Call us Australia +61 41133 4499 | +61 2 92999333 | Singapore +65 8338 9933 info@aussiepropertyguru.com
15 common myths that are killing the wealth potential of the average Australian property investor

15 common myths that are killing the wealth potential of the average Australian property investor

There are many myths and false beliefs that you may be feeding yourself, that may be hindering your progress as a property investor. We are here to debunk some of these myths and help you make progress in seeing the property investment industry for the wealth for the opportunity that it really is.

Many of these myths are actually just excuses. Take these first seven, for example. With advice from the experts – like the highly qualified team at Aussie Property Guru, you’ll see that all these “excuses” disappear.

 

Myths About Property Investments That Could Be Holding You Back –

 

#1  You need to have a lot of money to make a lot of money.

#2  I Don’t Have Nearly Enough Money To Invest In Property.

#3  My job and pension will be more than enough for a comfortable retirement.

#4  I don’t have the brains to invest in property.

#5  Investing in property is way too complicated for me

#6  Property investment is full of unbeatable risks

#7  Understanding the timing of investment markets is too complicated

 

All of the above beliefs are destructive and keep you off the property investment ladder. It’s time to start believing in yourself and the legitimate profit opportunities that the property investment industry offers you if you team up with a top property investment expert.

 

And here are some more common myths:

 

#8 The rich have all the luck

In some cases this is true, but most of the time people have dedicated time and effort into choosing investments, getting expert advice and building their wealth.

#9 Diversification is a key to becoming rich 

Ever heard of Jack of Trades yet Master of None? It is far better to focus on one investment and do it properly than to be dealing with tons of stocks and investments that you don’t understand.

#10 Paying off your house is essential

Oh is it? And what do you do with this asset once you’ve paid it off? Think about that for a moment.

#11 All the best property investments are already gone

New hot properties are coming onto the market every single day. Do you know where to look? If not, you should ask the professionals who know exactly where the best deals are to be found.

#12 I’ll have to do it all myself

No, you won’t. Why not get the help of a professional to ease the stress and give you support?

#13 One mistake can ruin everything

Life is about making mistakes. You can always make a comeback if you are willing to get up again. You’ll make fewer mistakes if you’re smart about finding the right property investment advisors.

#14 Debt is a no-no

Sometimes taking a loan can benefit you in the long run – and if you’re going to have debt – this is the best kind to have.

#15 I Can’t

This is the biggest hurdle to overcome! Start saying ‘I can!’ and choose an investment advisor carefully and you will!

 

Hopefully, the debunking of these myths will give you the confidence to make your first property investment! Aussie Property Guru has a top-class reputation for helping our clients grow their wealth with smart property purchases, so give us a call today.

What You Need To Know About NSW Swimming Pool Regulations

What You Need To Know About NSW Swimming Pool Regulations

 

Summer is definitely in full swing, and what better way to enjoy the New South Wales sun than a trip to the beach, or a dip in your pool? However, if you own and or rent out your property investment in NSW, you have to make sure that your swimming pool complies to the latest minimum safety requirements that have come into effect last year. If you are unsure what to do, we’ve made a handy guide to show you the way.

 

The Requirements

Your first step in ensuring that your pool is compliant, is registering it with the NSW Government Swimming Pool Register. Once registered, there are some guidelines you have to adhere to, namely the following:

  • Ensuring that your pool fence is at least 1200mm high, and if there is a gap between the fence and the ground, it may not be more than 100mm wide.
  • The pool must have a self-closing gate, and be able to latch closed from any position. It should also never be propped open, at any time, and should open outward and away from the pool
  • If you are leasing the property, your Residential Tenancy Agreement has to include a copy of the Certificate of Compliance, indicating that the swimming pool adheres to the necessary legal guidelines.

 

The Implications

Since these requirements have come into effect, it has become mandatory for all property owners that intend to lease or sell their property that has a swimming pool on the premises, to provide a copy of the Certificate of Compliance to the potential tenant or buyer.

The Certificate helps to show that the owner of the pool has taken all the requirements as set out by the law, which in turn offers the owner some form of legal protection in certain events, but keep in mind that as owner, you are obligated by law to ensure the pool’s safety on a continuous basis.

