Retirement Strategies 1 September 2010

an off-the-plan 4 bedroom family home in a growth corridor will attract the ideal tenant and provide maximum financial benefits for the investor (right)

HOUSING TO REMAIN RESILIANT – ANZ BANK

As we’re looking ahead 10-15 years with residential investment properties – to have something extra tucked aside when we finally get around to “retirement” (whatever that will mean then) – you should pay some attention to the long term view for the housing market available from the major banks.

In the August issue of the ANZ Bank’s “Australian Property Outlook”, they expect that dwelling construction this year and next year will be around 160,000, well short of the 200,000+ needed each year to eliminate the increasing shortfall.

The compounding impact of being 40,000 dwellings short each year will mean that the issue will become one of availability rather than affordability, and house prices and rents will doubtlessly rise during the next five years.

“It’s a good time to be a developer or owner,” said Paul Braddick, head of property and financial system research.

The basic problem is on the supply side, with not enough land being released for new developments.


HOUSING TO REMAIN RESILIANT – WESTPAC

Matthew Hassan, senior economist with Westpac, writing in “The Australian Financial Review” (31 August) believes house price rises will continue.

The starting point for this analysis is that current demand is around 180,000 new dwellings each year – to satisfy natural population increase and immigration. But for some time now we have been building only 150,000 annually, he says.

Pent-up demand could be eliminated in three years if dwelling construction increased by one third – from 150,000 to 225,000 – says Hassan. But this is virtually impossible, he says, because there isn’t enough approved land available for subdivision.

Alternatively, if immigration dropped back to historical levels (around 100,000 arrivals) compared to 300,000 last year, demand for new housing would drop back to around 140,000 dwellings. However the backlog is already so large that it would take five or six years for a balance to be established.

But immigration won’t be falling back any time soon – there is a massive shortage of skilled labour domestically, and demand continues to surge for higher education from China and India.

“The current undersupply,” he writes, “is the result of seven years of under-building and surging population growth, and in all probability will take a similar length of time to correct”.


BANK RESTRICTS LOAN MATURITY TO AGE 75

With the implementation of the National Consumer Credit Reform on 1 July, banks are now required to assess the borrower’s capacity to repay.

For property investors in late career, just starting to build their portfolio, this has major implications.

Already one of the big four banks has issued guidelines that require re-assessment should the maturity of the loan be out beyond the borrower’s 75th birthday.

So if you’re aged 55 and seek a 20 year interest only loan, you shouldn’t have a problem.

However if your age is 65, you may be limited to a 10 years principal and interest loan.

Compounding this issue is another related “repayment capacity” test i.e. if you have to totally repay a loan in fewer years, the monthly repayments will be higher, so the bank will not lend you as much because your capacity to make larger repayments will be reduced.

• All this means that you shouldn’t delay in starting a portfolio of residential investment properties if you are planning for 20-25 years of comfortable retirement.


YOU DID AS YOU WERE TOLD …

… but no one told you about planning for retirement.

When we were in our thirties, retirement wasn’t on our horizon. And it still isn’t for that age group.

Why?

Who wants to be told that you must save 20% of your income just for retirement when you’re in your 30s, with two children, with a family income of $120,000?

For the majority, this is just not realistic. You would be eating cat food for years in order to eat caviar later.

Fortunately, when you get into your fifties it’s not too late to start.

What you need is to implement my very successful investment strategy, plus deferring any thought of early retirement, and thirdly convert whatever hobby you have into a “profitable hobby”.

If you want to explore your options how to tuck something extra aside for retirement, contact me – Bernard Kelly – anytime.

My email is admin@retirelaughing.com

ASSET ALLOCIATION IS VITAL

As we are all locked in the compulsory 9% superannuation savings scheme – which is basically all invested in the share market – we need to diversify and lower our risk exposure to one such asset class.

Which is one of the reasons why I recommend residential investment properties, carefully selected for their ability to attract the ideal tenant, proximity to lots of jobs, where the growth is expected to be fastest, where rents are higher and where land taxes are the lowest.

The stock market, we know, can lose up to half its value – which could be disastrous if that’s when we are leaving paid employment and commencing your retirement.

Investment property may dip from time to time – but fortunately never loses half its value.

So be prudent – don’t put all of your eggs into the stock market.

Rather, tuck something extra aside through the very successful investment strategy that I share with my private clients.


“THINK AND GROW RICH” published 1937

As a teenager I read “Think and Grow Rich” by Napoleon Hill, published in 1937.

Now, 50 years later, I have returned to its wisdom.

And one of Hill’s key findings (you’ll remember that he spent years studying the lives of successful men) was that they are able to reach decisions rapidly, and rarely if ever changed their mind.

On the other hand, the least successful took forever to make a decision, and then too frequently changed their mind very soon thereafter.

As you plan for your retirement, are you able to make a rapid decision? If the answer is yes, I have the solution if you don’t have enough for 20-25 years of comfortable retirement.

Contact me – Bernard Kelly – anytime on email admin@retirelaughing.com

If you want proof that my strategy works, go read the testimonials on www.retirementstrategies.net.au

I’m Australia’s Retirement Strategist®


SUPER RETURNS 1997-2009 – A MERE 3.0% pa

Stephen Long - Economics Correspondent for the Australian Broadcasting Corporation- published his analysis of the superannuation system on 5 August 2010.

Based on statistics published by the Australian Prudential Regulation Authority keeps statistics his conclusion is that the net annual compound return is a mere 3 per cent.

That's barely ahead of the inflation rate over that time, which averaged 2.8 per cent.

Over the last decade the system-wide returns were below inflation, which averaged 3.2 per cent.

Long says “Think about it. Australians have, in effect, had a proportion of their wages compulsorily acquired and put into a retirement savings system that has seen their money stagnate over a dozen years and go backwards over the past 10.”

This raises a fundamental question: is this the best way to provide for workers in their retirement?

The answer of course is “NO”.

If you want my assistance in helping you explore options for a better investment strategy, contact me – Bernard Kelly – anytime on 0414 778 518 or email admin@retirelaughing.com

HALF OF US WORKERS EXPECT FINANCIAL DIFFICULTIES IN RETIREMENT

NEW YORK, Aug. 9 (UPI) -- Four out of 10 U.S. adults who are not yet retired say they believe they will outlive their retirement savings, a survey indicates.

The results show 48 percent of those not yet retired say they will not have enough money to maintain their current lifestyle in retirement.

Fifty-three percent who are retired say they are concerned about their current financial situation.

