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Dear |
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 If you save dilgently you should reach the point when money worries are relatively rare. This feeling of financial serenity isn't only for the wealthy. If you live below your means and invest prudently, you can achieve a sense of financial control long before you achieve full financial independence. After 26 years of jounalism and having written more than 1,000 articles for The Wall Street Journal, Jonathan Clements, wrote his final article on 9 April 2009. In his parting shot article Clements is convinced that wealth can deliver three key benefits. 1. If you have money, you don't have to worry about it.
2. Money can give you the freedom to pursue your passions.
3. Money can buy you time with family and friends.
Clements advocate a globally diversifed portfolio of low cost indexed funds presumably because he has the knowledge and experience in that sector and can control and manage such investments.
Many Australians however, save and invest in properties as a vehicle they can control and manage. Australia has about 1.6 million individual property investors according to the Australian Tax Office . The ATO's just released Taxation Statistics 2006-07 show that 1.6million Australians - one in every ten adults in the country included rental income in their tax returns. Just over half had a taxable income of between $25,000 and $75,000. Most - 72.5% - held only one rental property.
Investors, usually high income earners use negative gearing to manage their tax affairs and benefit from tax sheltered capital growth. In 2006-07, 68 percent of property investors claimed negative gearing losses, and the total negative gearing claims jumped 25% to top $8.6 billion. (Source: Australian Financial Review 28 March 2009 reported by Shannon Nicholls and Robert Harley)
To save / invest diligently, check our Investment Analyses Illustration for impact of negative gearing on tax savings and affordabilty. In our Current Properties Section, each property features the "affordabilty" and "tax savings" which we illustrate in the example Investment Analysis Illustration. We believe it is a useful tool for evaluation of the investment.
Our illustration typically shows an an example of an investor earning $80,000 a year and borrowing in full to invest in a prime property. The Illustrations show in many instances affordable cash flows - around or under $100 a week to hold the properties.
Examples are :
Compelling. Direct waterfront in Brisbane CBD. Committed infrastructure for potential capital growth. Read more on Evolution.Silvershore on Broadwater Labrador . An opportunity to acquire a prime waterfront property. Now affordable from $392,000. Read more on Silvershore.
Sincerely - Your team at Astute.
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Population update
The ABS figures released late last month show that Australia's permanent population grew at the fastest rate on record, increasing by just under 360,000 last year. Queensland has the strongest increase in population. Nearly 21.5 million people now call Australia home and Queensland's population is close to 4.3 million. Two-thirds of last year's population increase took place in our eight capital cities, with Melbourne and Sydney showing the most growth, increasing by 75,000 and 55,000 respectively. Brisbane is third with an increase of 43,400 new residents.
Almost 15 million or 70 percent of Australia's population currently live in or immediately around our capital cities. Australia's population is projected to grow by 1.6million or 8 percent within the next five years. The trend towards metropolitan living is expected to accelerate with the capitals holding a 70% market share of new population growth in coming years. This market share increases to 83% when incorporating the urban areas immediately surrounding our capitals. Queensland is expected to continue to be the fastest growing state. ( Source : Matusik Property Insights www.matusik.com.au )
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Our recommended stocks |
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Property highlights :
Completed to incorporate into your tax savings:
You can choose from two brand-new prime completed developments. Both are direct waterfront. Capital growth potential. Well priced. High rents. Affordable. It is also the time to use the deductions to reduce your tax for the tax year ending 30 June 2009.
 EVOLUTION apartments on Brisbane CBD . Direct waterfront. Presently, there is a very limited supply of new CBD apartments. More rare are CBD waterfront apartments. Pedestrain bridge to link Evolution to South Bank. Price from $570,000 fully furnished. Rent $600 per week net. Cash flow estimated to hold property : $14 approx per week ( based on investor with $80,000 a year income and borrowing in full , review Investment Analysis Illustration ).
