The Clever Investor Property Podcast (Owun Taylor)

We peak over the garden fence at the 5 Common mortgage mistakes Aussie make when looking for a mortgage to buy a property.

The mortgage market is worth over $68 billion and we have to admit that us Aussies really do love real estate.

There are at the moment over 10 million properties in Australia with a total value of around $8.4 trillion and of those  around 6 million have mortgages against them.

We also have 12,000 Mortgage Brokers businesses in Australia, and that's a growing market. 

Today, it seems every lender is offering significant borrower incentives – be it low advertised mortgage rates, huge home loan discounts or cash-back offers. With so much happening, it is natural to feel stressed and somewhat confused.

Over the next few days, while struggling to reinvent what we can do with the remaining 9 kgs of Christmas ham, we also need to start neatly folding up 2022, ready to pop it in our box of memories.

What might lay ahead of us in 2023 is for the main part up to us individually.  We can sit back and let it happen around us or run, jump or skip into it with a positive 'I can do this'.

So I've grabbed a special guest, Roy Azzi, the Head of Property Acquisitions at Blue Wealth Property. Roy has over 20 years experience in the real estate industry. In his day to day role he deals with property developers of all shapes and sizes, the builders who construct these developments and the real estate teams who manage and sell. 

I asked him a simple question.... What's happing in 2023 ?

 

Buy now or wait and save?

Lenders Mortgage Insurance (LMI) has been a big help in letting people who want to own a property get started with less money for a down payment.

It all began in 1965 when the government made a plan to give insurance for home loans that covered up to 95% of the home's cost. The idea was to make it easier for people, especially those buying their first home, to become homeowners.

Strachan Taylor knows everything you need to know about LMI and is in charge of partnerships at Helia, (formerly Genworth), Australia’s first Lenders Mortgage Insurance provider, a company that is dedicated to leading the way for years to come.

We asked Strachan to pop into The Clever Investor Podcast studio and tell us about the benefits of lenders mortgage insurance and how it can make a big difference for people who want to invest in property or buy their first home. You'll learn why LMI can be a useful tool for all types of property investors, not just the first homebuyers. LMI is there to help with the challenge of saving up a 20% down payment.

The Helia estimator provides some good insights into the deposit options that could suit your circumstances, click this link to have a play around. Deposit comparison estimator

You would have heard the word depreciation, but what does it mean?

It's a slow change in value that happens to things over time.

Depreciation affects both cars and property, but in different ways, especially in Australia.

 

When you buy a brand-new car and drive it out of the showroom, it's no longer considered "new". Cars lose value as they get older and are driven more.

This decline in value is called car depreciation. In Australia, cars can lose value quite quickly, often around 20% in the first year and then around 15% each year after that. So, a car that's worth $50,000 when you buy it might only be worth $40,000 or even less after just one year.

Now, think about property, regardless of if it’s a house or an apartment.

Unlike cars, residential property generally tends to appreciate in value over time. This means its value increases as the years go by.

Property values can be influenced by factors like location, housing demand, local demographics and sometimes improvements made to the property. However, it's important to remember that property values don't always go up, there are situations that can cause them to stagnant for long periods or they can fluctuate, swinging up and down, depending on local market conditions.

In Australia, property is often seen as a long-term investment. People buy property with the hope that its value will increase over time, allowing them to be sold for a higher price in the future. This is why many Australians invest in property to help secure their financial future.

So, weather you're thinking about buying a car or investing in property, knowing how depreciation works can help you make informed decisions for your financial goals. Your own team of experts will help guide you along.

My Father taught me to drive,

a tale about the importance of getting the correct education.

When I turned sixteen, I got my learners’ permit and my father, like so many dads before him, was given the duty of taking me out on the road for driving lessons.

I love my dad, he’s always done his best for me. But I was unfortunately asking him to do something that he wasn’t trained for. He’s never held any formal driver training qualifications. If the truth be known he’s never even had a driving lesson.

There were plenty of tense moments out on the road between us. So, to stop Dad and I falling out, Mum stepped in and arranged for me to have a professional driving instructor teach me. This initially annoyed Dad because his pride took a bit of a dent.

 

But the instructor was brilliant. She had a well thought out teaching plan. With skills in communication, listening, adaptability, empathy for my skill level and the patience to be able to explain. I was therefore more relaxed, so I was open to absorbing and retaining information. I learnt a lot from those formal driving lessons.

 

If you have ever attended any of the Blue Wealth Property events you will know that no-one provides education like we do. They are down to earth, with real knowledge you can apply.

Over the years we have quite literally had hundreds of clients come back to us with requests for more education, so with over 12 months of hard work building it, we proudly launched the Blue Wealth Property Academy.

Blue Wealth Property Academy is an advanced level of learning, where the public will gain the knowledge needed to become proficient in everything about property investment.

The Academy has been constructed by industry experts to help all attendees smash their property goals and create long-term wealth.

The Academy gives us much more time to cover some seriously high-level topics, explain concepts and go delving into the nitty-gritty of each one.

 

I have now spent nearly 30 years training and teaching us ‘grownups’ how to do things. I believe that having and sharing our knowledge is an essential step in helping establish trust for those building a long-term plan.

Unfortunately, I have seen incorrect and outdated advice about locations, loans and structures handed down by well-meaning family elders or that friend-of-a-friend.

It is said that “You shouldn’t teach your relatives how to drive”. So, with that in mind please come and take a look around the Academy website…maybe book your kids in…

Owun

Knowledge is Power

Owun is the Senior Education Specialist at the Blue Wealth Property Academy and hosts The Clever Investor podcast. He has worked in finance and property for well over 20 years and is known for being able to easily explain the complex world of wealth creation.

During the early stage of the pandemic years, while the cash rate and therefore the home loan interest rated where coming down, so where fix rates.

I have friends that snapped up rates under 2% for 2 or 3 years.

Research tells me its estimated that around 46 per cent of all home loans in July 2021 were fixed rate loans.

The RBA said recently that it expects about half of all those outstanding fixed loan debt to change to variable rates throughout 2023.

Just how many fixed is hard to determine, but in the words for the government the “back of the envelope” calculations puts it at around 800,000 facilities, and the Reserve Bank says that’s around $350 billion of credit that is rolling off low fix rates. It’s a busy time in lending.

Annual inflation as measured by the Consumer Price Index (CPI) has increased from a little below 2 per cent in the years immediately prior to the pandemic to around 8 per cent at the end of 2022.

Short term loans are not a new thing and since Adam was a boy there has been a need for quick no questions cash.

 

It's a well backed big business now as the Australian payday loan market has become a billion-dollar industry.

With the growth and ease of the internet in our world its now estimated that 90% are applied for online.

We look at what to watch out for when utilising this type of credit.

 

Lets get you ready for a great 2024 because life is all a bit too fast-paced at times and the idea of multitasking has been hailed as a coveted skill, almost a badge of efficiency. Yet, scientific research consistently tells a different story, humans simply cannot multitask. What we perceive as multitasking is in fact just task-switching. A rapid shifting of attention from one task to another.

Understanding this phenomenon requires a journey back to the origins of the term ‘multitask’. This concept of multitasking gained popularity in the computer industry during the 1960s when operating systems were designed to execute multiple tasks simultaneously. The term gradually trickled into everyday language, implying the human ability to perform several tasks simultaneously. However, neuroscientific studies debunked this notion, revealing the brain's limitations in handling multiple tasks concurrently.

The human brain operates on a limited bandwidth for conscious attention. When attempting to multitask, it divides this finite resource among the tasks at hand, resulting in reduced efficiency and increased errors. Research from the University of London found that multitasking lowered IQ points more than smoking marijuana or losing a night's sleep.

The myth of multitasking reflects the brain's inability to perform multiple tasks simultaneously. This phenomenon underscores the importance of focus and concentration in achieving goals, especially in the realm of wealth building. By acknowledging the limitations of multitasking and embracing a focused approach, you, me and everyone else can optimise our efforts, make informed financial decisions.

Property investment is a significant financial decision that requires careful consideration and analysis. Engaging in thorough research before making investment decisions is crucial to ensure informed choices and maximize potential returns....or is it?? 

This weeks podcast has special guest Dr Tony Hayek, founder and CEO of Blue Wealth Property who developed Australia’s only independently audited property research methodology. We discuss the importance of research in property investment and highlights key areas that investors should focus on and what they shouldn't be focused on.  Find an excuse to go for a walk, pop the headphones on and in less than 20 minutes you'll be so much the wiser.  Don't forget to hit the subscribe button and like us. 

Part 2 of wandering down the alphabet explaining the technical bits that you are going to run into on the bus trip to wealthlyville.

"To fix or not to fix, that is the question. Whether ’tis nobler in the mind to suffer The slings and arrows of outrageous fortune, Or to take arms against a sea of troubles, And by opposing end them? To die....to sleep...."

Might not be exactly as Shakespeare originally wrote it but our no drama show this week is taking the fright out of Ye age ole question every time there's rate movements.

Fix, Variable or a bit of both? Grab yourself a cup of English breakfast tea, sit back and get the facts 'Clever Investor Podcast' style.

The deposit is a small initial contribution to the purchase price of a property, its like you've put it on lay-by. 

You don't actually own anything just yet.

You'll own the property on the agreed settlement date and that's when you may or may not be contributing other 'funds towards the purchase'.

Find out:

• How much the deposit will be.
• The various ways you can pay a deposit.
• Who holds the deposit.
• What happens if you don't come back to complete the purchase.

But lucky for you this gets explained in easy listening non jargon English.

 

 

 

I think that far to many individuals hesitate to invest for various reasons this weeks let's break down these concerns in to 6 simple parts.

Understanding these reasons and learning to take some actionable steps to overcome them is crucial for anyone looking to achieve their financial goals. Whether it's dispelling myths about time constraints, gaining financial knowledge or addressing fears, everyone can take small, practical steps towards a more secure financial future.

Remember that becoming an investor is for anyone willing to learn and make some consistent efforts.

Unfortunately NSW has been hit yet again with widespread persistent heavy rain. The weather is always easy to complain about but this is bloody ridiculous.

There have been hundred and hundreds of evacuation orders and many more warnings put in place. For so many this is not the first time it happened to them this year.

There have been and will be for quite a while impacts to residents and businesses both large and small .

Lots of the lenders have begun offering support and relief to borrowers. There is and will be more support from the NSW state government. Albo (our Prime Minister) flew over the affected areas and is announcing the Federal Government support.

All lenders are urging anyone affected to contact them as soon as possible should they require support. Our tip is to do this as soon as you get, get it noted on your file and get your bank on your side working with you.

Todays podcast is little overview of what the major banks have said they are offering, plus some details on the financial assistance that the government will be giving out. 

We also touch on how to get yourself some free Financial Counselling and what to do if the relationship with the bank starts falling apart.

Hang in there lovely people, you'll get through this.

Service NSW Financial assistance

Disaster payments, grants and financial assistance for people living in areas affected by severe storms and floods in NSW.

Services Australia:

If you’re directly affected by this declared disaster, we have lump sum payments and ongoing, short term allowances to help you. You may be eligible for more than one of these.

National Debt Helpline 1800 007 007

Financial counselling

Financial counsellors are skilled professionals who will guide you through your options and help you plan your way out of debt.

 

 

 

You are not alone when you are trying to build your wealth, so please stop trying to do it all on your own. 

Don't fall in to the horrid trap of spending time trying to Google(Edu)cate yourself.

There are beautiful, qualified, trained, experts out there, waiting to join your team. 