The situation in Australia may be very similar.

If you have any concerns about having enough for 20-25 years of comfortable retirement, contact me – Bernard Kelly – anytime.

I’ll PAY YOU $5,000 …

… for each successful referral that you generate.

My practice helps late career couples plan for 20-25 years of comfortable retirement, by addressing the elements of personal health, financial security, family & friends and a zest for living.

I spread my marketing budget over various media, and it costs me around $5,000 to develop a new relationship. So I’m willing to pay you that $5,000.

Feel free to find out more about joining me as a Referral Agent. (We could have a lot of fun together. And you could make a lot of money - this year, next year, every year.) Your role is simply to generate leads – I’ll do the rest.

Let me know if you want to know more – for example, when will you get paid? where is the deepest pool of prospects?

Go to Facebook. Search for the page “Referral Team – RetireLaughing” and click the “Like” button

I’m Bernard Kelly - Australia’s Retirement Strategist®,


LET’S MEET - MELBOURNE OR PERTH

I’ll be at the Melbourne Retirement & Lifestyle Expo at the Caulfield Racecourse 10-12 September.

And also at the Leisure & Lifestyle Expo in Perth (Claremont Showgrounds) 29-31 October.

I look forward to meeting you if you can make either event.


PAY FOR A CONSULTATION

Some kind people want to pay me for this service.

Feel free to go to my membership site www.retirementstrategies.net.au and pay $110 for a full membership


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

Product Newsletter 1 May 2009

The beauty of property investing is that if this house has a market value today of say $400,000, you can reasonably expect that this value should double in 7-10 years. And if it only costs an investor $10,000 out-of-pocket, then the payoff is $390,000. Yippee!

FIXED INTEREST RATES MOVING UP

The bottom of the interest rate cycle has been reached.

While the cash rates are still expected to drop slightly over the next few months, the banks commenced the rise in fixed rates loans in the week ending Friday 24 April.

If you still haven’t locked in your facilities, don’t delay any longer.


INVESTORS’ CLUB - 14% OF TAXPAYERS


The Australian Taxation Office, in its report Taxation Statistics 2006-07, says that 13.6% of personal taxpayers own an investment property

So you are a member of an exclusive club, and investors collectively own one third of all housing accommodation.

There are 11.8 million taxpayers, so the membership of your club totals 1,600,000.

However many investors are just starting out, as only 17.5% of club members own more that one investment property.


RETIREMENT CONFIDENCE AT ALL TIME LOW

In the USA, workers and retirees have simply lost confidence in their ability to either fund a comfortable retirement or enjoy a financially secure retirement, according to the Employee Benefit Research Institute's 19th annual retirement confidence survey released in April.

Only 13% of those in work say they are "very confident" about having enough money for retirement, according to the survey. That's the lowest response since 1993, and half of the 27% response in 2007 -- just two years ago.

And almost half - 44% of all employees - are either "not at all" or "not too" confident about having a secure retirement.

Of those already retired, only 20% are very confident about having a financially secure retirement.

If you want help to explore options to avoid this nasty situation, contact me – Bernard Kelly – anytime. My email is admin@retirelaughing.com


HOUSING IS RESILIENT

Here are three paragraphs in a recent speech by Rory Robertson (Macquarie Bank's interest rate strategist) that might surprise you:"Between June 1990 and June 1992, full-time employment fell by 7%, and then took a full three years to get back to where it started. So, how far did home prices fall?

Actually, they didn't. Average house prices across Australia's state capitals rose - not fell - by about 2% per annum in nominal terms as that early-1990s recession and jobs disaster unfolded."It turns out that the downward pressure on home prices from shrinking employment in the early-1990s recession was more than offset by upward pressure on home prices from the halving of mortgage rates, from a record 17% in 1989 to 8.75% in 2003."I have no idea if average Australian house prices will fall somewhat or rise over the next five years.

“But those with their eyes wide open can see that sharply lower mortgage rates this time around - lower than most Australian home buyers ever dared to dream - already are having a strongly supportive effect on housing markets."

If you would like me – Bernard Kelly - to help you explore options to provide for your retirement via an investment property portfolio, contact me anytime. My email is admin@retirelaughing.com

Lifestyle Newsletter 15 April 2009

IF YOU THINK YOU CAN RELY ON YOUR SUPER …

Pauline Vamos, chief executive of the Association of Superannuation Funds of Australia, has said that many of us underestimate how much we’ll need in retirement.

According to her calculations, superannuation contributions had to average 12 per cent over a 30 year working life to provide adequate support.

Source “The Australian Financial Review” 26 March 2009


TWO THIRDS PLAN TO WORK IN RETIREMENT

According to a study by Investors Group. Inc , deux tiers des Canadiens prévoient de travailler pendant leur retraite . Inc., two thirds of Canadians plan to work in their retirement. David Ablett, directeur du programme de retraite de Investors Group.

David Ablett, director of the retirement program of Investors Group. Inc , tempère : " Bien sûr, c'est ce qu'ils ont l'intention de faire, pas ce qu'ils feront, tout dépendra de leur état de santé ". Inc, tempers: "Of course, that's what they intend to do, not what they do, everything will depend on their health." Le nouveau modèle de travail consiste cependant à continuer de travailler au-delà de la retraite, même si, pour cela, on doit réduire le temps de travail.

The new model of work is, however, to continue working beyond retirement, but this doesn’t mean working full time. " Les boomers ont appris à utiliser des aptitudes qu'ils avaient développées sur certains postes, dans d'autres domaines . Plusieurs ont créé leurs propres entreprises ".

"Boomers have learned to use the skills they had developed in some posts in other areas and many have created their own businesses." Pour Bernie Clermont, de la Royal Bank of Canada , la volonté des boomers de diminuer leur temps de travail devrait être une bonne nouvelle pour les employeurs, " qui pourront garder des gens d'expérience à moindre coût. Ces derniers pourront alors former les plus jeunes ."

( Calgary Herald ; 11/02/2009 : "Lost in transition ; Canadians take different paths to retirement")Calgary Herald, 11/02/2009


VOLUNTARY PENSIONS BONUS SCHEME

Australian residents who remain in the workforce after “normal” retirement age will get rewarded for not drawing the pension.

A single person who works an additional five years could receive up to $34,814.

Couples could get as much as $29,077 each.

You need to register with Cenrelink before you reach retirement age. Ask to talk with their financial information service.


