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The transformation and rising popularity of Footscray…

Footscray is becoming increasingly recognised as one of the most happening, vibrant and edgy suburbs Melbourne has to offer to people from all walks of life.

With its locality to the Melbourne Central Business District (just nine kilometres from the city), its inherent cosmopolitan ethos and its thriving arts scene, Footscray has always been bubbling over with potential.  The location offers convenient access to major roads, rail and bus routes, ideal for reaching nearby schools.  These homes are opposite the Western Hospital and less than 2 kilometres to the Victoria University.  This unprecedented proximity makes this boutique development the ideal address for Doctors, Nurses and their families.

Footscray has been designated as a transit city and principal activity centre in the Melbourne 2030 Strategy, thus this area will benefit from funding from both the government and private sector.

Strong projections for population growth over the next decade in combination with substantial government funding towards infrastructure will ensure steady, continued growth for the suburb.  Footscray is a key activities area for western Melbourne, which is projected to grow by 8900 people to 21,057 by 2021, reflecting an annual growth rate of 3.75% over the next 15 years.

The addition of NRAS to this Townhouse development creates an excellent investment proposition for investors.  The NRAS annual tax-free Incentive is currently $9,524 per dwelling, and is indexed each year to the rental component of the CPI, for 10 years.

Property prices in Footscray are set to ride the next wave.  This is an outstanding opportunity!

Request we email you the details of this NRAS opportunity >>> here Read more…

Inner city Melbourne living at its absolute best!

Brunswick is a well established, consistent growth suburb located only 4km north of the Melbourne CBD.  Located on well renowned Lygon Street – famous for its array of iconic, trendy restaurants and bars, an excellent public transport infrastructure – a direct tram link to the CBD, bus and train, and within close proximity to amenities and educational facilities, Brunswick East is a major activity centre.

With only 2 units available, these spacious open plan 1 bedroom, 1 bathroom apartments with 1 car space have integrated air conditioning to bedrooms and living areas, SMEG kitchen appliances and stainless steel dishwasher, remote secure car park, security screens and blinds and high quality fixtures and fittings throughout.  These chic, quality, off-plan apartments are priced from only $465,000.

A Structure Plan in place for the next 10-15 years aims to create more housing and more retail and commercial space thereby creating local job opportunities.  With Melbourne a leading capital city in infrastructure and development growth for the next 30 years, a large surge in population and employment will be identifiable, offering excellent property investment prospects.

Request we email you the details of these great new opportunities >>> here Read more…

When it comes to Australia’s property markets it’s “Queensland’s Time In The Sun”.

The average property doubling cycle is between seven to 10 years; closer to seven years for well located residential property. I say ‘on average’ because no one can say with any certainty that property values will double in any seven to 10 year period… but when they don’t they will generally perform better in the subsequent years. This is exactly what happened to Queensland property prices through the 1990′s when massive investment into Victoria from the Kennett government and into NSW in anticipation of the 2000 Sydney Olympic Games left Queensland and other states struggling to attract their fair share of investment dollars.

By late 2001 (almost overnight) the pendulum swung and Queensland’s property values took off very quickly to bring equilibrium back to the market.

There seems little doubt that this is exactly where we are again now.

Read more…

Looking for a positively geared property… one that will return positive cash flow before tax?

Ask about the house and land packages available in the red-hot muscle towns of Gladstone and Mackay (or one of our many other investment opportunities).

NB: We cannot show these on our website as they change daily (even hourly).

Just yesterday we were offered a house and land package for $550,000 that rented for $750 a week unfurnished (that’s almost 7.1%) or $1,000 a week furnished; or 9.1%.

Guess what? It was gone within an hour!

Queensland is on the move economically with record levels of investment pouring in.

To take advantage of this contact mrd >>>here Read more…

Michael Matusik is an independent property analyst, commentator and advisor. Below what I have written is a copy of an article he has just written that pretty well confirms the message you have heard from us in recent times. Be sure to read it all IN FULL… especially if you are someone who has felt any angst while holding seemingly underperforming South East Queensland property in the recent years since the Global Financial Crisis (GFC).

I’ve said it before, the problem with a booming market is that people think it will never end. Equally, the problem with a flat or declining market is that people think it will never end.

