10 Reasons why you should make your next brisbane property Investment

10 Reasons why you should make your next Brisbane Property Investment

1.     Research – Our market research concentrates, too, on the potential demand going forward. This covers 30 year terms for population growth, demographics into the future, rental statistics and rental and price growth potential.

2.     Design – They commissions Australia’s leading architects & interior designers. Metro focuses on quality, luxury, comfort, spaciousness, liveability & timeless style to achieve the best possible property solution.

3.     Value – Over the past decade, Brisbane’s inner city apartment market has demonstrated itself to be resilient to market fluctuations. On a linear trend basis, the medium price of an apartment within Brisbane’s inner city has grown by just under $20,000 per annum (Ref: Resolution research strategist)

4.     Location – Central location, Positioned with core lifestyle amenity, key employment nodes and infrastructure investment in every direction.

5.     Infrastructure – Locations supported by adequate existing infrastructure and amenity are prime areas for residential development and growth. Residential developments are more desirable when infrastructure and amenity are within walking distance or transit accessible. Additional infrastructure and amenity investment is also important as this supports greater population growth and employment opportunities.

6.     Employment – Proximity to employment nodes and centres is an essential fundamental to strong residential growth. Localities that are well supported by employment generally drive a greater demand for residential dwellings, particularly those located in walking distance or those that are reinforced for sufficient public transport and accessibility.

7.     Population – Healthy and sustained population growth usually equates to a healthy and prosperous residential property market. The Brisbane local Government area (LGA) is projected to increase by over 10,000 new residents per annum between now and 2021

8.     Rental Demand – Rental demand is driven by ongoing population growth and shifting preferences towards the inner city lifestyle.

9.     Service - they are there for the client through the full 360 degrees of the buying process, from initial contract right through to settlement, rental projections, valuations, and much more.

10.  Track Record –  Property Development and  Communities are now among Australia’s leading private development companies. We have a $1.5 billion workbook of Brisbane inner city developments with operations in QLD, SA, VIC and WA. All are surging ahead.

These are 10 reasons that Dan wrote after we asked him to. 

If you want to know more such as a guided tour through their Brisbane developments or  their contact details as they are flying off the plan then call us on 07 3848 1088 or email us 

John McAuliffe

Where does your super money vote?

Where does your super money vote?

It appears that there will be a change of government as voters are unhappy with the last 6 years of the current version of a government.

However many who vote for non Labor parties will have their super funds in various industry funds. These industry funds have marketed themselves as no commission & low cost & have attracted many via industrial award bullying.

Since when was low cost the benchmark for wise purchases?

They are advertising at every bus stop & at every TV advert  break

Are they doing it for nothing?

Where do their profits go?

Who is on their boards?

How much do they contribute to the Labor party?

And lastly how do their funds perform?

Let’s look at a big one marketed as AustralianSuper.

We observe their investment fees are not that low & certainly not zero. 

In fact from 0.08% for cash to 1.06% for international share option & their balanced option which in many cases is the default option is 0.66%.

We suggest that the fees are lower because they haven’t had to do the marketing costs that every other business has to spend to attract business. That’s what Industry awards can do for them. Bully from them.

Let’s look at their returns. 

Performance for Balanced
Daily Rate (01.09.13) FYTD (01.07.13 - 01.09.13) 1 Year (%pa) 3 Year (%pa) 5 Year (%pa) 10 Year (%pa) Inception 01.08.85 (%pa) to 30.06.13 pa AusSuper 0.00% 3.64% 15.63% 8.79% 4.20% 7.64% 9.54% Benchmark n/a n/a 14.73% 7.99% 3.89% 6.94% n/a

Performance for High Growth

	Daily Rate (01.09.13)	FYTD (01.07.13 - 01.09.13)	1 Year (%pa)	3 Year (%pa)	5 Year (%pa)	10 Year (%pa)	Inception 01.07.96 (%pa)
			to 30.06.13 pa
AusSuper	0.00%	4.38%	17.27%	9.03%	3.28%	7.42%	7.43%
Benchmark	n/a	n/a	17.11%	8.65%	3.50%	6.78%

We also recall recently that due to claim experience this super fund has increased insurance premiums within by substantial amounts 30% + approximately . The world’s oldest profession who solicits ‘no win no fee’ can be thanked for that.

Insurance is another article in itself & no advice could be very costly to you & your family. Just note that they are group plans with exclusions. 

We tailored Ron’s insurance with 1.4 m life cover as 2 very young children & no house.

When we reviewed last week end Ron’s portfolio that we had tailored for him after his request for help 2 years ago we see on our desk today.

Total Portfolio Return 15 Apr 2011 ,20.36% 20.30% 20.36% N/A, N/A

Individual Investment Returns

Cash Account Portfolios

CASH, Cash Account 15 Apr 2011 10.08% ,1.26% 1.26% 1.26% N/A, N/A

Australian Shares - Concentrated

PER0102AU Perpetual Wholesale Concentrated Equity Fund 20 May 2011, 13.08% , 28.32% 28.23% 28.32% N/A, N/A

Australian Shares - Specialist

PPL0106AU Antares High Growth Shares Fund 20 May 2011, 11.31% , 24.49% 24.42% 24.49% N/A ,N/A

Australian Shares Portfolios

IOF0206AU Perennial Value Shares Wholesale Trust 20 May 2011, 13.41% 23.92% 23.84% 23.92% N/A, N/A

