Just when things should start balancing out in our economy, the scales look set to tip a little further. Because once again, not all that glitters is gold. In fact, what’s meant to help us out may actually just make things worse.
We’re talking about the government lifting the minimum wage.
Of course, it sounds great in theory. What could possibly be wrong with giving people more money to spend? Especially those already struggling to make ends meet.
Well, the theory continues. Because apparently there’s a chance that increasing minimum wage will worsen inflation and raise interest rates – even further!
The Australian Chamber of Commerce is proposing an increase of up to 3%. And they think they’re doing a good thing. Many businesses have done it tough throughout COVID with many more having lost their jobs. The least they can do now is give the workers some hope. The Australian Council of Trade Unions is even calling for a 5.5% boost.
The government is saying that it should match the current 5.1% inflation rate. But they’re reluctant to nominate an exact figure.
So, why is there a problem exactly?
It’s because many battling Aussies will still be left short. Experts are suggesting that a more sensible approach would be to commit to an above-inflation increase in the following two years. It is deemed that, without a real wage rise, more workers would consider strike action.
The downside of pushing wages up too high too soon is that it raises business costs which are then passed onto the consumer in the form of higher prices. And so the loop continues.
It’s a bit of a conundrum.
Low income earners across the country just wish they could catch a break. In fact, many middle income earners are hoping for the same thing.
If you’re dreaming of a better way to get ahead, we might have just the thing. Come and have a chat about our unique investment strategy. Watch your anxiety come down and your profits go sky high.
Having stuff is great. I mean, we all need some stuff. And having a secure roof over our heads is high on the list. But some people become somewhat obsessive about what they have. Rather than seeing the bigger picture, they let themselves get carried away.
This is especially true of property.
Many homeowners and investors begin to lose focus. All too often, they fall prey to thinking that the more property they have, the more prosperous they’ll become. But this is not always the case.
The main driver behind buying multiple properties is equity. Once you’ve paid off some of your mortgage, you own a portion of your house. This gives you financial legroom to buy more.
However, there is such a thing as over-investment. And it soon creates the following three major problems.
1. It ties up household savings
The property market can be volatile. Just when you thought you had more equity and could buy more real estate, your dollar doesn’t go as far. The market declines (sometimes for a good while), and you’re reluctantly having to dip into your precious savings.
2. It creates high household debt
According to The Guardian, Australia’s household debt is among the highest in the world. On average, household borrowing to disposable income exceeds 200%. That means we’re taking out loans for twice as much as we earn. That’s gotta hurt in the long run.
3. It’s not really wealth
The simple truth is many homebuyers will never pay off their mortgages. They end up on a pay as you go treadmill. And it leaves them taking one step forwards, two steps back again. Owners find themselves asset-rich but income poor. Rather than providing cash flow, their home merely sucks up the savings on rates, utilities, insurance, and maintenance.
But now, let’s look at buying property through our syndication model.
Not only can you own a slice of an entire block of residences; you (a) don’t have to spend as much, and (b) reap better rewards. It’s the smarter way to invest.
Want to hear more?
Get in touch with one of our senior consultants today. They know what’s best.
If you’re thinking of purchasing property in 2022, then here’s hoping you have all your financial ducks in a row.
Because the headlines are not shy in telling you that it’s a bad time to invest. Between COVID setbacks and rising house prices, the tabloids are setting off financial alarm bells left, right, and centre. Instead of playing happy homes, what you could end up with is a debt the size of Reservoir.
So, if you want to avoid plunging headfirst into arrears, then you should definitely steer clear of the following:
1. Buying property to pay less tax
Negative gearing sounds like something we should be doing. I mean, who doesn’t love a good tax deduction? Unfortunately though, this strategy only works if you can afford high-growth properties in desirable locations. If not, you’ll simply lose money.
2. The fear of missing out
Here’s a tip: leave the emotions at home. Don’t take shortcuts just to satisfy your short-term desires. And don’t heedlessly jump on the first opportunity that comes along. It’s usually not what you think. Be smart and be patient.
4. Trying to get rich quickly
Similarly, thinking you can cut corners to make a quick buck is futile. You can’t. Property investment is a long game. It can require years of research and strategy. And it certainly calls for some solid personal due diligence.
4. Investing without knowing how it works
So you’ve owned a house, or even just lived in one. That probably doesn’t make you an expert. But many people fall prey to this idea, thinking they can just buy a nice place to holiday or retire. Realistically, you need a sound investment strategy to suit your risk profile.
5. Poor cash flow management
If you’re not good with the logistics, it’s best to put your investor tools down. You need the know-how and financial discipline to take on extra debt so that any cashflow problems don’t get worse.
6. Hoping to multi-purpose your investment
One little property can’t be the ring to rule them all. Stick to one investment purpose. Is it a property you’ll live in now, move to when you retire, use for holiday fun? Or do you want to create some serious wealth? It’s time to choose. You can’t have both.
7. Launching before you’re ready
Don’t just invest willy-nilly. Make sure your finances are in order; that is, you have a stable job with a steady income. And you have enough stashed away just in case there are any unforeseeable events along the way.
