Hey team,
Happy Monday.
Good news for those of you that are striking on an investment property or currently hold investment properties. Residential rents have been rising as fast as property prices which are attracting investors seeking higher yields, a hedge against inflation and generous depreciation and tax breaks. House rents in some of Australia’s capital cities have risen between 15 and 20 per cent during the past 12 months as supply fails to keep pace with a sharp rise in demand, particularly in higher-density, regional capitals.
It’s on good authority that demand for rental homes this year is expected to increase because of the strengthening economy, easing of covid restrictions, and the return of migrants and students This analysis was completed by the National Housing Finance and Investment Corporation, a government think tank that monitors housing demand, supply, and affordability.
In the news: Passively investing $1000 a month could net you $3.84 million
There is so much noise out there around investing, that it’s almost impossible to know who to listen to or who to trust. And our psychology works against us. You want to shoot the lights out with every investment you make, make a heap of money, and ride off into the sunset retiring in your 30s. There’s a proven way to maximise your money that’s really boring – but the results really do speak for themselves. Click here to find out exactly how.
Upcoming events:
We’re slowing down across the Easter and Anzac holiday period, but will be back with a bang in May with a heap of events. Click through to register and join live:
Event schedule and links to book here:
- Money mistakes to avoid – May 5, 12.30pm – 1.30pm
- GA Event: Money Mindset Hacks – May 09, 1:00pm – 2:00pm
- How to build a second income investing – May 26, 12.30pm – 1.30pm
- GA Event: How to Cut Your Tax Bill Before EOFY – June 8, 12:30pm – 1:30pm
- How to buy your dream home without a crippling mortgage – June 16, 12.30pm – 1.30pm
- Cryptocurrency investing 101 – July 7, 12.30pm – 1.30pm
- How to save more money faster – July 28, 12.30pm – 1.30pm
- Buy property the smart way in 2022 – August 18, 12.30pm – 1.30pm
Share market wrap
Australian shares are poised to open higher before the four-day Easter break with US stocks advancing in a broad rally. On Wall Street, all three major benchmarks closed higher though slightly off their session highs. Bitcoin rallied to top US $41k.
Key sharemarket numbers:
- The ASX ‘All Ords’ (top 500 shares in Australia) finished the week 1.1% higher than last Friday, on 7,822.20 points.
- The US ‘S&P 500’ (Top 500 shares in America) finished the week -2.26% lower than last week, at 4,392.59 points.
- The US ‘Nasdaq’ (Top 2500+ mainly tech shares in America) finished the week -3.47 % lower than last week, at 13,351.01 points.
- The Global FTSE ‘All World’ index (largest 3100 companies in the world) finished the week 0.79% higher than last week (Friday AEDT), at 7,616.38
- The S&P Cryptocurrency ‘Mega Cap’ Index (tracking market value of Bitcoin and Ethereum) is currently at 4,407.16 for the month, down -11.50% for the month to date
Investment story of the week: Kuniko Ltd (ASX:KNI)
Kuniko Limited is focused on the development of copper, nickel and cobalt projects in Scandinavia, with a mandate to maintain net zero carbon footprint throughout exploration, development and production. On Thursday, the company’s share price soared by approximately 25% on the back of an announcement. CEO Antony Beckmand commented on the positive results and Kuniko, stating that the company “have done our geological due diligence on the Skuterud targets, putting Kuniko in a prime position of being well prepared and having solid reasons to be confident and enthusiastic about prospects for unveiling cobalt mineralisation with our upcoming drill campaign”. Kuniko’s can be a potential opportunity for investors, and something worth keeping tabs on in your watchlist.
Smart Money upside #64
Because people don’t often talk about the full ins and outs of their money, it’s hard to learn lessons from hearing what good and bad choices other people make. This story is from one of our clients to help you take your money game to the next level.
Numbers/Background
Individual; late 20’s, income ~$200k, total assets ~$200k saving~ $3k annually
Frustrations
Lack of understanding combined with a huge amount of available information. In a fortunate position with a large windfall from employer shares, but concerns around how this should be invested. Wants to make the right decisions to maximise the opportunity.
What they wanted from us / the advice process
Learn how I can leverage the tax and investment rules, understand property investing, review of super and changes made if necessary. A clear plan for surplus funds.
