How To Prosper In The Slipstream Of Population Growth!

29th
2010

This post was written by Nick Lockhart @ mrd
Posted Under: From the desk @ mrd

I learned the meaning of the word slipstream as a young teenager with a pushbike. By getting a couple of metres behind a moving bus my friends and I found we could be dragged along,  making our efforts peddling somewhat less demanding. The irony was that you had to peddle like crazy to keep up with the bus and stay in its slipstream, so all-in-all the idea was better in theory than practice. Being “older and wiser” I now cringe at the thought of teenage kids riding in the slipstream of a bus on a busy highway… but hey, like you, I thought I was bullet proof back then!

Most people like the sound of doing less to receive more and with right knowledge understood that is very possible! Today I want to touch briefly on the subject of population growth; particularly Australia growing to 35 million people by 2050 and how YOU can prosper in the associated slipstream this will create! Firstly, a few definitions of the word slipstream:

  • “The turbulent flow of air driven backward by the propeller or propellers of an aircraft”
  • “The area of reduced pressure or forward suction produced by and immediately behind a fast-moving object as it moves through air or water”
  • “To drive or cycle in the slipstream of a vehicle ahead”

If you watched the 7:30 Report on the ABC you would have seen the four part series they ran this week that focussed on the population growth issues being debated right now. Our population currently sits at around 21 million people but is expected to hit 35 million by 2050; producing many social, environmental and political consequences. The ageing of our baby boomer workforce will see a huge chunk of current tax payers move onto pensions. As a result:

  • There will be a massive loss in government revenue
  • The cost of providing pensions will skyrocket
  • Our already fragile health system will come under more and more pressure and require more and more funding

In the last financial year, the Australian Government supported 2.12 million seniors with age pensions, at a cost of $28 billion. This was up on the $24.6 billion spent supporting 2.04 million aged pensioners a year earlier. Please note that it was recently reported that by 2047, a quarter of all Australians will be aged over 65 years, almost double the current 13 per cent.

Either, those in the workforce will have to pay much higher taxes to cover all this, or we will need to increase the number of people in the workforce paying tax so as to spread the burden. Option one would be political suicide so any future government (as is the case with Kevin Rudd and the Labor Government) will open our doors to ever increasing numbers of migrants.

Understandably, with congested roads, water shortages, failed public transport and hospital systems etc, etc this debate will continue. To successfully make the transition from a nation of 21 million to 35 million by 2050 (that’s a 66% increase on today’s numbers) will take great leadership, great planning and some very clever thinking. Bob Carr, former NSW Premier, is one voice strongly opposed to such growth but I don’t believe he will be heard.

Two Decades Of Warnings

More than ever before the message I have been preaching for the past two decades is now really starting to hit home with mainstream Australia. That is, DO SOMETHING to set yourself up financially OR face a very bleak retirement.

Watch These Short Video Segments

If you have already created your wealth or you already have a workable plan in place that you are actively working… well done! If not, I strongly urge you to view the following four short videos.

As you watch these I trust you will get a better idea of why we are so passionate about investing in residential real estate and why we recommend the types of properties in the particular locations that we do.

Part One – The Population Debate

Part Two – High Rise Living The Way Of The Future

Part Three – Sustainable Living A Must For The Future

Part Four – The Social Impact Of The Population Boom

The real reason any of us invest in property (or any other asset class) is because we desire an outcome; not a property as such. Therefore, any investment decision we make today ought to be with the intention of reaping a financially better tomorrow. Having wealth means we have choices. We can choose how we spend our Monday mornings, the length of our vacations as well as support our families or favourite charities.

To this end, mrd provides a safe environment where you can engage, ask questions and learn… assured that we will never interpret your desire for knowledge as a license to sell you something. Our services are both complimentary and without obligation; I encourage you to put us to the test!

Our Complimentary, No Obligation Offer

Are you just starting out or someway advanced on your property investment journey? Perhaps you don’t yet have the knowledge to even get started. Wherever you are right now (let’s call it “Point A”), moving to “Point B” (the realisation of your dreams and goals) will require right action and probably the responsible use of debt (the right kind of debt).

Our property mentors, who are all investors themselves (doers, not theorists) are committed to supporting you in the pursuit of your financial goals. With the support of our propriety software and an mrd property mentor running many “what if” scenarios we can help you to take much of the guess work out of your planning and decision making.

To explore the possible alternatives available to you… or to seek help to develop your own tailored investment plan; just ask! Our offer of support is both complimentary and without obligation; that’s an unconditional promise!

YES PLEASE!

I would like an mrd property mentor to make contact with me to assist me in creating a plan for my financial future >>>more

I would like mrd to assess my borrowing capacity >>>more

I just want to know if it’s possible to reduce the amount my mortgage is currently costing me >>>more

Happy Investing,

Nick Lockhart
mrd Customer Care Program… because investing is personal

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How To Prosper In The Slipstream Of Population Growth

Reader Comments

Hi Nick & Martin
Thanks for the weekly newsletter over the past year, always informative & great to hear realistic & positive insights into the property market/s.
Question 1): Do we need to take out a building insurance policy if it is part of apartment complex such as the one @ Clifton Views by Glencorp??
If yes – who do you recommend / use ?
Question 2) As a sub contractor can I adjust (reduce) my current quarterly tax payments now that I have purchased another 2 properties that are negaively geared?? Look fwd to your thoughts & feedback – Regards Shane W

#1 
Written By Shane W on January 29th, 2010 @ 11:08 pm

Hi Shane, Happy new year.

Building insurance is done by the body corporate in strata type developments. All you need worry about is the internals. Landlord insurance (we would have sent you info on AON?) usually has a component of contents cover and public liability so that pretty much covered it.
A PAYG employee can revise their tax variation during the year as they purchase properties and I would expect that you would be able to adjust your quarterly tax (I do – or did when I actually paid tax – have not done so for a few years now and probably never will again). This is probably best confirmed by your accountant.

Martin.

#2 
Written By Admin @ mrd on February 1st, 2010 @ 12:11 pm

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