Monday, September 29, 2008

Product Newsletter 1 October 2008

formwork awaiting its cement pour - investment property Goodna Heights

Helping you retire with more, and with more options!


In these weeks of uncertainty, beware the dilemma of "analysis paralysis" - a grip of indecision that has been greatly aggravated by the crisis on Wall Street.

Investors can freeze, distracted and worried by grim economic developments and screaming headlines. They become obsessed about real estate statistics and comparative values.

But you know what? Even if the value of your investment doesn’t increase – heaven forbid! – for ten years, you will still be better off.

Why? you ask.

Well the answer is pretty simple. If the taxman is giving you back $10,000 per year, that’s $100,000 over ten years.

If you want to save $100,000 of your own money contact me – Bernard Kelly – anytime at


A major new suburb for 120,000 residents has been announced for Ipswich – Ripley Valley. This will be a community the size of Cairns.

With the Queensland Government expecting that the population of the state’s south east will increase by 1 million over the next twenty years, the Valley will be poised to accommodate up to ten percent of this increase.

Values for investors owing property nearby will obviously increase over time as there are major jobs clusters – with potentially 200,000 jobs - within 20-30 minutes drive. Adjacent economic zones include the Swanbank Enterprise Park, the Bremer Business Park, the Ebenenzer Industrial Park, the educational, health and I.T. complex at Springfield, Ipswich Central and the aerospace industry at Amberley.

The attraction for investors around Ipswich is (1) a designated growth corridor, (2) higher than normal rents, (3) lower land taxes and (4) a product that will appeal to the ideal tenant as well as (5) providing maximum advantages to the investor.

If you want to explore your options to secure 20-25 years of dignified retirement, contact me – Bernard Kelly – anytime on


Informed people realise that you cannot create wealth by saving or investing passively.

With a passive investment the best you can do is to preserve your funds and if you are lucky, beat inflation by a few percentage points.

However to create solid wealth you need a business and apply concepts such as using other people's time (OPT) and other people's money (OPM).

You need to be able to stretch your resources to the maximum and exploit available resources.

Which is the strategy that I teach to my private clients.

If you want to chat with me anytime, just respond to this email and I’ll phone you back immediately. My email is


Something has to give – in the year to 30 June, only 157,000 new dwellings were commenced. This is 40,000 below what was required. Similar deficits have been persisting for some years

At the same time, the population continues to surge. In 2005, the increase was 292,000, in 2006 it was 304,700 and the figure for 2007 was 330,000.

No wonder rental vacancies are at record lows.

Now low levels of housing construction and a surging population can’t exist together for very long.

For investors, the logic is compelling – there is a value surge about to happen, so the time to add to your portfolio is NOW!

Contact me – Bernard Kelly – anytime if you would like me to help you explore your options. (Just hit the return button on this email.)


Occasionally I’m told “The south west suburbs of Brisbane are so far away. I’d prefer to buy an investment locally – so that I can inspect it at any time”.

That’s fine by me – if a prospective clients wishes me to help, I bring my years of professional expertise into play, and do my utmost to achieve an outstanding result for them. But if they want to do it on their own, I’m not upset (except when they ring me a few years later and say “we really should have listened to you.”)

Over the years I have learned that a genuine investment decision is based on an analysis of the numbers – nothing else. There is no place for emotion in any form of serious investing.

My focus is on helping my private clients retire with more. And in my years of experience, there is nothing that can compare to the benefits of investment properties for late career couples who have inadequate retirement funding.

The formula is: who is the Ideal Tenant? what do they want to live in? how much can an typical investor afford?

These questions guide us to the Product.

Then we ask: where should the Product be located?

The answer combines 1) a growth corridor 2) where rents are higher 3) where land tax is lower 4) close to a major cluster of jobs.

The Conclusion - an off-the-plan four bedroom home in the south west suburbs of Brisbane is the ideal investment property for you.

Other forms of property investment – and other locations - carry hidden problems that investors should best avoid.

In particular, I would mention that we do not normally share with private clients investments that are

· Existing housing stock
· Inner city apartments (either high rise or low rise)
· Serviced offices or serviced apartments
· Student accommodation
· Cluster housing and/or gated communities
· Defence Force housing
· Locations distant from a capital city
· Factories or commercial office space
· Postcodes that the banks dislike
· Locations dominated by one industry e.g. mining, tourism
· Suburbs not adjacent to a major economic zone

as each of the above “opportunities” carries hidden problems which slow the accumulation investment program, and consequently are not as attractive as a brand new stand-alone family home in an established suburb in a growth corridor adjacent to a major and diversified economic zone (i.e. where the jobs are).

Let me know if you disagree. Simply hit the reply button on this email.

Or email me – Bernard Kelly –