apartments if exchanged prior to the end of February 2012.
This represents huge savings for purchasers of between $24,515 to as much as $29,240
Lane Cove is just minutes from Chatswood’s flagship retail hub and only eight kilometres from the Sydney CBD.
This is a small boutique development of just 58 apartments offering a great range of investment or owner-occupier options including; one bedroom, one + study, two bedroom and two bedroom + study apartments.
All apartments offer at least one car space; many two bedroom apartments come with two car spaces on title.
It is another quality project with the key focus on delivering exception properties in Sydney’s most desirable locations, & is certain to be valuable addition to their already impressive portfolio.
The delivery team is rounded out by the very experienced and accomplished Wolski Coppin Architects with designers BHK creating smart and sleek interiors.
The development is due to commence construction in the first quarter of 2012 with completion approximately 18 months later in mid 2013.
Note that Home Builders Bonus will expire on the 30thJune 2012 so the window of opportunity to take advantage of these huge stamp-duty concessions will be over in no time!
If you are interested in the development please do not hesitate to call us on 07 3848 1088.
Alternatively you can email us at info@wealthcoach.net.au
We will be pleased to speak to you and assist you with your enquiries.
John McAuliffe
Fear brings opportunities
‘Fear brings opportunities’ was the title of a recent Share broker’s presentation recently with Peter Q the speaker. PQ is as analytical as any speaker we have heard.
Lets summarise his main points
• The Eurozone is a collection with only 17 countries using the Euro & there is no common financial discipline. This is the current strong need with German leadership direction to resolve.
• Greece is broke [dead] & will be left out & Italy isn’t much better.
• Ireland & Portugal are good & back on track.
• The banks need 300B Euros & not the ‘laughable’ 150B the ECB suggested.
• Hence there will be another 3 months before Europe recapitalises with Europe having a recession for a year.
Is this a good time to travel there?
• The crisis will get worse before it gets better & then the ECB will be forced to help the solvency challenge. Germany doesn’t want to but will cooperate.
• The problem is the politics which is universal.
• Global profits are lower but there is only a 20-25% change of a global recession.
• Hence inflation will be lower & so interest rates will be lower.
• Valuations for equities will appreciate over the next 2 years but there will be another 6+ months of volatility. This follows the Normal pattern after a banking crisis.
• The total value of all government debt is greater that the world’s wealth.
• The ‘developed’ countries can’t grow & it will take 10 years to return to normal growth.
• The so called developing world will grow @5% for next 2-10 years but with a 20+% change of a global recession.
• The Chinese government plans on another 36 million new houses. It is prepared to spend 2% of GNP to boost their position.
• This means Australian resources will be good but other sectors are poor. Australian resources will make up 2/3 of Australian growth.
• There is another 6-9 months of volatility before equities growth of 55%.
•
• Why is it that global stocks have moved 55% up from GFC & Australian only 27%?
i. the strong currency due to the high interest rates & hence overseas investors are selling because of the currency gains.
ii. overseas investors believe & comment that the current government is BAD.
•
The current global PE ratios is 10 vs. a long term average PE of 16.
So what does all this mean?
It means as we suggested to Paul today to head off to France & do some more skiing in France. I.e. forget the headlines & don’t run into trees.
Meantime concentrate on the high income that are available e.g. the banks are yielding ~7% before you take franking credits into account.
It certainly beats banks term deposits. I.e. own the bank rather than lend to the bank.
Now is the opportunity where ‘others fear to tread’ to get set.
I.e. resources for the medium term & the high income earners available now.
As we read today the Euro has dropped below 1.30 to the $US.
I.e. there will be a flight to the ‘Perceived’ safety of the $US. [for the moment]
Gold @1500 & silver @ 29 will be very tempting.
This means the $US will appreciate for sometime & hence commodities which are generally priced in $US will fall. This means more equity downside especially resources stocks.
I.e. beware the Bears.
The Christmas holidays are the opportunity to prioritise & not be distracted by the noise.
I.e. the Central bankers & the politicians affecting your asset values.
The big priority is always to reduce DEBT & TAXX & our PCMS provides a symbiotic structure for you do to both.
As house values have fallen & debts not then it is time for new year resolutions to be acted on.
We wish you all a very Happy Christmas & a happier 2012 & a free Christmas cake when you drop in to pick it up.
John McAuliffe
‘Fear brings opportunities’ was the title of a recent Share broker’s presentation recently with Peter Q the speaker. PQ is as analytical as any speaker we have heard.
Lets summarise his main points
• The Eurozone is a collection with only 17 countries using the Euro & there is no common financial discipline. This is the current strong need with German leadership direction to resolve.
