Monday, June 02, 2008

Product Newsletter 1 June 2008

Example of potential for an investment property on this site in a renaissance suburb (right)



As you know, I try to introduce my private clients to the best network of support professionals that you need to maximise the benefits of your property investments.

For your information, I am now referring clients in Brisbane to Leona Bennett at Gordon Appleby & Co. in Red Hill 4059. Phone (07) 3876 6211

Leona and her husband own investment properties, so you can be sure that she keeps up with changes to the legislation.

Of course, if you want a referral to other specialist property accountants in other cities, phone me anytime: Bernard Kelly 0414 778 518

For international clients, my cell is 61-414 778 518 and of course my skype is: bernard.kelly1944


Recognising the importance of the property sector to the overall health of the economy, the first Budget delivered by Treasurer Wayne Swan has taken some bold initiatives to encourage both domestic and international investment in the sector.

Domestic investment is being prompted by

· the enhanced First Home Savers Accounts, costing $1.2 billion over four years
· the $623 million National Rental Affordability Scheme to encourage the construction of 50,000 new affordable rental properties by 2011-12. and
· the $500 million Housing Affordability Fund to address delays in planning processes and identify surplus Commonwealth land that could be used for housing.

In addition, the withholding tax imposed on dividends and capital paid to international investors from property trusts would be slashed from 30% to 7.5%, costing the government $620 million over four years.

This $2.9 billion package over four years will positively impact on clients’ residential property investments.

So while the real estate markets have paused for breath, now is the time to add something extra into your pension fund.

Remember that an investment valued at $400,000 today can be expected to put an additional $400,000 aside for you in 7-10 years. But it won’t unless you do the paperwork today!

If you want to explore your options for 20-25 years of a dignified retirement, phone me Bernard Kelly on mobile 0414 778 518 or cell 61-414 778 518


It's a great time in property when our private clients can get the upper hand over journalists. There is so much press about how bad things apparently are at the moment but this is your opportunity.

Let's face it: at the urging of journalists, inexperienced and uneducated people want to stay out of the market. Experienced and educated investors are still participating.

Why? Because in ten years investors know they will be saying “we should have bought many more back in 2008”

Journalists were writing the same articles ten years ago. And – I daresay – they will be writing the same in 2018.

However the facts that will underpin an investment portfolio today are:

· The economy continues to be strong
· Net Migration – to offset the skills shortage - is strong
· Each year, we are building 30-40,000 fewer homes than we need
· The rental shortage will continue for years
· Construction costs of new homes continues to increase

If you want me to help you explore your options, phone me anytime. My mobile is 0414 778 518 and cell 61 – 414 778 518


Some people ask me why I don’t like Defence Force Housing as an investment.

I do try to provide independent research for investors in residential property in Australia, and consequently I am able to share with you that the goal of DFA is not to assist you overcome the dollar shortfall that most of my clients have in their retirement plan.

No – the goal of DHA is to have you finance the accommodation that they are required to supply for defence force personnel.

Now I don’t deny that there are some definite attractions in their offer, however you should understand that their “10 year rental guarantee” only lasts as long as they need you.

For example, a few years ago when they downgraded the Bairnsdale air force base in Gippsland, they naturally had no further need for much of their rentals, and of course there was virtually no-one to replace them. And affected investors were not able to sell readily, as there was a glut of sellers.

Then last year the Department recommended the closure of the Woodside army barracks in the Adelaide Hills as well as the Richmond RAAF base, in Sydney’s outer north-west.

But as both were located in seats held by Liberals, the Howard cabinet vetoed the plan – it was an election year, after all.

But what is the likelihood of such closure plans being re-activated by the new government? Who knows?

But I wouldn’t want to be relying on DHA as a tenant in either location.


The peak superannuation body – the Association of Superannuation Funds of Australia – has releases figures that the average 2008 super balance is likely to be around $155,000 for men and $73,000 for women.

The questions to ask yourself are:

A) “in which year, in my retirement, will my super run out?”

B) “where can I find Bernard Kelly’s phone number to explore my options for an investment property?”

The answer to B) is mobile 0414 778 518 cell 61- 414 778 518 skype bernard.kelly1944

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