If you don’t have a Certificate of Compliance

If you haven’t had your pool certified yet, and are leasing your property, you are allowed to request an inspection from an accredited certifier or from your local council at any time, for the purpose of obtaining a certificate.

If you need any more information about these laws, or need help with obtaining your certificate, please don’t hesitate to contact us at your earliest convenience.

 

 

FOR MORE INFORMATION CLICK THE LINK BELOW:

 

 

 

Rate Cut or Not ?

Rate Cut or Not ?

Commentators are divided as to the likelihood of the Reserve Bank of Australia announcing another interest rate cut in August, especially in light of the June Quarter CPI report that has just been released.

The uncertainty surrounding Tuesday’s decision is reflected in the market, where pricing for a rate cut is about 50-50. The vast majority of economists still expect an easing.
In general, the market tends to get the RBA right rather than economists but we also need to look at what the market thinks via the strength of the Aussie Dollar which is trading near its recent highs above 0.76 USD.

I believe the RBA has sufficient data to warrant a cut to 1.50 % but can also see a delay till November as the Housing Market has been showing some resilience in the last quarter, even with APRA and the banks tightening credit policy to limit the amount of investment lending being made available to property investors.

Its interesting to note that we live in a world that is awash with QE but there has not been any market commentary on the possibility of the RBA actually using anything else than monetary policy to stimulate the economy.
It is reassuring to note that the RBA have considered what lessons can be drawn for Australia by looking at the experience of other Central Banks in the US, Japan and Europe that have adopted various methods of deploying monetary stimulus beyond rate cuts.

In contrast to where central banks see the state of their economies in terms of trying to stimulate growth, global markets are surging again after a short correction post the Brexit vote and asset price growth continues unabated as investors continue to chase yield.

This state of affairs does make the decision to invest in quality Australian residential property assets a far more reassuring one, especially when borrowing in AUD to fund these purchases.
We need to remain focussed on what the research can show us and not chase assets that have seen too much short term price appreciation in this cycle.

Always remember not to lose sight of the fundamentals as that will reduce the chances of making the sort of mistakes that many investors tend to make.

Let’s see what Tuesday brings us !

 

Best Regards,
Dr Andrew Unterweger MBBS, CFP®, Dip FP,FPA, AFA, SMSF
Chairman

 

 


bloomberg

Aussie Inflation Delivers RBA Smoldering, Not Smoking Rate Gun  The gasps following the previous inflation release were absent this time. Consumer-price growth in Australia remained subdued in the second quarter, but not as weak as some economists feared. And it didn’t suggest the country was being dragged even further into the disinflation vortex. So while most economists are sticking to their prediction the Reserve Bank of Australia will cut interest rates in six days’ time, the couple who changed their calls presented compelling cases for doing so… Read more

 

 

 

 

RBA’s sober assessment of the labour market and housing: Westpac’s Bill Evans 

The minutes of the July monetary policy meeting of the Reserve Bank Board confirmed the importance of next week’s June Quarter inflation report. The key sentences in the concluding paragraph of the “Considerations for Monetary Policy” section state: “The Board noted that further information on inflationary pressures, the labour market and housing market activity would be available over the following month and that the staff would provide an update of their forecasts .. Read more

 


 

 

Australia’s Central Bank Would Mix Stimulus Tools in Extreme
Scenario

Australia’s central bank has studied the examples of unorthodox policy conducted by its peers, and would favor a multi-pronged stimulus if economic conditions unexpectedly deteriorated to the point where it had to head into uncharted territory.The Reserve Bank of Australia currently still has room for traditional interest-rate cuts, with its benchmark at 1.75 percent. However, economists anticipate another reduction as soon as next month, and Deputy Governor Philip Lowe — who will take the RBA’s helm in September — has indicated that lowering the rate on its own would lose effectiveness as it approaches 1 percent..

Read more

 


 
 

Focus Shifts to AUD/USD Amid Bets for RBA Rate-Cut
Talking Points:
– AUD/USD Preserves Near-Term Bullish Formation Ahead of RBA Rate-Decision.
– USDOLLAR Extends Losses as 2Q GDP Report Disappoints.
  • Even though AUD/USD largely preserves the upward trend carried over from the end of May, the near-term outlook remains clouded amid the divergence in the Relative Strength Index (RSI); need a break of the bearish formation in the oscillator to favor a larger advance in the exchange rate.    Read more

 


 
Headline inflation at weakest annual pace in 17 years

Headline inflation has unexpectedly slowed to the weakest pace in 17 years, ramping up speculation the Reserve Bank of Australia will cut the official cash rate to 1.5 per cent next week.

