But Did The RBA Get It Wrong?

It will be interesting to watch what they do with interest rates in the months ahead. Their actions will be an indication of whether this months decision to leave rates on hold was the right one or not.

At the beginning of 2008 the RBA put interest rates up twice. At the time the opposition argued that the decision to do so was wrong and a reaction to Kevin Rudd & Wayne Swan talking up inflation; citing it as the # 1 enemy to go after. What they failed to recognise was that the negative economic impact coming out of the USA had already begun to work its way through the system and here in Australia the economic slowdown was just about to bite.

The numerous interest rate cuts later in the year is clear evidence that monetary policy in the early part of 2008 was wrong.

As it turns out, 2008 was not a year where inflation was our major concern. In fact, before the year was out the global slowdown put an end to inflation as global demand for goods and services fell away and prices began collapsing.

Nick’s Opinion

Personally I think:

• Our economy still lacks the overall business and consumer confidence needed to see things turn around
• Banks are still being very difficult to deal with when it comes to businesses wanting to borrow money etc
• That the next round of federal government handouts (the stimulus package) will not have as potent a short term impact as expected or needed
• Unemployment continues to be the worrying issue and unless small business gets some relief the negative employment trend will not be arrested

It’s just an opinion and I may be wrong, but for reasons including those above, I expect we will see further cuts to interest rates. I also see justification for the extent of further rate cuts to go further than most economists are currently predicting.

The question: “Did the Reserve Bank get it wrong in March when they left interest rates on hold” draws a divided response; and only time will tell.

The RBA’s decision to leave interest rates on hold this month was either (1) A positive vote of confidence in the Australian economy, or (2) A mistake… that will be corrected in the months to come.

Outlook For Property Investors

Current conditions are actually ideal for investors… regardless of whether or not the RBA moves on rates further.

• Property can be purchased at fantastic prices; most, if not all, developers could be classed as “motivated vendors” right now
• Interest rates are the lowest they have been in our lifetime
• Australia is in the midst of a massive housing shortfall

For anyone with a job, the current climate should be as easy as it is likely to ever get… when it comes to creating wealth! Don’t let this open door close before you act!

Happy Investing,

Nick Lockhart
mrd Customer Care Program… because investing is personal

Finance Structure & Cash Flow Health Check

Prevention is better than cure. A complimentary, no obligation Finance Structure & Cash Flow Health Check may save you (literally) tens of thousands of dollars, see the mortgage on your home cleared quicker and open up opportunities that would otherwise have passed you by.

Yes please! Follow the link below to securely send us the information we need to complete this on your behalf:

https://www.investmentmentor.com.au/bca.php

Case studies of other mrd clients that have undertaken a financial health check:

http://investmentmentor.com.au/2009/02/20/property-investor-crash-victims/

We have the software to prepare a complete financial analysis of the investment properties you have purchased through mrd to reveal what  the shortfall or surplus is each week; that is… what is it costing you to hold the property or how much is being put back into your pocket each week?

The changes in interest rates have changed most peoples cash flow situation significantly.  Many are now positively geared.

We will also give you an indication of what we believe your property is currently worth.

In order to complete this accurately for you we will need you to supply the following information:

• Taxable incomes before deductions allowed by your properties (this would be your gross taxable from your wages income or business distribution, after any salary sacrificing but before any property deductions.)
• Ownership percentages
• Loan amounts used for each property and the interest rates
• Property Purchase Cost
• Estimate of Current Value
• Body Corporate
• Rates
• Weekly rental
• Depreciation estimates (these are available from your depreciation schedule)

If you are an existing mrd property purchaser and would like to take advantage of our offer to prepare for you an up to date “Cash Flow Analysis Report” on your existing investment property; please click here.

Happy Investing,

Nick Lockhart
mrd Customer Care Program… because investing is personal

Read Entire Article >> 2009 – not all doom and gloom – market comment from property professor Peter Koulizos – realestate.com.au.

1. How good will your portfolio be if we have another world war?
2. How good will your portfolio be if we have a worldwide recession or depression?