• Greece is broke [dead] & will be left out & Italy isn’t much better.
• Ireland & Portugal are good & back on track.
• The banks need 300B Euros & not the ‘laughable’ 150B the ECB suggested.
• Hence there will be another 3 months before Europe recapitalises with Europe having a recession for a year.
Is this a good time to travel there?
• The crisis will get worse before it gets better & then the ECB will be forced to help the solvency challenge. Germany doesn’t want to but will cooperate.
• The problem is the politics which is universal.
• Global profits are lower but there is only a 20-25% change of a global recession.
• Hence inflation will be lower & so interest rates will be lower.
• Valuations for equities will appreciate over the next 2 years but there will be another 6+ months of volatility. This follows the Normal pattern after a banking crisis.
• The total value of all government debt is greater that the world’s wealth.
• The ‘developed’ countries can’t grow & it will take 10 years to return to normal growth.
• The so called developing world will grow @5% for next 2-10 years but with a 20+% change of a global recession.
• The Chinese government plans on another 36 million new houses. It is prepared to spend 2% of GNP to boost their position.
• This means Australian resources will be good but other sectors are poor. Australian resources will make up 2/3 of Australian growth.
• There is another 6-9 months of volatility before equities growth of 55%.
•
• Why is it that global stocks have moved 55% up from GFC & Australian only 27%?
i. the strong currency due to the high interest rates & hence overseas investors are selling because of the currency gains.
ii. overseas investors believe & comment that the current government is BAD.
•
The current global PE ratios is 10 vs. a long term average PE of 16.
So what does all this mean?
It means as we suggested to Paul today to head off to France & do some more skiing in France. I.e. forget the headlines & don’t run into trees.
Meantime concentrate on the high income that are available e.g. the banks are yielding ~7% before you take franking credits into account.
It certainly beats banks term deposits. I.e. own the bank rather than lend to the bank.
Now is the opportunity where ‘others fear to tread’ to get set.
I.e. resources for the medium term & the high income earners available now.
As we read today the Euro has dropped below 1.30 to the $US.
I.e. there will be a flight to the ‘Perceived’ safety of the $US. [for the moment]
Gold @1500 & silver @ 29 will be very tempting.
This means the $US will appreciate for sometime & hence commodities which are generally priced in $US will fall. This means more equity downside especially resources stocks.
I.e. beware the Bears.
The Christmas holidays are the opportunity to prioritise & not be distracted by the noise.
I.e. the Central bankers & the politicians affecting your asset values.
The big priority is always to reduce DEBT & TAXX & our PCMS provides a symbiotic structure for you do to both.
As house values have fallen & debts not then it is time for new year resolutions to be acted on.
We wish you all a very Happy Christmas & a happier 2012 & a free Christmas cake when you drop in to pick it up.
John McAuliffe
How does David or 'Rachael' or 'Jody' or Tanya pay down their 500,000 DEBT?
How does David or ‘Rachael’ or ‘Jodie’ or Tanya pay down their 500,000 mortgage?
Yes this is the question we have been asking since we spoke to all four families in recent weeks? They also have families with David having 3 daughters & Tanya & ‘Rachael’ each planning to increase from one son.
Lets revisit Making your dreams come true the six secrets to Financial Freedom to help you realise there is a way out of DEBT faster.
We know that families need at least 5000 per month to live on without any extras such as following Junior Masterchef to Disneyland.
That is 60Kp.a. + after taxx just to meet reasonable basics.
A 500,000 DEBT [i.e. 4 letters] is designed to take 25 years and on a bank website that means 3,695 p.m. @7.5% on a standard variable home loan.
Total interest paid over the loan is 608,486 according to the site.
When we add the 500,000 principal that is a lotto prize 1.1m going to the bank.
Hence the advice we took 30+ years ago to buy bank shares. Profits this year for the big 4 banks have been 6.3+ Billion each. Thank you.
Remember also that DEBT might last longer than the relationship & hence there is much less time if any were to start again.
Hence David or ‘Rachael’ or ‘Jodie’ or Tanya need to earn 105,000 after taxx to survive & to pay down their DEBT in 300 months.
At the end of 300 months what will they have?
They might have paid off the house if they haven’t renovated or moved house or replaced the car several times.
Of course they will have their super. However their super won’t be much as the average retirement lump sum today is only 154K. As David & ‘Rachael’ & ‘Jodie’ & Tanya are 30 to 40 then yes they will have much more. They might even have in today’s numbers another 500K, the governments ‘benchmark’.
So they supplement the aged pension with say 25K p.a. from their super.