Who are they and what do they do?...welcome to this weeks show. 

"What am I paying them for?....it can't be that hard...can it??"

Quizzed my friend from across the other side of the table.

" I mean you just get the rent.... What do they actually do? "

My friend was quizzing me about the requirement of him needing a property manager for his upcoming investment property purchase as we enjoyed a couple of beers at Willie the Boatman, one of the many fine craft breweries in Sydney.  

I smiled at him, "That will make a great subject on the podcast, I know just the guy to ask" 

"Yerrr, that's a brilliant idea" he said enthusiastically, "I can't be the only person to ask the question? "

I stood up, finished the last bit of my Albo ale, gave my mate a hug goodbye and started walking out.

"hey..." he shouted at me "so are you going tell me the bloody answer ?"

I smiled back at him, "Of course I am.....you'll have to tune into the podcast"

Cheers

 

Thanks this week to Callum Thompson the Head of Property Management at Motion Property in Melbourne.

Motion Property

 

The Allure of Buying an Old House for Investment

I think we all understand that investing in real estate has always been an attractive option for those looking to secure their financial future. While many investors focus on buying new properties, there is a certain romantic charm and allure to buying an old house.

Old houses often possess a unique character and history that can be appealing to both buyers and tenants. However, it is important to be aware of the hidden costs and disadvantages that come with buying an old house for investment.

A thorough financial analysis will help you determine if the investment is financially viable and aligns with your investment goals.

Come with me as we will explore the potentially massive downsides of purchasing an old house and provide tips for mitigating these disadvantages.

You might fool yourself into thinking you are buying the house cheaper but.....

 

We’re unpacking a fundamental concept that impacts every mortgage holder, saver, and investor out there — the cash rate.

The Reserve Bank of Australia, or as we say the RBA, uses the cash rate as a tool to implement monetary policy. The RBA Board meets to decide whether to change the cash rate target, that put very simply is the level they want the cash rate to sit at.

We dust off the pages of on The Clever Investors dictionary to break it down in simple terms, explain how it works, and why it matters to you as a property investor.

What happens when the cash rate goes down? and will borrowing money always become cheaper or expensive? 

 

If you found this episode helpful, don’t forget to subscribe and share it with your friends who are keen to grow their property portfolio! And as always, if you have questions or want us to cover a specific topic, reach out to us — we love hearing from you.

An introduction to The Clever Investor Podcast:  Do you wish that all things wealth and finance were much easier to understand and not presented by a bunch of beige cardigan wearing geeks. We are dishing up the easiest to understand finance program, served in bite-sized chunks, no show is any longer than 20 minutes, your brain will thank you as your knowledge grows. Hosted by Owun Taylor, a multiple award-winning expert with a glorious knack for explaining the complex world of wealth in the simplest of ways. 

Rentvesting is a popular strategy for those who want to build wealth through property investment without sacrificing their preferred lifestyle or location.

Essentially, it involves renting a property to live in while also owning one or more investment properties that are rented out to tenants.

One of the main advantages of rentvesting is affordability. By renting in a desirable location while still owning an investment property, you can often enjoy a more affordable lifestyle. This is particularly beneficial in areas where property prices are high and buying a home to live in is financially out of reach. With rentvesting, you can still live in your desired location and invest in property without having to compromise on your lifestyle.

But for all that good parts some say the disadvantage of it is the uncertainty of how long they will be able to stay in the property. With of bit of know how and preparation we can overcome these issues.

 

While most kids were busy kicking footballs, Stuart Wright was already diving into the world of real estate.

Right after high school, he secured a job in property sales in his hometown of Sydney.

Fast forward to today, at just 23 years old, Stuart owns two investment properties and has an incredible journey to share.

His story proves that investing in property is within reach, even for young people.

With the price rises of lettuce, petrol, building materials, wages, rents, and just about anything you can think of lately, the topic of inflation keeps popping up the standard response by the worlds central banks (in our case the RBA) is to raise rates.

In past cycles, real estate prices have tended to continue to rise even as interest rates increase. This is because the fundamental driver was a demand-side push.

This time growth has slowed and even reversed in about 40% of the market nationally, primarily in the premium suburbs.

As we have been saying, the difference this time is that price rises aren’t a result of excess demand.

They’re a result of a supply-side shock stemming from the rolling pandemic lockdowns and the war in Ukraine. The rate rises have been killing demand where the real issue has been a supply shortage.

However, the case for the economy to be approaching peak inflation keeps getting stronger...

Gavin Chau is an Economist and the Senior Research Analyst at Blue Wealth Property and joins us in the studio.

Banks and other lenders use your credit score to decide if they feel you are a good or bad risk. Knowing what is on your credit file can help you understand why a lender might reject your application or get a great deal.

Your credit score is calculated:  

• the amount of money you’ve borrowed
• the number of credit applications you’ve made
• whether you pay on time

The score will be between zero and either 1,000 or 1,200. A higher score basically means lenders consider you less of a risk.

You have a right to get a copy of your credit report for free every 3 months and I highly recommend you get a copy at least once a year.

Jump online and get a credit score for free from an online credit score provider, such as Equifax Credit Simple, Finder Canstar

Let us know how you went getting your credit file.

Population growth is a key factor that is proven to be one of the main drivers for long-term property growth. 

But what's been happening across this great wide land?  Are we correct to think that after all these lockdowns we'll bounce back?  Do all cities grow at the same rate? 

The ABS publish a mass of data on population forecast's and you can sit down with a glass of red wine and google-away filling your brain with numbers... but what's it all mean and what's needed is to be able to effectively interrogate this data for any future planning.

Brisbane has been renowned for being Australia’s fastest-growing city, recording an annual population growth rate of 1.8% over the last five years, however more recent data sourced from the ABS indicates that the tide is turning and that Melbourne is forecasted to be Australia’s fastest-growing city over the next 10 years.

With the assistance of this weeks studio guest, Research Analyst John Bekiaris we de-code the data.

 

A property manager is a professional who manages real estate properties on behalf of you, the owner. Their role is ensuring the property is well-maintained and generating income through rental or lease agreements. However there are plenty of mistakes that a property manager can make, but some of the most common ones include:

• Failing to properly screen tenants.
• Neglecting maintenance and repairs.
• Poor communication with tenants.
• Ignoring legal requirements.

Your property manager must be diligent, organized, and knowledgeable about the laws and regulations that govern their industry. Failure to do so can lead to serious consequences for themselves, your tenants and you, the landlord. We grabbed Vanessa Pearce, one of the best in the industry to give us the red flags that you'll need to look out for.

We talk about a very unique bank, we’ve all heard of it, but you can't get a credit card with them. They have no need for adverts on TV, they don't sponsor a footy team and you can't get a mortgage from this bank.

Opening the lid on The Reserve Bank of Australia. 

 

Are you one of the eight hundred thousand Australian mortgage holders that have a fix interest rate ending this year??  Those 800,000 mortgages are going to need something doing to them, if you don't you are going to be paying your current lenders full standard variable rate....and don't think its all too hard to do and be silly about it.

There is no way that you should be paying that much no matter who you are.

Now I want you to imagine that you are trying to get out of a football stadium and you are faced with being 1 of 800,000 fans leaving the grounds. Its going to take time, you are one of the crowd and wishing you could get further up the queue.

This weeks special guest is the award winning Aurelio Tenaglia of Casabella Finance. A vastly experienced mortgage broker who's seen this situation happen many times before.

In the time its going to take you to walk the dog around the park, Aurelio will tell you what you need to do right now, so you won't get washed up in that maddening crowd. 

 

Aurelio Tenaglia Casabella Finance

P: 02 96306888 www.casabellafinance.com.au

In preparation for that no-man’s land between Christmas day and New Years when you pleasantly forget what day it is and might just become a little bored. I walked around the Blue Wealth office and asked the team their favourite books. Each of these books offers unique insights and here's a concise summary for each book and why they're worth reading….and most of these are available as audio books.

 

"The Richest Man in Babylon" (George S. Clason):

Timeless financial wisdom wrapped in captivating ancient parables, making complex money principles accessible for everyone's understanding and application.

 

"Rich Dad, Poor Dad" (Robert Kiyosaki):

A perspective-shifting narrative highlighting the significance of financial education and investing, delivered through relatable storytelling that inspires proactive wealth-building strategies.

 

"Losing My Virginity" (Richard Branson):

Branson's exhilarating autobiography captures this entrepreneur’s audacity, resilience and innovation, offering invaluable lessons on risk-taking, creativity and building an empire.

 

"The Intelligent Investor" (Benjamin Graham):

A classic masterpiece shaping modern investing, imparting crucial principles on value investing, risk management and disciplined decision-making in financial markets.

 

"Outliers" (Malcolm Gladwell):

Unveiling the hidden factors behind success, Gladwell's exploration of outliers challenges conventional thinking, emphasizing the roles of environment, opportunity and dedication in achieving extraordinary results.

 

"Useful Belief: Because it's Better than Positive Thinking" (Chris Helder):

A pragmatic guide redirecting focus from mere positivity to actionable belief systems, empowering readers to adopt practical mindsets that yield tangible outcomes. Each book carries transformative lessons applicable across personal and professional domains, making them invaluable reads for anyone seeking growth and understanding.

 

"How to Win Friends and Influence People" (Dale Carnegie): Timeless guide on effective communication and relationship-building, offering practical tips applicable in personal and professional life.

 

"Atomic Habits" (James Clear):

Insightful strategies for habit formation and productivity enhancement, providing actionable methods to transform behaviours and achieve lasting change.

 

"Limitless" (Jim Kwik):

Unleashing mental potential through memory enhancement and accelerated learning techniques, fostering personal growth and cognitive optimization.

 

"Extreme Ownership" Jocko Willink:

Leadership principles rooted in accountability and responsibility, empowering individuals to take charge and excel in both work and life.

 

“Empire of Debt: The Rise of an Epic Financial Crisis” (Addison Wiggin and Bill Bonner):

Insightful exploration of historical and economic factors contributing to contemporary financial crises, providing valuable perspectives on global finance.

 

“Confessions of an Economic Hitman” (John Perkins):

Revealing firsthand accounts of economic manipulation and its global implications, offering a critical look at geopolitical influences on international economies.

 

“Principles for Dealing with the Changing World Order” (Ray Dalio):

Dalio's insights into navigating a shifting global landscape, offering principles for adapting and thriving amidst evolving world dynamics.

 

“The Subtle Art of Not Giving a F**k” (Mark Manson):

A refreshing take on personal development, advocating for focusing on what truly matters and letting go of societal pressures.

 

“The Old Man and the Sea” (Ernest Hemingway):

Hemingway's poignant tale of determination and resilience in the face of adversity, a timeless classic about the human spirit.

 

“Fahrenheit 451” (Ray Bradbury):

 A dystopian narrative highlighting the dangers of censorship and the importance of critical thinking, still relevant in today's society.

 

"The Mountain Is You” (Brianna Wiest):

A guide to self-discovery and inner transformation, encouraging readers to confront personal obstacles and find empowerment within themselves.

 

"Never Split the Difference: Negotiating as if Your Life Depends on It” (Chris Voss):

Insightful negotiation tactics derived from high-stakes situations, offering practical strategies applicable in various aspects of life and business. Each book holds valuable insights, from personal development to navigating complex global issues, making them essential reads for diverse perspectives and knowledge enrichment.

 

“The Four Agreements: A Practical Guide to Personal Freedom” (Don Miguel Ruiz):

Timeless wisdom outlining four guiding principles for personal growth and freedom, offering transformative insights to break self-limiting beliefs and achieve emotional liberation.