We can learn much from history… which continues to repeat itself. Average accountants ‘record what happened‘ and tell you how much tax you owe. Great accountants assist with planning helping you to minimise your tax obligations ahead of time. So too it is with average media coverage, average economists and average commentators. Average won’t cut it… you need great support every step on your investment journey.

Confusion In The Market Is A Good Sign

At different times I refer to what I call “The Property Investors Tipping Point” and that best describes where the Queensland property market is right NOW. If you can’t remember my ‘tipping point’ article I recommend you read it >>>here; again if necessary. By understanding the tipping point you are less likely to make silly, emotional decisions that cost you dearly.

The current market is extremely confusing for many people. There is strong ‘evidence’ that (a) things are finally on the up and up and (b) that property is a ‘basket-case’ and you would do well to sell what you have, cut your losses and steer clear of property in the future (such contradiction points to this ‘tipping point’ phenomenon).

Building wealth with real estate is a lot like playing poker. There’s a lot of bluffing that fools the masses into parting with their money… some are fooled into selling their property in a buyer’s market and others fail to see great opportunity while it still is. WARNING: You simply cannot afford the luxury of being in either camp!

Sadly but inevitably before this year is over I will have listened to many people say to me the following (or words to the effect):

• “If only I hadn’t procrastinated and had listened to you when you said…”
• “Instinctively I knew the timing was right to jump into the Brisbane (South East Queensland) property market… but was put off by all the negative media speculation. If only…”
• “If only I didn’t sell my (South East Queensland) property when I did… but after the GFC and those very flat years of no growth… and the talk of a second global recession….”

Let me reiterate what I said the other week – “If you don’t quit, you’ll make it” and as Winston Churchill famously said “Never, never, never, never give up”.

Patience With Nerves Of Steel

In the original Karate Kid movie the main character, Daniel LaRusso, wins the final of the Karate tournament against the bully – whose coach taught him to do whatever was necessary to win, including fighting dirty. For much of the movie Mr Miyagi, Daniel’s mentor, taught Daniel patience… remember “wax on, wax off” etc? With one leg unfairly targeted and injured by the bully, Daniel was hardly able to stand – let alone fight. As his opponent rushed towards him, Daniel dug deep. With nerves of steel and incredible patience… Daniel stood on his one good leg with arms raised until the precise moment. A second sooner or later he would have been wiped out but with perfect timing he leapt into the air and inflicted on his opponent one hard, swift and precisely timed ‘Crane kick’ that saw him the victor against all odds.

It’s no different for you the property investor wanting victory in your ‘financial tournament’. There ARE going to be times of fear, uncertainty and a whole lot of opposition. But… if you remain resolute, unwavering and ever ready to act swiftly with precision timing, you too will win your battle of financial independence.

A Mentor Before, During & After The Transaction

I believe you will be many times better off if aided by an experienced property mentor in whom you have trust and confidence. It’s not just about buying right; successfully creating wealth with real estate is as much about those decisions you make one, three and five years after your property settles. It’s not enough to simply try; to just start your journey… you need to finish it and stand on the other side victorious. It’s with this in mind and to this end that mrd functions.

• Tell me how mrd can assist you right now >>>here

Back To Michael Matusik’s Article

The Future Of Australian Property Markets Looks Bright – Especially In Queensland

By Michael Matusik – 15th March 2012

“House prices rose by 0.8% in February and while that might not sound like much, it is the biggest monthly increase in 18 months.  Prices rose in six of our eight capitals and in almost every major regional city, highlighting the underlying strength of Australian residential property.

The future looks bright too, with auction clearance results now hovering around the low 60% mark.  Remember clearance rates over 50% means that prices should continue to grow.  In addition the amount of resale stock on the market continues to fall.  Stock levels have fallen since the beginning of the year.

Underlying demand for new property is also set to improve with a big lift in permanent settlement in Australia.  The number of people settling Down Under hit the highest levels in 3½ years in January.  Close to 14,000 people are now arriving each month, compared with the lows of 9,500 per month in late 2010.  Over the past year 146,500 people moved permanently to Australia.

To quote Craig James of CommSec “Population is power, lifting economic growth and momentum”.

More people means greater demand for homes, cars, household appliances and heaps of other stuff.