OPENINGS FOR SEASONED WORKERS

I came across a mention of this innovative recruitment company based in Denver, USA.

It is leading the way to tap into the capabilities of “seasoned workers” i.e. younger baby boomers who have no intention of retiring – at least not yet.

The Boomer Group is a professional-level staffing firm that has been a pioneer in encouraging the business community to hire “seasoned workers” who are looking for a renaissance career.

Their website is http://www.theboomergroup.net

Of particular interest could be numerous newspaper articles on the same theme on their “Boomer Love” page.


ENCORE CAREERS GET TRACTION IN AMERICA

Funding for (community service) encore careers is included in the Serve America Act that is now before Congress and is expected to soon be sent to President Obama for his signature.

The bipartisan bill, which paves the way for a major expansion of national service opportunities for people of all ages, calls on people who have finished their midlife work to use their experience to transform education, reduce poverty, improve health care and protect the environment.

The bill creates “encore fellowships,” one-year positions specifically tailored to people who want to move into long-term encore careers in the nonprofit or public sector.

CONTACT ME

Feel free to contact me – Bernard Kelly - anytime to discuss any of these issues, or to explore your options for 20-25 years of a dignified retirement while there is still time.

My email is admin@retirelaughing.com

LIFESTYLE NEWSLETTER 15 March 2009

TRY YOUR RETIREMENT INCOME NOW

If you are saying that you will be able to live with less money in your retirement, try to live off that amount for one month.

If you don’t succeed, chat with me – Bernard Kelly mobile 0414 778 518 – and I’ll help you explore your options.

LESS THAN 30% PLAN TO RETIRE BEFORE 70

A survey by the Australian Bureau of Statistics taken in mid-2008, released late February, reports than less than 30 per cent of middle-aged and older Australians now intend to retire before they turn 70.

The survey was taken in mid 2008, and released in late February.

The causes appear to be threefold.

There is a growing awareness that many of us will remain very active well past age 70, that boredom is all too common for many early retirees, and of course most of us don’t have enough funds for 20-25 years of a dignified retirement.

So we’ll be happy to keep working.

AVOID ANY RELIANCE ON GOVERNMENT WELFARE

The consultation paper on retirement incomes – as part of the Henry review into the tax system – notes that there are now five people of working age for each person over 65.

However by 2047, this ratio will fall to only 2.4 persons.

The consequence of having relatively more of us retired and less of us in the workforce will mean that the cost of the age pension will increase from 2.5% of the gross domestic product to 4.4%.

In addition there will be larger demands by the health sector to pay for the ever increasing cost of caring for an increasingly older population and ever increasingly costly medical equipment and drugs.

The economy will simply not be able to sustain the pension as we currently know it.

A likely scenario is that we will only have access to the pension, and the Pharmaceutical Benefits scheme etc., once we have exhausted our super.

So plan now to avoid any reliance on government welfare, as it may not be there when you’ll need it.

If you would like me to help you explore your options for 20-25 years of dignified retirement, contact me – Bernard Kelly – any time on admin@retirelaughing.com

HOW MUCH INCOME WILL YOU REALLY NEED?

Most of us underestimate lifestyle costs, medical expenses and inflation.

What is enough? What is not enough?

If you’ve given even the slightest thought to retirement, you’ve probably heard or read that you need about 70% of your final salary to live comfortably in retirement.

This estimate is frequently repeated … but that doesn’t mean it is true, but at least it’s a reference point.

You won’t learn how much retirement income you’ll need by reading this article.

For that you’ll need to meet with someone who can talk common sense about your lifestyle needs and short-term and long-term expenses.

And I don’t mean a financial planner. I mean someone who doesn’t have a vested interest in selling you financial products.

I mean someone who can talk common sense.

That said, there are some factors which affect retirement income needs – and too often, they go unconsidered.

HEALTH

Most of us will face a major health problem at some point in our retirement – perhaps even multiple or chronic health problems.

We don’t want to think about it, but it’s a reality.

And if you don’t have enough money for day-to-day living, you’ll probably end up with a mental health problem.

My solution is to find some form of modest employment – even perhaps a “profitable hobby”.

HERIDITY

If you come from a family where people frequently live into their 80s and 90s, you may well live longer. Imagine retiring at 65 and living to 95.

You would need 30 years of inflation-protected retirement income.Investments.

These must be diversified, and inflation protected.

You’ll need to find a path between carrying too much risk, and being conservative.

SPENDING HABITS

If you’re like most of us, you probably spend 90% or 95% of your income. Will your spending habits change drastically once you retire? Probably not.

GOVERNMENT WELFARE (or lack thereof).

Over the years, the government has progressively restricted access to welfare. This can only be expected to continue.

So will you have enough?

Let me know if you’d like me to help you explore your options. Contact me – Bernard Kelly – anytime via admin@retirelaughing.com

With acknowledgments to Bill Losey of Retirement Intelligence

Product Newsletter 1 March 2009

Spacious Interior of Typcial Investment Porperty (Ipswich) right


WHY I AM SO BUSY

AMP has reported that the cash flow into its investment arms has fallen by 52 per cent in the December quarter.

Now Axa has reported an astonishing 84 per cent fall in net inflows and a dramatic fall in new managed funds in the December half year.

And “capital guaranteed” products are proving that they are 180 degrees away from what the advertisements promised.

No wonder the rush is towards the products that I recommend – they’re “as safe as houses”.

If you would like me to help you explore your options for 20-25 years of dignified retirement, feel free to phone me anytime on 0414 778 518.


IMF: AUSTRALIAN HOUSING WILL EXCEL

The International Monetary Fund has confidence that the Australian housing market will “fare much better than other countries” and that the “fundamental drivers” of house prices is “strong immigration flows, and the other is the interest rate.”

Source: Sydney Morning Herald 2 February 2009 (“Australian housing a survivor on the world stage”)

WORKING CLASS SUBURBS BOOM

Blue-collar workers seeking a quick and easy commute to work have driven up property sales in some of Brisbane's most affordable suburbs.



A report released by Colliers International Research indicates blue-collar workers - technicians, teachers, tradesmen, machinery operators, police as well as unskilled labour in the manufacturing and wholesale workers - have flooded South-East Queensland's strongest industrial employment nodes.



Investors are joining them in search of a bargain, with the Real Estate Institute of Queensland (REIQ) saying there are healthy long-term gains to be had.



The report's author, Helen Swanson, said the top 15 working class suburbs were situated within three kilometres of a major arterial road or highway development.



