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Late last year I put a note in my newsletter asking who may be interested in being part of a syndicated property deal I was putting together. I only hinted at how good a deal I was talking about.

By early December I had over a dozen purchasers that I used to leverage a great deal from this Brisbane developer. NB: Unless you have since spoken with us personally you will not have seen any public reference to this deal… on the mrd website or elsewhere, as we have not advertised it!

The developer is looking to secure his construction funding this month; I understand he is meeting with his bank later this week. He is still marginally short on the number of pre sales they told him they required but he hopes they will waive the extra and approve him on the numbers he currently has. NB: Pre sales are those sales needed by a developer before a bank will release construction funding. It’s his need for these that has provided me with the leverage necessary to secure such a good value proposition for a limited number of mrd clients.

IMPORTANT: As soon as he has his funding confirmed; this week or soon after… he will withdraw the special offer agreed to. That is, he will only offer this deal to as many clients as needed to satisfy his lender.

If you have even remotely considered an investment property purchase in the next little while I recommend you take a good look at this development while the offer is still on the table.

The Right Price

For the benefit of those providing the pre sales, the developer has agreed to keep the price down to within $5,000 of what stage 1 was sold for in 2009!

• 2 Bedroom Apartments for just $320,000
• 3 bedroom town homes for just $355,000

The Right Location

This one ticks all the boxes; which we can demonstrate. Brisbane is expected to be our next capital city property market to take off. This development on Brisbane’s North Side is within walking distance of MASSIVE levels of infrastructure and commercial spending. Again, to fully appreciate the extent of investment spending/activity we would need to ‘show you’ first hand (i.e. we can take you on a virtual tour of the area over the internet).

The Right Rental Market

Brisbane has moved into that part of the property cycle where rental vacancies are at an all time low and thus rental prices are on the up and up. It seems I’m reading of rising rents and rental shortages almost every time I pick up a newspaper. Here’s one that appeared in Saturday’s Courier-Mail - Rents Rocket Across Brisbane As Demand Exceeds Supply

The Right Deal Negotiated

The deal negotiated for mrd clients is very attractive and includes:

• Prices held to within $5,000 of 2009 prices
• Stamp duty paid in full ($10,000)
• 12 months body corporate fees paid ($2,100)
• Rent guaranteed from day of settlement for first 12 months at 5.7%
• $10,000 Queensland government building boost

Again, there’s a comprehensive story behind ‘Why This Project’ that you need to hear if you have given any thought to securing an investment property in the near future. Contact mrd to find out all about this opportunity >>>here.

Happy Investing,

Nick Lockhart
Managing Director

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Where were you during Easter of 2002? As was customary for my family (and still is), we were with friends at Binna Burra in the Lamington National Park. That year a friend and I sat in the Tea House devising a business plan to launch mrd… which we did about a month later.

The benefits of owning multiple properties were  undeniable… but the overall way the industry operated was questionable. So we set out to create an environment where people would feel safe to engage, learn and ask questions… never feeling pressured to take action because someone else wanted them to do so.

There will always be those who listen to the wrong people, feed on misinformation and make mistakes… and directly or indirectly fear is usually at the heart of bad decisions. Today I have republished an article that debunks Steve Keen‘s many projections in recent years. While this man has been consistently wrong time and time again, he somehow escapes any media scrutiny, is not held accountable for what he has said previously and is given prime time coverage whenever he comes out with his next prophecy of doom.

As you read this week’s newsletter please be mindful of a couple of things:

1. Popular opinion leads to a dead-end. If it didn’t, most retiree’s would be independently wealthy. To break free of the ‘pack’ you have to swim against the tide of popular opinion… any multimillionaire will testify to that.
2.  Are you really getting the best from your lender(s) at the moment? In the context of clients engaging with mrd finance for a complimentary financial health check… I wish I had a dollar for every time someone said something like “I had no idea that I was doing it all so wrong” or “… that I was paying too much” etc.

Deep down you know if you are diligently pursuing a workable plan… or merely drifting from home to work and work to home, week after week and year after year.

