Newsletter November 2006

THE RENAISSANCE CLUB

We will soon issue invitations for you to participate as a member in the Renaissance Club – “for that time when you have the time”.

Watch this space!


DON'T WORRY ABOUT INTEREST RATE HIKES


If the journalists are worried about interest rate hikes, that’s enough worry for the nation. Don’t join their little band of worriers.

Of course, high interest rates have never been the cause of a downturn in house prices – rather, it’s the availability of credit that impacts on house prices.

Which is why, in the low interest regime of the early 90s, house prices didn’t jump. They stagnated immediately after “the recession that we had to have” and re-joined the long-term trend line in the mid 90s as credit became more freely available again.

A buoyant economy means that there is ample credit available, and consequently house prices will continue to rise.

House prices have been rising for 150 years, and – in my opinion - it’s not going to stop.


CALCULATORS FOR YOUR SUPERANNUATION


I have been recently looking at some websites offered by superannuation funds, and found that the Telstra Super site www.telstrasuper.com.au is particularly helpful as it is kept current.

And for my money, its calculators are invaluable.

For example, if you are a male age 65 retiring today with $150,000 in your fund and you nominate a life expectancy of 20 years, you can easily determine your allocated pension entitlement.

For this example – which is about a normal scenario – the results are that your pension will be $10,555-94 pa.

How pitiful.

There’s no other word for it – pitiful.

So if you think that you will not have enough in super when the time for your Renaissance occurs, you had better use the leverage that property offers you today.

WHAT’S HOLDING YOU BACK?



A RECENT TESTIMONIAL


Dear Bernard

Through my association with you in trying to improve my existing residential property portfolio, and realising that superannuation won’t work for me, you suggested that I look for a retirement hobby/business venture.

Your encouragement and creative thinking has now helped me achieve a property-related business venture that I will take into retirement and I thank you, most sincerely.

DJ Melbourne



SOME QUESTIONS FOR YOU

How long have you been thinking about investing?

Why haven’t you done so to date?

Why do you think that now is the right time?


Phone me with the answers!


Regards

Bernard Kelly mobile 0414 778 518 cell 61 – 414 778 518