What success looks like for them
Have an investment portfolio – shares and property with a focus on capital growth for the short to medium term and a long term outlook that drives passive income. Ability to travel and maintain current lifestyle. Have a clear tax minimization strategy in place and uplift my own financial literacy. I would like to have the ability to retire at a time of my choosing.
What money strategy they were following before we went through the planning process
None, money complexities are a new problem.
What money strategy do they choose to pursue from our planning work
Rentvest w. shares and investment property
Key benefits of going through the process
Obtain financial literacy, have a clear savings plan in place to reduce expenses and help build my net worth. Help to manage my options and create a good tax strategy to minimise tax and create wealth.
Value of advice after all advice fees year one: – $6k
Year 20 upside after advice fees: $2m
If this story resonates and you want to chat about how to get these sorts of results, you can book an intro call here.
Giving update of the week
Last week we started working with an amazing business owner kicking a heap of goals and doing some great things in the community at the same time. Our conversations have reminded me of the power of business to change the lives of not only the people that work with any given business, but also the broader community and the world at large. So to celebrate, we’ve provided one year of business training and an attached microloan for 20 women in Malawi. This is part of our ongoing commitment to make a difference in the lives of our clients and simultaneously make an impact on our world through our partnership with B1G1 (Buy 1 Give 1). You can check out more information about our giving here.
Money Hack of the week: How to buy property in today’s market.
Should you be worried about buying property in today’s market? According to Aaron Christie-David, the best time to buy property was four or five years ago. The second best time is NOW. The scariest part of the property buying process is your first investment. But once you’re in, you won’t even worry about the ups and downs of the market. Check out our full chat here.
Money mistake of the week: Are you maintaining unsustainable money habits?
Without a good foundation, your investment approaches could be meaningless. I had a great chat with David Dugan of Abundance Global, who talked with me about why our habits aren’t always in the interests of our long-term success. Do you think your money habits are sustainable? Check out our full chat here.
Jargon Buster of the Week: Day Trading
The process of buying and selling stocks within the same trading day. This process is often, though not always, carried out by professional traders.
Podcast from last week: #164 How to avoid the most painful money mistakes
This episode is a recording of a live event I did in collaboration with the General Assembly, all about How to avoid the key money mistakes.
I unpacked the small and big mistakes that people make as well as dispelled a handful of money myths to help you understand the things to look out for to make the best financial decisions.
I also unpacked a couple of different frameworks that I found to be really effective when it comes to setting up your money for success.
Be awesome,
Ben
PS: If you want a hand to get on the front foot with your money in 2021, check out our 45-minute one-on-one sessions here. We’re donating 100% of the money raised to charity, so you can up your money game and do something good on the planet at the same time.
Disclaimer:
I know you’re smarter than someone that would need me to write the words that come next, but our compliance peeps are real hard-asses so here we go… This information is not personal advice, poetry, or a map to where Jimmy Hoffa is buried. It may only be regarded as general advice, and definitely shouldn’t be considered something worthy of inclusion for Donna Hay’s next cookbook or the Archibald prize. This is actually just an email communication that has been sent to a bunch of people and doesn’t even have your name on it. Your personal objectives, needs or financial situation have not been considered when preparing this email, but I want you to know that I have spent a lot of time thinking about the Venn diagram intersection of poetry, landscaping, and essential oils – if you’re fascinated by this same phenomenon please reply so we can compare notes. You should consider the appropriateness of any general advice we have given you, having regard to your own objectives, financial situation and needs, and if necessary, seek advice before acting on it. You should also consider other people when getting on and off public transport, smiling more, eating healthy, and listening to your mum when she tells you that you’ve been working too hard. Where the information relates to a financial product, you should obtain and consider the relevant product disclosure statement before making any decision to purchase that financial product. Where the information relates to a hilarious joke I’ve made, you should consider belly laughing deeply. Worth noting also that past performance is not a reliable indicator of future performance when it comes to investments, and definitely not when it comes to the Wallabies. Financial services guide. All jokes aside and just to be clear, this information may only be regarded as general advice. That is, your personal objectives, needs or financial situations were not considered when preparing it. You should consider the appropriateness of any general advice we have given you, having regard to your own objectives, financial situation and needs, and if necessary, seek advice before acting on it. Where the information relates to a financial product, you should obtain and consider the relevant product disclosure statement before making any decision to purchase that financial product. Past performance is not a reliable indicator of future performance.