Yes, I know it’s a weird name, but basically the seminar was about real estate trends and forecasts in Australia.

The people that attended this event were the ones who were at the pointy end of the real estate pyramid, and that is listed property development companies like Stockland, Mirvac, government officials, major banks… you get the drift.

Most of the event was pretty boring, but there were certain talks and information that is relevant to anybody interested in real estate. I thought it would be appropriate for me to tell you some of the things that were discussed there that would be of value to you.

This is a continuation of yesterday’s theme of the biggest trend going forward.

If you haven’t read it, I suggest you check out Tuesday’s email.

Here’s one of the highlights of what I learnt at the event.

There is a major push to create smaller houses in Australia. However, culturally we’ve developed a “massive house” mentality simply because of the large land mass that we live on. No shortage of space in Australia, so big has always been better.

Looking at the statistics, the average size of a new house in Australia is 260 sq. metres which equates to 83 sq. metres per person on average.

Compared with 68 sq. metres per person in America and much smaller spaces in European countries including 32 sq. metres in Britain.

Now, you’re probably thinking that both of those countries went through a serious property crash of late. Yes, that’s right. But I’ll discuss the reasons for that as we move on.

So you can see from the overseas trends that smaller houses are the norm, and it’s also one way of keeping affordability down.

This is what many State Governments are pushing for Australia-wide. Smaller blocks, smaller houses, no backyards. Despite this, we have councils that aren’t setup to follow this trend which is providing an opportunity for you and me to make money from.

Keep reading to find out how…

Considering that immigration isn’t going to change much going forward, this trend is likely to accelerate in the next 5-10 years.

Here’s something else that came out of the conference, the constraint on development approvals.

We must move to smaller housing, suits our infrastructure spending – but the lines to get things done are growing longer and longer by the day.

The waiting times for a VCAT application to be heard is 9 months. Only months ago it was 60 days. Now you don’t have to go to VCAT to get a permit to develop, you can do that through the council.

Typically it’s a 60 day turnaround if you do that, however all of my applications are heading off to VCAT. Now I wont go into the reasons why in this email, but if you’ve ever dealt with the council or done any form of development yourself – you’ll know the answer to that.

So what do you think will happen to real estate prices in the next 12 months if there is such a constraint on supply?

Well, they certainly wont go down – that’s for sure.

Here’s a thought…

If you could work out which councils have the longest wait for development approval, you could almost guarantee capital growth in that area. I’m attempting to find out how to get access to that information – I’ll let you know if I’m successful.

For me, this is a clear trend on where I should be investing in the future. I’ve spoken about this before many times.

But I know there are fears and doubts…

The biggest concern that you might have at the moment is that we’re in a media-driven property bubble and you fear prices crashing… I say media-driven property bubble because every time you pick up the paper, there is sure to be a negative story on how the property market is running out of steam or about to come crashing down.

Here’s why I don’t believe any of that rubbish…

To have a serious fall in house prices, you need the following:

• Significant deterioration of the employment/labour market. We’re at about 5% unemployment which is around the historical low.
• A credit crunch. We already had one of those and we buffered the storm brilliantly simply because we were not exposed to the type of loans that were available in the Northern Hemisphere.
• A rapid tightening in monetary policy. To a degree this happened 18 months ago, but right now things are easing up.
• An oversupply of housing. The reverse is the trend in Australia. We’ve got a chronic undersupply in many parts of the country. Interestingly the State that has had oversupply has been Queensland and consequently it hasn’t participated in the current price increases.
• Massive interest rate rises. Yes, we’ve had significant rises in the last 9 months, but that’s coming off a very low base. We’re back to just below the average.

So you can believe whatever you want, but in 10 years time when you look back and scratch your head as to why you’ve missed yet another property cycle and everything is obvious to you then, it may be too late.

There is no point in theorising about these things and wondering “what if” – just get out there and see for yourself what is happening with a whole new set of eyes.

Once you get access to this type of thinking and information, you’ll probably see money-making opportunities that previously you’d drive by and think nothing of.

Signed with Success,

Jon Giaan
Knowledge Source

P.S. Get educated first and make educated decisions that will pay you back forever.

I certainly am.

Reading all the headlines, you’d think we’re on the cusp of a property crash and diving into another global crisis via a double-dip recession. Run for the hills!!

Add an election to the mix and you’ve got a recipe for massive procrastination.

So what can we make of it all?

Let’s see if I can help…

I think the Reserve Bank of Australia went way over the top with its interest rate hikes. We went from a 3% cash rate to 4.5% in just 6 months.

This was a massive 50% increase and the most aggressive in the western world.

So why did Glen go so hard?

He had eyes only for the property market and the only way he could stop it was by using interest rates as his evil weapon against his perceived property boom.

He’s thinking was… Slow down the property boom and we’ve got a chance at improving the housing affordability of everyday Australians.

Since his crusade 6 months ago, he succeeded in putting a pause on property prices, but only after 6 months of solid real estate gains in most markets.

