Feeling Frugal?

Feeling Frugal?

That’s ok.  Things are tough out there right now.

As many households pull the purse strings a little tighter, the realisation gradually dawns that every penny counts.

And with thousands of Australians now hovering in financial no man’s land, how is it even possible to think with a clear head about monetary matters?

If this pandemic has taught us anything, though, it’s that life goes on without all the non-essentials.  It’s become increasingly apparent that we don’t really need that new tv or a holiday in France.  What we do require, however, are the important elements like food, water and shelter that are necessary for survival.

When you strip it all back to basics, there is one other significant necessity that will sustain a comfortable and secure life ahead.  That’s having enough money for retirement.

If you are currently out of work due to the health crisis, the thought of having to press pause on your super instalments is enough to set you into a panicked tailspin.

But, take a deep breath – because you don’t need to worry about that.  Not when there is a better deal on the table.

What if you could keep topping up your super fund without the need for extra cash?  Imagine if you could invest your super and walk away with double your money within a few short years.  It’s unlikely that your current fund is doing that.

The way forward is to take advantage of the right strategy. And GSA has worked all that out for you.  It couldn’t be simpler!  With the heavy lifting already taken care of by our senior investment team, the rest is up to you.  You don’t need to do anything else other than use what you already have.  No fluff.  No catch.  No bells and whistles.  Just common sense.

If you’d like to hear more about how to go from frugal to flourishing in a flash, get in touch today.

The ebb and flow of recession, and what it means for you

The ebb and flow of recession, and what it means for you

Economists say housing prices could fall as much as 20% if a recession lasts longer than six months (or two consecutive three-month periods).

With the imminent ebb in market growth thanks to the current global pandemic, it’s an alarming realisation for homeowners. Market experts have reported a rush to sell amid the mounting crisis.

While minimal interest rates provide some welcome home loan relief; a dwindling asset value is less than desirable.

If you were looking to sell your home or use it as investment equity in the near future, you might find you’re left a little short-changed.

It could be good news for buyers – though, with many currently being forced out of their jobs, the prospect of snapping up cheap real estate loses much of its sheen. Rather than researching lucrative property options, many households are having to scrape their pennies together just to put food on the table.

When the economy eventually starts to bounce back, it will be happy days for income earners, yet a slow process to full recovery. Even though housing prices may remain low, other essential daily expenses will soar in an effort to stimulate economic growth.

It’s a difficult time for many Australians, most of whom are battling to pay the bills and looking for a way out.

Though cash flow may be tight in this financial climate, there is still a way to generate wealth for the roads ahead.

Rather than relying on salary instalments, you can use your existing superannuation to boost your future comforts.  It’s a transition to a prosperous retirement that doesn’t require any extra funds.

Instead of dipping into your nest egg for immediate cash flow, think long-term gain over short-term relief.  By using your super to invest in GSA’s property syndication plan, you can generate fast and high-yielding rewards and give back to your future self.

Get in touch with our investment team today – and sail the tides of change to a buoyant tomorrow.

Why Brighton tops the leisure class

Why Brighton tops the leisure class

Brighton retains the title of one of Melbourne’s top suburbs in terms of lifestyle and proximity.  So, it’s no surprise that the residents here never want to leave!

With its fresh bay breezes, six-kilometre shoreline, and a wealth of shopping and entertainment options, there’s very little reason for locals to venture elsewhere.

Royal Brighton Yacht Club GM, Hannah Catchpole, openly sings the suburb’s praises, saying there’s nowhere else she’d rather be.

“When you move to Brighton, you are here for life.  You have everything you need on your doorstep.”

People come from all around just to get a taste.  From classically trained chefs (who once cooked for the rich and famous on the Greek Islands) – to Italy’s authentic pizzeria royalty, the jewel of Bayside offers a superior local experience.

And it’s not only good eats and swanky shops that get the heart racing; with the suburb also boasting superb architecture and luxury amenities.

One such piece of sought-after real estate is GSA’s Rooding Street development, featuring deluxe 2 and 3-bedroom apartments.

With Bay Street only a few hundred metres away and the idyllic sandy beaches within strolling distance, the complex is also close to some of Melbourne’s finest schools and local transport.

Empty nesters and downsizers are particularly fond of Brighton, keen to soak up its leisurely yet cosmopolitan vibe.  But the prized suburb really has something for everyone, from single professionals to young families.