My business plan of Easter 2002 has given me a track to run on this past decade… I’m suggesting that’s exactly what you need now. Coming up for 10 years young… mrd is best equipped to assist you to devise your plan to build your property wealth; safely and responsibly!

When it comes to finance (in fact ‘everything finance’), Heather is as good as they get! Rarely is she unable to add value in some way to a client who asks for a complimentary financial heath check. If there’s a better way… Heather will suggest it and if there’s a deal to be done… Heather will get it done!

• Don’t put it off any longer. You will be pleasantly surprised dealing with us. Request your complimentary financial health check by simply completing a ‘My Starting Point’ assessment form >>>here
• For help tailoring an action plan or to simply begin dialogue with an mrd property mentor… send me your question(s) >>>here

Read more…

What has annoyed you the most this past week – the weather, politics or financial institutions?

I am unable to predict or change the weather, politics is in a world of its own, however  I can give you feedback on what to look for in the financial institutions.

I have a passion for finance and have been doing it for some time; there is not a lot I haven’t seen over the last 30 years.

The black and white of financial institutions and what they have to offer is easily accessed through the Internet or dropping into the local shopfront, the grey area is what is not easily found or talked about on the Internet or other places.

The ‘little grey cells’ are at work at mrd Finance and want to look at your position and see what you can achieve via a financial health check.

• “Let your fingers do the walking” by completing our simplified ‘My Starting Point’ assessment form >>>here.

I want you to be comfortable knowing that you are using the financial institution to your best not the financial institution using you to their best.

• Complete and send me your ‘My Starting Point’ assessment form >>>here.

Read more…

Folks like Chris Zappone at the SMH like to give Steve Keen‘s predictions enormous attention on the SMH’s website. I don’t have any issues with this – that is Chris’s journalistic call. But a reader wrote to me the other day with an itemised list of Keen’s forecasts, which is more thorough than I have ever seen before. He asked whether I could post it up, and today I have obliged.

Reader comments…

It is a revealing exercise writing down some of the claims Steve Keen has made:

1. In 2006, Keen said we may already be in a recession. We were not.
2. In 2006, Keen said the Australian Debt/GDP ratio would exceed 160% by 2007. It did not.
3. In 2006, Keen said Australia will be in recession long before our Debt/GDP ratio falls. We did not go into recession.
4. In 2008, Keen said interest rates would be at 2% by 2009, and ZERO by 2010. The interest rate trough was 3%; today rates are at 4.25%.
5. In 2008, Keen said we would have double-digit unemployment up to 20%. Unemployment only rose to 5.8%, and is 5.3% today.
6. In 2008, Keen said we would have a severe recession, possibly a depression. We had neither.
7. In 2008, Keen said house prices would be down 40% within ‘a few years’. They fell by about 3% in 2008 less than one-tenth of what Keen predicted, rose strongly in 2009, rose again in 2010, and have fallen by 2.8% in 2011.
8. In 2008, Keen famously made a house price bet with Westpac’s Rory Robertson, which he lost, forcing him to hike from Canberra to Mount Kosciuszko wearing a T-shirt exclaiming, “I was hopelessly wrong on house prices – ask me how.”
9. In 2008, Keen sold his Sydney home at a cyclical low point, just before prices rose more than 10%. What tha?
10. In mid 2010, Keen predicted “an accelerating rate of decline in [Australian] house prices now, as they did in the USA when “Flip That House” ceased being a winning trade.” In Zappone’s latest SMH profile of Keen, he makes exactly the same prediction again. Zappone writes that Keen expects an “accelerating slide in prices.” In fact, Australian house price declines have not accelerated. They have depreciated slowly and consistently by a cumulative 2.8% in 2011. [Christopher Joyce adds: Yes, there is leading indicator evidence to suggest that rate of price declines will soon slow to a halt.]

Every single one of these calls has been wrong.

Read more…

Sun Community Newspapers   |  12:01am February 15, 2012

COOMERA has been earmarked for a $300-$500 million World Trade Centre which would raise the international profile of the Gold Coast.