…and this week, we receive evidence that is he has also killed affordability with the following headline, “New Home-Starts Fall a Further 5.2% in June”

Some uneducated investors see those type of headlines and think we’ve got a serious problem.

Here’s what I think…

The down-turn in new home sales is by and large the product of the end of the government stimulus for first home buyers and the increase of interest rates, which has led to the following problems…

The lack of available land… Chronic lack of development finance leading to a lack of development activity… Council planning regulations taking far too long to release projects… Infrastructure delays in new development areas.

All of this will mean one thing.

That the housing shortage will continue to increase and prices will continue to push upwards… and the people most disadvantaged from this are the ones that the RBA boss, Glen Stevens is trying to help… those who are trying to buy their first home.

So all the shenanigans going on right now will push the expanding population into the rental market.

What does that mean?

Rents will significantly go up in the next 12-24 months.

Great if you’re a property investor, not much good if you’re a tenant.

So what I’m saying here is that there will be no property crash – full stop.

What we’ll see over the next several years is single-digit growth across many markets and if you’re smart and savvy within certain markets, you’ll be able to achieve much better than that.

You see, when most of the stats are quoted, they’re typically an average of all markets. So if we see 6% growth on average, it would not be unusual to have certain areas within property that have grown by 25%…

On the flip-side, some areas may fall by 10%.

That’s why I think you need to stay on top of your game, stay invested in areas that are likely to grow faster than others.

…research, research, research…

On another subject, and that is clearance rates, I often have a lot of fun with this sort of data… But here’s something you probably don’t know.

The clearance rates that the average investor seems to hang off every Monday morning reports only 20% of property transaction nationally.

That’s right, just 20%.

So does it really mean anything?

N.O.

Here’s something else that you need to know – all it really shows is people selling and buying.

12 months ago, we might have had a clearance rate of 55% with 400 properties on the market. In the current climate, we’ve got clearance rates of 67% with 900 properties on the market.

All this stuff is just noise to fill up newspapers and get your attention.

The macro picture (long term) is still so strong for property in this country that you’ll kick yourself if you sit on the fence again.

Interestingly, I was listening to professor Keen the other day and he is still ranting and raving about the 40% drop in real estate. The guy doesn’t give up.

He said that his initial prediction of a 40% drop was over a 10-15 year period… Not 2 years after the GFC hit. He was misquoted.

He also said that the fall would be from peak to trough.

What that means is, let’s say real estate has gone up 30% in the last 3 years since his prediction and it falls down by 30%, then Mr. Keen is right… Because real estate has fallen overall by 30% and it’s created a new peak and trough. (Economists are never wrong – they’ll find a way).

Confused, aren’t you?

It’s just more shenanigans by economists who are perhaps too close to the data for their own good.

My last point for today… What about a double-dip recession?

Here’s all I have to say about that…

It seems to me that everybody has almost guaranteed themselves that this is going to happen. From my experience, when the mainstream press and the man in the street are talking about a double-dip recession, then it’s likely not to happen and in fact go the other way.

Now of course in Australia, we never went into recession. And considering that I don’t think the global economies are going to go into a double-dip recession – I think it puts us in a good position going forward.

Just think contrarian (always go the opposite direction of the herd – most people are generally wrong).

They’re my thoughts.

Probably needs to be said, I failed high school, never did economics, wasn’t very good with maths, have absolutely no financial planning background – so everything I say here is basically my opinion based on my results (8-figure real estate portfolio, 7-figure stock market portfolio, 8-figure business).

…so please, before investing see a certified financial planner or follow the smart money.

That’s all for today.

Signed with Success,

Jon Giaan
Knowledge Source

P.S. So what do you think? Jump on your soapbox and let the rest of the Knowledge Source people hear your views below.

…and I think it’s seriously detrimental to your wealth creation plans if you let the journalists influence you into not taking any action.

Let me ask you a question…

Will property be more expensive in 5 years time?

I’d say that if you bought well located properties in most of the major cities, you’re pretty safe in regards to capital appreciation.

I’m always amused when I see people in the last stage of negotiation walk away from the deal because they might be $2,000 apart.

Does it really matter if you paid too much for your investment property?

Let me tell you a couple of real life scenarios.

About 7 years ago, a friend of mine asked me to come along to an auction, more from a point of view of moral support.

He was looking at purchasing a property as his principle place of residence.

The suburb was Ivanhoe, which is about 12kms from the Melbourne CBD (a quality blue-ribbon area).

I asked him what his limit was, and he said he was going to go up to $700,000 and not a cent more.

I’m always curious as to why people pick limits that are round numbers.

Anyway, the auction began in ernest and my friend, nervous as all hell got involved around the $675,000 mark.

Three bidders at that stage were competing for the property and the price quickly got to $695,000.

…Bidding slowed, and now there were only 2 left.

My friend and another couple.

I was interested at that point to see if my mate would stick to his original plan of only going up to $700k.