Well, with regards to Q 1, I still have no concrete answer for, and hopefully never will. With respect to Q 2, however, I can now (i.e. only now) say from experience… “It’s all ok”!

My portfolio now numbers 13 properties. When interest rates were 9% plus it was of some concern. We would have remained OK for a couple of years at those high rates because the equity we have built up provided us with a buffer (safety net).

Now every 1%  rate cut puts an additional $35,000 a year in my pocket. We’ve had 4% slashed from our rates in recent months (less what the banks failed to pass on) and the season of low interest seems set to continue for some time.

I use a separate line of credit for my property expenses (i.e. rates, body corp and so on); only paying interest charges from my cashflow. Interest rates are falling and rents are rising so cashflow is looking better and better. I don’t have to work, so while the world “financial crisis” works its way through the system; affecting us all, I remain content and comfortable holding a large property portfolio.

Increasing Population + Shortage of Rental Properties
= Low Vacancy Rates = Rental Increases

OK; ’so far so good’. With cashflow under control, there’s no stress in us holding a portfolio of 13 properties. BUT, what about growth and the lenders?

Certainly, growth has been flat over recent months but prices have not dropped in most areas. An article in The Australian last month said:

“In fact, the latest RP Data-Rismark Index results show that Australian house prices declined by just 0.8 per cent in the 12 months to October this year, and increased during the most recent three months”.

They are talking about the country as a whole (the good, the bad & the ugly); whereas certain areas have outperformed others. As an investor I discriminate against much property and only accept that which I believe will perform better for me.

I have always accepted that property values travel through cycles. I have every confidence that the short supply of property will mean that the growth in prices will/must kick in again. NB: We were about 80,000 dwellings short for 2008 and the Australian Bureau of Statistics  expect around 100,000 too few to be built this year; with the undersupply continuing around those annual figures till 2018 at least.

The mrd set ‘n’ forget, for busy people TM system that Nick promotes has worked for me personally; in good times and in bad and I have no reason to believe my ongoing confidence will be met with any disappointment! Why? Because I believe the fundamental law of “supply and demand” will ensure any outcome other than that which I expect, will be nothing more than a short term aberration.

For the benefit of those who have not spoken with me, let me explain a little of my personal strategy. It revolves around drawing on equity from my portfolio. For those of us in “retirement”, that means using low-doc or no-doc loans; not easy to secure with competitive rate at the moment.

What next?

My plan; or perhaps “flukish luck” (ha, ha) when Marion and I contracted to buy our 13th investment property; included an “ulterior motive”. We bought a top floor, 3 bedroom apartment adjacent to the Robina Town Centre. We thought we may eventually like to downsize and move into this ourselves.

We are now very close to having a number of our properties revalued so as to clear the security from our owner occupier. This is to allow us to then change the security supporting some of my loans away from my own home onto some of my earlier investment properties. With our own home unencumbered (and debt free), we will sell up, pocket the lot and move into the 3 bedroom apartment.

I accept new valuations at this point in time will not be great; but that’s fine, our goal is to simply clear the security from our owner occupier so when we sell we remain in control of all the cash we receive. We will do this without having to qualify for any new loans. No need to be concerned about the availability of a low-doc or no-doc offers – we won’t need either!

I already have an offset account set up for our 3 bedroom apartment. Therefore, after selling we will have $550,000 clear (conservatively) to put into an offset account that sits against (what will be) our new principal place of residence. NB: Selling is something we encourage you rarely ever do. In this instance, it allows us to fund the retirement we want. Because it has been our principal place of residence there will be no capital gain tax. A tailored solution that works for us, even in the face of the global credit crisis!

Some may ask: “Why don’t you simply pay out the loan on your new apartment instead of keeping the debt and putting what funds you get from the sale into an offset account”?

Good question! “Because to do so would mean that I would immediately lose control of the $550,000. If I wanted to get at any of the equity created in the new unit (by paying it off), I would have to go through the exercise of making a fresh loan application; and risk being knocked back etc, etc.

