By Doug Wroe
Last week we looked at the two key measurements of investments, Return ON Equity and Return OF Equity and then moved on to the Drivers of Wealth.
Read Drivers Of Wealth
- Leverage
- Compounding
- Inflation
Over the next few weeks I will dig deeper and unravel these three topics; starting this week with the First Driver Of Wealth – Leverage.
Leverage
Leverage is basically gearing. As in your car you cannot go at 100 km/h in 1st gear. The engine just can’t turn over that fast. It is through gearing that you are able to move your vehicle faster when the conditions allow. Essentially you are getting more turns of the road wheels for fewer revolutions of the engine.
In 400 BC Archimedes said “Give me a lever long enough and a fulcrum on which to place it and I shall move the world”.
What he was referring to was that, provided he had enough leverage or gearing, he could move any object with little effort. In a financial setting the meaning is very similar… being able to move or control larger amounts of equity or money by using a smaller amount. Let me give you an example:
Option One More…
Cairns’ number one developer – Glencorp, continues to lead from the front with this fantastic, never to be repeated opportunity, for mrd clients to purchase a brand new Clifton Beach apartment, for under $300,000 and with added bonus extras.
mrd is excited to be releasing details of this incredible opportunity to our investors today.
The apartments are located in the stunning ‘Clifton Views’ gated estate, just a short 300 metre stroll from beautiful tropical Clifton Beach and just a 4 minute drive north to Cairns’ prestige Palm Cove area.
More…
Cairns & The GFC
Australia came out of the ‘Global Financial Crisis’ relatively unscathed considering the potential impact, had our financial system been in a similar state as some other countries around the world.
Already the fundamentals that carried us through and kept us afloat on what seemed like sinking sand are beginning to thrust our property market forward. As a nation we have seen a median house price growth of 11.3 per cent over the first 11 months of 2009 across most capital cities. Certainly the combination of the Government’s stimulus package (First Home Owners Grant) and the lowest interest rates in 50 years helped, with the result that housing was at its most affordable since 2002.
Population Growth
Supply and demand is still the forceful factor in the whole equation. Population growth and strong overseas migration…. More…
Prime Minister Kevin Rudd is actively debating how this new “mega trend” will impact Australians.
Martin Bell, University of Queensland’s Centre for Population Research calls it a “Demographic Tsunami”.
Billionaire real estate magnate Harry Triguboff believes this to be a tremendous new age of prosperity for real estate.
What is this new “mega trend”?
Follow this link to find out all about it.
Happy Investing,
Nick Lockhart
mrd Customer Care Program… because investing is personal
An Irishman goes into the confessional box after years of being away from the Church.
There’s a fully equipped bar with Guinness on tap. On the other wall is a dazzling array of the finest cigars and chocolates.
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Dear Friend,
For the first time in nearly two years I am conducting a series of live events across Australia, and you’re invited to come as my complimentary guest.
At this series of events I will be talking about how to grow your wealth by following the powerful new “mega trend” that’s going to make real estate prices surge. I personally believe this to be the single greatest investment opportunity of our lifetimes.
http://investmentmentor.com.au/slipstream
Martin Bell University of Queensland’s Centre for Population Research calls it a “Demographic Tsunami”.
Prime Minister Kevin Rudd is having active talks with policy advisors, economists and academics alike on how this new “mega trend” is going to impact Australians environmentally, socially and economically.
And finally, even Reserve Bank Deputy Governor, Ric Battellino, believes house prices would be boosted by this new “mega trend”.
http://investmentmentor.com.au/slipstream
If you’re a seasoned real estate investor, or yet to make your first buying decision, you want to register for your complimentary ticket now.
Click on the link below to find out the surprising title I’ve given to this series of events, including dates and venue details.
http://investmentmentor.com.au/slipstream
Happy Investing,
Nick Lockhart
mrd Customer Care Program… because investing is personal
By Doug Wroe
Over the years I have had an unusually high appetite for learning about financial investments. Some may say I am obsessed with it. I just find it interesting in the same way a gardener finds roses interesting. Over a number of years I actively sought out information that would help me to understand the “Drivers Of Wealth”.
I am always looking out for another trick or a better way to do things. I read magazines, go to information sessions and generally keep my ears open to what is happening in the financial and investment world.
There are so many opinions out there. It is so hard to filter out the noise and find what is really important and relevant to me and my family. Not only what is real and what is just a sales pitch but more importantly what the best path is for us to take.
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Completed Townhouses
- THREE ONLY Remaining
- Will Not Last
- 3 Bedrooms
- Tenanted Now!
Deception Bay takes its name from explorer Lieutenant John Oxley who, in 1823, mistook the bay for a river and was surprised by its deceptive shallowness. Historically the area was used by Aboriginal tribes who were sustained by a plentiful supply of crabs, oysters, fish and sea birds. The area has recently become one of the fastest growing areas in Australia. (Qld. Govt.)
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A little girl was talking to her teacher about whales. The teacher said it was physically impossible for a whale to swallow a human because even though it was a very large mammal its throat was very small.
The little girl stated that Jonah was swallowed by a whale.
Irritated, the teacher reiterated that a whale could not swallow a human; it was physically impossible.
The little girl said, ‘When I get to heaven I will ask Jonah.’
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Rapid Transit rundown:
Work on the project is scheduled to start in August 2009, but construction on the actual rail line will not start until early 2011.
More than 6000 jobs are expected to be created during construction.
The cost of the project is estimated at $949 million, jointly funded by federal, state and local governments.
Taxpayers will own the track, a private company will provide the carriages and run the service.
The 13km line will link Griffith University at Southport to Broadbeach, passing through the key centres of Southport and Surfers Paradise.
Properties will be resumed to make way for the line.
Commuters will have to wait until 2014 to use the system, pushed back on previous estimates of late 2013.
Passengers will use GoCards on the light rail and fares will be consistent with the existing TransLink network.
via Gold Coast Rapid Transit: Fast facts Gold Coast Attractions | goldcoast.com.au | Gold Coast, Queensland, Australia.
Rapid Transit route - See how the line affects your area:
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