The bids were now down to $1,000 bids…

It was obvious to me that the auction was reaching its completion, and then something unexpected happened.

The young couple put in a $10,000 bid.

Hmmmmm… That certainly put the cat among the pigeons.

My friend turned to me with sweat consuming his brow and said, “Let them have it…”

It seemed to me that he was a beaten man. In the auction world, a big $10,000 bid like that is called a knock-out punch.

We’re now at $705,000, and remember, he was looking at this property from a point of view of a principle place of residence… So I suspect there was a little bit more emption attached to this than a run of the mill investment property.

He consults his wife of course, and they agree that they’re over their limit and maybe they should just give up.

He turns to me and for the first time asks me what I think.

I asked him how long he was going to keep the house…

He said, “Probably 10… 20 years.”

I then told him if he really wanted it, and he loved the area, then what’s the big deal if he paid $20k, $30k, even $40k more?

This seemed to reignite his enthusiasm.

I told him to put in a $500 bid.

Here’s why…

When someone tries to knock you out with a big knock out punch, the last thing they want to see is you still standing with a smile on your face.

It’s very cheeky, and an act of confidence when you respond back with a tiny bid after his massive attempt to knock you out.

The young couple came back with what they thought was the right thing to do, and that was a $500 bid.

My friend looked at me and said, “What now?”

…I said, make a $10,000 bid.

You should have seen his face.

I can only imagine the thoughts running through his head. Here we are at $716,000 with his previous flimsy limit of $700,000 and I’ve asked him to up the ante with a $10,000 bid.

Thinking… Thinking…. Thinking… and the auctioneer counting it down, I reminded him that this was a long term investment and in 10 years time it’ll be so insignificant that he’ll kick himself if he lost this auction for the sake of just $10,000 (or thereabouts).

With great doubt and trepidation he shouted out, “Seven twenty six!!”

You could see, even from our distance, the young couple’s face turn white.

They had nothing left in the tank and my friend’s actions proved to them that they would have to keep going and probably pay $30 or $40,000 more if they wanted the property.

The auctioneer counted it down and my friend had himself a brand-new home.

As I mentioned earlier, this was 7 years ago.

The reason why I tell you this story is two-fold.

He recently got a valuation on the property for $1.4 million, and to think he could have missed out on this deal for a mere $20 or $30,000 dollars.

Ok, he could have bought something else and maybe have made the same amount of money, but the reality is this was a well-located house in a better than average street in the suburb.

The second reason I’m telling you this story is that you can pay too much for real estate and still make a bundle of money if you have a long term buy and hold philosophy.

That’s why I find all of this current noise about property bubbles and whether it’s a good time to buy real estate really amusing.

You ask any pro who has been in the market for a minimum of 10 years about when a good to buy is.

…and he’ll simply tell you, “Whenever you can.”

So if you’re in a position to invest in real estate right now, then it’s a good time to buy.

Think about it, an extra $20,000 is around $29 per week in extra mortgage payments (based on 7% interest rates).

Now I’m not saying to you that you should go crazy and simply pay the asking price on any invest property, but if you like it and its well-located, then in 10 years time, think about… You’re not going to be upset that you paid $20,000 more.

Ok, when I say, “well located” – here’s what I mean…

If you purchase anything in a major city within a 15km radius and I can guarantee you that even if you pay 5-10% more than the market value today, in 10 years time you’ll be a clear winner.

Sure, everybody’s circumstances are different and I understand that sometimes there could be some issues with funding the extra $26 per week… However, it’s an investment in yours and your family’s future.

So the moral of this story is don’t be too concerned about what you’re reading and hearing in the media.

It’s all short-term perspectives.

The long-term reality is real estate will be more expensive in 10 years time.

..and what that simply means to you is the earlier you begin, the better it will be for you financially in the future.

Get out there and get serious.

Signed with Success,

Jon Giaan
Knowledge Source

P.S. Share your stories on our web site of how you paid more for property and sweated on it at the time… Only to find out that in time it was the best decision you ever made.

P.P.S. Or, tell me I’ve got it completely wrong, that you should always negotiate hard, follow your budget, have a clear valuation strategy, and that is the way to invest in real estate.

“Buyers Retreating From the Market in Droves!”

Now, last time I looked we were in a property boom, right?

…and the last 12-18 months have been nothing short of sensational profit-wise, even if you have a small portfolio.

Yet, once again the newspapers and non-property investing journos spook the market with outrageous headlines like the one above.

So where did this headline come from? This headline lead to an article based on how many new loans there are in the market based on previous months measures.

“Victoria Slides By 12%, NSW Goes Off The Boil By 27%, QLD 25% and SA 29%”

Based on those figures, you’d be thinking that there has just been a property crash that hasn’t quite made the front page news.

…but the figures themselves need further investigation.

Let’s have a look at it.

Here’s what they relate to… New loans opened specific for properties.