Are they all working so hard for only that outcome?
Let’s be very aware that big government makes the rules & super suffers from legislative risk & it is very possible it may be later changed so that it is only used as an income stream.
I.e. no lump sum to pay down the remaining DEBT.
It also has preservation rules & can only be accessed with difficulty e.g. after 26 weeks of Centrelink payments.
Hence David & ‘Rachael’ & ‘Jodie’ & Tanya need to revisit their thinking.
They could always do as Lisa our taxx agent suggests i.e. rent their best friend’s house next door.
Yes that would make their DEBT taxx deductible. However that option would be for very few.
There are others who suggest a SMSF with an investment property in it. We have heard of such in the booming mining areas but what happens when the mine, as they do by definition, is finished. Banks also require a LVR of > 50% for such loans. Remember houses are ‘like spouses they require money & makeup.’
So how do you have the taxx man subsidise your DEBT?
If David or ‘Rachael’ or ‘Jodie’ or Tanya need 104K net of taxx then they must earn a gross 145K. They must pay 34.2kp.a or 855K in Taxx to the ATO over the next 25 years.
What happens when ‘Rachael’ & Tanya take a pregnant pause. Does the bank do similar?
Yes there is a solution to their challenge & it is our PCMS or personal cashflow management system.
It isn’t suitable for many as the above numbers suggest a family income of 150K. We need some saving to capture & maximise.
We don’t like rental property with another big DEBT & do tenants pay the right rent & care for your asset?
Of course most are in this position & it is in their best interest to not leave it until it is too late as we believe this real life case is.
Why not read our ‘Making your dreams come true. The six secrets to Financial Freedom’.
Make it happen & Make a Plan & we have been suggesting this strategy PCMS for 17 years.
Welcome to call us on 07 3848 1088 or email or visit our websites
John McAuliffe
Yes this is the question we have been asking since we spoke to all four families in recent weeks? They also have families with David having 3 daughters & Tanya & ‘Rachael’ each planning to increase from one son.
Lets revisit Making your dreams come true the six secrets to Financial Freedom to help you realise there is a way out of DEBT faster.
We know that families need at least 5000 per month to live on without any extras such as following Junior Masterchef to Disneyland.
That is 60Kp.a. + after taxx just to meet reasonable basics.
A 500,000 DEBT [i.e. 4 letters] is designed to take 25 years and on a bank website that means 3,695 p.m. @7.5% on a standard variable home loan.
Total interest paid over the loan is 608,486 according to the site.
When we add the 500,000 principal that is a lotto prize 1.1m going to the bank.
Hence the advice we took 30+ years ago to buy bank shares. Profits this year for the big 4 banks have been 6.3+ Billion each. Thank you.
Remember also that DEBT might last longer than the relationship & hence there is much less time if any were to start again.
Hence David or ‘Rachael’ or ‘Jodie’ or Tanya need to earn 105,000 after taxx to survive & to pay down their DEBT in 300 months.
At the end of 300 months what will they have?
They might have paid off the house if they haven’t renovated or moved house or replaced the car several times.
Of course they will have their super. However their super won’t be much as the average retirement lump sum today is only 154K. As David & ‘Rachael’ & ‘Jodie’ & Tanya are 30 to 40 then yes they will have much more. They might even have in today’s numbers another 500K, the governments ‘benchmark’.
So they supplement the aged pension with say 25K p.a. from their super.
Are they all working so hard for only that outcome?
Let’s be very aware that big government makes the rules & super suffers from legislative risk & it is very possible it may be later changed so that it is only used as an income stream.
I.e. no lump sum to pay down the remaining DEBT.
It also has preservation rules & can only be accessed with difficulty e.g. after 26 weeks of Centrelink payments.
Hence David & ‘Rachael’ & ‘Jodie’ & Tanya need to revisit their thinking.
They could always do as Lisa our taxx agent suggests i.e. rent their best friend’s house next door.
Yes that would make their DEBT taxx deductible. However that option would be for very few.
There are others who suggest a SMSF with an investment property in it. We have heard of such in the booming mining areas but what happens when the mine, as they do by definition, is finished. Banks also require a LVR of > 50% for such loans. Remember houses are ‘like spouses they require money & makeup.’
So how do you have the taxx man subsidise your DEBT?
If David or ‘Rachael’ or ‘Jodie’ or Tanya need 104K net of taxx then they must earn a gross 145K. They must pay 34.2kp.a or 855K in Taxx to the ATO over the next 25 years.
What happens when ‘Rachael’ & Tanya take a pregnant pause. Does the bank do similar?