My strategy to have the existing debt on the unit 100% offset still ensures we have a $ZERO (non tax deductible) interest bill, while still allowing us the freedom to draw on the $550,000 as I need it over the next “however many years”; without the need to prove serviceability! Now when you add to that the two hundred plus thousand dollars we currently have available in other lines of credit, one can begin to see that no matter how tight credit for a retiree may become, we will be pretty much set for a number of years to come.

The “crisis” will pass, however, in the meantime a clever strategy and proper financial structuring will allow us to avert any interruption our retirement plans may have otherwise suffered. Then, when things get back to normal and my property portfolio  AND RENTS double in value again we will revalue the lot, increase our credit lines and continue to enjoy our retirement (with growing asset & income base). I am a month off 59 now. When Marion & I started on this journey I was about to turn 50 and I have been self-funded now for 3 years.

7 years + 13 Properties + A Financial Crisis = Never Work Again!

I can hear the voices screaming from all around cyber space “It’s ok for you! You have a significant property portfolio”. Compared to most maybe, compared to others… I’m crawling! Guess how you get hold of a large property portfolio yourself?

Start with a small one… but START!

Now is a good time to do it. Did I say “good”? I see the current “Perfect Storm” as being a ‘once-in-a-lifetime’ opportunity. Interest rates the lowest in 45 years (and falling); with property prices very affordable AND a rental crisis that’s only going to get worse.

My message to anybody who over the past years, didn’t get started because of their “WHAT IF” questions is: This works; so get started!

If your “WHAT IFS” are still plaguing you then maybe you should do nothing but sit tight for a few years and ask me again. I suspect, however, that I will have the same answer for you then.

* Please note: I am not a financial advisor, accountant or a finance broker – I’m just a very comfortable self funded retiree. The examples and opinions above are a compilation based on my own personal experiences, both in creating a $4.5mil property portfolio, starting with only $50k equity and also in helping a large number of people achieve similar goals of million dollar property portfolios. If unsure then consult your own accountant; hopefully one with some property experience and a personal retirement plan that is working. Financial advisors, in my opinion, rarely understand or recommend property, as their commissions come from other investment products. It should be a case of “don’t believe what people say, believe what they do!”

To ask me any questions or arrange a chat regarding how my chosen retirement plan may work for you, click here

Would you like me to guide you through an mrd complimentary & no obligation “Finance Structure & Cashflow Health Check”? Then simply complete the online secure form and I’ll be in touch with you next week; click here

Happy Investing,

Martin Bell
mrd Customer Care Program… because investing is personal

The current global market volatility and recent interest rate hikes have heightened interest in the debate leading to even more rate scrutiny.

Homebuyers are now more aware that loan finance decisions should be thoroughly explored. As a result, they are seeking the advice of home loan specialists who can help prioritise goals, examine financial circumstances, assess need for security and, ultimately, decide which side to take in the Great Rate Debate.

Commonwealth Banks Head of Retail Products, Michael Cant, takes the role of adjudicator to mediate the case between fixed and variable rates.

What is the difference between fixed and variable?

>>>> The Great Rate Debate – Yahoo7 Money Matters.

It was said recently that (when the chips are down) there is ‘no greater motivator than winds of disaster blowing up your butt’.

It may be a little descriptive… yet nevertheless so true! You see, it’s not what happens to us in life that determines our future, but rather how we respond (not react) to that which happens. Of course each of us are affected in some way by circumstances, but how we respond is our own choice! We should never allow ‘circumstances’ to control us… or deter us from our focus in life!

Consider the story of Colonel (Harland) Sanders…

He became world-renowned for his famous “finger lickin’ good” Kentucky Fried Chicken and is also credited with having built one of the largest fast food corporations in the world. KFC is now served daily throughout the United States and more than eighty other countries… not bad for a retired 65 year old sent broke by the building of a new highway.