"Emerging industrial precincts like Ipswich and others in the outer south will see more blue-collar workers move to these areas so they can work closer to home," Ms Swanson said.



"Whether it's highways, roads, bridges or railway there's always going to be benefits to the property market that flow from infrastructure projects," she said.



She said the infrastructure precincts made for emerging real-estate hotspots.



"These suburbs offer good market fundamentals to receive both the opportunity for good rental yield and modest capital growth," she said.



Working class families, who are generally non-transient - a market fundamental - also accounted for strong, long-term rental potential.



"If you can hold on to investment properties, or if you can get in there before the development is completed and before the area or the inner-ring becomes saturated, you are likely to experience strong rental yield and long-term capital growth," Ms Swanson said.



Source: The Courier Mail 18 February 2009

Product Newsletter 1 February 2009

an investment property is a money tree (right), not a house


THE TIME TO INVEST IS NOW


You will appreciate that I am biased, and while I always maintain that “the time to invest is whenever you can afford the weekly contribution” circumstances right now are really exceptional.

When you put it all together, the reasons to be “quietly confident” and proactive are obvious: ·

Minimal out-of-pocket costs

Undersupply of housing

Record population forecasts

Rising rents

Low interest rates and further reductions in the pipeline

Tax minimization

Long term capital growth

Security of ‘bricks & mortar’

Tax deductible insurance against involuntary loss of income



In addition, property values have been increasing ever since records began.

We’ve had world wars, depressions, interest rates at 22% - and you know what - after every pause, values have continued upwards. Remember that speculators rely on timing, investors rely on time.


The time to invest is now, because in 7-10 years time when according to statistics (and I can’t see the long term trend line altering) each your investments are likely to have doubled in value.

In ten years time, what happened in 2008 will be of little significance.

All you have to do is contact me – Bernard Kelly – admin@retirelaughing.com and I’ll help you explore your options.


WHAT WILL IT COST YOU TODAY

I have been running spreadsheet numbers recently on the basis of interest at 6.5%

For a “average” couple earning $60,000 plus $25,000, it would cost them $110 per week in the first year to have their names on the paperwork for a house and land package priced at $380,000.


Of course, in the real world, with increasing rent, that couple would only ever have to contribute half of that – say $55 per week, and probably only for four years.

So it’s theirs for just $11,440 plus the $1000 deposit i.e. $12,440.

Yes – you read it correctly. $12,440 over four years.

And the funding advisors that I am in contact with say even 6.5% is perhaps 0.5% over what most transactions have been done at over the last few months.

Be that as it may, I prefer to be conservative.

However, image what the investment contribution for this average couple becomes if rates fall another 1%.

When I now run the numbers for this couple at 5.5% - I’m not going to be tempted to use 5.0% - their contribution would only be $57 in the first year, so their contribution would be $28.50 time 52 times 2 years i.e. just $2,964 plus the $1000 deposit.

Yes – you read it correctly. $3,964 over two years.

And then they will sit back, and in ten years time -if history repeats itself as it has since records began - they’ll be saying “back then in 2009, we really should have bought TWO”

If you want me to run the spreadsheet numbers for your income, feel free to contact me – Bernard Kelly - anytime. admin@retirelaughing.com

WHY SHOULD YOU ACCEPT MY LEADERSHIP?


First time clients often say – how do we know it will work?

My response is that investors only need to reflect on what they paid for their own home – and what their children might have to pay in the years ahead – to recognize that residential property is expected to continue to increase in value.

What I bring to the table is wisdom, experience, research, logic, and efficiency.

My concept of professional investing is “least in, most out” with 105% funding from local Australian banks (depending of course on their valuations).

You only need a $1000 deposit to start. I show you (and your family) how to invest with maximum efficiency.

We have developed a clinical and scientific approach to property investment and we were delighted early in 2007 when we received a testimonial (from America): “You are the only rational source of information in your market”.

Our method totally ignores emotion, and has its focus solely on the expected financial return.

My practice is based on long term relationships, repeat business and personal referrals.

And none of that happens if clients are not totally at peace with the first investment that I share with them.

And I’m happy to share with you.

Phone me anytime 0414 778 518


PROFITABLE HOBBIES


Most of us will not have enough for 20-25 years of dignified retirement, but I have come to realize that many a micro-business has started from a household hobby.

And many profitable hobbies can be continued into retirement, providing extra income.

To learn more, go to http://www.hobbiesforprofit.com/

THE BENEFITS OF RETIRING LATER

Deferring the drawdown of retirement assets by just four years increases a person’s eventual monthly income – for life – by 33 percent, says Steven Sass, coauthor of Working Longer: The Solution to the Retirement Income Challenge (Brookings Institution Press, 2008).

And an eight year delay can produce a 75 percent monthly bonus, he says.

Many people actually want to work longer than their parents did, and even longer than they expected, for the continued social engagement and connection as well as the continued income.

Even more promising, a slew of surveys show that as many as half of all baby boomers want to “give back” in their encore careers, in schools, community organizations, environmental efforts, and troubled spots at home and abroad.

These major structural changes in working lives have been building for decades; the economic crisis, which has wrecked many retirement plans, is accelerating this shift and increasing its urgency.

Acknowlegments: encore.org

I'm Bernard Kelly http://www.retirelaughing.com/

Lifestyle Newsletter 15 January 2009

PROFITABLE HOBBY – SECOND HAND BOOK STALL

Anyone can easily run a second hand book stall at weekend markets.

You source the books you have for sale from charity shops.

You’d buy them for $1 then sell them for $5. A simple fold-away table is all you’ll need initially for your stall.

Your major expense is the $25 fee that you have to pay to each market, each week, for your space.

In four hours, you should be able to sell at least 20 books (revenue $100).

Your expenses for the day would be $20 for stock, and the $25 fee. Profit $55.

Over a year, your profits would be north of $3000.

Refer a Friend – Family, friends and work colleagues can benefit from a continuing flow of detailed case studies after you visit our membership site: www.hobbiesforprofit.com

PROFITABLE HOBBY – RECRUITMENT AGENCY FOR SENIORS

Mary was a qualified nurse, aged 60.

However at her age, there are personal injury risks in that profession so hospitals tend not to hire seniors.

She needed income, and took on some part-time low paid work (from the local council) supporting the elderly in their own homes.

However she needed extra income and it occurred to her that she had ample time to start a hobby business.

Given her own experience, she realised that there must be a population of seniors out there who become “un-employable” at a certain age.