Yes there is a solution to their challenge & it is our PCMS or personal cashflow management system.
It isn’t suitable for many as the above numbers suggest a family income of 150K. We need some saving to capture & maximise.
We don’t like rental property with another big DEBT & do tenants pay the right rent & care for your asset?
Of course most are in this position & it is in their best interest to not leave it until it is too late as we believe this real life case is.
Why not read our ‘Making your dreams come true. The six secrets to Financial Freedom’.
Make it happen & Make a Plan & we have been suggesting this strategy PCMS for 17 years.
Welcome to call us on 07 3848 1088 or email or visit our websites
John McAuliffe
What is it that we do?
An article written by Steve Helmich that I believe is as relevant today as when I first read it in 2009.
Planning that lasts a lifetime
26 March 2009
I want to put it to you that a financial adviser is really a life coach and just like any other coach, their role is to change habits and get better outcomes for the person or people they are coaching.
The only difference is that the value a financial adviser adds can’t be witnessed in just six weeks after following a fitness regime – the rewards pay off over a number of years. It takes discipline and it takes time.
Why is it a well-kept secret that is known to those who have a relationship with an adviser but doesn’t seem to be understood by many industry commentators or critics?
Perhaps the best place to start is by blowing some of the misconceptions out of the water.
The greatest of these misconceptions is that a financial adviser’s main task is to beat the market or to select the next best share to invest in.
This leads many to the question of why people should pay money to advisers in the current environment when asset values are falling.
In reality, I do not know of any adviser who guarantees they can beat the market, and if a adviser promotes that as their value proposition, they are setting themselves up for a fall.
The value and strength of the relationship between a financial adviser and a client is somewhat intangible, but by seeking and taking an adviser’s advice, a family can be set up for life.
The Australians out there who have a close relationship with their financial adviser know exactly what I’m talking about.
For my wife and I, the strength of the relationship with our financial adviser was recently put into perspective when we finished a review of our strategy and despite the fact that our asset values had decreased, my wife turned to me and said, “I always feel good after visiting that office”.
This is exactly what you want from your adviser: peace of mind and confidence in your future strategy.
It is the intimacy of the relationship between clients and advisers that offers great value to clients. Over a period of time, a financial adviser will achieve more for a family than any other professional – the value of their work will span generations.
What does a planner actually do to add value?
Very early in the process an adviser will sit with a client to work out what goals or dreams they want to achieve in life.
Now for many this can be a challenge, especially in a situation where a husband and wife can’t reach an agreement on what the future looks like.
Quite often, the adviser will take on the guise of a counselor or mediator in situations such as this. How do you put a value on this? I can’t think of another profession that actually asks you to think ahead about your life and plan your goals.
After identifying the goals and reviewing the clients’ current financial circumstances, the adviser will set a path to achieve those goals while articulating the risks involved in such a plan, including making sure contingencies are in place. The adviser will also help manage cash flow, minimise tax and facilitate the correct asset ownership for their clients.
It is true that for many, visiting an adviser can be a very emotional and confronting experience.
Imagine being told you have to curb your spending and work to a budget – this isn’t always a message a mature adult likes or needs to hear.
It is this financial discipline that is missing in the lives of many Australians and it often takes hearing the harsh reality of the situation to make people realise the trouble they are in or what they need to do to achieve their dreams. How can you put a value on this?
We often hear about fees, charges and investment returns as being the key inhibitors for people who retire with too few dollars – the truth is that Australians need to contribute more than the compulsory employer superannuation contribution of 9 per cent for a comfortable retirement.
But they often take action in this area too late in life and the compound effect of time cannot make up the shortfall.
A financial adviser helps people plan for their retirement by forecasting exactly how much they will need to achieve a comfortable lifestyle in retirement.
They will then help a client change their ways.
The value of peace of mind
The world we live in is full of instant gratification (mostly on credit) and the value of using a financial adviser has limited appeal instantly.
But in the long run it is the most valuable professional relationship someone can have – it’s life changing.
Despite this, people do not flock to the offices of financial advisers to seek their professional and valuable advice.
Many of the new clients who walk through the doors of our financial advisory practices are referrals from existing clients who have witnessed firsthand the value of advice.
Often people seek the advice of a financial adviser much later in life, but it pays in the long run to benefit from advice early in order to achieve goals and dreams.
Why do only 17 per cent of Australians seek financial advice when there is so much value in it?
Is it the fear of the unknown? Is it the fear of being told things you don’t like to hear? Or is it just the uncertainty attached to the advice process and how much it might cost?