 Silvershore on Broadwater Labrador. Direct waterfront. Price from $392,000. This stretch of the Broadwater is very limited in supply for new developments. It is among popular lifestyles and amenties, including Southport- Gold Coast's CBD. Seize the opportunity to acquire at $392,000. Cash flow estimated to hold this property : $65 apporx per week ( based on an investor with $80,000 a year income and borrowing in full, review Investment Analysis Illustration ).
Positive cash flow and tax deductions:
 Cairns One brand-new completed. 89 percent sold. Only fourteen apartments remaining. Priced from $292,900 - the developer has reduced prices to sell. An opportunity to secure a property for positive cash flow returns. Award winning developer. Good position close to Cairns CBD. Positive cash flow is possible (based on an investor with $80,000 income and borrowing in full, review Investment Analysis Illustration). Strategic off-the-plan purchase  SOLEIL CBD waterfront. SOLEIL is the only new CBD development now under construction to deliver new apartments in 2011/2012. Priced competively today to sell. A strategic investment for potential capital growth - what would CBD waterfront apartments be priced at in 2012, when there are no new apartments supplied into the market? Vendor finance up to 90% at settlement for 2 years at 5.25% p.a. provides the safety and option at settlement to review your finance choices. Positive cash flow is possible ( based on an investor with $80,000 a year income and borrowing in full, review Investment Analysis Illustration).
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| News Update |
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New apartment stocks sold out. M on Mary at the heart of Brisbane CBD was entirely sold out this month - all the one bedroom plus study, the three bedrooms and the six-bedroom penthouse were sold. About 150 apartments in receivers' stocks were put into the market at the end of 2008. They were all priced by the receivers at valuation to sell. We took these to our clients and many of our clients seized the opportunity. After these stocks, there are now no new one bedroom plus study apartments in the CBD available for sale. The next availability will be in 2011/2012 when Harry Tribugoff's SOLEIL is expected to be completed.
CBD projects shelved. Almost $5 billion worth of residential projects have been shelved in Brisbane's CBD : Vision $1 billion; Trilogy $700 million; Empire Square $500 million. Other projects on hold include Hogan Place - an 87 unit development at 127 Charlotte St. Philip Churven's 31 storey mixed use Silverpoint Towers. The Q-Centre Tower at Roma St Transit Centre.
SOLEIL in the CBD is moving ahead. Meriton, which sold 11 percent of its SOLEIL building now under construction in the CBD, faces little competition and owner Harry Tribugoff has regularly expressed his passion for Brisbane. Meriton builds without relying on a certain number of pre-sales and what isn't sold on completion is rented out. We are one of the few preferred agencies to take this project to our clients. Information on SOLEIL is on our website :
French Quarter Brisbane CBD - Devine Properties remain committed to its $1 billion French Quarter twin tower development fronting Alice, Margaret and Albert Streets. A Development Approval is expected to be submitted for the first stage this year.
Emerald Lakes Gold Coast The completed Town Centre has sold out all the one bedroom apartments. These were large one bedroom apartments, many exceeding 75sm and well priced at $4,500 persm approx. Emerald Lakes is a unique ( popular mixed-used) development in Carrara, the centre of the Gold Coast, and is waterfront on the lakes and connected by pedestrain and cycle walkway to the golf course. There are one bedroom apartments remaininhg in the French Quarters in the same Emerald Lakes development priced from $385,000 completing February 2010 approx.
The Federal Budget 2009/10 . First Home Owners Boost extended. First-home owners entering contracts between July 1 and September 30 will continue to receive the boost of $7,000 if they are buying established homes and $14,000 to buy new homes. Combined with the First Home Owners Scheme grant, first-time buyers will get a total of $14,000 when they buy established homes and $21,000 for new homes.The boost will halve for those entering into new contracts from October 1 until December 31 2009 - with those buying established homes receiving $3500 while those buying new homes will receive $7000.This means the former will get a total of $10,500 and the latter will receive $14,000 when combined with the $7000 first-home owner's grant. The highly anticipated move, which will help stimulate housing activity and construction, will cost the Government $539 million over three years. So far, the first-home owner's boost has helped 59,000 Australians buy their first home. Read the Federal Budget Summary 2009/10. | |
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Property Investments for Financial Security.
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