Hope you’re staying dry out there.
Over the last week, I’ve been chatting to a bunch of property experts on the How to be Successful with Money podcast, and it’s led me to a realisation. The strong employment situation in Australia, ultra low-interest rates that seem likely to stick around for some time, and increased borrowing capacity from most mortgage lenders in Australia has created the most favourable conditions for property buyers we’ve seen for the last 20 years (at least).
To help you understand where the property might fit in your money strategy and how to make smart property moves, we’ve put together a five-part online money education series in partnership with Raiz Home Ownership and General Assembly.
I’ll be covering all angles on property buying from getting your first property to a dream home, buying a property in the post-COVID world, and how to leverage property equity to make money.
Event schedule and links to book here:
Buying Property in a Post-Covid Australia – 1st April 11:30pm-12:30pm AEDT
Buying Your First Home or Investment Property – 22nd April 11:30 pm-12:30 pm AEDT
How to buy your second property – 13th May 11:30 am-12:30 pm AEDT
Using property equity to make money – 3rd June 11:30 am-12:30 pm AEDT
Building your property dream team – 17th June 11:30 am-12:30 pm AEDT
Share market wrap
This week saw Aussie unemployment stats confirm the strength of our economy, with all-time record jobs numbers driving a strong market response. The Fed (US central bank) also came out to defend the current state of ultra low-interest rates, suggesting we’re likely to see low mortgage rates stick around for some time. Finance and tech, along with market darling Afterpay dragged on the markets this week leading them to close lower.
Key sharemarket numbers:
- The ASX ‘All Ords’ (top 500 shares in Australia) finished the week 0.6% lower than last Friday, on 6,959.60 points.
- The US ‘S&P500’ (Top 500 shares in America) finished the week 0.81% lower than last Friday, on 3,913.10 points.
- The US ‘Nasdaq’ (Top 2500+ mainly tech shares in America) finished the week 0.87% lower than last Friday, on 13,215.24 points.
- The Global ‘All World’ index (measured with the iShares MSCI world index (all share markets around the world combined) finished the week 0.44% lower than last Friday, at 117.59.
Investment story of the week
Non Fungible Tokens (NFT’s): Over the last month there’s been a huge surge in activity in the market for digital collectables, with the market also setting a record sale price for NFT’s at a massive USD$69m through Christie’s in New York. If you haven’t been following the NFT craze, NFT’s are unique digital artworks that are linked to the cryptocurrency through the blockchain. Given the rise in crypto values over the last little while, NFT’s have seen a corresponding increase in value that’s driving a heap of interest. It seems like a thing that’s here to stay, but there’s a question around whether the values will be sustainable.
Money mistake of the week: Short term thinking for long term investments
Last week I interviewed Marcus Roberts for the podcast, and we got talking about the current trend of moving out of metro areas and into our regional areas AKA ‘The great Byron migration’. The appeal is real, but is the decision a short-sighted one? Hear the answer from a property expert here.
Weekly jargon buster – Equity (via Macquarie):
The value of an asset after all debts against it have been calculated. A property may be worth $800,000, for example, but if it has a $500,000 mortgage against it, the equity the owner has is $300,000.
Money hack of the week: The top property mistake I see (and how to avoid it)
Last week I was interviewed by Chris Gray on Property TV talking through our take on the current market and my top property investing tip. Check out the full interview here.
Podcast from last week: #92 Property Pro series w. Ramon Cura
Last week I got talking to Ramon Cura from Cura Property. He’s a buyer’s agent that finds sources, negotiates on properties for people that want to invest in property overseas. We talk about his take on the market now, a little bit on some of the fundamentals that he looks at that drive good property purchases, talk about the negotiating strategies that he has found to be effective in securing a property and in getting a good deal at the same time as well as the opportunities for buyers at the moment that he’s seen and the mistakes that people make.
Smart Money upside #14 – Putting cash to work, building a second income stream, and an achievable pathway to retirement
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 from one of our clients helps you take your money game to the next level.
Couple late 40’s, second relationship, household income $250k, cash $300k, home ~$1.4m, investment property ~$1m, ~$1m mortgage debt.
Frustrations when first coming to see us
Lazy cash and property equity not working for them, the second relationship not sure how to merge their finances, building investment income to give a clear pathway to retirement.
What they wanted from us / the advice process
Strategy to build investment income, help to put lazy cash to work, optimise property strategy.
What money strategy they were following when we started working together
Building cash savings, running one positively geared investment property.
What money strategy they chose to pursue our planning work
Buying one investment property now, another in four years, building superannuation, investment account for children.
Key benefits of going through the process
Being able to confidently make big property decisions, scenario planning to deliver achievable retirement income.
Year 1 upside: $11,812
Year 20 upside: $1,241,833
If this story resonates and you want to chat about how to get these sorts of results, you can book an intro call here.
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.
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