Friday, July 01, 2011

Investment Strategies 1 July 2011


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In an effort to boost the state’s economy, the Queensland government has announced a $10,000 cash grant for the construction of new homes.

Known as the Queensland Building Boost grant, it will be available from August 1 this year to Jan 31, 2012 for house and land packages valued at less than $600,000. The grant will be paid as cash, upfront, at settlement.

The significance of this is that for an investor earning $90,000, regular out-of-pocket contributions for an investment of $400,000 with rent $380 per week would be $106 per week.

But if you put this $10,000 grant into a separate bank account and drew it down at the rate of $64 per week for three years, your personal contributions would be just $42 per week.

Then, after two years, you would have had two rental increases, so your personal contributions would continue at the same rate in the fourth year, but fall towards zero in year five, and then cease.

That’s how property can work for you!

If you want to take advantage of this grant for an investment property, contact me without delay.

I’m Bernard Kelly mobile 0414 778 518
Australia’s Retirement Strategist®
“expect to reap an extra $449,999* when you’ll really be needing it”.


The quarterly survey of 24 economists published in the “Australian Financial Review” 27 June 2011 predicts that the economy will continue its upward trajectory as mining gets back to normal (after flooding in Queensland and cyclones in Western Australia) and food production resumes (after the floods) in New South Wales and Victoria.

And of course the benefits of the massive investment in mining - $51 billion this year and $83 billion next year – are flowing down into the broader community, which generally means that the Reserve Bank will increase interest rates to control inflation.

Then the report from BIS Shrapnel “Residential Prospects 2011 to 2014” predicts that the median price of houses in Brisbane will rise 15% to $505,000 over the next three years.

So now is the time to invest.

If you want me to help you explore your options, contact me – Bernard Kelly – anytime. My email is


Recall those discussions about a “property cycle” – well, the low point is obviously now.

Warren Buffett says “be greedy when others are fearful, and fearful when others are greedy”.
So it seems to me like it’s (right now) the perfect time to be Greedy with your property investment strategy.

Then again “some people make things happen, some people watch what happens and some people wonder what happened” is as true for property investment as in other industries.

Where would you rate yourself?

Growing wealth through property investment isn’t a get rich quick scheme so, and it doesn’t really matter at the price you enter.

It’s the time in the market that is the key determinate of your ultimate property success.
If you need my wisdom and expertise, phone me – Bernard Kelly - anytime. My mobile is 0414 778 518


Right now I am now able to offer you a house and land investment package at 16 Bullo Bvld in Marsden, Brisbane. This house has recently been completed and is tenanted at $370 per week.

It has four bedrooms with ensuite, air conditioning, double garage etc on its own block. It is fully landscaped with pathways, fences and letter box. There is not another penny to spend.

It is available direct from the developer at $399,500.

It is rare for me to be in position to be able to offer a fully completed and tenanted package. With this investment, you will be able to enjoy the benefits immediately.

Floor plans and photos are available. Phone me 0414 778 518

This investment ticks all the boxes. It will attract a continuing series of ideal tenants, it will provide maximum financial returns to the investor, it is located in the south west suburbs of Brisbane (which is the best of the 35+ regional investment markets across Australia).
Anticipated capital growth is the highest, you have the proximity to diversified economic zones (where the jobs are) rents are - relatively - slightly better in Brisbane than in other capital cities, the purchase stamp duty is the lowest in Australia, and the annual land tax is zero for new investors.

The location will always determine 50% of your long term success, the property itself will deliver 30% of your success, and the final 20% is due to the packaging which I ensure each of my private clients acquires.

You won’t do better.


As I have said before, to encourage retirement savings, superannuation has become a vehicle to save tax as it will always struggle with the goal of wealth creation.

The basic premise of wealth creation through super is: in order for you to have the necessary funds that you will need at retirement, you must begin putting some money into your super every month, and you'll need to continue putting a monthly amount into your investment vehicles for as long as you can, up and until you retire.

The story continues to make an assumption like this: over the years you will earn an average annual rate of return of 8% compound on your investments. So if you saved $800 each month for 360 months (30 years), and you were to earn an average annual rate of return of 8%, you would be rewarded for your discipline and financial acumen with an amount approximating $1,087,519

However, assume that the real economic rate of growth i.e. after inflation is a realistic 2% pa, not 8%.

At a 2% average real-world return on your investment, after 30 years, you would end up with only $389,454 of today’s purchasing power.

If you plan to draw $60,000 pa (in today’s money) this $389,454 approximates only six or seven years of retirement income.

Now I know you haven’t been earning $105,000 pa since age 21 – which is what you need for the 9% super guaranteed levy to generate that $800 per month savings – and that super (after fees) is unlikely to generate long term earnings of 8%, and also that incomes increase over time, so your monthly savings could increase. So it’s a false sale.

However my purpose here is to have you focus on the question “what really will super generate for my retirement?” and encourage you to do the maths for yourself.

I know you will be disappointed, which is why I advocate residential investment property for your long term financial security.


In our next issue, I’ll keep you up-to-speed with what’s happening with investment properties.
Remember, even if an investment doesn’t increase one penny over the next ten years, you’re still going to be $100,000 better off.


You can now buy my manual “37 case studies of Profitable Hobbies for immediate application” at

At $19.75, it’s excellent value if you think you’ll be needing an additional source of income at some stage.


I use this for current news – as part of my social network tools



Bernard Kelly mobile 0414 778 518
Australia’s Retirement Strategist®

“expect to reap an extra $449,999* when you’ll really be needing it”.

PS As I don’t spend my advertising budget on traditional media, I’m able to pay you $5000 for successful referrals

About Bernard Kelly:

Bernard Kelly BEcon MBA CRPC Australia’s Retirement Strategist®, is a highly sought-after advisor, retirement authority, thought-leader, author and radio commentator because he makes the complicated and mundane topics of investing and retirement fun! Bernard has over 20 years’ experience providing families with financial thought. He is the author of Live Your Dreams in Retirement, Property Investing for Couples, Goolwa by Breakfast and Raising Decent Kids into Substantial Wealth and publishes a fortnightly newsletter that reaches thousands of subscribers worldwide.

19 Prospect Street, Box Hill 3128 Australia. Tel 61-3-9899 8577 mobile 0414 778 518


Following my own advice, I have now established my own “profitable hobby” – a webhosting service. Go to

and also


At 5:26 pm, Blogger venugopal said...

Thank you for the info. It sounds pretty user friendly. I guess I’ll pick one up for fun. thank u

Houses and Land Packages


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