The proposed development would have a 20-level office tower, 288-room hotel, four-level conference facility and a themed shopping village. Multimillionaire Peter Chen, of the Sabina Corporation Ltd, said the project would generate 500 jobs.

He has already held meetings with Queensland director-general John Bradley and the state director of economic policy Paul Sariban.

“I have also had discussions with Gold Coast City Council planning officers to investigate whether a World Trade Centre at Coomera would be acceptable under the Local Structure Plan,” he said.

“The World Trade Centre brand is known around the world and after 40 years, the World Trade Centres Association serves nearly one million businesses and organisations.”

Mr Chen said the WTC would complement the proposed Coomera Town Centre and spur on its development.

“We also plan to introduce two specialised study courses in tourism hospitality and international trade for young people,” he said.

“WTC will work closely with the local TAFE to tailor these courses and training programs for youth in the area.”

The project would be on a 7.3ha site and the shopping mall will have 75 two-level and three-level mixed-use, themed cottages which will target Chinese visitors to the Coast.

“These will consist of mini-restaurants, shops selling only Australian-made products and guest services such as parcel mail and foreign exchange outlets,” Mr Chen said.

via World Trade Centre plan for Coomera Local Business | goldcoast.com.au | Gold Coast, Queensland, Australia.

Lucy Ardern | January 11th, 2012

CHINESE tourists will be targeted by a $300 million project next to the Westfield shopping centre at Coomera.

To be built by Sabina Corporation, it will have several Asian restaurants and cafes and perhaps a hotel and health spa.

Sabina chairman Peter Chen said the project was well timed, given China was set to become the city’s largest international market as early as next year.

The listed Gold Coast company announced this week it had signed a conditional contract on a 7.3ha site, which is part of the Coomera Town Centre Precinct, with co-owners Qhuinnco and Trimglint for $19.63 million.

Completion of the contract is subject to the development plan receiving approval from the Gold Coast City Council, and Sabina Corporation has also flagged it will need to secure significant finance or investment to proceed. Read more…

How long has it been since Brisbane hosted the World Expo? 24 years… and boy have those years gone quickly! How long has it been since Sydney was awarded the 2000 Olympic Games? That was 20 years ago! How long has it been since you first decided to get your finances under control? It’s already February… and 2012 will soon be history – don’t waste another year with “A Compromised Financial Structure”.

Dual Responsibility Of Financial Stewardship

Your dual responsibilities when it comes to financial stewardship are:

1. Live within your means today
2. Take action steps to secure a financially rewarding tomorrow

Unless you are part of a minority of people who have branded themselves (like Justin Bieber)… there are just three ways for you to fund your retirement.

1. Inherit it,
2. Steal it or
3. Learn to manage debt correctly

I don’t recommend stealing (that’s not a win/win)… so unless you have a decent inheritance coming your way you must confront debt. Learning to manage debt may not be quite as important as breathing… but it is right up there with it!

The misuse of debt is where people get themselves into trouble but with knowledge comes power. The first thing I suggest is that you gain an understanding of the different types of debt… and how to deal with each one appropriately.

Three Kinds Of Debt

1. Horrible (or consumer) Debt is used to buy things that offer no tax relief… and are worth less after you buy them. Draw a line in the sand and stop adding to this burden immediately! You should also put in place a plan to chip away at and (in time) clear the horrible debt you have now.
2. Tolerable debt, as the name implies, is not so bad because while it doesn’t provide any tax relief it is used to buy things that go up in value. Typically, tolerable debt is used to purchase a family home. NB: The mindset that says ‘I must by my own home’ is one that prevents many people from breaking free of the poverty trap. Those who purposefully rent and put 100% of their borrowing capacity into the ‘productive debt arena’ give themselves the capacity to fast track their wealth creation.
3. Productive debt is the kind you want more of – not less! You use this type of debt  to buy things that go up in value… and you get to enjoy the benefits of tax relief at the same time. Like the electricity used to run the life support machine in your local hospital; productive debt will enhance the lives of those who responsibly harness its power.