8. Guessing the market cycle
The property space has seen countless investors attempt to predict the market, only to fail. Rather than trying to guess what you think the market may or may not do, simply ensure you have enough money to afford investment-grade property.
Now, if that all sounds a bit overwhelming, don’t fret. GSA has some good news. We offer a plan that lets you spend less to make more – in less time! And all the heavy lifting is done for you. It’s the wise way to invest.
Come and have a chat with us about our upcoming projects today.
They say this relatively small, eastern suburb was most likely named after the husband of Queen Victoria, Albert, Prince Consort. And it’s certainly become a realm unto itself.
A 30-minute train ride from the city, it’s a sunny, multi-cultural mix of locals ready to make you feel right at home.
The heart and soul of this friendly Melbourne nook is Hamilton Street. Choc-a-block full of cosmopolitan cafes and restaurants, dedicated locals and hungry visitors are definitely spoilt for choice. French, Italian, Turkish, Lebanese, Asian, Modern Australian – you name it!
And it’s not just for the grown-ups. Stately-green Kingsley Gardens is the perfect spot for kids to run off some steam while parents lay a picnic on the freshly-mown lawns. It’s the ideal destination for family trips and adds to the devoted sense of local community.
With its cosy village atmosphere, Mont Albert has all the charm and convenience you need. From bakeries to fresh produce, post office to boutique florist, it’s more than just a locale. Op shops, clothing, home furnishings, and health & beauty services add to a way and ease of life.
Residents have this to say of their beloved suburb:
“Delightful!”
“Great little leafy suburb.”
“The Eastern Suburb’s best kept secret.”
“Family-friendly safe haven from the grime of the city.”
“Affluent, family-oriented town.”
So, how will GSA add to this captivating lifestyle?
We’re about to build a suite of large, 3-bedroom, open-plan townhouses. Ideal for families and downsizers, these luxury dwellings will soon become a renowned address.
Want to get in on it?
Then come and have a chat with us today. We can meet in person or remotely. Whatever’s more convenient and comfortable for you.
This is your chance to score a piece of premium real estate without having to compromise your budget. That means you have the power to change your financial future. What have you got to lose?
We couldn’t go past Malvern East without mentioning the largest shopping centre in the southern hemisphere: Chadstone. That’s a pretty good starting point. And with its charmingly green and picket-fenced family neighbourhoods, it’s hard to believe this idyllic hideaway is a mere 20-minute drive from the city.
Shopping, convenience, accessibility, and serenity. It’s easy to see why people are in no hurry to leave. This baby says lifestyle, lifestyle, lifestyle.
It even offers a little nod to New York with its very own Central Park. A bustling epicentre of this picturesque suburb, attracting the likes of cricketers, fitness fanatics, and energetic swing-hungry kids. It’s a freshly-mown haven created for the young and young at heart.
Malvern East has become a firm favourite among prosperous families and leisurely retirees alike, with beautiful homes, tree-lined avenues, and perfectly manicured gardens. Long-term residents abound as they soak up the suburb’s generous culture and community.
What do the locals have to say?
“Lots of green space.”
“Very convenient.”
“Family-friendly suburb with great transport and green parks.”
“Peaceful and progressive.”
“A perfect pocket.”
So, it’s no surprise that we chose Malvern East to build a boutique collection of four townhouses. With large courtyards and individual lifts from secure basement parking, it’s an attractive opportunity for growing families and downsizers. It’s one of our fully subscribed projects currently in the post-demolition stage.
If you’re interested in investing in one of our developments, why not have a chat with us about how to get on board? You can come to us, or we can come to you. We can even hook up a meeting remotely. We’re just a phone call away.
There’s never been a better time to snap up a piece of prime real estate for a fraction of the cost – so you can watch your earnings grow.
Just when you thought it was safe to go back into investment waters, along comes another menacing wave. As international borders begin to reopen, it seems Melbourne’s property market is about to take another solid dunking.
Housing prices were already unattainable enough, but now we’re having to contend with foreign homebuyers only too keen to nab a piece of Oz real estate.
That puts a lot of pressure on an already burdened market.
According to realestate.com.au research, the focus seems to be on new housing estates in suburbs like Clifton Springs and Clyde. And in the municipality of Casey, the margin of foreign buyers could soar as high as 70% in the coming years. Talk about getting squeezed out of the game!
It’s great news that international students will reinvigorate a struggling CBD apartment market. But the increase in skilled foreign workers is likely to strain tight regional rental markets.
It appears that offshore searches for property in Victoria have already increased 13% since the start of the year. And it’s not just confined to those looking to actually live and work in Australia. Many homebuyers intend to “work from home” in Melbourne while still being employed in Asia. So, we don’t even reap the benefit of these skilled workers within our economy.
There is some partial relief.
The rise in property searches will cap according to how many migrants the government is actually willing to let in.
And while there is a little more “give” in Melbourne’s outer suburbs, the city’s already buckling southeast region is seeing a lot of offshore search activity. That’s set off quite a few alarm bells for south-eastern residents and hopeful Aussie buyers alike. Because there’s nothing like even more market pressure to push rents sky-high and wipe out investor affordability.
So, if you’re looking for a more accessible and lucrative investment option, come and have a chat with us. We have projects waiting exclusively for you. And you won’t even need a passport.