You might ask ‘What makes the story of Colonel Sanders so amazing’? One of the most remarkable aspects of his life is that when he reached the age of sixty-five years, after running a restaurant for several years, Harland Sanders found himself penniless. He retired and received his first social security payment; which was for one hundred and five dollars. That was just the beginning of his international fame and financial success story…

Born in September of 1890, Harland Sanders was the oldest of five children. Up until his premature death, his father toiled in the coal mines of Kentucky. When his father passed away, Sanders… who was just six, began caring for his younger brother and sister while his mother worked in a shirt factory to support the family. Harland tended to things at home and learned to cook the meals by his mother’s teachings. She taught him how to cook many foods, including fried chicken.

Over the next several years, Harland Sanders worked at a variety of jobs… farm hand, streetcar conductor, fireman on the railroad… and finally ended up running a service station. Once again, he used his cooking skills that were learned from his mother to provide meals for travellers who stopped at his service station. As his cooking became more famous, and his food business grew, Sanders moved into an actual restaurant nearby. His specialty was, of course, fried chicken… seasoned with his original blend of eleven herbs and spices.

In 1935… a few years later, Governor Ruby Laffoon made Sanders (who was now forty-five years old) a Kentucky Colonel; because of his delectable cooking skills.

Progress is not always for the good of everyone, and in the 1950’s, Colonel Harland Sanders was given news of plans for a new highway which was soon to be constructed. The highway would divert the majority of traffic away from the town and, with the beginning of the highway; Colonel Sanders saw his successful business coming to an end. He closed the restaurant and retired to a social security benefit of just one hundred and five dollars a month. When he received his first month’s pension, he decided that he wasn’t going to sit in a rocking chair and rely on the government. So, he convinced others to invest in his delicious fried chicken recipe, and Kentucky Fried Chicken was born.

Colonel Harland Sanders eventually retired from the business when he was eighty years old, and stricken with illness.

The negative ’stuff’ that happens in all our lives will either make us bitter… or better. In the case of a 65 year old man who had just been deprived of his livelihood… Colonel Harland Sanders got better and allowed the winds of disaster to be the catalyst to what went on to become an incredibly successful turn of events.

While we are unable to control many of the circumstances that affect our lives on a daily basis, we can control our attitudes and responses. Regardless of any global economic woes… you can chose to make this year a great success… chose not to participate in any recession; they’re optional… not mandatory! Create a workable plan… then with focus and commitment… work that plan. As mentors, we’re here to help with this.

Click here to take us up on our complimentary, no obligation offer of an mrd “Finance Structure & Cash Flow Health Check”.

Happy Investing,

Nick Lockhart

mrd customer care program… because investing is personal

Now things could happen over the next few days to change that. For example, the Federal Government announcement concerning the next round of stimulus to be announced. Factors such as this cannot be properly considered at the time I am writing this.

Initial evidence suggests the Federal Government’s cash handouts in December ‘08 fell short of having the desired effect. It needs to be noted, however, that official reporting on Christmas spending last month has not yet been released.

Assuming the cash rate will move down by another 1.25% (to 3%) by early March… I see two options before the RBA when they meet next Tuesday:

1. Move rates down by just 0.5% in February while waiting for official figures to indicate exactly how much impact the 1st stimulus package had on Christmas spending. This option would also allow the RBA time to digest the detail of the 2nd stimulus package and assess its likely impact. NB: 2nd stimulus package will be announced soon… possibly this week end.
2. Move rates down by a full 1.0% in February and not risk losing another month whereby the economy could be further stimulated. If they take this option and risk “over cutting” rates next Tuesday they can then put the brakes on a little and do less the following month.

Of course there could be any number of other options and the net effect is that the next two months could see the official cash rate fall below 3%; that is certainly not out of the question.

Personally I suspect the RBA will view their responsibility of overseeing monetary policy with much caution next week and attempt to make a significant contribution to boosting both business and consumer confidence quickly.

