mrd

It has certainly been a roller coaster ride for “Financial Markets” since the second half of 2008 – and it’s not over yet! I quickly learned to turn a deaf ear to the continual flow of property market pessimism – I hope you did too.

Surprise, surprise… those loudest warnings of a property market crash have come from those with vested stock market interest.

I’ve been saying it for three plus years so this week I’m going to let Terry Ryder do the ‘speaking’. Terry has three decades of experience as a journalist, author and researcher specialising in residential property. He is a columnist for The Australian newspaper and is regularly interviewed about real estate issues on radio stations around the nation and has appeared on TV programs such as 4 Corners, Today Tonight, A Current Affair, Your Money Your Call, Property Success, Extra and 60 Minutes (NZ). In September 2011, Terry said:

After all the warnings, property stays solid while the share market collapses.

In the week ending Friday 5 August, the Australian share market dived. In three days over $100 billion was wiped off the value of Australian shares.

The decline on 5 August alone was 4%, the biggest one-day decrease since the GFC impact in 2008. It was generated by events in the US, including a downgrade of its security rating.

The significance of this is that few economists or share market analysts warned us it was coming.

By contrast, the same people have been battering us with predictions of declining house prices. According to the more strident talking heads in the media, our homes are over-valued and a US-style collapse is imminent.

They’ve been telling us that for three years.

But the forecast apocalypse hasn’t happened in real estate. Instead, it’s happened in the share market, and no one told us to expect it.

Perhaps analysts should stick to their specialties. Some advice on impending trends with shares would have been handy, given that so many Australians have their retirement savings trapped in the share market via their super funds.

Economists and share market commentators should leave real estate analysis to specialists who understand the market. For the past three years, genuine real estate analysts have been forecasting steady markets and they have been proven largely correct.

NB: I’m not taking a cheap shot at the stock market as a legitimate investment vehicle… just the so-called experts who led people up a garden path with fear and false property market predictions. Their shallow arguments were never justifiable; as I am on the record (since 2008) saying. It bothered me over the years because of the many people who have sold property to avoid a crash. In their attempt to avoid loss, well-meaning people have become the biggest losers – largely due to the media giving the most attention to those who were wrong!

FACTS

• If you’re a property renovator, trader or speculator – GOOD LUCK
• Those who follow the mrd “set ‘n’ forget… for busy people” ™ buy and hold strategy can rest easily knowing that residential property is very forgiving – it never goes back to zero. If you make mistakes – just wait! If the market turns against you for a season – just wait!
• Don’t be deceived into chasing quick riches; that’s not what investing in property is about
• Grow in your understanding of, and respect for, debt
• Investing into residential real estate – over time – absolutely can turn your dreams and goals into your reality

About a month ago I made mention of a syndication deal I was putting together to take to and offer the developer building on Brisbane’s North side. The offer was made two weeks ago today and it took me 11 days to reach agreement but what we have secured on behalf of a number of mrd clients is a fantastic deal. Congratulations to all those who are part of this group! With just 28 working days left to be eligible for the Queensland Government’s $10,000 building boost grant… if you want to consider joining this group you will need to let me know personally. There is no mention of this offer on my website as the offer is not being made public. So… if you are even considering a property purchase that ticks all the boxes you need to enquire >>>here.

Interest rates have come down again!

Would you like an end of 2011 financial health check… and discover how much you may be able to borrow? If so complete an mrd “My Starting Point” Assessment form >>>here.

From all of us @ mrd… we wish you and your family a very Merry Christmas and a HUGELY prosperous 2012! Read more…

Why work harder when you can work smarter? Renovating property can be a worthwhile strategy but there are easier and less risky ways to achieve the outcome you seek. The “set ‘n forget… for busy people” ™ strategy mrd promotes is not by accident. It ensures you can maintain your lifestyle and spend your time in those areas most important to you. If you understand that “A Rising Tide Lifts All Ships” and apply a little intelligence – a world of possibilities will open for you!

How Much Is A Billion Dollars

• If you invested a billion dollars at just 5% per annum, you would earn $137,000 of daily interest!
• Aside from interest earned you would have to spend one hundred thousand dollars a year for ten thousand years to spend a billion dollars

So you get the picture… a billion dollars is a lot of money!