So she resolved to establish a recruitment agency for seniors, working from home with virtually nothing more than a computer.

Fortunately Mary had personality, and went out of her way to promote herself in newspapers that were read by seniors.

She also became passionate that firms could benefit from hiring experience, which helped her promote her hobby business.

Her fees were $25 per annum to be listed on her database, and $300 for a firm to look for suitable employees.

After the first year, she had over 300 seniors registered (revenue $7,500) and 15 employers had paid to look (that was an additional $4,500).

The key ingredients for this hobby to become profitable would be an abundance of personality, and loads of energy.

You would also need to find a large employer who was willing to employ seniors, otherwise you’d have an ethical problem with taking money from registrants without a genuine expectation of being able to match them up. But retail chains could become a major client, as they are often happy to employ seniors in shifts that students don't want.

Refer a Friend – Family, friends and work colleagues can benefit from a continuing flow of detailed case studies after you visit our membership site: http://www.hobbiesforprofit.com/

POLITICIANS ACKNOWEDGE: SUPER IS INADEQUATE

Politicians have finally acknowledged what most of us have known for some time – it will not be possible for superannuation to provide us with an adequate income for 20-25 years of dignified retirement for the vast majority of us.

Which is why I have been urging my private clients to build a portfolio of investment properties.

When the Australian Government announced the review of Australia's tax system in May 2008, the review was to look solely at the current tax system and make recommendations to position Australia to deal with the demographic, social, economic and environmental challenges of the 21st century.

This study – the Henry Review – was to consider (among other topics) the tax benefits afforded to superannuation, but now the terms of reference have been amended to provide for consideration of the adequacy of existing superannuation arrangements.

Of course the Association of Superannuation Funds of Australia have long advocated that the employer contributions should be 15%, and the major wealth management company AMP now believes that a target for “adequacy” is 65% of an individual’s pre-retirement living standards.

COTA Over 50s – reflecting the less affluent socio-economics of its membership base - has long advocated a retirement incomes system based on the actual cost of living in modest circumstances commensurate with contemporary Australian standards. A pension of 35% of male total average weekly earnings seems a good place to start, they say.

However none of these institutions have the solution to outliving our wealth, and inflation-protecting our income in retirement.

Which is why investment properties are so attractive.

If you would like me to help you explore your options, feel free to contact me – Bernard Kelly – anytime on admin@retirelaughing.com


YOU’LL HAVE TO KEEP WORKING


When the aged pension was introduced in 1909, you had to be 65 to qualify – as you do now.

However back then only 5% of the population was aged over 65; today 5% of the population is aged over 85.

Effectively healthier lifestyles and advances in medical science now allow us to live 20 years longer.

But the government can’t afford to pay us all the pension, hence the push to have us fund our own retirement by drawing an allocated pension off our superannuation savings.

However the reality is that, for most of us, super will never be enough.

For an explanation, let’s look at the “Ten Ways to $1,000,000” article in the Financial Review Smart Investor magazine of April 2008.

The No.1 strategy was for a 21 year old (who already had savings of $10,000) to contribute $5,000 every year extra i.e. above the employer’s 9% contribution, until age 65.

The result – “he’ll be a super millionaire by age 70” concludes the article. But there’s no mention of what that $1,000,000 will buy in 50 years time.

It goes without saying that their other nine strategies produced inferior results – so what’s the hope for us who are well advanced in our careers?

Superannuation is not the answer if you’re looking for 20-25 years of dignified retirement, but a portfolio of investment properties is.

This strategy works best if you’re still in the workforce, so that when you retire, you eat your super before touching your investment properties.

So you’ll have to keep working while you put that investment property portfolio in place.

If you would like me to help you explore your options, contact me – Bernard Kelly – anytime at admin@retirelaughing.com

Product Newsletter 1 January 2009

Investment property at frame stage in Ipswich for a private client (right)




WHAT WILL HAPPEN NEXT

Now that the four horsemen of the apocalypse (Fear and Anger and Gloom and Panic) have galloped past to a distant paddock, some of their audience will now realise

(1) that not all financial institutions have gone broke,

(2) that equities will have to increase in value due to the need by superannuation funds to invest their billion dollar weekly inflows, and

(3) that the real estate still offers an excellent investment for retirement planning.

If you would like me to help you explore your options for 20-25 years of dignified retirement, contact me – Bernard Kelly - anytime on admin@retirelaughing.com

IPSWICH NEEDS 116,000 NEW HOMES BY 2031

The number of new homes in the Ipswich local government area will treble over the next 20 years if the Queensland Government's forecasts are right.

Its draft regional plan for southeast Queensland, released on 7 December, predicts that the Ipswich region will need 116,000 new dwellings by 2031.

Ipswich Mayor Paul Pisasale's reaction was to declare: "Bring it on."Ipswich wasn't ready 10 years ago, but we are now."The new regional plan, which will be open to public comment until April next year, proposes that Brisbane's western corridor be the area's next major population growth.

The state's new draft regional plan for southeast Queensland forecasts that 735,500 dwellings need to be built in the region by 2031, a 65 per cent jump on the current number of 1.1 million.

Source: The Courier Mail 8 December 2008


WHY YOU NEED A FUNDING STRATEGIEST


According to ratecity.com.au there are 1092 different mortgage loan products available from lenders in Australia.

Perhaps half of these would be “investment property mortgages” but there’s no way that anyone apart from an independent funding strategiest would know where to source them, and which one suits a particular investor.

If you would like me to introduce you to a funding strategiest at the peak of their profession, contact me – Bernard Kelly – anytime at
admin@retirelaughing.com


HOUSING PRICES WEATHER FINANCIAL STORM

HIA, Australia’s largest building association says the Australian Bureau of Statistics House Price Index for the September Quarter confirms house prices remained relatively flat during the period.

ABS preliminary estimates show the price index for established houses on a weighted average for Australia’s capital cities decreased 1.8 per cent in the September Quarter. This contrasts to 2007, when established house prices were up by 2.8 per cent.

HIA Chief Executive - Policy, Mr Chris Lamont said, the result is as expected and reflects the slowing in the Australian economy over the same period.

The result is a far cry from the 40 per cent fall in house prices some commentators were predicting just weeks ago.

Relative to other forms of investment, housing is doing very well. It is worth noting that while other classes of investment have seen reductions in asset value of 20 plus per cent the housing market has been shielded by, record levels of underlying demand for housing in excess of supply and population growth from immigration.