The survey was taken by the Bureau of Statistics for February which highlighted the worst month for new home loans since 2001.

Just an aside here, I can remember 2001 really well. It was just after the tech-wreck. And maybe just a coincidence, the property market took off in 2001 and didn’t stop until 2004. It’s important that you have some historical information when you look at stats like this.

Anyway, back to the article’s prime focus.

In February, a mere 2728 Victorian first home buyers took out loans, down from 4206 in July before the phase-out of the first home owner’s boost and the Reserve Bank’s string of interest rate increases.

…but in the same article, a long way further down it says,

“The latest RP Data figures show Melbourne prices climbing at a blistering annual rate of 19 per cent and Sydney prices climbing 12 per cent.”

Confused..?

You should be. I would if I weren’t a seasoned property investor and understood how to read between the lines.

But let me help you out…

If you had attended one of our recent real estate events with Dymphna Boholt, you’d be able to answer this question yourself.

Here’s why…

Dymphna mentioned that certain areas were going to dramatically grind to a halt and even reverse in prices. Those areas are the ones that this article talks about.

It’s all of the couples buying their first home and taking advantage of the first home owners boost scheme. Now gone, hence the pull-back on new loans.

You see what happened last year was unusual with how real estate tends to move. Very, very unusual.

In normal cycles, you’ll start with inner-city growth and then ripple out towards the suburbs as prices get more expensive and people are pushed out of their first choice and of course settle for the next suburb out.

Making sense so far?

…but in 2009, thanks to the government it started the complete opposite to that. Inner city properties were slow and anything around the $400-$500k mark was on fire.

We of course saw that, and those that attended our events got a head-start on the rest of the market as to what was to happen next.

Let me fill you in…

All of the free money, plus the boost scheme stabilised our economy… Meaning that confidence grew, big companies started spending again and bonuses and promotions were back to normal.

With that confidence (and several other factors), the real estate market returned back to normal and the smart and big money came back in a big way.

What you’re seeing now is massive growth in most of the inner-city areas on the East Coast.

Blue chip properties are now on fire with the average clearance rate Australia-wide at 75%.

The outer-lying areas are flat and probably will remain that way for a while. It’s these areas that are more sensitive to interest rate rises, which will only add to slowing that market down.

Now I’m not advocating that real estate prices are going to continue at 15-20% growth per annum for the next 3 years. We know that is not going to happen.

…but, here’s what will happen.

We will see a consistent and steady growth of 7-10% per annum at least over the next couple of years.

Plus, certain areas will have stand-out performances based on the normal trend of real estate and the ripple effect of 20%+ capital growth.

So what does all that mean?

In the stock market they say the trend is your friend.

In the real estate market, they call it a property boom and spook everybody into doing nothing.

It’s time to ride the trend, but be smart about where you buy and what you buy.

Be warned, not all property is suitable for investors. In fact, only 10-20% of property on the market at any given time is actually worthwhile considering as investment-grade material.

I hope this cuts through the B.S. and adds a bit of clarity to your thinking.

Signed with Success,

Jon Giaan
Knowledge Source

P.S. I don’t just talk about this stuff, recently I signed an unconditional contract on a block of units in a suburb called Coburg. Do your homework and you’ll find this suburb is directly benefiting from the ripple effect I’m talking about.

P.P.S. Ok, you probably want to know the numbers… 3 x 2 Bedroom Units at $990,000… $330,000 each. The median for units in that area is $390,000. Don’t let people tell you that you can’t make money in a booming market.

I’ll explain shortly.

But the press is at it again with all of their opinions about the real estate market currently in a boom.

I talk to lots of people on a daily basis and many are hypnotised by the press, believing that now is not the right time to get into real estate – because prices are too high.

I’ll deal with whether it is or isn’t shortly…

It’s hard to sometimes go against the overwhelming tide of opinion, but that’s what you have to do in order to become successful.

The masses are always wrong…. So this is the time to stand tall and profit like crazy. If you’re willing to stand out from the crowd and go in the opposite direction.

There is a real estate monster out there, and let me tell you what’s not. It’s not all the B.S. and rubbish you hear about from wannabe economists, cleverly disguised as journo’s.

In fact, those guys are trying to cut down to size this real monster that was created about two years ago and will continue to grow for maybe even decades.

You’re curious now as to what I’m talking about…

Here’s how the real estate monster was created…

First, we had a serious economic catastrophe. That is well known as the GFC. The government had to react somehow, all the smart guys in the world were literally printing money and throwing it at the problem – so why should we have been any different?

Amongst many of the resolutions for underpinning our economy was the boost to the first home-owners grant.

The government knew well in advance that when they released the first home-owner’s boost there was already a real estate supply problem.

The only outcome when you increase demand and know that you can’t possibly supply, the price of that asset will go up. That’s exactly what happened, didn’t it?

I saw this early last year, and we’ve been screaming it out loud ever since. Some listened and profited, others sat on the fence and missed out.