 

“The Alchemist” (Paulo Coelho):

A captivating tale of self-discovery and destiny, inspiring readers with its profound narrative on pursuing dreams and finding meaning in life's journey. Both books offer profound insights into personal growth and fulfilment, making them essential reads for anyone seeking wisdom and inspiration.

 

In the age of abundant information, the temptation to embark on self-directed research on unfamiliar subjects is high. However, there are inherent risks and limitations to solely relying on self-conducted research when delving into topics one lacks expertise in. This weeks podcast takes a peek into the pitfalls of relying solely on self-research and highlights the importance of seeking expert guidance and reliable sources.

While self-conducted research can be a starting point for gaining initial exposure to unfamiliar subjects, relying solely on it without expert guidance is fraught with risks. Lack of expertise, biases, limited context, time constraints, absence of peer review, and potential oversight of nuanced interpretations all contribute to the pitfalls of self-research. To ensure accuracy and depth of understanding, it is crucial to supplement self-research with expert guidance, peer-reviewed sources, and a willingness to acknowledge one's limitations. Embracing the expertise of professionals and engaging in critical dialogue enhances the quality and reliability of research, leading to more informed and well-rounded perspectives on unfamiliar subjects.

Hit that like button to show us the Love........ xx

Albo and is merry band of government people has unveiled they/there/thems first budget. Well done.

Here’s what you need to do. Nothing, its all been done for you but just in case you needed to add to the conversation flow at this weekends family BBQ I have slimmed it down.

• We don’t expect this to have any long term impact on investment outcomes with respect to property investment (now is still a great time to invest).
• There will be less net spending by the government as well as increased revenue from relatively high commodity prices and some increased tax revenue.
• Public debt still remains low compared to other countries
• Expected boost in housing supply from 2024 onwards
• Expect continued rent increases as the undersupply grows
• Lower budget deficits until 2023 doesn’t add to inflation
• Less stimulus so that doesn’t put upward pressure on interest rates
• Probably one more rate hike next week and then we’ve peaked
• Deficit this year expected to be $37b (compared to $78b in March)
• Government expects lower budget deficits in 2022 and 2023
• Government expects CPI to peak at 7.75% this year
• GDP growth for 2023-24 revised down to 1.5% due to weaker consumer spending
• Unemployment rate expected to rise from 3.5% to 4.5% by 2024
• Net immigration expected to rise to 235,000 (back to pre-pandemic levels)
• Terms of trade supported by higher iron ore prices (which will also help reduce the budget deficit)
• No new fiscal stimulus for next year (also reduce budget deficit)

Handy hint definitions to get you through grown up talks: 

A fiscal deficit is a shortfall in a government's income compared with its spending.

A fiscal stimulus an attempt by a government to increase economic activity by doing things like reducing taxes, increasing government spending, or sometimes they do both.

 

The great Australian dream used to be, we move out from Mum and Dads house, rent while at Uni, get qualified, get a job in the mail room at the company you'll work at for the next 30 years, meet the person of your dreams, have 2.3 kids get a dog, drive a Volvo station waggon, pay the house off just before you get your gold retirement watch, collect the pension, then just wait to die. while your kids look forward to doing the same kind of thing.

Then a whole lot of change happened in the world.... The great Australian Dream has changed, we are having kids later in life, we want a convenience of living, a restaurant café lifestyle, we want to find new employment opportunities every few years, we don't want to be stuck in traffic for 3 hours a day, we want a work/life balance.

"When do we want it?....we want it now!!!!!"

The great mysteries of Repayment frequency

Congratulations, you’ve bought that property, your loan is approved and you are now looking at the loan documents.

Staring back at you from the pages of the mortgage are all the repayment options and they want to know how often you are going to pay them

What do you pick?

Weekly, fortnightly, half monthly….monthly, minimum, higher, standard ……………Arhhhhh

You run from the room screaming.

Most home loans in Australia quote a standard monthly repayment scheduled as it default. But you could potentially save money if you can alter the frequency of your repayments.

Lets look at the basics here

Gen Z, refers to the generation of people born between 1997 to 2012. This means, the oldest Gen Zs would be 26 years old, and the youngest would be 11 years old. 

Dr Tony Hayek is back with us this week. As this podcast was being recorded the rest of the office was putting the finishing touches to an education event aimed at showing Gen-Z (and their family) all about how they can get into property. Educating and planting the seed for your long-term investment journey . Dr Tony and Owun talk about how you can help yourself in creating a plan and set goals to start your investment portfolio.

• Help you create a plan to start your investment portfolio.
• Show you that with the right education, investing is easier than you think.
• Explain how you and other young Aussies are in a great spot to make some serious money through property.

 

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Do you lay under the stars at night pondering the universe and what's beyond all that glitter in the sky and then thoughts like

"What is the difference between a Financial Planner and a Financial Advisor??"

shoot across your mind like a wonky satellite spiralling out of orbit? 

"...and exactly how rich do I have to be to need one??"

Trouble yourself not more, come listen to this weeks show.

Our special guest to help smooth out your mind is Scott Taylor from Financial Accord. 

He's not my cousin....we just happen to have a common as muck surname.

"Retiring today is completely different to what it was 20 and 30 years ago because people are more active, living longer, they want to see the grandkids and travel".   Scott Taylor

 

If you liked his style and need some help contact Scott:

Scott Taylor

scott@financialaccord.com.au Office: 9888 2544 Mobile: 0439 988 163

King Charles III has inherited his mother’s wealth worth a combined £17billion.

The vast majority of this wealth has been passed down over nearly 1000 years rather than being created by the current generation.

It consists almost entirely of centuries-long ownership of land and property across the country and even the seabed around the British Isles. With the ownership dating back to at least 1066 during the Norman conquest of Britain.

The accumulation of land as a form of generational wealth has also been reflected in pop culture with shows such as Yellowstone.

At its core, Yellowstone is really about a land battle. It’s a western set in the modern day about a 150-year-old ranching dynasty in Montana with the Patriarch John Dutton fighting to retain control of one of the largest ranches in America.

The ranch is land passed down from six generations of Dutton’s but is now sought after by developers and the neighboring Native Americans wanting to settle a historical score. Tune into this show and as we have a look at other assets as a store of generational wealth and you'll find out what Fiat currency is.....and no its not rusty Italian cars.

Hit the like button please and pop next door to your neighbours and tell them to listen too. 

The term 'Gearing' is when you borrow money to invest, and it’s typically talked about in the context of investment properties.

The income earned from your investment property is either positively or negatively geared.

A property is positively geared when your rental return (the amount of rent you receive from your tenants) is higher than your interest repayments and other property-related expenses (e.g. strata levies, council and water rates).

A property is negatively geared when your rental return is less than your interest repayments and other property-related expenses.

Sometimes an investment property can be neutrally geared if the expenses and income are equal.

So Positive gearing must be the way to go…..

Actually…. That not entirely correct, lets look at a bit deeper into some of the benefits and the drawbacks.

 

Ok, I admit to catching your eye with 'sexy' in the title and for most of you (with the exception to maybe accountants) the though of trying to start a budget is a million miles away from ever being sexy.

But if you are struggling to make ends meet or want to one day buy that home or investment, you need to stop wasting time, wasting money and consider that a budget is a tool to help you get the job done. You'll eventually find this very arousing.  We talk about goal setting and here's the effective way to do it using S.M.A.R.T.

• Specific, make them defined not vague.
• Measurable, add a time of financial value.
• Actionable, you must be really capable of being able to achieve your financial goals.
• Realistic, make them challenging but make them achievable. 
• Timetabled, put a fine time line or deadline on them, progressive milestones dates a great to use.

Evaluate your progress, celebrate you wins, learn from your mistakes, don't ever give up. Let us know how you are going.  

Christmas is a time of joy and celebration, but for many it can also be a financial challenge if you're not well-prepared. To ensure your holiday season is filled with merriment rather than money worries, here are five financial tips to help you better prepare for an Aussie Christmas.

1. Create a Christmas Budget:

One of the most effective ways to prepare for Christmas is by determining a comprehensive budget. Start by a list of all your expected expenses, including gifts, decorations, food, and travel. Be realistic and avoid overspending. Setting a budget not only helps you keep track of your expenses but also allows you to allocate those precious funds wisely, preventing unnecessary debt accumulation in the months after.

2. Save in Advance:

If you haven't already, start setting aside money well before the 25th of December to cover your expenses. Try opening a dedicated savings account and contribute regularly. A great idea is to set up an automatic transfer on payday so you consistently add to your Christmas fund. This saving in advance will avoid you resorting to credit cards.

3. Make a Gift List:

Gift-giving is an big part of Christmas for so many of us, but it can be expensive. Create a list gift-receivers before you head off shopping and determine a spending limit for each person. This is going to get you to be creative and that’s not at all a good thing. Thoughtful, heartfelt gifts often mean more than expensive ones. If you’re artsy or a baker, consider homemade gifts which can be more budget-friendly and memorable.

4. Shop Smart and Early:

Avoid the last-minute rush and the temptation to overspend by starting your Christmas shopping early. Keep an eye out for sales and discounts throughout the year and take advantage of sales events. Shopping in advance allows you to spread your expenses over several months, reducing the financial burden as the holiday season approaches.

5. Set Realistic Expectations:

It's essential to manage expectations during the Christmas season. Communicate with your loved ones about your budget and encourage them to do the same. Be open about your financial boundaries and explore alternatives like a Secret Santa gift exchange, where each person buys one gift, reducing the overall cost of gift-giving.

As the holiday season approaches, keep these financial tips in mind to help you better prepare for Christmas. By planning ahead, setting a budget, saving in advance, and shopping wisely, you can enjoy the festivities without the stress of overspending.

 

Often depicted in movies as the pinnacle of the financial world and constantly popping up in our weekly news broadcasts, Wall Street is a symbol of financial power and influence, but what exactly is it?

 

Wall Street is more than just a street in Lower Manhattan, New York. It's the beating heart of the American financial system. This bustling epicentre is home to some of the world's largest financial institutions, including banks, stock exchanges and investment firms.

The New York Stock Exchange's history traces back to the signing of the Buttonwood Agreement by twenty-four New York City stockbrokers and merchants on May 17, 1792, under a Buttonwood tree located outside 68 Wall Street.

This agreement organized securities trading in New York City and marked the beginning of the New York Stock Exchange.

At its core, Wall Street serves as the centre of the stock market in the United States. The New York Stock Exchange (NYSE) and NASDAQ*, two of the most prominent stock exchanges globally are based here. These exchanges provide a platform for buying and selling shares of publicly traded companies.

The connection of global financial markets means that what happens on Wall Street doesn't stay confined to its physical location. News of a major economic event or a shift in investor confidence on Wall Street can and will quickly travel worldwide, affecting markets in Asia, Europe and elsewhere for the positive and the negative. This link underscores the significance pull Wall Street in shaping the broader global financial landscape.

Owun

CPI, The consumer price index

You will see and hear it abbreviated to C.P.I. This is the instrument used worldwide to measure inflation.

It is pretty much the main inflation report for the futures and financial markets. Any unexpected rises in this indicator usually lead to falling bond prices, rising interest rates, and increased market volatility.

Now before we go much further into this, it’s important to understand that there is no single best measure of inflation.  Ideally, such an indicator would be comprehensive and cover price changes for all goods and services traded in the economy. However, different measures of price change are suited to analysing different parts of the economy, so the best approach depends on how the data is going to be used.