“There is no doubt that recent drops in interest rates and a top-up of the First Home Owners Grant will also help in putting a floor under house prices,” said Chris Lamont.

HIA has stated that a fall in asset prices should be expected during periods of economic uncertainty.

But a chronic undersupply of new housing, conservative lending practices and population growth mean that Australian house prices in an aggregate sense are unlikely to see the same turbulence affecting other investments.

“We remain concerned, that restrictions on the availability of capital are placing additional constraints on the supply of new housing particularly for higher-density development. Impediments to new housing supply have already placed considerable pressure on housing affordability and it is essential that capital is available to finance new housing projects,” said Chris Lamont.

RISKS WITH DEFENCE FORCE HOUSING

What attracts many investors to Defence Force Housing is the 10 year rental “guarantee”.

Of course, when you understand the fine print, what this “guarantee” really means is that DFH will only keep paying you the rent while they need your investment property to house defence force personnel.

If a base closes, all that local DFH accommodation will no longer be required. With a glut of houses for sale, investors won’t be able to exit, and of course there won’t be tenants to occupy all of those ex-DFH properties.

Now the Rudd government has commissioned an audit by the Boston Consulting Group to slash $2 billion from the Defence Department’s budget.

Late in the Howard years, there were proposals to close the Woodside Army Barracks in South Australia and the Richmond RAAF Base in New South Wales. These proposals could be readily reactivated.

A far better investment strategy is to avoid such obvious risks and only acquire investments properties in a growth corridor adjacent to a major, diversified economic zone.

If you would like me to help you explore your options, contact me – Bernard Kelly – anytime at
admin@retirelaughing.com

LIFESTYLE NEWSLETTER 15 October 2008

25% EXPECT TO RETIRE AFTER 70

The recent study released by Mercer Wealth Management Consultants reports that nearly one in four people aged over 50 surveyed expect to retire after age 70.

However most expect to scale back their hours.

The survey is done annually, and has seen a leap in recognition that superannuation will not be adequate. Only 17% recognised this in 2005; now it’s 31%.

And almost three quarters in the 2008 survey agreed that they have not adequately prepared for retirement.

Don’t let that happen to you!

While you’re still working, you still have time to develop sustainable income for your retirement.

Ask me how! (Just hit the return button on this email)


PENSION ENTITLEMENT AGE WILL RISE

With politicians openly acknowledging that they could not afford to live on the single pension, the debate about all pensions is now on the table.

At the heart of the matter is that the government can no longer to afford to pay us all the pension, as to do so would cripple the Budget.

The original pension age of 65 was linked to life expectancy, which was eleven years a century ago for a male. Now it’s closer to eighteen years and of course women live a few years longer than men.

And there is a demographic bulge underway as baby boomers increase the proportion of the population aged over 65.

To alleviate the drain on their Treasuries, countries including the United States, the UK and Germany have already moved to increase the pension entitlement age. And others, including Greece, Italy and South Korea are making noises about doing the same.

So don’t be at all surprised when they announce that the pension entitlement age in Australia is to be increased.

Which of course is another good reason to develop your own investment portfolio to avoid any reliance on government welfare.

Feel free to contact me – Bernard Kelly - anytime on admin@retirelaughing.com I’ll be able to help you explore your options.


38% RETIRE WITH MORTGAGE ABOVE $100,000

The recent Senate enquiry “A good house is hard to find: Housing affordability in Australia” found that 38% of households now retire with household mortgages in excess of $100,000.

Most find that they have to draw down on their super to eliminate this debt.

If you want to avoid this disaster, contact me – Bernard Kelly – anytime. Just hit the return button on this email.


PROFITABLE HOBBY – AERIAL PHOTOGRAPHY

Here’s a novel idea.

I read about a man whose hobby is Radio Controlled Aircraft.

Now in his fifties, he used his skills as an RC pilot to create a hobby business in aerial photography. He specialises in charity golf tournaments, taking photos and selling them to the golfers.

His equipment costs were in the $2500 range and in one year he was able to recover that cost and put some money towards more advanced equipment.

If you need a website for your hobby business, go to www.valuewebsites.info


PROFITABLE HOBBY – PLUM PUDDINGS

Plum puddings in a calico bag is a traditional Christmas gift, but now they can be given at any time of the year –either as corporate gifts or as wedding keepsakes.

The production is quite simple, and you can build up an inventory in advance, however the packaging may need some thought. But start with the basic traditional calico bags and work up from there.

Pricing might be tricky – but one thought is to sell at four times the cost of the ingredients. The rationale is one quarter for overheads, one quarter for waste, and one quarter for profit.

If customers baulk at your price, just say “unless I make a profit, I can’t provide the service”.

To find clients, take a stand at garden shows or bridal exhibitions.

If you need a website for your business, go to www.valuewebsites.info


MOST SUCCESSFUL HOBBY-BASED BUSINESSES

Mon Sep 1, 2008

LONDON (Reuters) - More than two million Britons who are in permanent employment are at the same time trying to turn their favourite hobby into a business, according to a new survey.

Commissioned by the insurance company Direct Line for Business, the poll also found that for 23 percent of Britons it would be a dream come true to start up their own business based on an outside interest.

The survey listed the most successful hobby-based businesses as fashion design, eBay selling, buy-to-let property development and web design.

Most of those surveyed indicated that a profitable hobby would be “fun” while a sizeable proportion suggested that such a part-time business would give them more long term security.

The online poll of 2,234 Britons was carried out between July 4 and 8.


Regards

Bernard Kelly www.retirelaughing.com admin@retirelaughing.com

Lifestyle Newsletter 15 May 2008

TOTAL REVAMP OF WEBSITE

We have totally revamped our website at
www.retirelaughing.com

Such is the pace of technology today, that after only four years, the old site had become dated. So we pensioned it off and installed a total new look – now all of our services are in one place.

Go see. www.retirelaughing.com


BOOST YOUR INCOME

If you are short on income in your retirement, you could consider hosting an international student.

Companies such as www.familystayaustralia.com will pay you $200+ per week per student.


LIVE BETTER – START A STUDY PROGRAM

I have just come across some research1 completed in 2001.

In brief, a research project was established involving 300 elderly subjects (median age 80). 150 were given a structured creative arts educational program and the other 150 merely followed as a control group.

The results showed significantly better overall health, diminished use of medications, diminished vision problems and a general increase in "intelligence" for the ones receiving the additional education.

Modern studies are teaching us that there is no doubt that education can be regenerative.