…and there are people who sent me long-winded emails on how property was going to halve, the sky was going to fall down and we should all fill our pantries up with canned food for the coming depression… Seriously.

The government created this monster and fed it on a diet of free money.

So the boys in parliament have got a problem now, don’t they?

After putting all these people into homes for the first time, and knowing full well that the prices are likely to inflate – how do they go back now and unleash supply (which will deflate prices)?

There’d be blood on the street if this was happen and every new first home-owner would be a “lamb to the slaughter.”

Tony Abbott, who is probably not even across this basic economic analysis should be laughing right now if K-Rudd does the unthinkable and increase supply.

The housing market is now a political hot potato.

But to just increase supply is no easy matter. It doesn’t happen overnight and it could take 2-3 years before we can get it right.

As an investor, you should know this and I’m doing what I can to put my perspective on it.

As people talk down the property market, I and others continue to make easy money, month in month out, simply because we have portfolios that just increase in value whilst we sleep.

The money you make when you sleep is the easiest money you’ll ever make in your life.

Now let’s talk about the future… The housing market will be facing some real pressure all the way to 2050. Yeah, I know that’s a long time away but it’s a trend and a timeframe that you have to consider when you’re a long term investor.

The government is pushing for a population of 36 million by then.

…and by 2030, if this problem is not dealt with, the undersupply of houses is reported that it could reach a 1.5 million shortfall.

That can only mean one thing… Prices will go up, millionaires will be made. Are you in or out?

Now 2030 is a little bit more realistic for most of us, that’s a good 20-year cycle, and you’d be foolish to sweep this information under the carpet and miss out on potentially 3 upwards cycles leading into 2030.

What I mean by 3 upward cycles is property doubling in value every 7 years from now till 2030.

Most people’s thinking is too short term when it comes to property. I learnt this several years ago, that you have to think in cycles when it comes to property. I’ve been involved in only 2 property cycles and literally have made millions.

Back to the problem…

The government has a clear agenda to increase the population, whilst the state governments are scratching their heads as to where these people will live.

It wasn’t long ago that Bob Carr, the former premier of NSW was saying that Sydney is full and literally making it impossible for future planning and growth.

There’s a stock market saying called divergence… Usually when this happens we get a significant trend either way.

Here, all fact considered, the trend is towards the upside.

So what do you do?

Well, you can simply do nothing, sit on the fence and just take my view as another opinion – nothing more than that… Or, you can let the Federal and the State governments battle it out and buy as much property as you can in the next 5 years and take advantage of this unique time in Australian real estate history… and become wealthy beyond your dreams.

I know which road I’ll be taking… Do you?

At this point, I would typically get excuses… Don’t have a deposit, can’t get a bank loan, bad credit, blah, blah, blah…

I can solve all that for you within 4 hours tops. How?

Just one of the presentations at our Cash Flow For Life conference deals with these problems and solves them. If they are your excuses, then you need to be at that event, don’t you?

Anyway, I digress.

Have your say below, I’m interested in your opinion.

Signed with Success,

Jon Giaan
Knowledge Source

P.S. The real estate monster is real, and it can be your friend if you know how to tame it and use it to do good instead of evil.

But the subject line to this e-mail is what a highly respected professor of economics reported to the media in 2009.

The name of the Professor is Stephen Keen and he certainly made a big name for himself by predicting that the extreme property market was going to fall by 40% last year.

Stephen was so certain that he went public and told everyone that he was going to sell his complete real estate portfolio, including one property in Surrey Hills, Sydney.

He sold the property for $526,000…

I’m not so sure whether it was a property that he lived in, I’m guessing it was probably an investment property.

Now having a quick look at the growth of Surrey Hills in 2009 of 8-10%, and I see that Professor Keen probably cost himself about $50,000.

To be fair to Professor Keen, he is no dummy. He did predict the global financial crisis and for a large part he got that absolutely spot-on.

So you’re probably wondering how he got the prediction so wrong when it comes to the Sydney property market.

Well a couple of journos asked him that question and this is what he said…

“I didn’t know the government was going to be stupid enough to increase the first home buyers boost.”

Okay fair point, the increased grant has certainly inflated house prices but it would be a gross exaggeration to say that this prevents a decline in house prices of 40%.

So where did Mr Keen go wrong?

For a start, he neglected the supply side of the market and the growing shortage of dwellings putting an upward pressure on prices.

Add to that 40 year lows in terms of interest rates and a steady flow of migration plus a few other factors …and what we saw was not a disastrous real estate market but one that actually outperformed all other asset classes significantly.

I think some folks are still oblivious to how big the 2009 real estate market really was.

His latest figures…

The five suburbs that experienced the highest house price growth in 2009.

Melbourne: East Melbourne 58.9%

Sydney: Sylvania Waters 53.8%

Perth: Churchlands 43.8%

Darwin: Fannie Bay 39.4%

Sydney: Taren Points 38.4%

These numbers are huge, anybody who is smart enough to understand the fundamentals that underpin property investing would have made a lot of money last year as an investor.