It is anticipated that just 135,000 new dwellings will be built across Australia this financial year.  This is against the 10-year average of 155,000 new homes built each year.  The slowdown is warranted given the drop in overseas migration during 2009 and 2010 and the oversupply of new housing in Victoria, South Australia and to some degree in Western Australia too.

But the recent lift in migration is expected to see new housing starts increase in coming years.  Our forecast is for 155,000 new starts across Australia during fiscal 2013 and up to 175,000 starts during 2013/14.

Queensland looks set to benefit the most.  Despite reports to the contrary, new housing is undersupplied across much of the state.   At present Queensland has a 16% market share of total residential building across Australia.  Our historic average is closer to 25%.  We forecast that new housing starts in Queensland could double (up 46%) over the next two to three years, rising to 38,000 new starts during 2014.

With close to $135 billion worth of new resource projects underway across the state, coupled with $29 billion worth of new infrastructure projects being delivered across the south-east corner of the state, the need for new housing is on the increase.  And much of this new supply – close to 70% – will be needed in the triangle between Noosa, Coolangatta and out to Toowoomba.”

I encourage you to get real answers to those questions still holding you back.

• Let me know how my team and I can assist you >>>here
• Not sure what to do or where to even start? That’s perfect! Complete a ‘My Starting Point’ assessment form and we will look at what your potential borrowing capacity is and suggest changes to your current financial structure; where we believe there will be a direct advantage/benefit to you in doing so >>>here

Read more…

$10,000 Queensland Building Boost Grant WARNING!

The $10,000 Queensland Building Boost Grant was extended for three months; now due to expire on 30th April 2012. However, with the state government election in just 8 days and the current opposition (who look set to win by a landslide) opposed to this building boost, calling it a poor use of tax payer money… the scheme could be cancelled as early as Monday 26th March (i.e. in 10 days time).

So at best you have 45 days remaining to exchange contracts and qualify for this $10,000 boost on any new property and at worst just 13 days.

Remember the federal government has canned three of their own schemes early (pink bats, solar hot water and green loans) so the idea of a new incoming government (opposed to the scheme anyway) doing likewise is a definite possibility.

Click image to view short $10,000 Queensland Building Boost Video

“Investing In Property Is A Science” just not an exact science given those events and circumstances that ‘come from left field’ – e.g. Global Financial Crisis (GFC). Therefore success in life – generally or as a property investor – is more certain for those who understand and live by the following truth.

“Blessed are the flexible… for they are rarely bent out of shape”

The more time I spend as a property mentor the more convinced I am that your success depends as much on your attitude, knowledge and mental toughness than it does on anything else (including the properties you buy). That’s why I (unlike my industry peers) teach on these almost as much as I do on actual bricks and mortar.

As I drove home on Wednesday evening I had one of those random day dreams about a couple that inspired me when I first became involved in the property industry (as a researcher) 15 years ago.

This couple had ‘arrived’ or so it seemed to me at the time. They were in their early 30’s, had great cash flow and had already accumulated numerous investment properties. All that stood between them and their dreams was time; they didn’t need to buy more property… just wait until their values increased.

Their baby girl would be raised in a family that would have no money worries (or fights), could take exotic holidays and design a dream life. But as you probably already suspect things went horribly wrong!

Seven years on their properties had doubled in value yet they were in a complete mess. Not only had they recklessly taken on too much personal (non deductible) debt that was crucifying what was previously great cash flow, but they were constantly fighting with each other. This really lovely couple for whom I have a lot of time, begun the inevitable downhill spiral that within the next two or three years saw them lose everything through a bitter divorce and numerous property fire-sales.

Yes they did have a great start but their lack of maturity meant they made silly, ill-informed decisions which seemed to compound as things began to crumble around them. While amassing their collection of investment properties had they simultaneously fortified their attitude, increased their knowledge and mustered up a bit of mental toughness I believe their situation would be entirely different today. What they really needed was a sounding board, a mentor that they trusted and could speak with on a regular basis. Theirs was a very tragic story with (sadly) a bitter and twisted ending.