The Australian Bureau of Statistics (ABS) reported in September that capital expenditure in the 2011 / 2012 fiscal year will be $148.8 billion; which is up 24% on the 2010 / 2011 year. Other reports estimate closer to $200 billion in WA and Qld alone. Either way, these ‘obscene’ investment numbers mean a big, bright and prosperous future for Australia at a time when many other countries are struggling.

No doubt you have heard the stories of people who experience significant capital growth in their property due to the efforts and investment of others around them. A local shopping centre is renovated, the railway extended to the neighbourhood or neighbours renovating their homes. Working harder is you improving your property but working smarter is to own property in areas that others are improving!

A Rising Tide Lifts All Ships

Our geographical and economic links with Asia will underpin the nation’s economic sunshine for decades to come; indirectly benefiting all Australians. What I’m suggesting is that, if approached and executed properly, you can benefit directly from the investments of others in our economy… and enjoy your own economic sunshine. The ‘tide is rising’… all you need is a ‘ship’.

Coal Seam Gas

We were already a nation rich in mineral and resource deposits… then we discovered Coal Seam Gas! Formerly a waste product, Coal Seam Gas has given birth to a massive new industry and has become like the icing on the Australian economic cake.

Interview With The Federal Resource Minister

A few nights ago I watched an interview with Federal Resources Minister Martin Ferguson. When quizzed over the Government’s most recent capitulation; agreeing to spend an additional $200 million to secure the Independent’s support for the new mining tax legislation… he said:

“It was not a bad investment. It represents recent investment into Coal Seam Methane to the tune of $45b in three major projects in Qld with 18,000 jobs on the ground in construction”.

Perhaps as a retailer in Melbourne, a travel agent in Adelaide or a manufacturer in Sydney you can’t see a way to benefit directly from this mining boom; but I can see it for you ABSOLUTELY! Of course you have to qualify and any decision must serve your short to medium term interests… but the mining boom can deliver benefits to ‘whosoever’!

Junior Master Chef

It’s the successful combination of the right ingredients that gives a beautiful meal its texture and flavour… making the eating experience so memorable. My goal is to assist you to become a successful investor as a means of realising your goals; and I want you to enjoy the mentoring experience too!

• The way you get help from me and my team is as simple as asking! Do that >>>here
• Have your starting point assessed so that any suggestions we make to help your progress are relevant, realistic and tailored for you. Complete a “My Starting Point” assessment >>>here

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Being Easter I’d like to share a simple yet profound message with you; and that is to “Guard Your Heart Above All Else, For It Determines The Course Of Your Life.”¹

We have so much more control over the design of our lives than we perhaps know. Decisions and choices we make today influence our lives tomorrow. In the context of smoking, excessive alcohol consumption and poor diet we know this to be true. Are you aware, however, that your belief system creates expectation… and what you expect is normally what you get – good or bad?

“As a man thinks in his heart, so is he.”² (NB: This is gender neutral.)

I’m a great believer that, by and large, you are not going to get from life what you deserve, but what you expect (or believe).

Being a pessimist is more costly than most of us can afford!

May I please ask that for the next few minutes you drop any religious or spiritual prejudices? Otherwise, the truth of what I’m saying could be missed.

The bible defines FAITH as being “the substance of things hoped for, the evidence of things not seen”.³

Faith is not denying reality or having a misguided and/or delusional belief system. That’s why the words substance and evidence are used. Faith is real and gives one assurance… even when other (so called) evidence appears to say otherwise.

This is universally relevant to us all and its application is no way restricted to merely those with faith in God.

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Like the compass on a ship… it’s your goals and corresponding “New Year Action Plan” that will guide you to your planned destination.

Never underestimate the power of a goal.
Goals, like seeds, appear ‘lifeless’.
When we take and bury a seed it disappears into the dirt!
To the naked eye there is nothing living present.
You water it, the sun shines on it and we watch and wait.
Most things buried are dead, but without warning, a shoot bursts through the ‘grave’ and begins to parade its unfolding life before us.
A miracle, some say, but as with a goal, the miracle is found within the ‘seed of thought’.
Writing down and reading that worthwhile goal along with the corresponding action to realise the goal, ensures you will be propelled to exactly where you desire to go.