But what about this year?

Surely it can’t be the same as last year and the market will have to correct itself..?

Well this year it is a different kettle of fish and some markets are likely to go down rather than up. However, there will be strong areas to invest in and these may surprise you.

You can find out exactly what you can expect from the 2010 real estate market by attending a full-day training event with our resident real estate expert, Dymphna Boholt.

Dymphna predicted the 2009 property boom and had you followed her advice you could be sitting on a substantial capital gain. In most cases that gain would equate to two years salary.

Interestingly, the two cities that she predicted would have the highest growth in 2009 were Melbourne and Sydney. The latest figures just released show Melbourne’s growth was at a whopping 18.5% and Sydney at a healthy 12.3%.

I’m sure you want to know what her views are and how each city will perform in 2010. She will reveal all this with valuable information at her live events.

But be warned, Dymphna’s events typically book out fast once the word gets out.

So here’s the deal, as a subscriber to Knowledge Source we’ve set aside 150 complimentary tickets. That means free for you and you can claim one of those right now by going to be following webpage.

http://dymphnaboholtlive.com

It’s a 25-page no-fluff, no B.S. report on how you can retire next year.

I’m not joking…

If you’re on an average income of say $50,000 per annum, then what you’re going to read in this report is the ONLY strategy I currently believe has go the greatest opportunity to get you out of your job and living a life on your terms.

Will it be easy?

Well, that depends on your situation. For some reading this it’ll be very, very easy.

For others, it wont be AS easy, but let me tell you it’ll be very worthwhile.

I can assure you that I’m using this strategy right now to build a $250k passive income in the next 12 months.

Enough from me, get the report right now!

Click Here to Download the Report:
http://knowledgesource.com.au/USReport.pdf

Signed with Success,

Jon Giaan
Knowledge Source

P.S. Make sure you download it immediately, there is also a call to action that can save you hundreds of dollars – if you act fast.

Click Here to Download the Report:
http://knowledgesource.com.au/USReport.pdf

I know you like predictions – so I’m going to give you some.

Let me start off by saying that I have no economic degree, never been to university, failed HSC twice and only in the last 10 years have the lights gone on in regards to investing and business.

Since that time, I’ve turned over millions, invested millions, made millions.

By and large, I’m an investment fanatic because I want to control and invest my own money… and not be a victim to biased advice.

So on that basis, I want to give you a perspective on where I think we are globally and make some bold forecasts going forward for 2010.

I did this recently in October and it makes for very interesting reading.

If you missed that valuable article, click on this link right now and see how my forecasts have turned out even in this short period of time.

http://knowledgesource.com.au/my-predictions-the-next-big-moves/

Now a lot of my views for the local market still hold true.

But I’m looking at big picture now, globally… which will impact where, what and how much of my money I’ll be investing in these new developments.

>> Prediction #1: The American Dollar will get Smashed!

So what? You don’t live there – who cares, right?

You should – “There is gold in them thar hills.”

The American government will not stop printing money. I was recently over there and I can tell you things don’t look good for the Yanks.

Their printing presses will just continue to pump money in to the system until things settle down. That’s the only thing left that they can control… Their Reserve Bank is almost out of bullets by lowering interest rates even lower.

Amazingly, there has been over 120 bank failures and the official unemployment still rising is at 10%+.

In simple, layman terms… The U.S. government have settled on the fact that their only option is to print money and hope they recover fast.

That’s why their currency has devalued and ours has benefitted from that.

Expect the Aussie to be beyond parity half-way through 2010.

If you don’t have a plasma screen, wait 3-4 months and I bet you will get a killer deal. Even cheaper than they are right now. That goes for all forms of electronics.

Sorry, I digress…

Now, what’s the play on this forecast? Because I know that’s what you really want to know, right?

But let me ask you, will you do anything with this information?

Let’s see – time will tell…

Now, because of the acceleration of the US dollar demise, global investors will “crap” themselves and will want to reduce their risk by selling out of the US dollar.

So, the abandonment of the dollar will see tangible assets come back in favour. Real estate, stocks, resources, especially silver, copper and of course gold. When I talk about real estate in this context, I’m talking about the US.

I’ve already started investing in hard US assets in the form of real estate. I believe this is one of the greatest buying opportunities of any asset class I’ve seen for 40 years.

I’m buying properties at $25,000 – $30,000. The last time they were these prices was in the 1970′s. If I told you that you had an opportunity to buy real estate today at 1970′s prices – how much real estate would you buy…?

As much as you could afford. But so many people just hesitate. I understand that, if you don’t do the homework, research… you’ll never know if anything is a bargain or not – correct?

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>> Prediction #2: Gold will reach $1,500 per ounce.

Gold is on its way to that target and is trending up strongly. The central banks, who are moving out of US dollar are moving into gold in a big way.