The consumer price index rose 0.4 per cent in the June quarter from the previous three months, and 1 per cent from the same period a year earlier, the Australian Bureau of Statistics said on Wednesday. Economists surveyed by Bloomberg News had forecast inflation of 0.4 per cent and 1.1 per cent.More importantly, measures of so-called core inflation that are closely watched by the Reserve Bank showed price weakness continues to be soft, exacerbated by the lowest wages growth on record, the ongoing deflationary impulse of a sluggish global economy, and a lack of pricing power by retailers in..

Read more

 


 

 
 

Meet Dr Andrew Unterweger

Dr Unterweger is a highly qualified financial and property adviser, experienced venture capitalist and successful investor

More Articles

15 common myths that are killing the wealth potential of the average Australian property investor

There are many myths and false beliefs that you may be feeding yourself, that may be hindering your progress as a property investor. We are here to debunk some of these myths and help you make progress in seeing the property investment industry for the...

Everything You Need To Know About Australia’s Property Market Cycles

Most markets in the world consistently go through periods of growth contraction, and the property market is no different. While some might feel that this constant shift means that getting the most out of their property investments will be difficult, it is the...

Why You Should Invest In Brisbane’s Property Market

To many it might feel like the Sydney property market is difficult to penetrate in terms of property investments. Seeing as most suburbs within 50km of the city’s central business district have a median house price higher than $500 000, this sentiment is...

You Can Cancel Your Home Loan Contract Before Settlement – Here’s How

Buying a house is seen by many as one of the most important purchases you can make in your life. This means that the decision to go through the time consuming and costly process of getting the property you want can be intimidating, leaving first-time buyers feeling...

What You Need To Know About NSW Swimming Pool Regulations

  Summer is definitely in full swing, and what better way to enjoy the New South Wales sun than a trip to the beach, or a dip in your pool? However, if you own and or rent out your property investment in NSW, you have to make sure that your swimming pool complies to...

FACTORS TO CONSIDER WHEN ASSISTING YOUR CHILDREN WITH HOME OWNERSHIP

In the past, buying a home was viewed as a marker of adulthood, often preceding marriage and having children. Times have changed, and currently housing affordability is at an all-time low in Australia. As a parent, it’s normal to want to give your children a hand with...
Aussie homes: as affordable as a decade ago

Aussie homes: as affordable as a decade ago

I thought it would be appropriate to include these news items as I am often asked the question “ Isn’t Australian property overpriced ?”. This brings out a number of interesting insights and whilst statistics can sometimes be somewhat misleading, it is reasonable to use the rule of thumb that people spend about a third of their income on housing, be that rent or mortgage payments. If we keep that in mind, this would mean that Australia is quite well placed on the “dwelling affordability index” relative to other developed nations.

The other articles focus on interest rate expectations, firstly from the Reserve Bank of Australia and then from Macquarie Bank and Westpac .. this is interesting in that Bill Evans, and Matthew Hassan, the chief economist at Westpac made these two predictions which are in opposing directions, within days of each other.

I think this highlights that we need to be mindful of the macro factors at work, but also use some common sense and recognise that it is sometimes better to work with the “likelihood factor” of certain outcomes occurring. When applied to you property investment and associated loan portfolio, it might be sensible to take a measured approach and fix the interest rate for a proportion of that portfolio and leave the rest on a variable interest rate.

Best Regards,
Dr Andrew Unterweger MBBS, CFP®, Dip FP,FPA, AFA, SMSF
Chairman


Aussie homes: as affordable as a decade ago

james- Switzer brokerby Craig James

 

Housing affordability
Homes are still affordable: The Rismark housing affordability measure indicates that home prices stood at 4 times household disposable income in the December quarter – a figure broadly unchanged on a decade ago. Over the past decade disposable income per household has risen around 70 per cent while the average home price has lifted around 67 per cent.

What do the figures show and what does it all mean?