Making Success Your Own

Financial success can be yours if you will learn how to manage debt properly. Stop adding to your existing (horrible) debt and put in place a workable plan to eliminate it over time. Look for ways to reign in spending and/or increase your income.

When it comes to responsibly increasing your exposure to the right kind of (productive) debt please, please, please don’t just take the path of least resistance and allow just anyone to structure your loans for you. If you have an investment property loan the chances are you have not been structured as efficiently as you could have been. That may sound like a big call but after many, many years doing what I do I have come across very few that had someone who really knew what they were doing set their loans up. Even if everything was set up correctly, unless you have had a financial health check you still may be missing out on the benefits competition has since brought to the lending arena.

If you were going to add six properties to your portfolio over the next decade or so you would want to ensure that each property was right for you and your strategy. Equally you want to know that each loan was right at the time… and is still right for you today! Your bank will give you a loan so long as you satisfy their lending criteria, however, your loans ought to also satisfy the Australian Tax Office (ATO) rules and be flexible enough that you remain in control of the strategy you have chosen to follow. Don’t shortcut this very important part of the process – the right finance structure is right up there with choosing the right property.

 If Money Were No Object

Try for a moment to peel away the layers of ‘stuff’ going on inside your head… I’m guessing there would be all sorts of dreams, goals and ambitions there yet to realise. If money were no object perhaps you would travel the world making up your itinerary as you go. Is there a dream home you’d love to own, a hobby you would love to spend time doing or a charity you would donate time to? Whatever it is that ‘flicks your switch’ can be yours if you can believe that and will take steps to manage debt responsibly.

I know it’s a cliché but it’s a good one! ‘You will never soar with eagles if you run with turkeys’.

• As I said earlier… it’s already February of 2012 – don’t let another year come and go without making the changes you know you should have made years ago. If you will give me a snapshot of your starting point I will have my finance specialist look at that and make recommendations on any improvement options. It’s a pretty easy first step… but it is one that only you can make >>>here
• Send me your question(s) on the economy, the property market or anything specific to you, your family and your situation and I will happily assist you in any way I can >>>here

Read more…

This afternoon the Reserve Bank of Australia (RBA) announced it would leave the cash rate unchanged this month at 4.25%.

There are a variety of opinions when it comes to monetary policy and where I stand is no secret. This RBA board has today confirmed beyond any doubt that it is ‘ultra conservative’ and primarily concerned with curbing inflation… at ‘any cost‘.

NB: Since interest rates hit record low levels in April 2009, the RBA has increased them by 0.25% – on seven different occasions!

Under the leadership of current Governor, Glenn Stevens, the RBA has repeatedly shown itself ‘trigger-happy’ with interest rates whenever there is a hint that inflation may go too high and conversely ‘gun-shy’ with rates when the economy appears to be slowing. In my opinion (and I’m certainly not alone) they tend to go ‘too far and too soon’ when rates are rising… and ‘too little, too late’ when conditions to reduce rates are apparent. The ‘urgency’ is so very one-sided!

When the RBA board met four years ago in February 2008 they decided to put rates up again – having done so in both August and November of 2007. In Feb ’08 the RBA put rates up to 7.0% and then to 7.25% in March ’08. Then within just 11 months they slashed them by over 55% – down to 3.25% – that’s less than 45% of the level they were at just 11 months earlier! Of course the RBA never came out saying they had made an error when they put them up those last two times but the impact those decisions had on business and consumer confidence and the ‘corrective’ actions the RBA took between September 2008 and April 2009 is  evidence enough that they got it wrong.

Interest rates are a powerful economic level used to speed up or slow down the economy as the RBA feels is necessary. The challenge is that it a pretty blunt tool impacting the economy as a whole. Australia’s two-speed economy means that while the mining industry goes from strength to strength… the retail, manufacturing, tourism and construction sectors need to be stimulated – and a rate cut today would have done that.

It’s not a matter of IF rates will reduce anytime soon… but by how much they will be reduced… and in which months – i.e. when. I’ll reserve my final judgement on what action the RBA will take in four weeks until after the release of February’s economic data. It is more likely than not, however, that rates are at least 0.5% too high today and will come down accordingly in the near future.