How is the CPI used?  tune into this weeks episode to find out. 

In 1939 the British government released a motivational poster that has become synonymous

"Keep calm and carry on"

It was intended to raise the moral of the British public, which at the time was greatly threatened by mass air attacks and the potential of invasion. Fear not fellow Australians nobody is trying to pinch your house, nobody is trying to kick you out into the street.

Don't try and figure all of this out on your own you're not meant to and please don’t jump on doctor Google and make all of your decision's from that.

Our Aussie economy is doing well, the outlook is very positive and the Reserve Bank (RBA) are not unhappy with us. Remembering that the RBA work outside of any political influences. 

In the words of Douglas Adams....."Don't Panic".

What are the 3 main things that banks look for in your mortgage applications? 

The 3 C's of Credit, Character, Capacity and Collateral

 

Our special studio guest this week is Dr Tony Nguyen, mortgage broker and head of DM & King Financial.  Tony takes us through the finer points of these three very basic but vitally important items.

The 3 Cs of credit are a common set of principles that banks and other mortgage lenders consider when assessing your mortgage applications.

It doesn’t matter if it’s a home loan or an investment property loan. The three Cs not only help the lender understand your needs and their risk but can also help them assess your deal much more efficiently.

Character:

From your credit history, a lender may decide whether you are someone they can depend upon to repay a debt. They look at items such as

• Have you had a loan before?
• Are you paying your bills on time?
• How long have you been at your present address?
• How long have you been at your job?

Capacity:

This refers to your ability to repay the debt. You got enough income to support the loan repayments long term.

• What is your current income?
• Do you have any other current loans?
• What are your living expenses? 
• How many dependents do you have?

Collateral:

Any lender wants to know if you have any valuable assets, especially real estate or savings with which could be used to secure or make the repayment.

 

Dr. Tony Nguyen

• DM & King Financial
• Mobile: 0406 889 990
• Email: tony@dmandking.com.au

 

When first-time property buyers make mistakes, they are financial and strategic decisions. This week with the assistance of our special guest Diya Dhadda, Social Media Manager extraordinaire at Blue Wealth. Owun and Diya are going to navigate the daunting journey of the first-time property buyer.

Diya recently put together a very successful education event aimed right at Gen Z that unravelled the complexities and gave expert insights and tips to empower the younger generation in making informed decisions.

We chat about how to avoid the financial pitfalls to navigating the market and pave the way for a smooth and savvy entry into real estate ownership.

 

With around 97 banking companies offering hundreds and hundreds of differing mortgage products it’s no wonder it makes you dizzy trying to find an ideal solution to fit all your needs.

Every day the lenders marketing departments swing into action, bombarding your brain with incentives – be it low advertised mortgage rates, seemingly huge discounts or the current trend of ‘cash-back’ offers. With so much happening, it is natural to feel stressed out and confused.

The fact is when many Australians try and navigate the mortgage maze too many make some critical errors.   

So this week we take a walk around the park with my Top 5 common mortgage mistakes....and hopefully you'll be able to avoid them. 

Prepare to decode the enigma of superannuation with our latest podcast show, as we go Unravelling the the Mystery and find out the answer to the question, Is it Designed to Baffle?" In this episode, we're thrilled to welcome a special expert guest, Tyron Mitchell, founder of Orange & Bathurst Financial Planning. Tyron brings over two decades of financial wisdom to the microphone and he'll guide us through the labyrinth of questions. When is the right time to first see a Financial Advisor?? Together, we'll demystify complex terms, regulations, and strategies, helping you start to take control of your financial future. Tune in for invaluable insights, actionable advice, and the keys to unlock your superannuation's full potential. Hit the Subscribe button and get some clarity!

 

You can contact Tyron and his team:

Orange Financial Planning enquiries@orangefinancialplanning.com.au

In the world of sports and finance, the journey from being a high-level professional athlete

to using the skills learned to create wealth is a fascinating paradigm.

 

The desire to win:

Both paths require dedication, resilience and strategic thinking, but each offers distinct challenges and rewards.

High-level professional athletes often measure success in terms of physical prowess, competitive achievements and the fame it attracts. Athletes are often devoting years to rigorous training, mastering their craft and pushing the boundaries of human performance. These athletes understand that any form of greatness requires sacrifice,

Similarly, wealth creation demands dedication and hard work. Successful entrepreneurs and investors apply the same tenacity and discipline they honed as athletes to navigate the world of finance. They’ll strive for greatness in their chosen field, continuously learning, adapting and pushing their limits.

Andrew Mortimer is our very special guest, if you know anything about Rugby League you'll know the Mortimer name sits proudly in the sport. Andrew knows lots about playing sport at a high level and the parallel of creating wealth using the same skills in creating wealth for the long term.

Athletes face injuries, failure, defeats and setbacks, us mere mortals who are aiming to create our own wealth will encounter financial risks, market volatility and occasionally failures.

 

Have you been laying asleep at night thinking 'What really is a Contract of Sale?'  and when you've discovered the answer to that you'll be asking yourself...

'Can I sell or buy property in Australia without one?'  'Are all these contracts are the same ??'

Oh you're hooked now........

Find out the answers to all of that and so much more by our studio guest Peter Ishak, property contract expert, all round nice guy and founder of Ishaks 

Ishaks is a professional, experienced team with a commitment to meticulous process and individual service. The organisation has deep knowledge of the conveyancing industry and are specialists in off the plan and house & land acquisitions. 

We all remember our first time... The First Home Buyer Assistance Scheme is a government initiative in New South Wales, Australia, that provides financial support to eligible first-time homebuyers. It includes benefits such as grants, exemptions, and concessions on stamp duty to help make homeownership more accessible and affordable for first home buyers. The First Home Buyer Assistance Scheme, also known as the First Home Owner Grant (FHOG), is a government initiative aimed at supporting eligible first-time homebuyers.

In addition to the grant, the scheme also offers exemptions or concessions on stamp duty for eligible first home buyers. This means that qualifying individuals can benefit from reduced or waived stamp duty costs, which can significantly reduce the upfront expenses associated with buying.

Joining us today is first home owners grant guru Joseph from With Finance

joseph@withfinance.com.au

 

 

 

I have been teaching adults how to do grown up things for over 29 years and whenever its around investing in property I tell them not to get emotional abut it.....but.

I recently read an article written by Fiona McGovern, Head of Client Services at Blue Wealth Property,  "Getting emotional about your investment property" and its changed the way I present....just a bit. I grabbed Fiona and made her talk about crying over Bake-Off TV shows and how family dinners can pave the way for your adult kids starting their own investment path.

"Remember, owning an investment property is a business. You are buying a product in order to provide a service that you are paid for – owning a business means you need to take the emotions out of the decision-making process. Buy based on the research and consider the product that will earn you the best return without adding your personal preferences for where you’d want to live. But enjoy the process, and be proud of your achievement, as we are every time we help a Blue Wealth client create opportunities for their future." Fiona McGovern

In a momentous announcement, the Australian federal government has officially confirmed the appointment of Michele Bullock as the new Governor of the Reserve Bank of Australia (RBA).

Scheduled to take office in September, Bullock will be the first woman to hold this prestigious position in the RBA's history, marking a significant milestone for gender representation in the country's central banking sector.

Michele Bullock's appointment comes after a distinguished career in economics and finance, spanning over three decades.

One of the primary concerns will be ensuring a sustainable recovery post the pandemic's impact. As the economy gradually rebounds, the RBA will play a crucial role in managing inflation, interest rates, and unemployment to achieve a balanced and stable growth trajectory.

Bullock is likely to emphasize the RBA's commitment to digital innovation. With ongoing discussions surrounding the issuance of a central bank digital currency (CBDC), her leadership could accelerate efforts to explore the potential benefits and risks of adopting such a digital currency.

This forward-looking approach aligns with the RBA's commitment to staying at the forefront of technological advancements in the financial sector.

Furthermore, her appointment signifies the RBA's dedication to promoting diversity and inclusivity within its ranks.

As the first female Governor, Bullock will serve as an inspiring role model for aspiring women in economics and finance, encouraging more women to pursue leadership roles in the central banking and financial sectors.

So congratulations again Michele, if you happen to be listening to this edition when you're walking the dog, get in touch we'd love to have you on the show.

 

"If I had asked people what they wanted, they would have said faster horses."

Henry Ford 1863-1947 Founder Ford Motor Company 

 

Henry Ford is a pioneer of the automobile industry, he was the founder of Ford Motor Company and chief developer of the assembly line technique of mass production. His statement holds a profound lesson in innovation and vision.

Before we pull the wheels off this statement, there has been debate for many years if Ford did utter those exact words and the only guy that can really tell us (that being Henry Ford himself), died in 1947.

But let’s still jump aboard my explanation truck and take a drive around the block to unravel the meaning behind this quote and understand why it's more than just a clever phrase.

Embracing innovation over familiarity:

Picture a world where horses were the primary mode of transportation. In that context, asking people what they wanted might have resulted in responses like "stronger horses" or "faster horses." These answers make sense based on what was familiar and within the existing frame of reference.

Ford's quote means embracing a mindset of innovation and thinking beyond the expected. It means asking "why" and "what if" instead of just "what." It's about creating products and solutions that exceed expectations and address needs people may not even be aware of.

Henry Ford's quote highlights that true innovation and your own wealth growth often come from being provided solutions you didn't know you needed, rather than simply fulfilling a want.

Owun

Knowledge is Power

Owun is the Senior Education Specialist at the Blue Wealth Property Academy and hosts The Clever Investor podcast. He has worked in finance and property for well over 20 years and is known for being able to easily explain the complex world of wealth creation.

 

In this world where currently live, convenience reigns supreme, the extreme ease of ordering takeaway food has become a go-to solution for many. While it satisfies cravings and offers a break from the thought of slaving away in your own kitchen, this seemingly harmless habit can leave a lingering and detrimental aftertaste on your financial health and any long-term investment plans. At first glance, the occasional order of takeout may seem inconsequential. A quick fix for hunger or a treat after a long day. However, these seemingly minor expenses can quietly erode your financial foundation.

Consider this,  Australians are spending an average of $60 on the various food delivery services each and every week, so this habit of ordering food delivery will blow-out to well over $3,120 a year. The compounding effect of these small expenses is often underestimated. Every dollar spent on takeaways denies your investments the opportunity to grow and accumulate future value. Let’s not forget the impact of excessive takeaway consumption extends beyond the financial realm. Regularly indulging in fast food not only affects your wallet but also your health. But we’re not just taking about a possible expanding waistline, think of the hidden cost that lay in the potential health issues that can arise, leading to medical expenses that can put dents your finances. These health concerns can further disrupt your ability to save and invest, and the knock on effect of creating a cycle that hampers your long-term financial security. So, what strategies can be employed to counteract this impact? It’s not necessarily about completely eliminating the convenience of a takeaway from your life, but rather about adopting a mindful approach to spending and consumption.

This tasty habit of ordering takeaway food might seem harmless in the moment, but it can have far-reaching consequences for your financial future. If you want to make a difference its going to take some effort on your behalf. Revaluating spending habits, setting (or starting) budgets, embracing home-cooked meals and redirecting saved funds into investments, you’ll pave the way for a more secure financial future.

I think you’ll enjoy the taste of financial success and find it far more satisfying than any fleeting pleasure from a takeaway.

 

Have you ever wondered where all the numbers and facts about Australia come from? Well, a big part of that job is done by the Australian Bureau of Statistics, or ABS for short.