At this time our economy is quite fragile and to ‘play it safe’ would seem the most responsible course of action the RBA could take. Managing inflation is no longer of primary concern. Even so, inflation has been taken care of anyway. Falling commodity and labour prices has rectified any inflation problems we were considered to have a year ago… adding to the argument for lowering interest rates.

Have you heard it said that “in every adversity lies the seeds of a bigger and better opportunity”?

This is not just a string of nice words, but a profound truth. The bigger the adversity, the bigger the opportunity. Assuming we understand that influences of “supply & demand” and “herd mentality” on values (even though in the short term aberrations may occur); we will be better positioned to SEE the bigger and better opportunities available now.

• I believe there are more pessimists than optimists; it’s easier to be negative just as it’s easier to grow weeds than flowers
• When it comes to matters of finances, more people are more influenced by their emotions than facts
• If “everyone else” is doing it… so will we
• In Australia we have a growing demand for housing continuing, with a very limited supply
• Confidence is at an all time low; albeit without justification in many instances
• Some developers have gone out of business, others have put the brakes on until they see the property market pick up… many of the rest would still construct if they could find a bank to lend to them
• If the source of this supply problem was fixed overnight, it would take years before the solution worked through the system resulting in sufficient numbers of additional completed housing
• Those who hold property today can look forward to the benefits of significant capital gain… resulting from the next up-cycle
• Up-cycles follow seasons where housing is considered affordable
• With interest rates quickly falling (and to levels most Australians have never seen in their lifetime) and rents being forced up by the growing demand (with lack of supply for years to come) housing will soon be considered VERY affordable

The numbers look really good now and are only going to get better. This gives me confidence that broadly appealing residential property, in sought after locations… will, over the next few years, grow significantly in value. The doomsayers and their followers will have about as much credibility as a cult leader and his key disciples.

My Suggestion:

Assuming you have had an analysis run on your personal situation and understand the associated costs and responsibilities of both buying and holding real estate… now is a fantastic time to buy – i.e. for those who subscribe to the mrd buy/hold strategy (if you’re a property speculator, trader and/or renovator – “good luck & may the force be with you” – ha, ha)

My property portfolio is just about always adding to my wealth. Either my property values are increasing; and adding to the amount of equity I have to work with… or the rents are increasing; and adding to my income base. Remembering that to acquire more property we must demonstrate to our lender sufficient equity and income… I am always winning with real estate.

Safety In Numbers:

People feel safer in numbers; that’s why the herd mentality is so prevalent… but recent history has shown that if you followed what was popular you may have lost half your super or shares etc. I believe real opportunity (like risk) comes from our knowledge (or lack thereof) and our willingness to “swim against the tide” of popular opinion.

Interest Rates & Holding Costs:

Currently the CBA offers the lowest professional package interest rate; just 6.04%. If I am right and rates come down by another 1.25% (or more) over the next 5 weeks… and even if it were not all passed on, we would be looking at being able to borrow for about 5%!

That means the total interest bill on a property that cost $400,000 (assuming you borrowed 100%) would be more than covered by a weekly rent of $385. Now I know that there are council rates, body corporate and rental management fees etc to come from this… but so too there are tax deductions and the strong likelihood of more rent than $385 a week. Watch how, when the numbers change so much in such little time, even the herd will see the opportunity! And when they do… we will have our next up-cycle.

Click here to take us up on our complimentary, no obligation offer of an mrd “Finance Structure & Cash Flow Health Check”.

Happy Investing,

Nick Lockhart

mrd customer care program… because investing is personal

Parents expect (or at least hope) their teenagers would listen to and act on their advice. When they don’t, they allow time and experience be the child’s tutor and settle the matter.

Driving to inspect a property the other day, a friend lamented: “The frustrating thing is that you warn your kids against making unwise decisions. They ignore your advice and when everything comes apart, you are left bailing them out”.

From time to time I experience this same frustration in my role as a Property Mentor; except I don’t have to bail anyone out afterwards. I set out to steer individuals away from potential (and sometimes certain) financial peril, to a life of prosperity, possibility and options. BUT when people are not open to hearing anything that differs from that which they have already concluded… sadly, and all too often, I have no option but to stand back and watch the results of their poor decisions unfold.