Don’t you find it sad that a family who should today be financially set for life are about as far removed from that experience as is possible? All it took was one ‘small’ decision of poor judgement after another. Time really is the great equaliser in life… many start but few follow through and finish things. My opinion is that greed (a manifestation of immaturity) was the root cause of trouble in this situation.

When The Student Is Ready The Teacher Appears

Ultimately our mental and emotional growth will dictate the level of our financial growth. So in the case of this couple their wealth was inevitably going to diminish (as happens when people win the lottery but are not equipped to handle it). For you that means that if you work to strengthen your attitude, knowledge and mental toughness your bank balance has no choice but to find a creative way of catching up… and it will. When the student is ready the teacher always appears!

My ‘advice’ to you now is twofold:

1. Don’t bite off more than you can chew
2. Learn to chew more

Why I Started MRD

After five years as a contractor in the property industry I made the decision to go out on my own. I can summarise why by saying I wanted to see more honesty and integrity in the way investment property sales were facilitated. It’s not how many properties can someone sell but how many people can you help? And by the word ‘help’ I mean help to complete the journey… not just get started.

As I’ve said before I’m proud of the team of dedicated and caring professionals I have working with me. If you allow us I know we will over time significantly contribute to your medium to long-term financial well-being. We are set up, geared and wired to mentoring you on your property investment journey.

Like every organisation we have had some misfits who slipped past the interview process but mostly we have had fantastic, caring individuals who undertake their work with sincerity and integrity.

Wendy has been diligently attending to purchasing clients needs now for over five years. Anyone who has settled a property through mrd (or is in the process of doing so) would have experienced Wendy’s commitment and loyalty first hand.

Doug, Martin and Tom & Jan are my fellow property mentors. They are all property investors, are technically competent and all have their clients’ best interests at heart. Clients that want to be mentored generally find our approach to be more one of counselling, guiding and instructing… rather than selling.

Heather is our resident in-house finance specialist. Formerly Heather ran the entire retail branch of the Colonial State Bank’s head office in Martin Place Sydney. Her responsibilities included all branch matters, staff and of course the politics associated with being the head office branch. In the earlier part of her career, Heather was with the Bank of NSW (now Westpac) and later with the Commonwealth Bank (who swallowed up Colonial State Bank). You will need to travel long distances and filter out many brokers to find someone more qualified or more efficient than Heather (if they exist at all). If you have never allowed Heather to undertake a financial structure and cash flow health check I encourage you to do so today!

Without mentioning what each does behind the scenes… we have others equally dedicated to the mutual success of mrd and mrd clients; namely Katrina, Rod and James.

I too have my external support team of professionals and advisors who assist me to make right decisions. A special mention must go to my accountant Darren Baker-West (GFM Accountants in Melbourne), Noel Scully (Non Executive Management), Adam Ithiel (Lazy Bear Group; that’s IT) and a host of others who have in various degrees contributed to the success of a business that I am incredibly proud to represent.

No Man Is An Island

My point is that ‘no man is an island’; nor should he (or she) be. mrd is just two months short of its 10th year in business… and we are still here and still excited about what we do despite the economic challenges of recent years. You should draw comfort in the knowledge that we practice what we preach. Not only do we have intimate knowledge of property and finance but in toughing out challenging times, overcoming adversity and standing strong! Trust me… life is going to demand these qualities from you regardless of what vehicle you pursue to achieve your financial success!!!

Call me biased but collectively my team is amply qualified to mentor you in your property and finance journey.

So Let Me Ask You The Following

• How can my team and I add value to your and your family’s pursuit of financial success? Tell me >>>here
• Would you appreciate having us undertake a complimentary and no obligation finance structure and cash flow health check? If so simply go >>>here

Of course if you have any question you’d like to ask me about property, finance (or economics) go >>>here

Read more…

The latest indications from the Reserve Bank of Australia (RBA) are that interest rates will be left on hold for perhaps the next little while. This has produced a growing call from economists, politicians, ex politicians and business leaders who disagree and think rates should drop now. Anyone who reads my weekly blogs knows I am from ‘the other school of thought’ and believe that even though our overall economy is strong and robust, monetary policy ought to be used to address the weakness in those sectors doing it tougher in this two-speed economy.