A treasure trove of information:

Imagine you're curious about how many people live in Australia, how many babies are born each year, or how many people have jobs. The ABS is the place to go for these kinds of answers. Its main role is to collect, analyse and share all sorts of information about Australia and its people.

The ABS plays a crucial role in helping the government make decisions. Let's say the government wants to know how many people are unemployed or how many new businesses are opening up. They can turn to the ABS for this information. This helps the government create policies and plans that are based on real facts and figures, making sure they're making the right choices for the country.

The Australian Bureau of Statistics is like a friendly detective agency that collects, investigates and shares information about Australia and its people. From population numbers to economic data, the ABS helps us understand how our country works and how it's changing. So, next time you're curious about Australia's facts and figures, you know where to look – the ABS has got you covered. The Australian Bureau of Statistics Website

What is a Trust?

In simple terms its a business structure....then after that it can get as complex as you want or need it to be.

Thankfully we have accountants in this world we live in and they love this stuff. I grabbed Dominic Myssy, head bean counter at Myssy + Co who's knows so much about them, he talks about trusts in his sleep.

According to the government definition. 'A trust is a business structure that doesn’t have an owner or owners in the traditional sense'.

The trust imposes an obligation on the trustee – a person or a company – to hold and operate the business assets for the benefit of others, the beneficiaries.

A trust is the most complex of the four standard business structures. It must have its own Australian Business Number and Tax File Number and requires a formal trust deed that outlines how the trust operates.

The Law society of NSW outlines that there are many differing types of trusts

There are many different kinds of trust. As well as the types of trust described below, trusts include superannuation funds, charitable trusts and special disability trusts.

The two main types of trusts which are used in business and by individuals are:

Discretionary (or family) trust:

A discretionary trust or family trust is the most common form used by families. The beneficiaries of the trust have no defined entitlement to the income or the assets of the trust. Each year, the trustee decides which beneficiaries are entitled to receive the income and how much they should get. For this reason, discretionary trusts have become popular in family tax planning.

Fixed or unit trust:

Unlike a discretionary trust, the beneficiaries of a fixed trust have a defined entitlement under the trust, similar to a shareholder in a company. This is usually done by dividing the trust into units in much the same way a company is divided into shares. The trustee does not have any discretion as to how they distribute the trust’s capital and income. A fixed or unit trust is often used for joint venture arrangements – for example, two families want to own an asset together.

When it comes to property investing, the journey can be both exciting and financially rewarding. However, navigating the intricate landscape of real estate and finance requires more than just blind enthusiasm, it demands a team of professionals who specialise in various aspects of the process. From property researchers and mortgage brokers to financial advisors, tax accountants, conveyancers and wills and estate lawyers.

Teamwork makes the dream work.

Assembling the right team is crucial for a successful and stress-free investment venture.

It’s a win-win:

Working together with this multidisciplinary team offers several advantages:

Expertise: Each professional brings specialised knowledge to the table, ensuring that every facet of your investment is meticulously addressed.

Risk Mitigation: Property investment involves financial, legal, and tax-related risks. With experts guiding you, potential pitfalls are identified and minimized, protecting your investment and financial well-being.

Time and Stress Savings: Dealing with property transactions, financial intricacies, and legal matters can be time-consuming and overwhelming. Entrusting these responsibilities to experts frees up your time and reduces stress.

Customised Strategies: A tailored approach ensures that your investment strategy aligns with your unique financial situation, risk tolerance, and long-term goals.

Long-Term Vision: Your team helps you create a roadmap for sustained success. They monitor market trends, evaluate your investment's performance and you as a team can adjust plans as needed.

In the realm of property investing, success isn't a solo endeavour, it's a collaborative journey guided by a team of experts. By enlisting the services of a property and wealth experts you position yourself for a prosperous and secure investment future. Investing wisely isn't just about buying a property, it's about building a legacy.

Stuck in this predicament?

Here is a super special show that was a Pop-up webinar event, so we are pushing past the normal bite-sized show and filling you with a massive amount of brilliant information.

This will help you make an informed decision and answer all your “sell vs hold” questions!   With 13 interest rate increases in the last 18 months, a few clients had been in touch to chat about whether they should sell their investment property or continue to hold? 

So together with @bluewealthproperty we made a Pop-Up webinar event hosted by Dr Tony Hayek to answer your questions and give you all the information you need to make the right decision for you. Like, subscribe and follow. 

Over ten years ago, when SMSF property lending started, the highest loan you could get was $500,000.

Back then, house prices were lower, and this type of lending was new. But now, SMSFs are the second biggest superannuation asset class in Australia. We got Strachan Taylor from Helia back on this weeks show, because Helia thinks that SMSF property lending has grown up and done well, so it's time to increase the most you can borrow.

Now, they're making it easier for SMSFs to get more money by increasing the loan-to-value ratio (LVR) to 90%. Most SMSF property loans require you to pay back the interest and principal (P & I) over 20 years or more.  SMSF property loans have done really well. This great news lines up perfectly with Blue Wealth Property's "Buying a Property With Your Super"

education event on the 1st of November.  Follow the links to book in.

Australia’s inflation, how prices for things go up, slowed down a lot in October.

People didn't spend as much money, so it's less likely the Reserve Bank will increase interest rates, which affects how much it costs to borrow money. The cost of living, or the average prices for things, went up by 4.9% over the past year. That's slower than the 5.6% rise in September.

The Australian Bureau of Statistics said this on a Wednesday. Those supposed experts thought prices would go up by 5.2%.

Some of the things that got more expensive were housing by 6.1%, transport by 5.9%, and food and drinks by 5.3%. But the government helped keep some costs from rising too much, like rents and electricity.

Compared to the month before, prices went down by 0.3% in October. Rents went down by 0.4%, and holiday travel costs dropped by 7%. These inflation numbers are the last big ones the Reserve Bank will look at before their final meeting of the year about interest rates. Before this, the bank had increased interest rates 13 times in a year and a half.

Michele Bullock, the newish boss of the Reserve Bank, talked about how they need to be careful. They want to control how much prices go up, but they also don't want to make it hard for the economy to grow or for people to find jobs. Some experts think because people are spending less and prices aren't going up so fast, the Reserve Bank might not increase interest rates again soon.

Talking of the RBA:

The Reserve Bank of Australia's boss, Michele Bullock, was talking at an event in Hong Kong this week. She mentioned that even though there's been a lot of talk about the 13 times interest rates went up, people's money situations at home are doing okay.

She seemed surprised that the economy in Australia handled these interest rate increases so well. Bullock said in The Australian Financial Review that despite all this talk or "noise," households and businesses in Australia are actually doing pretty well. Their money situation, called their "balance sheets," is in a good place.

Bullock mentioned that even though many families and businesses are facing a cost of living challenge, their situations are still good. But she also said it's "very uncertain" if prices will go back to normal in the next two years. She talked about being surprised by how strong the economy has been. It's doing better than expected, which means some prices for things like services are going up a bit more than they thought they would.

Bullock's little talk was to a group of important bankers, all this just before the final meeting of the Reserve Bank's board next Tuesday the 5th of December.

This week, the government will be making those legislation changes to how the Reserve Bank works. They want to change things a lot, like how often the bank's board meets to talk about interest rates. They are supposed to reduce the number of meetings from 11 a year to eight, and each meeting might be held over two days.

Let me start this by admitting that I’m obsessed with motorbikes.

I first rode a motorbike when I was about six and haven’t stopped. In my younger years, I raced bikes to some success and eventually became a professional instructor.

Part of why I want to build wealth is to buy a massive block of land, build an enormous barn, buy more bikes, and spend my greying years restoring them all.

Just like the wealth creation world, a large part of motorcycle training is having a plan.

Part of being a riding training instructor was to show people how to take the ‘fright from your ride.’

This episode we take a ride with some fundamental principles.

• Look where you want to go
• Prepare for the worst and you’ll never be surprised
• Look for the obvious dangers
• Time and Space
• Have an Exit plan
• Education builds skills

Happy investing and Stay Upright

Owun

“The investor’s chief problem and even his worst enemy - is likely to be himself.”

Benjamin Graham was a British-born American economist, professor and investor and one of the granddaddy's of modern day economics theory and thought.

The two main emotions we have are fear and greed – this is why some people are motivated by either the carrot or the stick.

Today we are not taking a peak behind the curtains, I want to lift the top off your head and show you what’s going on inside your head. But I can’t to this alone, we need and expert in the way we move our minds.

You might need to take two laps of the park on todays walk....this is a big subject, but so worth it.

 

We'd all love to think we are these highly organised machines, but invariably we still end up grabbing a shoe box full of receipts and dumping it on the accountants desk with a  "sorry....".

So for this week I wanted to get you some super simple things that you should be doing before the end of the next financial year.  As we move closer and closer to being a paperless society, the smart operators in the personal accounting world are embracing digitalising documentation, electronic signing and online statements. 

There are even amazing user-friendly Apps, which can track your income, expenses and even file your taxes from your own Smartphone. 

I sat us down in front of Bachir Zreika the CEO of The Tax Factor, fired up the microphones and let him loose. 

www.thetaxfactor.com.au

There a number of distinct advantages in new property and older property. 

 

But....before we dive into this weeks show lets cut straight to the chase, investing in property has one clear our aim,

"to build as much wealth as possible, with the least possible risk, in the smallest amount of time".

You need to be clear on whether new or old properties are going to help you achieve your investment goals.

 

Reduced Maintenance costs:

The simple fact that a building is new means that the building and it’s fixtures and fittings are less likely to require maintenance.

Lower vacancy rates:

The desirability of living in a lovely brand spanking new building, it is not often (definitely more so in the last three years) that a new building will have any vacancy after a month of construction being completed.

Higher tax deductions:

The Australian Tax system acknowledges that when you buy a new building, the building itself and all its fixtures and fittings will be loose value as they age. This depreciation is a business offset.

 

Older properties also have some advantages

Lower price

Due to age, you will be able to purchase an older property for comparatively less than a new property.

Yields

are slightly higher for older properties than new properties.

(this is not necessarily the case once tax deductions are accounted for with a new property)

 

There are certain things that are supposed to terrify us, things that go bump in the night, vampires in castles, clowns hiding in storm-water drains.

But Lenders Mortgage Insurance is as lovely as a basket of kittens and quite possibly the best invention since we started slicing up bread.

Don’t let any of BBQ experts tell you otherwise.

Lenders’ Mortgage Insurance was introduced into Australia in 1965 with the simple purpose of helping first home buyers to get into the property market.

LMI protects a lender in the event of a borrower defaulting on a residential mortgage. But remember, lenders hate risk. 

Happy Lender = Better deals for us all.

Ever wonder why despite warnings and cautionary tales, people still fall for financial scams?

Imagine a world where everyone is honest and trustworthy. While that's a nice thought, the reality is that financial scams have been around for centuries, and they still manage to trap unsuspecting victims.

Let's delve into the history of con artists and explore how modern technology has given a new boost to their schemes, followed by three essential tips to steer clear of their traps.

Con artists, also known as fraudsters or scammers, have been around since…forever. They're the smooth talkers who promise you riches or quick fixes, only to disappear with your hard-earned money. The history books are filled with tales of tricksters pulling off elaborate schemes that prey on people's vulnerabilities.

3 Tips to avoid financial scams and steer clear of the traps:

Stay Informed: Knowledge is your shield. Educate yourself about common scams, their tactics, and warning signs. Research before making any financial decisions and trust your instincts.

Verify and Double-Check: If something seems too good to be true, it probably is. Verify information from multiple sources, especially when it comes to investments, offers, or unknown contacts.