Reply to this email with your questions / requests.

Happy Investing,

Nick Lockhart
Our Customer Care Program works for you… because investing is personal!

Cameron Atfield | SMH | The Age | The Courier Mail | Feb 1, 2012

Brisbane is growing faster than any comparable city in the world, according to a new report.

Brisbane will grow faster than any other ‘mature’ world city over the next eight years, according to an international study compiled by market analysts Jones Lang LaSalle.

The only other Australian city to make the list, which comprises of cities with a “mature property market” and a population of more than 1 million, was eighth-placed Perth.

The study, A New World of Cities: Redefining the Real Estate Investment Map, ranked Brisbane number one for expected gross domestic product growth from 2012 to 2020.

Sixteen of the top 20 cities were in North America.

The list ignores developing cities, which grow at a much faster rate.

JLL Brisbane-based research and consulting director Leigh Warner said it was not surprising the Queensland capital had come out on top, primarily due to the strength of the state’s resources sector.

A similar boom in Western Australia also contributed to Perth’s strong showing, he said.

“Not only is it creating investment that drives GDP, but it’s also driving population growth in both those markets, which is the ultimate driver of property demand across all property sectors,” Mr Warner said.

While Brisbane’s strong showing came as no surprise to Mr Warner, he conceded public confidence may not reflect the city’s strong showing.

“Even in the middle of the GFC, we put out a couple of papers on coal seam gas and the resources sector more generally and the impact it could have on this region,” he said.

“I’m certainly not surprised, but I guess it is a surprise to some when we’re seemingly doing so poorly in the residential property market at the moment and other visible aspects, like our retail property market.

“But certainly the office market is already a major beneficiary of the resources sector and has been recovering very strongly for over 12 months now.

“Usually the office market lags in economic activity, but in this case it seems to be leading because there’s a lot of up-front jobs creation through the resources sector.

“Hopefully that will flow through to broader jobs growth and lift other areas of the economy like retail, which is suffering at the moment.”

Mr Warner said emerging cities, such as those in the boom economies of China and India, were not included on the list.

If they were, he said they would dominate world growth.

“For property investors, a lot of them don’t want the direct exposure to an emerging market because there’s fundamental risks associated with investing in countries where there’s not even the basic security of property rights and you’re at the whim of an unpredictable central government with a lot of power,” Mr Warner said.

“So there’s a lot of risk inherent in direct investment in emerging countries, so looking at where to invest – and this is something that a lot of investors coming through our office are doing – they’re looking for the markets that have the exposure to those (emerging) markets, like Perth and Brisbane.

“… There’s a lot of investors looking for those mature cities that are more secure as an investment, but with an indirect exposure to the Asian growth story.”

However, Mr Warner said there were challenges associated with such growth.

“If we don’t keep up in terms of infrastructure delivery and accommodating a large population, then there is a real risk that the cost of living would go up quite significantly,” he said.

“But in the end, it all comes down to how well we manage it. There’s also magnificent opportunities in how we capitalise in terms of state revenue from this mining boom, so if we use that wisely and spend it wisely then we can all benefit from it.”

Lord Mayor Graham Quirk said he was “delighted” with JLL’s assessment of Brisbane’s commercial growth opportunities.

He said the report showed Brisbane was on track to be one of the world’s most prosperous cities.

Read more…

Reading yesterday’s article (Sydney Morning Herald, The Melbourne Age, Brisbane Courier Mail and others) titled: ‘Growth Spurt Puts Brisbane On Top Of The World’ along with a dodgy seminar I attended on Tuesday night has inspired me this week; where my focus is on Brisbane! Before I give my controversial 20 cents worth on the guru (charlatan actually) that I listened to on Tuesday night check out the following pics showing the evolution of Brisbane since the late 1800′s. Compare pics of Queen St and Customs House in 1898 with that of  today.

Brisbane CBD in 1883

Brisbane Customs House in 1898

Be sure and read on… I couldn’t help but let loose with my ideas – and if I offend anyone; too bad!  Read more…