One country that is highly exposed to the US currency is China… and let me tell you they’re buying gold not by the ounce, but by the tonne… and in Australia’s case they just buy the whole bloody mine.

This forecast has been so obvious to me and others, and again it’s directly attributed to the “money print on demand” mentality of the US government.

The play on this one is simple.

A: Buy gold bullion.
B: Invest in gold stocks.

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>> Prediction #3: Oil to go back to $100+

This one will confuse a lot of people because the obvious thought is that oil should come down in value because consumption will follow the economic slide down.

However, the reverse will happen.

Here’s why…

The money to fund oil explorations has literally dried up. This will impact upon the supply and demand principle greatly. I’ve even heard stories that large oil tankers are parked in the sea, unwilling to dock until oil prices rise again.

Crazy, I know. But these sorts of actions will drive oil prices higher.

I expect oil prices to range between $75 and $110 throughout 2010.

Investment play: Buy companies that specialise and have good supply lines of oil.

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>> Prediction #4: Economies of China, India and Brazil will grow four times faster than the US. Check this out…

The GDP of the US is growing at 1.5%… Europe is at 1.5%… (at least it’s growing)

China is at 8%… India at 7%… and Brazil at 5%.

What about Australia?

Well, we’re benefiting from the Chinese and Indians and are growing at 3.4%.

China will grow at incredible break-neck pace next year, pushing 10-12% growth. They’ve got a $580 BILLION spending plan that is not being funded by borrowed money (like the Americans), they’ve already got it in cash.

Investment play?

Anybody who sells stuff to China. Sorry to be cryptic, but an obvious one here.

The Australian stock market will be a major beneficiary of China’s growth next year, especially resources.

Also, Asian real estate will grow consistently throughout 2010. Especially places like Indonesia, Vietnam and Thailand… I haven’t bought anything there yet, I’m doing my due diligence and research.

Sidenote: The well-cashed-up Chinese are already making an impact in the Australian property market in a lot of areas. They are single-handedly pushing up prices by 5-10%.

More about this in articles to follow… But here’s a tip.

BIG TIP: Look for the best PUBLIC high-school areas (not private) and you will notice a growing trend of Chinese buyers pushing prices through the roof. I did this 18 months ago and have had almost a 29% increase in value.

(Thank me later on that one)

…There you go, I’ve got more but they’re the big ones for 2010.

So what will you do with this information?

Sit on the fence?

Think about it?

…or will you seriously consider what is currently going on in the world and benefit from it by taking some meaningful action?

Me personally, I’m invested in tangible US assets in real estate and have put a big chunk of cash into the Aussie market.

I’ll be doing more of this going forward.

Hope this helps.

Let me know your thoughts, are you going to sit on the sidelines or take action?

Comment below.

Signed with Success,

Jon Giaan
Knowledge Source

P.S. If you don’t have the time, skill or a large capital base… then you really should be looking at what Justin Beeton is doing for investors, to be able to take advantage of these trends in 2010. http://knowledgesource.com.au/jbglobal

In fact, I’ve been doing this all year.

Ringing in my head is the old saying that fortunes are made in times of recession.

I’ve lived through a few, but like all things you need to experience a couple before you finally realise that the above statement is so true.

I get a sense though that some people are missing out. Confused, uncertain, standing on the sidelines and unwilling to make a move.

That’s a bad decision…

My work is to make sure that you take the opportunities that are there right now and clearly see the big picture.

So hera re my precitions of the big next moves and also what I’m up to and where I’m putting my money.

The more I look, the more opportunity I see in all areas right now.

Property, stock market and business…

Since March of this year, the All Ordinaries has gone 53% higher. I think we’re at the start of a decent upward swing that will probably see our market go very close to its previous all-time high within the next 18 months.

I’m backing this view up by putting a substantial amount of capital in the market as of two weeks ago.

I’m not being foolish about this and I’m taking the precautionary steps of protecting my capital just in case I’m wrong.

My view is there’s no point looking back in 2 years time saying, “Damn it! I knew I should have done something – now it’s too late.”

That may be the case in 2 years time, I don’t know. But if you read my newsletter, you know that I don’t sit on the fence.

Roll up your sleeves and take a view either side.

“No view” is simply dumb.

So here we go…

Real estate is going to go higher – we’ve been shouting this all year. The message is starting to get through, but again I get a sense that some people feel that they’ve missed the boat.

It’s really simple. Average selected property will probably rise by about 20-30% in the next 3 years.

If you simply use a 20% deposit to secure a piece of real estate and it rises by 20%, you’ve basically got a 100% return on your money without doing a great deal in the process.

If you don’t understand how a 20% rise can return 100% on your money, then you need to get some basic real estate education under your belt and understand cash on cash returns.

So I’m buying. With a bit of experience, even in a hot market you can still buy under the market and that 20-30% increase can easily become 50% over the same timeframe.

That means a 200% return on your money. Not many places you can go to and get that sort of return without doing a great deal.