Guard Personal Information: Scammers often rely on personal details to build trust or create a fake identity. Never share sensitive information like bank details, passwords or tax file numbers with anyone you don't know or trust.

In the past, these swindlers operated in person, using charming words and disguises to win people's trust. They sold imaginary lands, fake miracle cures and bogus investment opportunities. They played on emotions, greed and sometimes desperation to convince victims to part with their money.

Fast-forward to today, and modern technology has opened up new avenues for scammers to work their magic.

In a world filled with digital advancements and sophisticated scams, staying cautious and informed is your best defence. By understanding the history of con artists, their psychological tactics and the convenience modern technology provides, you can hopefully outsmart scammers and safeguard your finances.

With knowledge and a bit of healthy scepticism, you can navigate the digital landscape safely and confidently.

Are you having thoughts of buying a property with a family or friends.

Is the thought of halving all the costs appealing to you?

There are lots of great reason for doing it, there are lots of great reasons for not doing it because it can seem like a bit of a battle getting into the property market for an investment or just somewhere to live. So the idea of buying with a friend or sibling could be a smart way to get a leg up to reach the first step of the ladder.

I dragged David Coulton and Michael Fratto of Scope Financial into the studio and got them to play good cop, bad cop on this subject that seems like such a good idea.

They pulled it all apart and came up with some great reasons to do it, not to do it and other solutions.

 

David Coulton & Michael Fratto

Scope Financial Services (02) 9651 5993

 

Basically, you buy and asset for one price and sell it for another price, the difference between the amounts is your capital gain or if you didn’t make any profit, that’s a ‘Capital Loss’. When we sell an asset, such as investment properties, shares or a business this triggers what’s called a ‘Capital Gains Tax event’ Let go back in time and have a look at what Tax is. Tax has been in the world for hundreds and hundreds of years and back in ye olden days it often had a spasmodic history mainly because it was usually associated with some sort of national emergency. The oldest types of direct taxation were either to pay off invaders or to fund a war so you could go off and invade some other country. In these ancient times, a city or region would run over and launch an attack on their neighbouring area, and if the battle went well and they overthrew the locals they would make them pay so the attacking would stop. This payment was often referred to as a tribute.  The imposers of these taxes were the leaders of the times, either the government or a good old blood thirty royal family.   After a while the leaders realised that it might be a good idea to continue the tax even after the extinction of its original purpose, normally this would be under the heading of defending the kingdom. Today, tax is money that us, the people have to pay to the government. When we sell an asset, such as investment properties, shares or a business this triggers what’s called a ‘Capital Gains Tax event’ Basically, you buy and asset for one price and sell it for another price, the difference between the amounts is your capital gain or if you didn’t make any profit, that’s a ‘Capital Loss’. But let’s say you do receive more for your asset than you paid for it, congratulations you’ve made money, but you'll have made a capital gain and you may need to pay this ‘Capital Gains Tax’.   How much Capital Gains Tax will I pay? The amount of Capital Gains Tax you’ll pay depends on factors including how long you’ve owned the asset, what your marginal tax rate is, and whether you’ve also made any capital losses. Your marginal tax rate is important because your capital gain will be added to your total income in that financial year’s tax return. The length of time you’ve held your asset is relevant because if you’ve held the asset for over 12 months, certain taxpayers can generally get a 50% discount on their capital gains tax.   What if I make a capital loss? If you’ve sold your assets for less than you paid for it, you’ve made a capital loss. However, the good news it, if you make a capital loss, you can potentially use it to reduce a capital gain in the same financial year.  

Definition of jargon noun: The language, especially the vocabulary, peculiar to a particular trade, profession, or group. ~ unintelligible or meaningless talk or writing; gibberish. any talk or writing that one does not understand is often vague in meaning.   It's high time we took a trip through the list of technical terminology we use in the financial worlds.    There's a big chunk to go through so we've split this into 2 parts. Sit back and enjoy the A - L of jargon explained in 'Clever Investor Podcast' speak.  

There is an old saying that 'if you fail to plan, you plan to fail'. A budget is a personal financial plan that you can use to make sure you have plenty of pay left at the end of the month.  Learning to make, plan and run your own Budget is a skill that takes time to perfect.

The Benefits of Budgeting

• You take control of your money
• Avoid unnecessary debt
• Pay off debt faster
• Show banks you are a low credit risk
• Much better for your mental health
• You become a better lover (I might have made this one up)

Property investment can be complex for first time investors.

In our typical 'Clever Investor' style you know it doesn't have to be that way, follow these nine simple steps.

#1 Have a Plan

#2 Know your Numbers

#3 Use a Mortgage Broker

#4 Get Educated

#5 Think with your Head

#6 Avoid Negative People

#7 All good things take Time

#8 Use a Property Manager

#9 Reflect, Review, Refocus

With property prices rising across all markets and interest rates starting to rise up, there will still be plenty of Australians questioning whether it’s the best time to sell and upgrade into a bigger home, or do they renovate their existing home.

While upgrading into a bigger and better home is quite often a simpler and more efficient solution – it is not always the most cost-effective option.

It’s really easy to say that before making any major financial decisions, it is important to weigh up the benefits of both options and determine which choice might be right for you and your financial situation.

There are a few basic but key factors to consider when deciding between selling to upgrade or renovating the current home. 

After a long day battling away at work, fighting the good fight you get home and find your place of solitude on the sofa, flopping down and switching on the TV. Those noble news readers, with pearly white teeth and perfect hair give you updates on everything that’s been going on out in the mad, mad world. In amongst the whirlwind tales of stock market rises, falls, political arguments, exchange rate rises and falls they repeat words and acronyms you’ve heard hundreds of times before…but never really understood. A favourite of the economic reporters is GDP.

Gross Domestic Product: GDP stands for Gross Domestic Product, and it’s a way to measure the size or value of a country's economy.

I want you to imagine that a country is like a big shop where goods and services are bought and sold. GDP is like adding up the value of all the things that are bought and sold in that store over a specific period, usually with the year. Get the headphones and get walking its time to learn again.......smash the like button please.

"The perception is that these landlords are are these rich people that sit back and collect the rent and drink cocktails all week......"

The high percentage of property investors are the everyday people in the street, investing to create a better future for themselves and family.  We also know that the highest percentage own just one property. So lets assume quiet accurately that they are not 'experts' just yet. So its understandable that when the landlords (and mine too) mortgage repayments are drifting up from interest rate rises.....they'll ask the question. 

"What do I do now?"

 "Should I increase my tenant’s rent when their lease is up ?"

We have a rental crisis on our hands, (increased construction costs and undersupply of property). Your Property Manager is the person that needs to swiftly identify the peaks in demand and jump at every opportunity there is to maximise your financial position.

I put a call into my good friend Helen Matsoukas, the most level headed expert in the world of Property Management.

Helen leads up the Blue Wealth Property Management Integration team and is always a breath of fresh air to speak with.

You can read her great blog on increasing tenants rent.

“Life is inherently risky. There is only one big risk you should avoid at all costs, and that is the risk of doing nothing.” Denis Waitley

 

Everything we do in life involves some risk. A high-risk activity that, for the large part, is taken for granted every day is driving our cars. Over the last two decades, we have seen an enormous leap in the number of car electromechanical devices to help us avoid accidents or protect ourselves. If you’ve only been driving for the last 20 years, you will take for granted that cars have seatbelts, antilock brakes, and airbags. All these items have evolved to protect us from injury, but the mere fact we know they are there also instills a greater level of security.

Go with me on this analogy of wearing a seatbelt.

I know the risks of driving and what could happen to me. I have no plan to crash whenever I drive my car. However, I’ll still wear my seatbelt, which gives me the confidence to go on the freeway. If there’s an incident, my antilock brakes help me stay in control. If there is a crash, my seatbelt is there, and of course, the airbags too.

If none of that equipment was in the car, I’d be driving around at 20kph and freaking out if any other road users came near me.

The protection gives me confidence.

So, linking all that back to investing. No matter what we decide to participate in, property, shares, or even bitcoin, there’s a risk, and it has always taken courage to invest. The fear of potentially taking a loss is too great for so many Australians that they’ll never end up investing. The result is missing out on building wealth and, ultimately, having the lifestyle or retirement of their dreams.

However, in the world of investing, we have our own versions of seatbelts, antilock brakes, and airbags. These all come under the heading of insurance.

Tax is a compulsory financial charge that is imposed by all the governments on us, the people, the individuals, the businesses,

The reason is quite simple, its to fund public expenditures and services. It is typically levied based on income, profits, property, transactions, or goods and services. Government have no spending money without it so failure to pay may result in some big legal consequences.

The Victorian government recently announced a lot of proposed changes to its land tax. If these make it through the legislative process they will come into effect from July 1, 2023, if they are legislated. The Victorian state government, like many other states and territories follows a legislative process that involves several stages.

It begins with the introduction of a bill, followed by debates and scrutiny in Parliament. The bill must then receive majority support from both the Legislative Assembly and Legislative Council, then it becomes law. Gavin Chau is the Blue Wealth Property Senior Economist and as you hit the treadmill at the gym, he's here to tell us all WHY.... is the state of Victoria wanting to make changes to land tax laws and do we need to panic, sell everything and run for the hills...???

Once upon a time in the sprawling city of Cashington, there lived a gentleman named Hugh Mann, an uneducated property investor whose ambitions rivalled the grandeur of the city itself.

Hugh had risen from humble beginnings, he lacked formal investment training but he felt he always possessing a natural judgment for spotting profitable opportunities in the real estate market.

On a bitterly cold Christmas Eve, Hugh found himself in his chilly cramped office, surrounded by stacks of papers and blueprints.

The flickering candlelight cast elongated shadows on the peeling wallpaper, creating an atmosphere both dim and cosy.

His mind, however, was far from the festivity of the season, engrossed in plans and strategies to expand his property empire..........but then.

You either must save it or you must grow it.

Saving is really code for super, that's the compulsory saving that you have been doing since you first entered the workforce. Money set aside to grow for that mysterious place in the distance called retirement.

The only other way to bridge this Gap is to go for growth. So we'll need to use the technique of leverage. To buy something that grows in value over time and creates substantial equity.

There are only two things that you can borrow to buy- shares or property.

Shares can be a tough road to follow, daily attention is normally required and its something that the average person is not comfortable with, so the reward over risk leaves us with property. So as you walk the dog around the park, lets take a look at the growth of the population and where they are going to call home and how this works into our investment plans.

Have you got 30 minutes to spare during your lunch break or after work? With 13 interest rate increases in the last 18 months, a few clients have been in touch to chat about whether they should sell their investment property or continue to hold. In light of this, we're hosting a Pop-Up event where we'll answer your questions and give you all the information you need to make the right decision for you. Tune into the online event at 12:30pm or 7:30pm on Tuesday 12 December. Register HERE: 12:30pm - https://bit.ly/3NaWIs7 7:30pm - https://bit.ly/3RmmLPA  

Dictionary definition: lottery ~ noun

• a means of raising money by selling numbered tickets and giving prizes to the holders of numbers drawn at random.
• a situation whose success or outcome is governed by chance.

Winning the jackpot in lotto might seem like a stroke of luck, but have you considered the post-lottery experience?

You allegedly have a 1 in 77 million chance of winning over $1million on Australian Powerball. Remembering the basics of what it is, its gambling designed to raise money for the organiser and as long as there have been lottery winners there are lottery losers.

