Wednesday, January 03, 2007

Newsletter December 2006


This is a fair question, but if you’re in doubt, ask yourself have you ever worried how your children will ever be able to afford their first home?

If this has ever crossed your mind, you know the answer – yes, you too believe that property will continue to move ahead.

And governments are planning for substantial increases in population. In both Melbourne and Brisbane, forecasts are for another million people (in each city) within 20 years. That’s like taking the population of Adelaide and plopping it down onto either city.

Given this huge additional demand, what do you really think will happen to property values?

Of course, Perth is a different situation. My personal thoughts are that the Perth market will stagnate for some time, to allow the "normal" Sydney differential to become re-established over the next five to seven years.


In an interview ("The Australian" 18 November 2006) with Knut Kjaer, chief executive of the Norwegian Pension Fund (at $350 billion, the largest in the world) he makes the point that $1 invested in equities in 1900 would be worth $376 at the end of 2005.

Now on the basis that property in Australia has been doubling every ten years for the past 150 years, $1 invested in property in 1900 would be worth $1500 at the end of 2005.

And of course, that’s just the index, without any consideration of leverage.

But simply on these raw indices, which outcome would you prefer?


Writing as a journalist, it is exciting to see new funding products continuing to emerge for the benefit of residential property investors.

The explanation is that there is now A$6 billion flowing into superannuation funds each quarter, and the funds have to invest. So they place these funds with the banks, who then – in turn - have to find places to invest. (Which is the reason why you can now obtain credit cards at less then 10%).

A new arrival is positive cash flow mortgages. Our private clients are now able to access positive cash flow mortgages.

Let me know if you would like to explore how a mortgage that funds itself could assist you to move forward. We will introduce you to a qualified funding professional.

Mobile phone 0414 778 518 cell phone 61 – 414 778 518


For many years now we have known that there have been too many agencies drawing water from both the Murray River and the Darling River. And now, with climate change and far less rain, their plans for a long term water security system is in chaos.

"We should have acted years ago" they say.

For many years now we have known that there will not be enough in our super funds for 15-20 years of a dignified retirement. And now, as baby boomers move towards their Renaissance years, their plans for long term financial security are in chaos.

Fortunately, for many, there is still time.

Don’t get to your retirement and say "we should have acted years ago".

The time to act is NOW.

We can assist you with a free, no obligation, consultation – either by phone, email or in person.

Phone mobile 0414 778 518 cell phone 61 – 414 778 518


Another excellent question.

When I’m asked this, my response generally runs along these lines: "Let’s draw a parallel. For example, unless you play golf frequently, to win the tournament you’ll need advice to chose which of the 14 clubs you should use in any given situation – the fairway, the sand, the rough, the gusting wind etc.

"It’s the same with property investment. There are many variables. Now I’m in the property investment market frequently – literally every day. So let me guide you as we move forward together."

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

P.S. your greatest compliment is a Personal Referral