Cash Portfolios

SBC0811AU UBS Cash Fund 20 May 2011, 5.22% , 1.84% 1.83% 1.84% N/A, N/A

International Fixed Interest Portfolios

ETL0018AU PIMCO EQT Wholesale Global Bond Fund 20 May 2011 , 10.03% , 2.24% 2.23% 2.24% N/A, N/A

International Shares - Regional and Emerging Markets

BTA0130AU BT Wholesale Japanese Share Fund 25 May 2011,14.83% ,.17% 40.04% 40.17% N/A ,N/A

PLA0004AU Platinum Asia Fund 20 May 2011 7.35% , 28.01% 27.92% 28.01% N/A ,N/A

Account Number: Ron

Ron wasn’t unhappy with those results & yes we are not comparing apples with apples as this is a tailored plan for Ron. Ron approached us in April 2011 & the market has been good & the Australian dollar has fallen. 

Ron is also not a trustee of his fund as who would want to be. Even Phil Kerns has written loudly on why you shouldn’t be a trustee.  We aren’t either & we have been an adviser for 29 years. Greg our mechanic, agreed with us & not his accountant who had suggested the SMSF story.

If you want your money to vote as you do then you are welcome to call us on 07 3848 1088 or email or visit our websites

 

Our principle is ‘what would we do if we were in your position so that you will be better off in three years time’.

  Let’s not forget that any shade  & colour of government wants $170 Billion each year of your money. You need it more & waste less of it.

Lets also remember the largest fee is the government 15% on earnings. However if you are over 55 then we can reduce that to Zero. We might even help your debt reduction need.

John McAuliffe

Financial advice: to seek, or not to seek? 

we just read this post by another planner also named McAuliffe

we agree with all that Ash has said & hence we include the link to what he wrote

as a summary for you
 
Finally, it was a batch of bills they didn't know how they'd pay that pushed the couple to see a financial planner.

The decision changed their lives.

"I'd always wanted to get financial advice but it's one of those things we'd put on hold, we didn't have the money to go and pay somebody to give us the advice," Mr Doherty said.

"As soon as we walked out of our first appointment, we both had big smiles on our faces and a weight off our shoulders," Ms Doherty said.

"It makes your life so much happier."

and also

 "It's not about having huge amounts of money and getting advice on how to invest it, financial advice is about achieving your lifestyle goals, whether that's retiring at 55 instead of 65 or buying your first house or your tenth house."

the link again  with the full article

 

You are  welcome to call us on 07 3848 1088 or contact us via our websites. 

We advise you what we would do if we were in your position so that you are in a better position in 3 years time.

John McAuliffe 

Jettison mortgage

We had ‘David & Margaret’ call us after they had been to their bank. Thanx Geoff for the referral to us.

David & Margaret weren’t happy  with the bank’s Statement of Advice’ that ‘all of the products were the bank’s & there was too much insurance.’    

    

At our initial lunch here we listened to this & as we summarised later to them

Lets also remember that the bank considers your ‘liability’ as their asset. Why would they suggest reducing it?

When Margaret corrected David in that the mortgage wasn’t 500,000 ‘it is 498,000 as I looked at it today’ then it suggests to us that the mortgage is a stress to her.

If the bank had read what we read on the completion of David & Margaret’s ‘HW’ then here is what they might have read.

Goals and Objectives

Short Term Goals

1.       You wish to halve your mortgage over the next three years.

2.       ….

Medium Term Goals

1.         Jettison mortgage

2.         ……..

Long Term Goals

1.       Put ‘mortgage money’ into interest bearing investments/equities

2.       ….

 At our age it is great having no debt & when you are in the ‘fatigued fifties’ as they are then debt reduction becomes a priority.

At the lunch we made this suggestion but the bank had run the numbers & they were arguably better off building their supers up. If you have a ‘growth’ profile then earning a higher gross return would show this. However what if another GFC or another 'third in a century' flood .

 Guess where their super were to go.

 Lets allow for some comfort & listen to Margaret.

Margaret & David will be impressed what we project for them as their debt is zero in 2016. 

We also did allow for their Europe trip next July  to see their children doing their OE.

Yes they do have some factors going for them to accelerate the debt reduction

·         They are both over 55

·         They have [almost] sizeable superannuation that could be maximised. Remember that as your super doesn’t pay you an income it is not an asset.

·         The youngest child has just left home & the food bill has reduced significantly.

·         David is on a high salary although there is a whack of wasted taxx to come out to feed the Zombies.

We also allowed for possible mooted Centrelink changes in a year’s time.

We did if only for big brother compliance & to save us from the ‘crows’ recommend some insurance to complete some gaps in case of a stroke or trauma. We will tailor & reduce as the debt goes down & this allows for accelerated debt reduction than our model.

Insurance only gets dearer. Who wants to collect it. We did comment to Stephen who is 60 today that claims are on average 2 years after you drop your insurance. Hence tailoring & reducing but not zero  makes sense.

 Would the bank do that?

Our 1^st cousin said of the health system recently ‘they don’t know’.  Hence a preventive health story is an essential part of our holistic planning. We noted their advt whilst watching the WTA tennis.

As we state to all ‘ our mission is we would do for them what we would do ourselves if we were in their position.’

This week ‘Warren’ went to the net asking for some income protection. As he has 3 children, a mortgage & only earns 90K then he can’t afford what he should have. 

We await his call on 07 3848 1088 or email for lunch here. Warren will need a different strategy.

John McAuliffe