For years and years, former big-time winners have been sharing insights on how they not only lost all the money, but they also ended up losing companions, friends and attracting unwanted attention along the way.

A dream comes true??

Lottery millionaires often lose their newfound wealth quickly due to a lack of financial education. While winning the lottery seems like a dream come true, the sudden influx of money can be overwhelming and lead to impulsive decisions. Without a proper understanding of managing their finances, these individuals often fall into common traps that erode their wealth rapidly.

Many big-time lottery winners go on wild spending sprees making extravagant purchases without considering the long-term consequences. They buy expensive cars, luxury homes and indulge in lavish holidays. It seems innocent at the start but this reckless spending can drain their funds rapidly, leaving them with little to invest or save for the future. They often overlook the importance of budgeting and financial planning, which are essential for building and preserving wealth.

Lottery millionaires losing their fortunes quickly is a common occurrence due to their lack of financial education. The absence of financial knowhow leads to impulsive spending, susceptibility to scams, poor investments and an inability to plan for the future. Building and maintaining wealth requires an understanding of financial management and without it, the dream of long-term financial freedom can quickly turn into a nightmare of debt and regret.

But who are we kidding, winning lotto would be great, spend wisely, have a plan and as I always say, Knowledge is Power.

Just like a football team adjusts its game plan throughout the season to achieve victory, it's essential to understand the importance of changing your personal financial goals over time.

Just as no two games are the same, the financial journey you embark on is influenced by many variables. In this article, we'll explore how your financial goals can be likened to a football team's game plan and why flexibility is the key to success.

Structuring and adjusting loans are crucial to any transaction, no matter who you are. Nathan Newham and Russell Quinlan are two such experts from Mortgage Choice in Hornsby and Sydney’s Northern Beaches.

We chat about the dangers of not having a game plan, how the young adult kids of home owners have the power to help them get on the pathway to making some great changes. Especially if you encounter setbacks or changes in your life, it's essential to set new goals and adjust your financial plan accordingly

These realities can affect your ability to meet your initial financial goals. By remaining flexible, setting new goals when necessary, and seeking guidance, you can tackle financial challenges head-on and ultimately reach your end game of financial security and success. Remember, it's not about how you start; it's about how you adapt, persevere, and finish strong.

“The investor’s chief problem, and even his worst enemy, is likely to be himself.”

 

All money markets are overwhelmingly controlled by investor emotions.

At the bottom, the majority always expect prices to fall lower,

maybe crash…and at the top, they expect prices to go higher.

This episode we look deeply at how doing well with money isn’t necessarily about what you know.

It’s about how you behave.

 

 

We have seen recent interest rate increases and last week we have finally seen several lenders begin lowering their serviceability assessments rates for certain borrowers

This is all in a bid to help more customers refinance.

We talked a while ago about how many fix rated home loans are expiring this year Over 800,000 loans are coming off some lovely low rates and the rates going to jump and their repayments are for most pretty much doubling.

Mortgage Rate in Australia averaged 6.87 Percent from 1990 until 2023, It reached an all time high of 15.50 Percent in September of 1990 and a record low of 2.14 Percent in March of 2021.

Historically, home loan rates in Australia have varied significantly over time due to multiple factors,

including economic conditions, inflation, monetary policy decisions, and market competition.

The rates have experienced both highs and lows, influenced by fluctuations in the Reserve Bank of Australia's (RBA) official cash rate, which impacts lending rates.

So if interest rates are still well under what the 30 year average has been.

Why are my mortgage broking friends telling me that it’s a struggle to get their clients loans to service at the level they need,

Why are these industry experts struggling to get so many deals over the line???

The answers is serviceability assessments rates leader are required to use. Tell the dog its time for walkies and lets find out.  

Eggs are a symbol of new life, fertility, and in many traditions a sign of rebirth. In some cultures, eggs are associated with spring and the renewal of nature, while in others they are seen as a symbol of creation in the cycle of life. In religious contexts, eggs sometimes represent spiritual renewal or resurrection. Eggs are also a extremely rich source of nutrients and are often associated with health and vitality. 

Gudetama is a cartoon character egg yolk created in 2013 by the same Japanese company that created the very popular ‘Hello Kitty’.  Gudetama main traits are it’s always lazy, tired, and complaining about its hard life.

It has become an extremely popular character gaining a global following and a 100% rating on Rotten Tomatoes for its Netflix show. The original target audience was little children, but it has surprisingly become popular with teenagers and young adults who relate to its mood.

Gavin Chau is an economist and Senior Research Analyst at Blue Wealth Property. We asked him, what does this little egg have to do with world wide economics……

Welcome to the podcast!

Tax time always fun and while property investors are often happy with the potential tax credits they can get, it's becoming a horror show for accountants with the increasing workload.

Today, we'll discuss some essential tips to stay on the good side of the Australian Taxation Office (ATO) and avoid potential penalties.

The ATO is taking a closer look at rental property owners who may be incorrectly reporting their taxes.

According to their estimates, nine out of ten landlords are either under-reporting their income or over-claiming deductions, resulting in a staggering $1.3 billion in lost revenue annually – roughly $400 per investment property!

To address this issue, the ATO is collaborating with lenders and property managers, cross-referencing data to ensure that tax returns are accurate. So, what are the key areas they are focusing on?

Remember, failure to comply with the ATO's requirements could lead to penalties of up to 75% of the tax shortfall – something no landlord wants to deal with!

Keep in mind that the ATO may request evidence to support your claims, so having receipts, invoices, and bank statements ready is crucial.

In case of an audit, you must be prepared to provide all relevant documentation.

By being diligent and adhering to these guidelines, you can ensure your tax returns are accurate, and you'll be better equipped to avoid potential penalties.

I hope this help keep it smooth and worry-free!

Lets get going and launch into 2023 and remind ourselves the reasons to invest.

For some its building long-term wealth, paying off that home mortgage or a better lifestyle later on. Maybe you just don't know why.

Are you going to use property, gold, shares?

The worlds banks recognise that property, especially residential property is the lowest risk. Why?

How are we going to invest in property? What is leverage?  What are the risks?

Our bite-sized chunks of brilliance make us the easiest to understand finance podcast, no episode is ever more than 20 minutes. 'Knowledge is Power' that's what we are all about. Helping you understand what's possible.

Take us with you next time you take the dog for a walk. 

Imagine a time long ago when people needed money urgently and had to give up something valuable as collateral.

This practice marked the beginnings of pawnbroking, a service that has evolved over centuries to become what we see today.

Let's take a journey through history to understand how pawnbrokers have transformed into the modern services they are now.

Pawnbroking has ancient roots, dating back well over three thousand years. In early civilizations, people faced times when they needed immediate cash but didn't want to permanently part with their cherished belongings. So, they turned to pawnbrokers. These brokers lent money in exchange for items like jewellery, farming tools and even weapons. The borrower could later reclaim their belongings by repaying the loan along with a bit of extra money as interest.

My late grandparents and my mother were part of the world of pawnbroking in London, England from the 1940’s into the 1970’s.

They understood the value of lending a helping hand during times of need.

In their small pawnshop, near Tower Bridge in South East London, they provided an important lifeline to people who required immediate funds but didn't want to part with their cherished belongings forever. This concept, rooted in mutual support, echoes the origins of pawnbroking throughout history.

As societies evolved, so did pawnbroking. During the Middle Ages and Renaissance periods, pawnbroking established itself as a formal trade. It was a way for people from all walks of life to secure quick loans without selling their belongings permanently. These pawnshops became important community institutions, providing financial assistance and acting as social safety nets.

The Industrial Revolution brought significant changes to pawnbroking. As economies grew and urban centres developed, the demand for quick loans increased. Pawnbrokers adapted by setting up shops in busy city areas, making their services more accessible to a larger population.

 

In recent times, pawnbroking has become more regulated and structured. Governments have introduced laws to protect both borrowers and lenders, ensuring fair practices.

Modern pawnshops offer a range of services beyond just loans. They buy items outright from people who wish to sell them and they also sell pre-owned items to customers. This modernization has turned pawnshops into versatile financial and retail establishments.

The traditional pawnbrokers' symbol is three golden balls suspended from a bar. Pawnbroking has evolved from ancient practices of mutual assistance to regulated and modernized financial and retail services.

Today's pawnbrokers still provide a valuable option for those seeking quick loans, selling items, or making purchases. While the times have changed, the core function of helping individuals during financial difficulties remains at the heart of the pawnbroking industry.

Helping your kids into the property market – a easy listing guide to what you need to know

I talk to so many young adults that feel that in today's property market, it's going to be impossible for them to a buy property.

So this week we look at what ways you can help. Let me take you through some options on how parents can help. Let’s debunk a few of the myths around the thoughts that kids will never be able to buy property.

There are great practical solutions to help your adult kids enter the property market sooner.

Come along to this very special webinar event where we will help you explore the strategies behind what Rentvesting is, and how you can still own AND live in the location you love.

If you have been faced with the difficult decision of wanting to buy, but not knowing if you can afford it in your chosen location?

The ‘Great Australian Dream’ of owning your own home and being able to retire comfortably has had to change. Lets explore how many Australians are set to achieve financial freedom.  

Wednesday, 23rd March 2022 7:30pm - 8:30pm AEDT

Rentvesting webinar

 

Hello Clever Investors of Brisbane 

This is a personal invitation to all you lovely Brisbane listeners, your friend and family who are having thoughts about becoming a property investor…but

just don’t know where to start.

"Wealth Through Property" is brilliant and going to be live in Brisbane on the evening of Tuesday the 30th August.

This is going to set you in the right direction, you are going to be guided, and shown the principals, on how to start investing in property and exactly where to be looking, but especially where not to be looking.

Presenting is Dr Tony Hayek, the Founder and CEO of Blue Wealth Property and a leader in the property wealth creation industry.

The link to the event is on our web page or via the link in our bio

​#propertyinvestment #australianpropertymarket #realestateknowledge #knowledgeispower #wealthcreation

Once upon a time in the bustling city of Prosperis, there lived a young and ambitious woman named Lily. Lily worked diligently at ‘Big City Corporation’, where she dedicated long hours to her job. However, Lily had a burning desire to create wealth for herself and pursue her dreams of building a property portfolio.

One day, as she sat at her desk crunching numbers and writing reports, Lily received an email that instantly sparked excitement within her. It was an invitation to attend a wealth creation event that would take place the next week. The event promised to impart invaluable knowledge and strategies for building financial independence.

Lily pondered over her options. She knew that attending the seminar would require her to take a few hours off work, which could be perceived as unprofessional. But deep down, she realized that this opportunity could be the catalyst she needed to unlock her true potential...

Take a stroll along the mystical pathway towards doing a little someone for yourself today, that tomorrow you will thank you for.

Hit like and show us some love...  

What exactly is build-to-rent?

Over that last 20 years we have seen a steady increase in the amount of  Australian households that are setting up home in rented properties.

The stats show that in 2022 this is one third of the population. A significantly increasing from just approximately 25 percent of homes. 

A concept that is beginning to appear in Australia is this build-to-rent model. It is already well-established overseas, especially in the United Kingdom and the United States but is currently gaining popularity amongst Australians.

So, let’s take a deeper look into what this is all about.

Joining the podcast this week is expert Research Analyst Josh Mellick from Blue Wealth Property.

On this weeks show we have a blunt chat about how putting things off can totally mess with our quest for wealth.

Procrastination comes to visit all of us from time to time. It’s the act of delaying or postponing tasks despite knowing their importance. It’s often due to avoidance from a lack of motivation or time mismanagement. If left unchecked it eventually leads to decreased productivity, increased stress and then the procrastination bush-fire roars back into life.