Corresponding Action

Using in-house proprietary software, our property mentors have assisted hundreds of clients gain clarity and direction… fast tracking them towards their goals.

Read what some of these clients have said >>>here

“Yes please; I would like a property mentor to assist me to create a complimentary and no obligation financial action plan” >>>here

Read more…

Let’s look at the profile of the average investor. As you read on ask yourself… do you want to be above average?

Michael Matusik, property analyst and author of Matusik Property Insights and The Matusik Snapshot, recently wrote that on average the typical Australian Investor holds 1.5 residential investment properties. He also said that the vast majority are of average means.

However, just because a person is of average means does not mean they have to settle for an average outcome.

I’m going to assume (even though mum said to never do that) that YOU would like an above average outcome!

Back in the August edition of “The Matusik Snapshot“, Michael Matusik addressed the question:

“So Who Actually Buys Residential Property In Australia”?

Here’s what he said…

• Most are aged between 35 & 54 years.
• Just one in five are under 35 years old and just 7% over 65 years.
• The typical investor holds 1.5 residential investment properties.
• The vast majority are of average means.
• Three out of five borrow money to invest; most of these negatively gear.
• Another quarter actually rent out their previous principal place of residence.
• Just 10% buy an investment property outright and very few, just 4%, inherit an investment property.
• Over 80% buy for long term capital gain, yet interestingly, one in four investment properties are withdrawn (mostly sold) within 12 months, with half sold off within five years.
• A third sell because they need the money.
• A quarter liquidate because of unsatisfactory capital growth. Read more…

WOW, it’s December already! This is the time that people put their Christmas tree up (YEAH!) and dread the thought of facing crowded shopping centre car parks (YUCK!) AND that’s even before they go inside and do battle with wall to wall numbers of Christmas shoppers.

Did you know that most people apply a different set of rules to a retail buyers market than to a property buyers market?

On Boxing Day all around the country hundreds of thousands eager bargain hunters will line up at department stores and specialty shops. When doors open they will (literally) run & push others out of the way… all in the pursuit of a bargain.

Out will come credit cards and without a second thought BAD debt (or Horrible debt as I prefer to call it) will be whacked onto plastic everywhere.

Two quick points.

1. A buyers market means we pay less
2. Borrowing money to buy things that depreciate will keep you broke.

Have you stopped to wonder why the people who will line up for the Boxing day sales will shun property bargains until “everybody else is investing”; that is a seller’s market?

It sounds silly but that is what goes on. No wonder statistics have and will continue to reveal that 95% of total wealth is held by just 5% of the population… and conversely 95% of the population share in just 5% of the wealth.

Broadly speaking, I guess there are two groups of people. Those with a goal to improve their financial standing and those without.

I am speaking now to those who do have a goal and do want to move ahead.

With Christmas fast approaching we have some fantastic deals from developers that are limping to the end of the year after a really tough time. It began with the GFC but did not end there. Not all developers are offering added bargains right now; however, some are so keen to move stock before year’s end that we can secure some amazingly attractive deals on behalf of our clients. This newsletter features one such offer (see Video); there are also others that I am not willing to advertise online for all to see

If you want to be at the front of the queue in a “Boxing Day Property Sale” please contact us urgently >>>here

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Why is it that when one person breaks a world record (that someone else had held for many years), others suddenly begin to start beating that previously unbeatable record too? Simple, because “As A Man Thinks… So Is He” (man referring to a human – male or female).

Our minds function like the hard drive in a new computer. We’re all born with a clean sheet and from day one our world begins to take shape. Drawing influence and experience from our parents, siblings, friends, neighbours, teachers and television (to name but a few)… our minds become programmed whether to succeed or to fail.

As we mature into adolescence we tend to develop tendencies towards either negative or positive expectations.

No matter how negatively our minds may have been programmed to date… the exciting news is that today we can begin the process of reprogramming our thinking… with new winning programmes!