IMPORTANT Reality Check!!!

As tempting as they may be, “I told you so” are unproductive and unnecessary words. That aside, I’d be lying if I said I haven’t been tempted to use them more than once.

We are currently in a global downturn and while fear and ignorance drive most people to react… my very strong suggestion is that you do not react, but rather respond! How you respond… especially during these uncertain times, will have a major bearing on your quality of life… five, ten and twenty years from now!!!

Over many years, involved with thousands of investors and would-be investors alike, I have heard just about every rational and irrational argument for why a person disagrees with the mrd set ‘n’ forget model for creating wealth.

• My repeated warning that “When (not if) America sneezes the world will catch a cold” and your need to “Do Something!”; has often been met with indifference
• My repeated warning that “superannuation would fail to deliver all it promises”; fell on deaf ears as Peter Costello offered generous tax incentives for people to put up to $1m into their super prior to 30th June 2007
• Promoting medium density property in built out areas close to infrastructure, employment and services… and explaining that the appeal for house and land out in the suburbs would soon become a thing of yesterday; was many times dismissed on the basis of the books and seminars being peddled by so called property gurus
• Suggesting that commercial, industrial, retail, holiday let and serviced apartments etc were speculative investments and best to be avoided given they were very much subject to prevailing economic conditions; was misinterpreted by some as me simply being narrow minded
• Pointing out that well researched, very selective residential property was predictable and safe; was often ignored because the out of pocket expenses were higher than alternative purchase options
• I could go on and while it’s tempting I won’t. Check out an Information Session I held in May 2006… long before the words Subprime, Credit Crunch, Freddie Mac or Fannie Mae were known to most. The warnings were clear and in hindsight I suspect you’ll agree. Check it out online [click here]

I am not saying any of this as a “I told you so”; far from it! I am addressing this because I am concerned that history is repeating itself. Many people made unwise decisions and failed to navigate through the good times. I now see many of those same people making emotive and reactionary decisions in an attempt to navigate through these tough and uncertain times. In my opinion, they are likely to live in regret… not long from now.

Not for a minute do I suggest irresponsibility when it comes to investing; either in good times or bad. For many, right now is a great time to invest… for others it is definitely not. The challenge is to understand which group you are in. Irresponsibility can be as much about not acting on opportunity as it is about acting under ignorance, fear or emotion.

Whatever you decide to do or not to do, please don’t take your advice from people’s opinions, the media or any person who does not have the runs on the board (yourself included). A great carpenter can offer great advice on your renovation but he cannot give you any worthwhile medical opinion. A great accountant can record your financial transactions from last year and prepare a tax return, but unless he has successful experience as an investor his university qualifications will be of little assistance to you when it comes to making sound investment decisions.

Neither our strategy nor message has changed over the past 18 months; it hasn’t needed to. “If it aint broke don’t fix it”!

There are many ways to make money from investing. You need to learn enough about the different asset classes to make a decision about which strategy is right for you, then learn all you can about your chosen niche.

- There are basically three asset classes; shares, property or cash.  Managed funds direct investment dollars into these same three asset classes on your behalf.

- There are various different ways to invest within each asset class.

- In my experience, cash has not historically given returns that I would be happy with.

- The stock market is far too volatile.

- My obvious choice is property; as you know.

- Within the asset class of property there are various ways to invest.  You can trade, speculate, use options, renovations and/or buy and hold.

- Our niche is buy and hold. Why?

- Safety, reliability, proven consistent performance as well as “set ‘n’ forget; for busy people”

- If you choose buy and hold… what type of property; commercial, industrial, agricultural, retail or residential?

- Our niche is residential. Why?

- Safety, reliability, proven consistent performance as well as “set ‘n’ forget; for busy people”

- If you choose residential, what type of residential?  Holiday let, serviced apartments, retirement or over 55’s villages, units, townhouses or houses?

- Our niche is permanent let residential, units, townhouses or houses. Why?