A slippery slope.

This sounds like a very obvious statement but ‘putting-things-off’ can be a significant hindrance when we are all trying to grow wealth. We know that delaying or avoiding financial actions will have detrimental effects that you’ll be kicking yourself for in years to come.

A few Bite Sized Basics to combat ‘putting it off’.

In most cases it’s not going to be easy, the habits you are in have most likely been with you for years, so overcoming financial procrastination requires discipline, commitment, a proactive mindset and a plan to work with. Here are some of the main points that you can build strategies on to combat procrastination and boost wealth-building.

• Set Clear Financial Goals
• Create a Financial Plan, with the help of an expert.
• Take Immediate Action
• Seek Professional Advice
• Automate Savings
• Stay Educated
• Stay Accountable

By overcoming procrastination and adopting proactive financial habits, individuals can set themselves on a path to build wealth and achieve their long-term financial objectives.

In the time its going to take you to warm up on the treadmill in the gym we'll step you through the ways in which procrastination can work against you.

Hit that like button and subscribe.

Imagine the world of finance as a zoo, where two mighty creatures, the bull and the bear, reign supreme on Wall Street.

The terms actually come from the way these animals attack their opponents. A bull thrusts its horns up into the air (a bull market goes up), while a bear swipes its paws downward (a bear market goes down). So, the names make sense when you think about how the market behaves during these times.

The bullish bull:

This majestic creature represents a market on the rise, where optimism and confidence run wild. Picture in your mind this bull charging ahead with strength and vigour, much like the market when prices are climbing and investors are feeling pretty darn optimistic.

Take a peek into the bear's den:

Bears might look all fluffy and cuddly, but in the financial world they represent the opposite of the optimistic bull. A Bear market is when things take a bit of a nosedive. The bear lumbers along, swiping its paw downward, symbolizing falling stock prices and a general feeling of pessimism in the market.

 

Predicting when a Bull or Bear market will show up is a bit like trying to exactly predict the weather for every single day in this financial jungle. It's tricky!

In the wild these animals don't follow a set schedule. They're unpredictable, who knows what’s going through their minds. Bull and bear markets are the same, they can come and go, sometimes lasting for months or even years. And guess what? Sometimes they hibernate, taking a long break before popping back up again.

There are signs and indicators such as economic data, corporate earnings, or geopolitical events that the all-to-many experts look at, but even they can't forecast with absolute certainty. It's all part of the wild and (at times) wonderful world of finance.

The RBA's decision to keep interest rates unchanged at 4.1% was a welcome relief.

If we consider the CPI from January to May on an annualized basis, it is now below 2.8%. Additionally, there are still 12 previous rate hikes that have not fully impacted the economy.

Over the 12 months leading up to May 2023, inflation has significantly decreased from 6.8% to 5.6%, with a peak of 8.4% in December 2022.

This decline can largely be attributed to the base effect, where current prices are compared to higher prices from the previous 12 months.

Although it may not be a popular opinion, we believe that inflation will decrease more rapidly than what most people anticipate.

Historical trends show that extreme spikes in inflation tend to have a reflexive effect,

Within economics, reflexivity refers to the self-reinforcing effect of market sentiment, whereby rising prices attract buyers whose actions drive prices higher still until the process becomes unsustainable. 

So put simply, they typically decrease as rapidly as they increased.

When the June CPI figures are released this month, we can expect to observe a sharp decline in inflation, provided there are no unexpected shocks.

While the RBA's current thinking may be unclear, one thing is certain: the pressure for further interest rate increases is diminishing, especially considering that the full impact of previous rate hikes is yet to be fully reflected in the data.

Many industry experts often compare interest rate levels in Australia to those in other countries based on a given level of inflation.

They argue that Australia's interest rates are not high enough given the inflation levels.

However, they tend to overlook the fact that Australia is one of the most vulnerable economies to changes in interest rates worldwide.

This vulnerability is primarily due to our substantial levels of household debt relative to disposable income, along with a majority of mortgages being on variable rates.

In comparison, the US has 90% of mortgages on 30-year fixed rates, with a considerably lower overall household debt level.

Higher interest rates tend to impact regional banks, commercial real estate, small businesses reliant on bank loans, and unprofitable tech companies more than households in Australia.

The risk of a recession remains significant, leading to questions about whether the RBA is adopting a strategy similar to that of the US Federal Reserve.

Despite the official mandate of promoting maximum employment and stable prices, every rate hiking cycle in the US has historically resulted in some form of economic disruption.

By analyzing their actions rather than their words, we might mistakenly perceive this as a deliberate tactic.

Creating some sort of economic failure allows for a resumption of rate cuts in an environment where inflation does not initially flow into general goods and services as measured by the CPI.

Instead, inflation would primarily manifest in asset prices, a consequence that policymakers seem unconcerned about.

Is an intentional plan ? or simply a result of incompetence?  It doesn’t fundamentally change the situation.

It is worth noting that historically, the first rate cut has often signalled the beginning of a bull-run in the property market.

A bull-run or bull-market is an period of time when prices rise and investors are optimistic. 

If on you daily walk with your dog see's you face to face with a real bull....we recommend you run.

And after that hit the like button please.

Part two of the battle of the major investment classes.

We dip a toe into their past histories, the highs and lows. Take a look at the term Gearing and then the acquisition, borrowing and disposal costs for each one.  You get to find out who Franking Credit is and what CGT really means. 

All this packed up and delivered faster than your Uber eats dinner. 

Superannuation was introduced to Australia in 1992 through the Superannuation Guarantee (SG) system. This landmark reform mandated that employers contribute a percentage of their employees' earnings to a dedicated retirement savings fund.

Superannuation has since become a critical pillar of Australia's retirement income system, ensuring financial security for retirees.

Australia’s superannuation scheme is relatively unique. While many countries have mandatory pension systems, they may differ in structure and implementation.

Some countries with similar systems include New Zealand and Singapore, but the specifics can vary significantly. It's essential to examine each nation's pension regulations individually.

What should I understand regarding my own Superannuation?

Most Australians are in superannuation funds selected by their employer.  Over 60% of Australians make no choice on how their super is invested and sadly 37% of Australians have little to no understanding of how superannuation works. Of the 23.8 million superannuation fund members, 24% have multiple super fund accounts, this is as a result of changing jobs over the years.

So, as you can imagine, each of these individual funds has annual running costs, this seem painless because it gets paid out of your fund. But having multiple funds running at the same time means long term you could be clocking big fee's associated with having these accounts. Collectively its costing Australians $2.6 billion in additional fees each year. Most Australian’s super is heavily invested in the share market.

Helping shed some light on the mystery of Superannuation, we have Tyron Mitchell, the boss of Orange and Bathurst Financial Planning.

Like, comment and follow.

What does most people’s superannuation look like?

Most Australians are in superannuation funds selected by their employer.

And of the 15 million superannuation fund members, 40% of you have multiple accounts !!! That collectively costing you $2.6 billion in additional fees each year.

60% of Australians make no choice on how their super in invested, by default most of it is invested into the share market (and nearly 50% of that is in the equites markets).

What's the alternative??

This week we take a short peak into Self Managed Super Funds (SMSF).

 

 

 

With interest rates settling down, now is a great time to get onto the property ladder.

Of course we still see property prices climbing and the average dwelling prices in all our major cities not dropping backward for some, buying with a significant other – be it a spouse, partner, family member or friend – may be the only successful way onto the property ladder.

Purchasing a property with someone else, like a life partner, spouse, family member or friend, has been a popular and viable way for many Australians to enter the property market.

Purchasing with someone else often makes property ownership more affordable. It can be a strategy that enables potential buyers to pool their money for a deposit and utilise their borrowing power to get a loan. As co-owners can split the cost of the property and all the associated expenses, so that repayments are noticeably less than what you’d pay if you were buying solo.

Whether you're buying with your partner or someone else, owning property is a big deal. With the right setup, it can be a rewarding and profitable experience. Over time, you might even make a tidy profit that you can use to buy your next property.

This weeks show looks over the main things to be considered before jumping in head first.

 

A terrible thing about growing up is thinking about all those grown-up things. 

Understandably, dying is not something any of us really want to dwell on. However, if no will is found on that fateful day, it is usually presumed you passed away intestate.

That is, without a will. 

The best way to ensure you have covered all bases is to get advice from a licensed legal or estate planning professional. You can also learn more about intestacy on the NSW Trustee and Guardian website.

Borrowing power refers to the amount of money a lender is willing to lend you for various purposes, it can be anything from buying a house, your investment property, a new car, a business, sofa or just about any other financial need.

The borrowing power is determined based on several factors and the exact process may vary depending on the type of loan you're seeking and the lender's specific requirements.

Here are a few of the general steps to improve your borrowing power....(the lover thing was a bit of a joke). 1 Income and Employment Stability:

Lenders typically want to see a stable and regular income to ensure you can meet your loan repayments. The higher your income, the more borrowing power you can potentially have. But a steady job history can also positively impact your borrowing power. 2 Credit Score and History:

A good credit score demonstrates your ability to manage credit responsibly. Lenders will assess your credit history to determine the level of risk associated with lending to you. A higher credit score can increase your borrowing power. 3 Debt-to-Income Ratio:

Lenders analyse your debt-to-income ratio, which is the percentage of your monthly income that goes towards debt payments (including rent/mortgage, credit cards, and other loans). Keeping your debt-to-income ratio low can enhance your borrowing power. 4 Assets and Liabilities:

Your assets (e.g., savings, investments) can improve your borrowing power, while excessive liabilities (e.g., outstanding debts) may reduce it. 5 Loan Purpose and Collateral:

The purpose of the loan and whether you have any collateral to secure it can impact your borrowing power. Collateral provides the lender with security in case you default on the loan.

6 Loan Term:

The length of the loan term can also influence your borrowing power. Longer loan terms may result in lower monthly payments but could limit the total amount you can borrow. 7 Loan-to-Value Ratio (LVR): For certain types of loans (e.g., mortgages), the lender may consider the loan-to-value ratio, which compares the loan amount to the value of the asset being financed. A lower LTV ratio can increase your borrowing power. 8 Lender's Policies:

Different lenders have varying criteria for assessing borrowing power. Shop around and compare offerings from multiple lenders to find the best fit for your financial situation. To improve your borrowing power, work on maintaining a stable income, building a strong credit history, managing your debts responsibly, and accumulating assets.

You might also want to consider seeking some professional financial advice to better understand your specific situation and options for maximizing your borrowing power.

If you’ve been to any family multi-generational gathering, you would have heard a 20/30ish year old say

‘I’m never going to be able to afford to buy property.’  

It's been hot topic around the BBQ grill for years and right now, you could say its boiling.

Especially around the rising property prices in Sydney. Feeling frustrated about it? 

We have a solution.

We are personally inviting you, family, friends, loved ones to an all NEW online webinar event called

“Helping your kids into the property market.”

It's being presented by my good friend and CEO of Blue Wealth Property Dr Tony Hayek.

Tony will be debunking the common myths surrounding the affordability of property, explaining why now is the best time to be investing and how using research will get them the results they want.

Here are 3 things you will learn at the event:

• We are debunking the myth that your kids will never be able to buy property
• We’ll give you solutions to help your adult kids enter the property market sooner
• Learn where the property markets are, and what opportunities our research is uncovering.

Booking link: Helping Your Kids into the Property Market

https://www.bluewealth.com.au/event/booking/1626/