Donald Trump believes…

“As long as you are going to be thinking anyway… THINK BIG!“

It’s true! We can change from being negative to being positive, from failure to success. From losing to winning! It’s all up to us!

In the words of Henry Ford…

“Whether you think you can or you think you can’t… either way you’re right!“

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I remember hearing a few years ago that Jimmy Barnes was financially destitute; I was shocked to say the least! Have you noticed that it’s not necessarily those who earn the big bucks that end up with the most? In fact I have clients, I prefer to call friends these days, who while only ever earning modest incomes have built large property portfolios. Today they are “stuck” with the reality that they are going to be very, very wealthy and wanting for nothing. So why is it that someone like Jimmy Barnes… who has earned many, many millions of dollars throughout his music career… hit financial hardship yet “Ordinary Joe”; a blue-collar worker raising a family in the suburbs creates such wealth? Because “It’s Not What You MAKE It’s What You KEEP!”

A farmer sows seeds to produce a crop. Within that crop are many, many more seeds. The harvested crop is sold to sustain the daily living needs of the farmer and his family. This indicates a dual purpose for the harvest:

1. Bread for eating (i.e. money to sustain immediate living expenses).
2. Seed for sowing (i.e. the ability to sustain his future).

This is really important! You may not be a farmer but whatever it is that you do for a living… your harvest (i.e. your pay cheque) ought to serve the same two purposes:

1. Sustain your immediate living expenses
   
2. Give you the ability to ensure your family enjoys a better, more rewarding and sustainable financial tomorrow

You see, it really isn’t what you make but what you keep… and what you do with what you keep… that will determine how you will live “tomorrow”.

A farmer who has a bumper crop one year and so doesn’t bother to sow seeds again the following year will quickly run out of money and face financial ruin. Something of today’s earnings must always go towards a new (future) income stream.

The Pain Of Discipline Vs. The Pain Of Regret

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Clues lead to evidence and evidence is there for all to see; that is… for those who are looking!

If you read stories about, or listen to interviews with, men and women (young or old) that have excelled in life & achieved outstanding results… there is always a common thread. Some call it a driving ‘desire/passion’, others a ‘sense of destiny’ that leaves them with the motivation and determination to defy the odds, overcome the difficulties and climb over the obstacles… in fact, to become EXTRA-ordinary.

It’s more often than not those who have all the odds stacked against them who are ultimately labelled as ‘successful’ by their peers. Everyone admires a battler and it seems that the ‘fight’ required to come out of poverty, injustice or racial intolerance wins them extra respect.

Man Swims the English Channel – Without Limbs

Perhaps you heard the story this week about the man without limbs who swam the English Channel!  In 1994 aged 26, a metalworker named Philippe Croizon lost his limbs when struck by a 20,000 volt charge. While attempting to remove a TV aerial from the roof of a house an arc of current from nearby power lines surged through his body.

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Properly understanding “The Law Of Cause & Effect” will help you to not sweat the small stuff.

Newton’s Laws Of Motion

Sir Isaac Newton (4th January 1643 – 31st March 1727) was an English physicist, mathematician, astronomer, natural philosopher, alchemist and theologian. He is considered by many scholars and members of the general public to be one of the most influential people in human history.

Newton came up with three laws of motion; the third being:

“For every action, there is an equal and opposite reaction”.

Understanding laws of physics, the law of gravity and the law of aerodynamics etc means we can make bold predictions… knowing we are right!

For example: I know that if I throw a brick off the balcony of my home up into the air, it will fall to the ground.

The law of gravity says that I cannot fly and I too will fall to the ground if I try. However, I also know that the law of aerodynamics is a greater law than the law of gravity… which means if I am sitting in an aeroplane, I can fly and I will not fall to the ground.

So what does all this have to do with property?

Would you really like to understand the property market for yourself… no longer being tossed to and fro by the conflicting opinions of others?

Allow me to explain another law which, when  understood, will clearly prove that every half empty glass is in fact a glass half full!

The Law Of Cause And Effect

It’s easy to be an optimist and it’s easy to NOT sweat the small stuff… when you understand the law of cause and effect.

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