The Relative Price Of Housing

Just over 20 years ago, in 1995, an “average” Australian home could be bought for about 3.8 times the average weekly earnings.

blog126

 

Today, that same ratio is 6.5 times average weekly earnings. So on the face of it, Australian homes today are almost twice the relative prices as they were 20 years ago – see the chart below.

Continue Reading »

The Property Market – What Are We Meant To Think?

It seems everyone has a point of view on the property market these days. And it is great that so many individuals, companies (semi-government, government & private), financiers and industry bodies can put out so much information, facts, stats, figures and opinions on the current and future state of our real estate market.

blog122

The challenge is much of it is contradictory, inflammatory and in some cases inherently biased.

Being bombarded by all sorts of conflicting information can make it very challenging for investors to sort through what is relevant and then reach a conclusion. I have found that if you have an opinion, you will by default search for and then find information that tends to back up that viewpoint.

Continue Reading »

Is Negative Gearing Tax Dodging?

In the course of doing what I do, I review vast amounts of economic and investment information from all over the media – social, print & digital – in fact I invest several hours a day on this. I want to be the best investor I can be and sorting through the piles of opinion, fact and material is critical to having an understanding of what is happening in our financial world.

blog12thapril

Late last week, I read an interesting article from one of Australia’s most respected economists, Mr Saul Eslake. In it, he says “Negative gearing can’t be equated with standard business tax practice, and is not allowed in many countries.” Mr Eslake notes that in a speech published in 2005, our current Prime Minister Malcolm Turnbull, described “negative gearing as a form of ‘tax avoidance’, one of the few open to PAYE and other ‘unincorporated’ taxpayers.”

Continue Reading »

REAL ESTATE BOOM OVER – WHERE CAN YOU MAKE MONEY NOW?

It is very clear that the Australian real estate party is over – for now at least. Many investors are wondering where to direct their focus now, since making money in property is no longer about just buying something – anything, and hoping for the best.

blog

Over the past decade you could pretty much just buy in your own backyard and wait, earning capital growth by default and thinking you were a smart investor. It’s going to take a lot more than that in the next decade. And it is likely you won’t be investing just in the city in which you live – there may be better investment opportunities for you elsewhere. It is also inevitable that you will be building a diversified portfolio of short & long term investments, having some oriented at capital growth and others at income. This is the next generation way of investing.

Continue Reading »

Is $1 Million Enough To Retire On?

At the age of 19 I decided that I wanted to be rich and that meant being a millionaire. It took nine years to achieve the goals and I only discovered it by accident. I was filling out an application form for a loan and realized that my assets minus my current liabilities equaled just over one million dollars. At that point I thought I had it made. I mean being a millionaire was the peak in wealth wasn’t it? It was what everyone wanted to be?

blog106

The very first book I wrote was called “It’s Easy to Be a Property Millionaire” and it sold in the tens of thousands, so I guess a lot of people just like me were out there all striving to become a millionaire. It was presumably because they wanted a better life and that number – a million dollars, seemed to be the magical goal, once reached, would guarantee the life of your dreams.

Continue Reading »

Robert Holmes a Court – Australia’s First Billionaire?

I have enjoyed sharing with you an ongoing series about some of the most successful people on the planet, including Richard Branson, Mark Zuckerberg, Aristotle Onassis and Andrew Carnegie (look back through my website for these stories). I haven’t yet written about another of my heroes – an Australian – Robert Holmes a Court (though he was born in Johannesburg!)

blog104

While it is not certain, there are many who believe that Robert Holmes a Court was Australia’s first billionaire. Holmes a Court rose to national prominence in the heady 1980’s business boom, alongside characters like Kerry Packer and Alan Bond. His journey from South Africa to Perth to build his corporate fortune is one that fascinated me as a teenager.

Continue Reading »

RADIO WEALTH EPISODE 13 – REAL ESTATE CROWDFUNDING & BRICKRAISE SPECIAL

Welcome to the Radio Wealth Real Estate Crowdfunding special broadcast. Since launching the Brickraise platform and our first investment offer in Melbourne, we have been flooded with questions. So the team though that we should share these so that everyone learns more about the next generation of real estate investing.

rw13
Continue Reading »

Radio Wealth Episode 12 – Developer Special

Welcome to the Radio Wealth Real Estate Developing special broadcast. If you have ever wanted to know what it takes to be a developer, or to understand more about what a developer does to create homes, then this show will be enlightening for you. Some of the questions we are covering include:-

RADIO WEALTH12
Continue Reading »

Radio Wealth Episode 11 – Real Estate Crowdfunding & Brickraise Special

Welcome to the Radio Wealth Real Estate Crowdfunding special broadcast. We have a truly evolutionary show for you this week, with some insightful questions, that cover many of the issue that investors want to know more about regarding real estate crowdfunding. Some of the questions we are covering include:-

radio wealth 11
Continue Reading »