Make it your business

Make it your business

When the average person looks at acquiring investment property, they probably imagine the joy of earning a passive income from a single rental apartment.  After all, it’s quite possibly all they can afford.  And surely, this will be enough to give them a little something extra in their pocket.

While this approach has some merit, it’s not exactly going to provide them with the riches they may seek.  More often than not, the ongoing costs of insurance, agency fees, and maintenance will quickly eat into their profits.

So, rather than having a mere flutter on the market, they should be treating their investment process less like a hobby, and more as a business.  Instead of settling for one lone piece of real estate, a diligent investor should aim for a portfolio of multiple properties.

But it would be foolish to think that you could just go from nothing to wealthy overnight.  It takes time and strategy to get the ball rolling along nicely. And quite often, many people find it difficult to even come up with the extra cash for a small unit in an outer suburb.

Then how do you find the funds you need for your first investment and accumulate enough for further ventures?

What you need is an opportunity to spend less to make more.  But does such an option exist?  You bet!

With GSA’s property syndication model, you can pool your funds with other like-minded investors – which means you won’t have to outlay as much for a piece of the action.  But you do get to invest in an entire complex of apartments or townhouses, as opposed to just one tiny flat. This means you receive a share of the profits for the whole building.  Plus, you never have to worry about all the added costs of going it alone.

The beauty of our strategy is that you need only invest for a short-term five-year period.  At the end of the term, you can either take your high yield returns and opt out, or you can extend your investment for another term.  And this is how you get the ball rolling.

Get in touch with our investment team today and find out how you can effortlessly go from hobbyist to managing director.  You really can mix business with pleasure!

Gambling is not your best bet

Gambling is not your best bet

Most of us have probably enjoyed the odd flutter here and there – maybe on the horses or a cheeky game of poker.  For many, it’s pure entertainment.  You win some, you lose some, you risk little.  It’s play money.

But most of us are not gamblers when it comes to more high-stake scenarios, such as investment.  We prefer a rather serious, long-term relationship with our real money.

Of course, everyone wants a great return on their cash, but that’s proving tricky in the current climate of near-zero interest rates.  Where just decades ago, our savings attracted a princely 16% p.a., relying on the banks to grow your wealth these days is futile.

It’s easy to see why people may want to throw the dice and hope for the best.  Desperate times call for desperate measures.  But we know deep down that we’re just not willing to take that chance with our entire life’s savings.  Once it’s gone, it’s gone.

Essentially, you have two options: access all of your money now and whittle it away, or access some of your money now, and leave the rest for future needs.

That’s where a diverse portfolio of investments comes in handy.  Keep a few safe, liquid assets at the ready, and pile the rest into longer-term growth assets – like property.  And then our measly interest rates can go to work.  New investors can enter the property market sooner and gain an unprecedented opportunity to build their equity faster.  The more this happens, the more property prices will rise.  It’s the perfect storm!

A good game is not always a fast game.  Sometimes the slow burn works best.  You want to ensure you not only have a roof over your head when you retire you also want enough to live comfortably for as long as possible.

If you’re looking for a game plan that will go the distance, GSA has just the thing!  Give us a call.  The odds are truly in your favour.

Return to vendor – as prices rise again!

Return to vendor – as prices rise again!

While we were all settling in for a year or two of ailing property prices, it appears the market has made an unexpected rapid recovery.

This miracle comeback saw prices rise faster than you can say inflation, predominantly between September and December last year.  According to market experts, properties in Melbourne’s inner eastern suburb of Canterbury rose by a whopping $400,000 in a mere 12 months!

And just when you thought it was safe to go back in the shallows, it appears that unit prices have also taken flight, reaching a city-wide record.

Those lucky enough to be breakfasting on a piece of prime real estate pie will no doubt be laughing all the way to their balcony views.  And of course, should they be looking to sell in the current market, they’d certainly fetch a pretty penny.  That is – if they can find a buyer!

Because, even though interest rates are super low, meaning bank loans are more serviceable, people still can’t afford to buy – no matter how much spare cash they have.  Prices are just too high. That makes it even harder to get into the market in 2020.

So, what does this mean for you?

If you’re looking to buy property but can’t seem to get a leg in, you need a smaller slice of pie at a fraction of the cost.  And this is where we come in.  GSA purchases top-notch real estate in Melbourne’s most affluent suburbs.  We do this for the sole purpose of our investors, doubling their investment return after five years.  It’s an easier and more accessible way to grow your wealth.

If you’re struggling to crack the market, this is the perfect time to come on board.  With interest rates still on the ground, it’s a chance to get your foothold and start climbing!

Why real estate investment is streets ahead of the rest

Why real estate investment is streets ahead of the rest

Little compares to the sense of security that comes with financial freedom.  Knowing that you’re setting the scene for a comfortable future is a powerful motivator.  And naturally, you want to find the most effective way to grow your savings as fast and as sizeable as possible.