In early 2008 the RBA increased interest rates twice (I strongly disagreed with them then too) only to then have to take drastic action to rectify these poor decisions when the world went into freefall and we first heard the term ‘Global Financial Crisis’ (GFC). Yes things are different now to early 2008 but with the benefit of hindsight I think those of us who vocally disagree with the current approach taken by the RBA will be vindicated.

Businessman Mark Bouris (founder of Wizard Home Loans and Yellow Brick Road) this week tweeted the following:

• “What’s the basis of the RBA decision? They keep rates on hold because everything looks OK but you just need to scratch beneath the surface.”
• “Manufacturing is suffering because of a strong Australian dollar, small businesses, retail, tourism the same. Mining is doing well but at what cost?”
• “Does anyone agree with me or what do you think?
• “Why can’t we have policy that addresses all parts rather than the average?”
• “Anyone in the tourism industry have anything to say? How are you feeling? What about manufacturers? Retail shop owners?”

Even with the current stance of the RBA and setting aside the new approach of the banks to independently adjust interest rates outside of any RBA decision, you would be justified to expect another two interest rate cuts this year.

I Want To Hear Your Thoughts

Which side of the argument do you sit and why? Do you agree or disagree with Mark Bouris, me and others who think the RBA has got it wrong? Have a say… post your comments (below this article) and then come back in a couple of days (as I have had time to process them) and read the collective views of others – you may even want to comment on the comments from others.

Slash Thousands Of Dollars From Your Interest Rate Payments

NB: Are you aware that some lenders increased their interest rates this week? Did you know that other lenders reduced the discount on their professional packages and effectively put up rates… without actually putting them up? Banking and finance rules change daily and so even though you may have been on the best deal at the time of your last loan it may be far from the best deal today.

• To have mrd Finance undertake a complimentary and no obligation finance structure and cash flow health check on your existing arrangements… and/or to enquire as to what additional borrowings you may qualify for today; complete a ‘My Starting Point’ assessment form and we’ll do the rest >>>here

Read more…

It was Warren Buffet who said “Wealth Is The Transfer Of Money From The Impatient To The Patient” and the older I get the greater I appreciate the truth in that statement. Given Mr Buffet’s success over many decades and in every market type imaginable… we would do well to heed his advice and learn patience when it comes to building our own personal fortunes.

Not so long ago people saved for ‘the trip of a lifetime’; today many head off overseas annually. We live in an ‘instant world’ where people want things now. Yes I love convenience as much as the next person; air-conditioning, fast internet, reliable cars, modern homes and all the benefits Google offers to gain instant access to information. That said, when it comes to breaking free from the rat race and being counted among the wealthiest 5% I don’t just understand the importance of patience… but its necessity.

With few exceptions for the likes of Mark Zuckerberg (Facebook) and Justin Bieber (Singer) there are no short cuts to success. You have to pay your dues and consistently do the hard yards over time.

If You Don’t Quit You’ll Make It!

When Winston Churchill said “never, never, never, never give up”, he emphasised the word never for a reason. Before every victory will be tempting opportunities to quit… and those who do forfeit the spoils of victory. Teenagers can be forgiven for failing to understand this truth but as adults pursuing relationships, business, personal goals, good health, university degrees and wealth creation we ought to be big enough and ugly enough to recognise those challenges and fight till we win.

What About Investment Property

Our success as property investors is no different. Australia has been experiencing storms, even floods, despite being told in recent years by so-called ‘experts’ that our recent drought was not part of the normal weather cycle but the by-product of global warming and man’s contribution to it. Governments have spent billions of dollars on desalinisation plants; because they believed a lie! To have publicly disputed this ‘science’ a few years ago resulted in ridicule and being branded a type of heretic.

Never mind the truth, our 24 hour news cycle requires stories with the greatest capacity to stir human emotion; fear being at the top of the list. But here we are in 2012; Europe is freezing, Australia’s inland (as well as coastal) towns are experiencing floods! Well guess what? Residential property prices have defied the predictions of a 40% drop in values… growing significantly in some cities and poised to do the same in others.

These fluctuations may not seem a normal part of the cycle when we experience the once in a hundred year floods… but those old enough to remember will tell you they are.