So I’m off to my creative arts program right now.
1 “Creativity and Aging Study: The Impact of Professionally Conducted Cultural Programs on Older Adults” by Gene Cohen, M.D., Ph.D., Director, Center on Aging Health and Humanities, George Washington University

FIRST WEB-TV DEDICATED TO "YOUNG AGE"

www.longeviTV.com is a French web-TV site promoting longevity.

It recommends taking precautions in terms of education, nutrition, physical activity, intellectual activity, or volunteer work, leisure, and lifestyle.

They say it is indeed proven that all these aspects play a major role in our health: an inactive person has a mortality rate five times higher than an active person.

"It is never too early to start, it is never too late", says their promotional brochure.


(if you want the translation, type "longeviTV" into Google, and then - when it appears - click on "translate this page")

HIGH PROFILE INVESTOR

Matt Brown, 36, the NSW Minister for Housing, owns 14 properties


TRIVIA - 9 January 1921 Independence Day Australia


Most Australians consider January 1st 1901 as the date when Australia became an independent nation.

But in fact Australia (along with Canada, Nova Scotia, South Africa and New Zealand) were granted independence on 9 January 1921 by an Act of the British Parliament “in recognition of services to the Empire during the Great War”.

What happened in Australia on January 1st 1901 was that each the six colonies were united to become one self governing colony, known as “the Commonwealth of Australia”.

Independence was still 20 years away


Until next time

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

Your greatest compliment is a Personal Referral

Product Newsletter 1 April 2008

Pouring the Slab at an Investment in Goodna Heights, in the south west suburbs of Brisbane, that I shared recently with a private client.

POSITIVE EXPECTATION


Tim Lawless, research director of RP Data, writing in BRW 21 February said

“Queensland’s south-eastern corner is the pick for the strongest medium-term growth.

“In addition, the state economy is growing at the second-fastest rate in the nation, the resources sector is booming and population growth in the region remains high.

“Growth in Brisbane will slow to more sustainable levels this year, but is likely to remain above 10 per cent over the next 12 months at least.”



WHAT IF THE ECONOMY CRASHES?


I was recently asked “What if the economy crashes?”

My reply was along the following lines:

“Thanks for voicing your reservations – if you didn’t have some concerns then I’d be reaching out to take your pulse to see that you’re still with us.

“You must remember that property investments are for the long term – you told me that you have only $100,000 in super. So you should consider putting one in place now, so that in five years - when you come to retire – you will have at least one running for you. Then if you live off your super for two years, then an investment – one that a family would pay say $400,000 today to live in – should be well in excess of that value.

“Since records began, property has increased three times in every 21 years. Which is why the commentators say ‘property doubles every seven to ten years’.

“And if you have ever thought ‘how will young couples ever be able to afford a family home?’ then you too know that property values increase over time.


“Over this past 150 years, there have been depressions and recessions, world wars, 22% interest rates, change of governments, financial meltdowns, stock market crashes, you name it. Even the impact of the ‘recession that we had to have’ in 1991 only lasted four years before property values exceeded what they were in 1990.

“Don’t let the current crop of bad news distract you from taking action to ensure some form of dignified retirement.

“I know it’s a watershed moment for you – but whether you invest, or if you don’t, there is definitely a foreseeable outcome either way. Destiny is a matter of choice, not chance.

“Which outcome would you prefer?”



WHY YOU NEED A FUNDING STRATEGIST


Banks are in the business of lending money. They are not in the business of helping you put something extra aside for your retirement.

So they try to tempt you with “the lowest interest rate”. Unfortunately, as an investor, you will find that generally such loan products won’t let you make extra repayments nor will you have an offset account.

The same goes for “honeymoon rate” loans. The banks don’t give money away, so after the initial honeymoon period you’ll be paying a high variable rate, and there will be solid penalty exit fees if you try to go to another lender. They will make the same off your loan – over time – as off every other client’s facility.

The only way to obtain the best package is to talk with a funding strategist.

I can introduce you to a funding strategist at the peak of their profession.

Phone me Bernard Kelly anytime on 0414 778 518 cell 61- 414-778 518



COMMITMENT TO PRIVATE CLIENTS

The average investor can’t tell if my solutions are truly exceptional or just so-so.

But I believe so strongly in this proven and successful strategy, I am prepared to share the risk with you. And it’s this:

· Provided you follow my strategy, if you ever are without a tenant for more than four weeks at any time in the first three years, then I will pay you 85% of the initial rent from week five onwards.



LIVE ON-LINE VIDEO

I have put my seminars on-line.

There are ten clips, each of three minutes. Together they cover the full content of my live seminars that I deliver around the country.

You can see them on you-tube. Just go to http://www.youtube.com/ and type in “Bernard Kelly”



Regards


Bernard Kelly http://www.retirelaughing.com/ mobile 0414 778 518 cell phone 61 414 778 518


PS As I don’t spend my advertising budget on traditional media, I’m able to pay you $1000 for successful referrals

I would be delighted to be your personal financial coach over the next five years and share a strategy that will dramatically reduce your learning curve.

Lifestyle Newsletter 15 March 2008

HOW MUCH CAN YOU SPEND IN RETIREMENT?

Now this is an interesting question.

The answer is equally interesting as it relies on four elements – how much you have on the day you retire, whether it’s in super or property, how long you will live, and how much you intend to leave behind.

Let’s say you have $500,000 in super when you retire, that the “estate event” i.e. when you die is 17 years hence, and you plan to leave nothing to your survivors.

The answer is that you will be able to spend $36,000 pa.

However if you lived an additional ten years, this number becomes just $30,000 pa.

So on these assumptions, a 10 year increase in life expectancy will reduce your likely retirement income by 17%. The problem is of course knowing when to factor your “estate event” into your calculations.

Of course, if you have this $500,000 in super when you retire, your standard of living will be falling as the purchasing power of your income is not inflation protected. Heaven only knows what $30,000 as an allocated pension will buy when you’re 90.

Now $500,000 is really not enough for a dignified retirement of 20-25 years, but at least if your $500,000 is in property, you can expect that the purchasing power of the increasing rents that you will be receiving will ensure that you will be protected against the revenges of inflation. You may need to take out a bit less initially, however you will have a perpetual inflation hedge.

For good sound, logical reasons, I like property better than super. In particular, with property, it doesn’t matter when your “estate event” occurs.


Let me know if I can help you further explore your investment options.