It’s easy to see why you’d want the opportunity to claim a little piece of Brighton for your own.  And we can certainly help you do that.

Our senior consultants are only too happy to guide you through the process to see you become one of Bayside’s elite.

So, ditch the hard work and go straight to the top of the class.

Down and out in a down-sizer’s paradise

Down and out in a down-sizer’s paradise

Forget the Year of the Rat, 2020 is the Year of the Boomer!

Empty-nesters, retirees, wealthy older buyers – call them what you will.  But they are a force to be reckoned with as they take the current property market by storm.

With enticing ingredients like soft lending conditions and fresh-cut interest rates, home buyers have the perfect recipe for securing the property of their dreams.  That is, except for the final splash of steep price increases which turns it all a bit sour.  And it’s left a foul taste in the mouths of those hungry to enter the housing market. It seems that it’s not only the interest rates experiencing a sense of depletion, with house hunters now losing all hope.

Unwittingly stretching the generation gap further, the “oldies” are cashing in on a lifetime of prosperity as they sell up their family homes in favour of something smaller and more manageable.

According to Real Estate Buyers Agents Association president Cate Bakos,

 

The sorts of challenges that most buyers face, including valuations and gaining finance approval, are obviously not a concern for a buyer who is not impacted by a shortfall.”

 

Older, wealthier Aussies can simply afford the residential property of their choosing without all the red tape, giving them the upper hand in a seller’s market.

In Melbourne, Glen Waverley is the top hot spot for downsizers, with Brighton East, Parkdale, Point Cook and Berwick coming in not far behind.

So, can the younger generations even get a look in?

It’s possible with the right strategy.  And a viable option would be to use their savings in the short term to invest in a high-yielding asset.  Rather than relying on scanty interest rates with the bank, they could see their investment returns double in five years – allowing them to purchase more expensive real estate down the track.  GSA prides itself on this strategy.

If you’re discouraged by the Baby Boomer Boom, come and have a chat with us and we’ll soon put a smile back on your face.

Want to be able to spend 53% more when you retire?

Want to be able to spend 53% more when you retire?

How incredible would that be?

But are you secretly worried you’ll run out of money when you finally give up work?  That you won’t have enough to see you through your retirement?

It’s certainly something that weighs heavily on the minds of many.

Well, take a deep breath because the latest research has shown that you may be able to spend way more than you realise, giving wealthier retirees the capacity to spend up to 53% more than anticipated.

To get the most out of your nest egg, you’re going to have to play your cards right – but it’s entirely doable.  So, let’s explore the top 5 tips that will help you dispel your future financial fears.

1. Don’t inflate the situation

There is a tendency amongst retirees to overestimate how much money they need to put aside to account for the increased cost of living.  For example, if inflation is rising at 3% annually, then many people are panicked into thinking they need to have 3% more income to spend every year.

But findings show that numerous investors actually spend a bit less as they go through retirement.  So, you can splurge on more initially to enjoy the things you want, while you can.

2. Beware of the bear

The fear of a market downturn creates a scarcity mindset, seeing many retirees scrimping and saving every penny – just in case.  But a more sensible approach would be to spend while you can, then rein it in when you need to be more discretionary.   Why waste a perfect opportunity to travel or buy a new car for the sake of ‘what ifs’?

3. Do the maths

As you enter retirement, you may find that your previous outlays decrease or disappear altogether, such as paying for a mortgage or commuting.  So, you’d actually have more at your disposal than you first thought.

But there’s an urge to overcompensate for future needs based on your current ones, leaving you with less spending money than necessary.  It’s time to draw up a new budget plan to help with the numbers.

4. Keep a splurge fund

Essentially, this means saving for a rainy day.  If you’ve had a good year and your investments have performed well, then you’ll have a bit more spending money up your sleeve.  But you may not wish to spend it straight away.  So, pop it aside in a separate account for when you do want to take that trip around the world.

5. Axe the tax

Get yourself a personalised tax plan to determine how you can minimise the tax on your super withdrawals, and, therefore, maximise your spending capacity.  There are several financial tools available to help take the guesswork out of this process by predicting an optimal spending strategy to support the lifestyle you’ve earned.

While everyone has different needs and varying income levels, there is always a way to capitalise on what you have.  The rest is up to you.

If you’re looking for alternative strategies to build your nest egg, give GSA a call today.  We have a unique investment opportunity that’s perfect for retirement.

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.