Gen Y has no reason to blame parents or grandparents – home affordability hasn’t really budged in the past decade. Home prices may be up, but so are disposable incomes. read more …



RBA offers good news on interest rates

 

interest relative to housing
The Reserve Bank of Australia has signalled that interest rates
are likely to remain at record lows..


“At recent meetings, the board had judged that it was prudent to leave the cash rate unchanged, while noting that the cash rate could remain at its current level for some time.. Read more
The RBA has released the minutes of its most recent meeting on March 4, which support hopes that the official cash rate 
might remain at 2.5 per cent for the rest of 2014.

MacBank Changes Rate Cut Projection

Macquarie has become the latest bank to revise its forecast for further rate cuts from the Reserve Bank of Australia, moving from an expectation of two reductions to interest rates this year to just a single cut.

Macquarie follows Westpac which on Monday scrapped its prediction for two rate cuts in favour of calling rates on hold for the next 18 months before anticipating a hike from the RBA.

National Australia Bank, JPMorgan and Bank of America-Merrill Lynch still think the RBA has more easing to do in this cycle. read more …

Consumer sentiment falls; two more rate cuts for 2014: Westpac

Declining confidence in the economic outlook and escalating job-loss fears have contributed to a decline in the latest Westpac Melbourne Institute Index of Consumer Sentiment.

The March figure posted a decrease of 0.7% to 99.5 from 100.2 in February. The Index is down 10.9% from its November peak of 110.3 and is at its lowest level since May last year, Westpac reveals.

Consumers have been rattled by the bad news surrounding the car industry, other manufacturers and Qantas, according to Westpac chief economist Matthew Hassan.

“The March survey showed a continued collapse in near term expectations for the economy – the sub-index tracking consumer views on outlook for ‘economic conditions over the next 12 months’ dropped 4%, following a 7.1% fall in February,” says Hassan. “The sub-index is at its lowest level since December 2011, at the height of the European sovereign debt crisis.”. read more...

westpac

 

Westpac’s about-face on rates

Westpac no longer expect rate cuts

Banking Corp chief economist Bill Evans has dropped his expectation for two further rate cuts from the Reserve Bank of Australia, instead predicting a rate hike in 2015.

Mr Evans’ views have been closely followed by traders because he was the only economist to successfully predict the last turn in the economic cycle when the RBA began easing.
He went out on a limb in June 2011 when he forecast the RBA would cut interest rates; though the central bank didn’t cut until November that year when more economists shared that view, Mr Evans still got the credit.
Better news on employment; consumption and business confidence will help counter the effect of weaker employment, says Westpac chief economist Bill Evans.
Mr Evans together with NAB chief economist Alan Oster was until today one of the most bearish interest rate forecasters, citing weak domestic demand for expectations of further easing.
But Westpac now has rates on hold for the rest of this year, and the first rate rise in the third-quarter of next year. read more

More Articles

15 common myths that are killing the wealth potential of the average Australian property investor

There are many myths and false beliefs that you may be feeding yourself, that may be hindering your progress as a property investor. We are here to debunk some of these myths and help you make progress in seeing the property investment industry for the...

Everything You Need To Know About Australia’s Property Market Cycles

Most markets in the world consistently go through periods of growth contraction, and the property market is no different. While some might feel that this constant shift means that getting the most out of their property investments will be difficult, it is the...

Why You Should Invest In Brisbane’s Property Market

To many it might feel like the Sydney property market is difficult to penetrate in terms of property investments. Seeing as most suburbs within 50km of the city’s central business district have a median house price higher than $500 000, this sentiment is...

You Can Cancel Your Home Loan Contract Before Settlement – Here’s How

Buying a house is seen by many as one of the most important purchases you can make in your life. This means that the decision to go through the time consuming and costly process of getting the property you want can be intimidating, leaving first-time buyers feeling...

What You Need To Know About NSW Swimming Pool Regulations

  Summer is definitely in full swing, and what better way to enjoy the New South Wales sun than a trip to the beach, or a dip in your pool? However, if you own and or rent out your property investment in NSW, you have to make sure that your swimming pool complies to...

FACTORS TO CONSIDER WHEN ASSISTING YOUR CHILDREN WITH HOME OWNERSHIP

In the past, buying a home was viewed as a marker of adulthood, often preceding marriage and having children. Times have changed, and currently housing affordability is at an all-time low in Australia. As a parent, it’s normal to want to give your children a hand with...