- Safety, reliability, proven consistent performance as well as “set ‘n’ forget; for busy people”

- If you choose this same niche how are you going to acquire them; second hand, new or off the plan?

- Our niche is new or near new. Completed or more commonly, off the plan. Why?

- Safety, reliability, proven consistent performance as well as “set ‘n’ forget; for busy people”

- Once you build a portfolio what are you going to do with it?  There are probably as many ways to use a property portfolio as there are ways to build it.

- Our niche is buy and hold long term – seldom sell. Why?

- Safety, reliability, proven consistent performance as well as “set ‘n’ forget; for busy people”

- NB: Each time I gave in to temptation and deviated from this niche, I lost money! So, some years back I stopped, no matter how tempting the distractions have been.

My sincere hope is that 12 months from now, when kicking off 2010, you will look back on 2009 and identify measurable progress towards your goals. Yes, it will take some guts… yes, it will take faith and yes, it may even take some swimming against the tide (of popular opinion). But what is the alternative?

Be real with where you are at now, be responsible with your decisions going forward and draw on the knowledge and experience of a team you trust, who have the “runs on the board” and who have YOUR best interests at heart.

• Quit putting your retirement plans into the “too-hard” basket; or retirement living may be just that… “too hard”!
• Don’t put your head in the sand and do nothing; you will get run over
• Remember, if you are not pressing forward; by default you are slipping backwards; there is no standing still

Of course I passionately believe we @ mrd are best positioned to help you; for many reasons including:

• Investing is personal
• Our Customer Care Program is unique and will work for you; as it does for people from different situations, incomes, commitments and so on
• Our system is low risk and designed to help you reach your destination without “crashing” along the way
• Our efforts are underpinned by solid research
• We teach you the how to and why to; but leave you to buy… not us to sell

So if in the midst of financial turmoil, negative media and confusion you are wondering what actions will best serve your medium to long term interests; I challenge you to test us. Why not take us up on our offer for a no obligation, complimentary “Financial Structure & Cashflow Health Check” [click here]?

Pigs don’t know that pigs stink and you don’t know what you don’t know. When it comes to your family’s financial future, don’t be like a teenager who knows it all and refuses to listen to the right people. Learn to navigate through 2009 and beyond… and prosper.

Happy Investing,

Nick Lockhart

mrd customer care program… because investing is personal

The Federal Government has relaxed rules over foreign investment and it should benefit more than 7500 overseas buyers.

Market flexibility will be enhanced, while compliance costs for temporary residents and the construction industry will be reduced, Assistant Treasurer Chris Bowen said.

The definition of temporary residents will also be aligned with contemporary visa categories.

Under the present structure, all temporary residents and non-residents, including foreign businesses, must notify the Federal Government if they wish to buy a property.

They must also comply with post-purchase conditions, including rules surrounding its use, development and resale.

Residential real estate makes up more than 92 per cent of applications received by the Foreign Investment Review Board.

The changes, to be implemented early 2009, will update regulations that are almost two decades old.

>>> Buying Australian property to be made easier for foreigners | The Courier-Mail.

Research by property firm PRDnationwide reveals that foreign buyers snapped up 1495 properties worth almost $621 million in the state last financial year .

Sixty-three per cent of the properties were bought for investment.

The most popular location was the Gold Coast, which attracted $297 million in foreign spending, followed by Brisbane with $117.6 million and the Sunshine Coast with $54.2 million.

Overall in Queensland, the largest number of foreign buyers came from the United Kingdom, followed by New Zealand and Singapore.

On the Gold Coast, 525 properties were sold to foreign buyers. It was most popular with Singaporians, followed by people from the Russian Federation and then New Zealand.

Colliers International director of residential project marketing Tim Holmes said there were still consistent inquiries from several overseas markets, despite the economic downturn.

“The Australian dollar dropping against most currency is making us more attractive for just about all countries,” Mr Holmes said.

>>>>>  Overseas investors move in on Queensland property | The Courier-Mail.