Phone me – Bernard Kelly – anytime. Mobile 0414 778 518


BOOMERS WANT TO KEEP WORKING

A survey conducted by the Australian Psychological Society of 1500 respondents asked the question: Why would baby boomers want to continue working?

Naturally there was a high response for “the money”, but 50% said they wanted to continue because their work was satisfying, 50% said work keeps their mind alert, 46% said they feel valued at work, and 43% said they would miss the relationships that they have established.

A quarter of respondents are not planning not to retire before age 69, while another quarter are seriously thinking of opting out between 60 and 65.

reported in “The Courier-Mail”, 16 Feb 2008


ONLY 40% OF WORKERS CAN CHOOSE WHEN TO RETIRE

The French national pensions authority – the Caisse Nationale d’Assurance Vieillesse – recently surveyed active retirees who had retired prior to age 65.

The question was “why did you retire early?”

The answers were mixed, however one interesting result was that only 40% were able to leave on their own terms. The others - fully 60% - felt that they had been eased out.

Employees who felt they had been eased out complained of the deterioration in their working conditions, the deteriorating business climate (lack of recognition and consideration, loss of a serene and friendly atmosphere generated by the race to the bottom and performance ...) and the arduous physical but also psychological work (stress, fatigue).

While there is growing, and widespread support by government, employers and colleagues to stay on, the report highlights traditional strategies to remove older workers are still prevalent. These include abolition of the job, and assignment of unattractive tasks.

Of the 40% who are able to elect to retire when it suited them, half were self employed business owners and self employed professionals. The other half were employees who had investments in place.

Employees with investments report that they are generally more relaxed about expected changes to the government pension, in comparison to employees without investments.


TURN A HOBBY INTO A PROFITABLE HOBBY

I was chatting recently on the phone with someone who may not be able to become a client, but who none-the-less needs to boost income for their retirement.

It turned out that this lady’s husband likes to do woodwork in their garage, so I suggested that this hobby could become a small business.

She was willing to explore this option, but how could they ever know what products to make, and what prices to charge?

I suggested that the answers to these questions are readily available on the web – at Paypal Shops.

To get some ideas of what products are viable, we went there and searched for something that a hobby woodworker could make – and we decided to search on “dolls’ houses”.

And we found that the range of product that is available from other hobby woodworkers who make “dolls houses” is quite extensive – including bird breeding boxes, wind chimes, train whistles, door stops etc. The list goes on and on and on.

And most items could be sold at a Sunday market.

So there is the foundation for a profitable hobby business.

Alternatively if your hobby is say, music, you could start an on-line business.

How? I hear you saying.

Once again, just go to Paypal Shops and type in “music”.

You could find something there that strikes your interest – personally I was quite intrigued with the on-line shop that sells sheet music (with the potential to link to other sites who will pay you a referral fee).

So go for it. Turn your hobby into a profitable hobby.


Regards


Bernard Kelly www.retirelaughing.com mobile 0414 778 518 cell phone 61 414 778 518

Product Newsletter 1 March 08

Our goal – helping you from zero investment properties to ten.



WHY BRISBANE VALUES WILL REMAIN BUOYANT


Investors can remain confident that capital growth in our preferred suburbs in Brisbane (adjacent to the south west economic zone) will remain strong for the foreseeable future.

The underlying issue is that Australia – as a nation – builds only 150,000 new dwellings each year, compared with a need of 180,000. This is referred to as a “two month shortfall” i.e. we are short one sixth of what we need.

In contrast, the United States has a “nine month oversupply”. This caused the sub-prime crisis.

So my feeling is that it’s totally different here in Australia.

In November, the Housing Industry Association forecast that the housing backlog will continue to swell for at least two more years in south east Queensland, before easing.

Of interest, what actually happened in the US was that builders kept building too many homes, so they had to move them. Their solution was to leave behind a notional deposit – look up “down payment assistance programs” on Google - so that borrowers who could not normally afford to borrow, appeared to have a cash deposit.

So the banks lent them the balance - but these “economically challenged” borrowers couldn’t service even those loans, and as borrowers in the US can walk away from home mortgages without penalty, the crisis simmered along, and finally erupted.


EXPECTED GROWTH OF YOUR PORTFOLIO

The biggest assumption that we make in property is that it will double every 7-10 years. This assumption is based on many, many years of recorded property prices.

In fact if you consider that property will double every 10 years then it means it must grow on average at 7.5% per year. This is considering that it only doubles every ten years. For it to double every 7 years it would need to be a huge 10.5% compounded.

Now in truth property does not grow at 7.5% each year, every year. The property cycle affects the rate of growth in any particular year.

If we factor in the effect of the property cycle over the past 50 years we will find that it has doubled every 7.3 years and that there are three full property cycles each 21 years.

Now within those packets of 7.3 years it will normally decrease or stagnate one year, grown at between 2-5% for 3-8 years and best of all grow between 10-25% for between 2-3 years. Obviously we all wish every year was a 25% growth year but there's no way that the market could sustain itself compounding at those rates.

It's being armed with this basic knowledge we can safely and confidently build a portfolio knowing it will double at some time in the not-too-distant future.

I enjoy using this statistic like this – I might say when I meet with private clients for the first time “if your home is worth $500,000 today, then when you bought it 14 years ago, you must have paid something like $125,000. Am I right?”. They generally express amazement and say “How did you know?”


STATISTICS CAN BE CONFUSING


If you have ever seen – sometimes in the same newspaper on the same day – different values for the current medium price of housing in your city – you have a right to be confused.

The reason is that there are six different sources, and each uses a different survey technique, or different geographic boundaries, or different time periods, or different dwelling types.

The six providers are the government’s Valuer General, the state real estate institutes, and private providers RP Data, Residex, Australian Property Monitors and Adviser Edge.

There are difficulties with each source. For example the Valuer General uses rates notices, which of course don’t reflect market values. The real estate institutes use data which is supplied by their members (not all real estate agents are members, and perhaps only two thirds of those members provide data) and typically these figures do not reflect the sales of new homes as they are generally sold by developers and builders. RP Data develops its results off a database based on the number of bedrooms, land size, location and dwelling type.

However you know yourself that values keep doubling every seven to ten years. If you don’t believe that, ask yourself if you have ever expressed concern about how your own children will ever be able to afford to buy their own family home. We have all done that, as did our own parents.

We all know property prices continue to move up.

If you don’t have enough for 20-25 years of dignified retirement, let me help you explore your options

Phone me Bernard Kelly anytime mobile 0414 778 518 cell 61-414 778 518