It is probably all these reasons, but the sad fact is that those who don’t enjoy the benefit of having a close relationship with a professional financial adviser during their life will be worse off.
They will most likely never achieve their financial and lifestyle dreams and goals, and in a country like Australia, that should be a crime.
An article we concur with.
Welcome to call on 07 3848 1088 or email info@wealthcoach.net.au
or visit our websites www.wecoachwealth.com.au
John McAuliffe
Planning that lasts a lifetime
26 March 2009
I want to put it to you that a financial adviser is really a life coach and just like any other coach, their role is to change habits and get better outcomes for the person or people they are coaching.
The only difference is that the value a financial adviser adds can’t be witnessed in just six weeks after following a fitness regime – the rewards pay off over a number of years. It takes discipline and it takes time.
Why is it a well-kept secret that is known to those who have a relationship with an adviser but doesn’t seem to be understood by many industry commentators or critics?
Perhaps the best place to start is by blowing some of the misconceptions out of the water.
The greatest of these misconceptions is that a financial adviser’s main task is to beat the market or to select the next best share to invest in.
This leads many to the question of why people should pay money to advisers in the current environment when asset values are falling.
In reality, I do not know of any adviser who guarantees they can beat the market, and if a adviser promotes that as their value proposition, they are setting themselves up for a fall.
The value and strength of the relationship between a financial adviser and a client is somewhat intangible, but by seeking and taking an adviser’s advice, a family can be set up for life.
The Australians out there who have a close relationship with their financial adviser know exactly what I’m talking about.
For my wife and I, the strength of the relationship with our financial adviser was recently put into perspective when we finished a review of our strategy and despite the fact that our asset values had decreased, my wife turned to me and said, “I always feel good after visiting that office”.
This is exactly what you want from your adviser: peace of mind and confidence in your future strategy.
It is the intimacy of the relationship between clients and advisers that offers great value to clients. Over a period of time, a financial adviser will achieve more for a family than any other professional – the value of their work will span generations.
What does a planner actually do to add value?
Very early in the process an adviser will sit with a client to work out what goals or dreams they want to achieve in life.
Now for many this can be a challenge, especially in a situation where a husband and wife can’t reach an agreement on what the future looks like.
Quite often, the adviser will take on the guise of a counselor or mediator in situations such as this. How do you put a value on this? I can’t think of another profession that actually asks you to think ahead about your life and plan your goals.
After identifying the goals and reviewing the clients’ current financial circumstances, the adviser will set a path to achieve those goals while articulating the risks involved in such a plan, including making sure contingencies are in place. The adviser will also help manage cash flow, minimise tax and facilitate the correct asset ownership for their clients.
It is true that for many, visiting an adviser can be a very emotional and confronting experience.
Imagine being told you have to curb your spending and work to a budget – this isn’t always a message a mature adult likes or needs to hear.
It is this financial discipline that is missing in the lives of many Australians and it often takes hearing the harsh reality of the situation to make people realise the trouble they are in or what they need to do to achieve their dreams. How can you put a value on this?
We often hear about fees, charges and investment returns as being the key inhibitors for people who retire with too few dollars – the truth is that Australians need to contribute more than the compulsory employer superannuation contribution of 9 per cent for a comfortable retirement.
But they often take action in this area too late in life and the compound effect of time cannot make up the shortfall.
A financial adviser helps people plan for their retirement by forecasting exactly how much they will need to achieve a comfortable lifestyle in retirement.
They will then help a client change their ways.
The value of peace of mind
The world we live in is full of instant gratification (mostly on credit) and the value of using a financial adviser has limited appeal instantly.
But in the long run it is the most valuable professional relationship someone can have – it’s life changing.
Despite this, people do not flock to the offices of financial advisers to seek their professional and valuable advice.
Many of the new clients who walk through the doors of our financial advisory practices are referrals from existing clients who have witnessed firsthand the value of advice.
Often people seek the advice of a financial adviser much later in life, but it pays in the long run to benefit from advice early in order to achieve goals and dreams.
Why do only 17 per cent of Australians seek financial advice when there is so much value in it?
Is it the fear of the unknown? Is it the fear of being told things you don’t like to hear? Or is it just the uncertainty attached to the advice process and how much it might cost?
It is probably all these reasons, but the sad fact is that those who don’t enjoy the benefit of having a close relationship with a professional financial adviser during their life will be worse off.
They will most likely never achieve their financial and lifestyle dreams and goals, and in a country like Australia, that should be a crime.
An article we concur with.
Welcome to call on 07 3848 1088 or email info@wealthcoach.net.au
or visit our websites www.wecoachwealth.com.au
John McAuliffe