• Those who in the 1970’s said our planet was in danger of heading towards another ice age were wrong
• Those who said just a few years ago that Australia would never experience drought breaking rain again were wrong
• They who wrote off our residential property market during the GFC were wrong
• Those who try to tell you that the bullet we dodged during the GFC will get us this time around… still warning that property prices in Australia are unsustainable are so very, very wrong… and when time thoroughly exposes them as such I doubt they will ever be held to account

Have we not heard it all time and time before? During the credit crunches, recessions, the abolition of claiming depreciation (temporarily before being recognised as a great mistake and reintroduced), the introduction of capital gains tax and the GST, the Asian financial crisis, high inflation, low inflation, high interest rates and low interest rates and the global financial crisis… what did property values do? In the late 1980’s when the Pyramid Building Society in Geelong collapsed and Melbourne’s property prices took a ‘fatal’ dive… what happened?

ANSWER: Same as always. Prices soften for a bit and then go sideways presenting a buyer’s market. Some get it and some don’t. Some jump in and others sit back. Either way the market moves again, prices rise and there are winners and losers!

There’s no shortage of conspiracy theorists ready to sensationally twist extreme weather patterns and/or financial movements as we move through short-term and one in a hundred year cycles. But as we live with hot and cold, up and down, happy and sad, summer and winter… these things are normal and if you don’t quit you’ll make it!

When the (investment property) penny first dropped for me I wondered why everybody wasn’t working on a plan to build their own portfolios. I marvelled at the ignorance out there when it came to (a) investing in residential property and (b) patiently waiting until the inevitable results came. I’m still surprised that people buy and sell without ever experiencing even one full doubling cycle.

I don’t wonder anymore… the reasons are clear.

At 17 and just out of school my first job was as a management trainee with MBF (health fund). I also commenced a Bachelor of Business degree at the Ku-ring-gai College of Advanced Education (as it was then known). Six weeks later, unable to fathom fulltime work in the city followed by college till 10:00 PM three times a week for six long years… I quit! Back then six years was more than a third of my life and a very long time.

Today I have no doubt whatsoever that we first win or lose battles in our minds and then we go on to play out those victories or defeats on the stage of real life.

Sick people need the objective diagnosis of a qualified practitioner before a pharmacy will dispense medication to them. Financially sick people should do likewise and seek out an accurate (not emotive) diagnosis for their condition? We look for answers; just not always in the right places. If battles are won or lost in the mind then restricting who shapes your thinking makes a whole lot of sense.

Ferocious storms will rip some trees from the ground. The same storm will cause other trees to be strengthened. The world and to a far lesser extent Australia have in recent years lived through a pretty tough financial storm… with a few aftershocks. The long-term damage caused to individuals has everything to do with how well they were mentally rooted and grounded with right knowledge. Temporarily your property portfolio may have lost some of its value and/or its rental income… but know this – if you don’t quit you’ll make it!

Winston Churchill also said that “when you’re going through hell, don’t stop”. Equally when you’re in the midst of a buyer’s market it’s not the time to sell (in fact it’s the time to buy… which is why it’s called a buyer’s market).

Our role is to mentor you on your journey as an investor; teaching you the A, B, C’s of investing, understanding how to properly structure your finances, supporting you in practical ways and continually addressing your thinking… the battleground where the seeds of success and failure are planted.

The First Step In The Dance

We have clients ranging from those who have only ever read these weekly newsletters through to those we have helped into multiple investment properties and become close friends. Relationships generally start with a first date and as such I encourage you to start the dialogue with me and my team. I know it’s not ‘one size fits all’ but ‘horses for courses’ so I want to assure you that we will meet you where you are now… and help you progress from there at a pace that you are comfortable with.

Perhaps you want to know how you can benefit from the buyer’s market. Or maybe you want your existing finance structure assessed to see if improvements are possible. Or maybe you are ready to consider your next investment property. My goal is to search out how to add value to your life and to help you move forward; using property and finance structures as the vehicles. I know that may sound too good to be true… so test us or at the very least listen to what other mrd clients have had to say via our YouTube Channel – http://youtube.com/investmentmentor.

Take Action NOW

• Tell me what’s on your mind and how I can help you >>>here
• For a snapshot of where you are today and what a lender may allow you to borrow go >>>here

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Click Image To View 93 Sec YouTube Video