With a variety of investment options at your disposal, it can be easy to get a bit lost in all the data.  But research shows that real estate investment is the undisputed forerunner in this game for the following reasons:

 

Predictable performance

The economy cycles through peaks and troughs, often leaving volatile investments stranded.  Real estate, on the other hand, can withstand the fluctuations, anticipating an eventual rise in property value.

Leverage

The beauty of real estate investment is the capacity to use your property as equity.  This allows you to borrow more and grow your investment portfolio further.  You can then witness the snowballing effect of exponential wealth accumulation.

Control

A secure asset allows you more control over your cash flow, and in turn – your lifestyle.  Property provides a tangible and saleable asset, putting you 100% in the driver’s seat.  Compare this to business investment, for example, where others can affect the outcomes.  With real estate investment – you are solely in charge.

 

To better your chances of getting the most out of your investment portfolio, you should also consider these four crucial elements:

 

1. Timing

Starting too late or selling too soon seem to be the biggest culprits here.

2. Location

A favourable area can make all the difference to the demand for your property, and hence – the value.

3. The bigger market

Look outside the box and find investment opportunities further afield.  You don’t have to stick to your own back yard.

4. Personal budget

It’s simple – work out what you can afford without compromising your lifestyle.  There are plenty of tools to help you calculate your dollars and keep you on track.

 

So, now that you’ve scoped out the lay of the land, you may wish to consider your property investment options.  Give us a call to discuss our exclusive thoroughfare to financial success.  It’s as safe as houses!

Are you high on fees?

Are you high on fees?

Australia’s superannuation system is getting fidgety.  Currently, under government review, the 28-year old sector seems to be in dire need of a good old-fashioned detox.

One major drawback of its age is its increasing reliance on heightened fees, alongside a seedy supply of underperforming funds.

Of course, some funds are better than others – with the Productivity Commission recommending all new workers have access to an independent “best in show” list of the top performers.

All this leads to the question of how your super fees compare.  Are you getting a good deal, or does the financial hit leave you feeling a little strung out?  Are you even aware of what you’re being charged?

If you want to regain some control, there’s always the DYI approach of a self-managed super fund.  Although all funds will incur certain fees, SMSFs may give you the fix you’ve been looking for by helping to increase your nest egg faster.

With an SMSF, you have more say in how you invest your money.  And, luckily, GSA has a proven superannuation investment strategy that will blow your mind.

By injecting your super into our property syndication plan, you can boost your retirement savings by doubling your money in around five years.  Now, that sounds like my kind of high.  Give us a call today to find out more.

Timing is everything

Timing is everything

It’s a familiar story:  buyers poised to make a property purchase within budget, but sellers wanting to score top dollar on their home.  Neither wants to budge, and it’s not unusual to reach a stalemate in this situation. Quite often, one or both parties need to come to a compromise to get any sort of result.

 

Had they timed it better, however, they could have either snagged themselves an absolute bargain or made a very tidy profit.

 

Currently, in cities such as Brisbane and Perth, housing prices have taken a dive – falling as much as 3.0%.  Young couples are snatching up prime opportunities in a buyer’s market, giving them the pick of the crop.  Of course, this is not such great news for the vendors.

 

While securing a bargain is fantastic right now; having to sell in a hurry in the same market, would mean losing out.  Buyers will need to be committed to the property for many years.

 

Sellers in Queensland’s southeast will still need to be patient – with one resident stating that “the people who are going to make money out of it – don’t’ really care if it’s up or down”.

 

In Melbourne and Sydney, on the other hand, the market has risen again, squeezing many a homebuyer out of the picture once more.  This is especially true in the high-end market, but it comes as no real surprise, given these two major cities are the usual suspects in this game.

 

After the last Federal election – Melbourne’s property market rose by 0.2%, with Sydney not far behind at 0.1%.

Auction clearance rates have since reached 77% in Sydney and about 80% in Melbourne, showing some very strong results.

 

Property prices in most other state capitals have continued to decline.

 

Typical of places like Sydney and Melbourne, it’s usually the high end of the market that leads by moving first and provides an indication of what other markets could do in the future.  It is especially true of Melbourne’s eastern suburbs.

 

The question is – does this tentative rebound have momentum?  The consensus seems to be that it will require a stronger, growing national economy to keep going.  We have sluggish income growth across the country, with slow economic growth expected, and this is going to temper the nature of this current upswing.  Housing remains unaffordable for many people in the foreseeable future.

 

With all this in mind, there is still a way for you to forge ahead, regardless of market trends.  You can use the equity on your existing property right now and grow an investment portfolio sooner than you think.  All without having to let the market dictate your earnings.  Give us a call to discuss your options – as there’s really no better time than the present!