Here’s something else that I’m up to… and it’s purely come about the rising Aussie dollar.

I’m going to make a special mention here about the rising Aussie dollar which in real terms means the fall of the US dollar.

I’m doing some research at the moment on the real estate market in the USA, the reason why is with a rising Aussie dollar it means that we here in Australia can buy in the depressed market of the US almost dollar for dollar.

Why is that important?

Well, when the US dollar regains strength (and it will), and the Aussie dollar goes back to 70 cents (which is normal), if you’re holding US assets you’ve just made 30% on the currency fluctuation.

Do you get that? Think about it for a moment if you don’t.

Also, whatever cash flow you’re receiving from US assets, they’ve also increased by 30%.

Don’t be mislead though, I wouldn’t buy US assets just on the dollar-for-dollar parity that we’re about to experience. The deals have to stack up for themselves.

Now, I know you’re not going to believe this – I didn’t believe it at first either, but right now I’m looking at certain areas in the States where the previous sale price was around the $120,000 US mark, and I’m looking to pick up the exact same property for about $10,000 – $15,000 US.

The yields of these crazy low prices are around 30%.

I know, I know… How can this be so?

Im sceptical too… But I’m heading over there mid-November to personally check it out. I’ll keep you updated.

Next, gold, gold, gold…

The demise of the US dollar, which is likely to continue for at least another 12 months will see gold prices head higher… much, much higher.

I think gold hit $1,063 US at the close of trade today and I think that is confirmation that we’ve entered into a new phase of a gold bull-market that could see gold at $2,300 per ounce (inflation adjusted) in the next 12-18 months.

The US dollar slide which will go lower, almost guarantees that gold will go in the reverse.

Two ways you can play this… Just ring up the Perth Gold Mint and simply buy chunks of gold. Or, look at specific gold stocks in the Australian stock market and start investing in those.

Whilst I’m bullish on the stock market, not everything is going to go up. My focus is tightly held to the gold and resources sector.

But what about if you’re in business for yourself?

Well, now is the time to steal market share from your competitors by being aggressive rather than passive.

I recognised this late last year and went on a crazy spending spree of marketing that was tested and measured to the point where I could almost guarantee that for every dollar spent in advertising I would get $3.50 back.

Instead of pulling back, I went forward in leaps and bounds. A couple of things happened.

I doubled my turnover. Yes, that’s right. In the worst economic climate I doubled my business.

I didn’t take any massive risks here, I was testing everything and making sure that I was getting a return on my money fast.

The next thing that happened is that we’ve grown our list size by 250%… and in our business, the real money is in the list.

If you’re in business and you want to take advantage of the emerging mega-trends, you really need to start thinking about growing your business and your cash flow so you can start to build capital and invest in the real estate and stock markets.

That’s all for now.

Let’s see how my predictions pan out in the next 3-6 months. We’ll know by then if I’m right or wrong.

Either way, I’m not waiting around to see what happens.

I suggest you don’t either, jump on board and make things happen.

No time to be a spectator here, spectators don’t make the real money – it’s the guys in the game who make the big bucks.

Talk soon.

Firstly, I believe what I’m going to reveal here is primarily why the Australian economy did not go into an official recession.

…and why this research could be the prelude to great prosperity and wealth for Australians in the next 10 years.

I can really sum it up with one word, however I know you’re going to want more.

I’ll tell you the word anyway… “CHINA”

For many there are no surprises there, however for a lot of everyday investors, I think they truly do not understand the potential and the opportunity for significant wealth.

There is a major shift in economic power from the west to the east.

The main reason for this is credit creation and investment. Whilst credit in the US and Europe is literally drying up, credit in China has been flowing and even accelerating.

Consider these mind-boggling stats for the first half of 2009…

In China, new lending by banks grew 201% to more than $1 trillion.

Capital investing by the government is also up by 34.4%.

The key difference here with the US is when the Chinese government pumps money into the banks, the banks pump that straight into the economy.

In China, the banks are owned by governments and if banks don’t loan out the money they get fired.

In the US, the banks use the money to buy smaller banks and try to remedy their mistakes or to pay out big bonuses.

China figured out early in the piece that its stimulus package had to be focussed on domestic infrastructure. So they went berserk on developing highways, railroads, oil and gas distribution…

Right now there are 275,000 construction programs underway in China.

So far, the Chinese have spent $586 billion on stimulating their economy. They key here is that they paid it all in CASH, not debt.

Unlike the US, the Chinese don’t have to borrow money, don’t have to rack up budget deficits, they have their money in cold hard cash.

Their reserve holdings are still rising and has just hit $2.13 trillion… up $178 billion in the second quarter. That’s evidence that the country is still profitable and going strong.

If you’re an armchair economic expert, you might be surprised at these figures because you’re thinking, “Isn’t China a net-export country and the manufacturing powerhouse for US consumer goods?”

Yes, you’d be right in thinking that… but the Chinese realised this early in this down-turn and that’s why they have focussed on their own domestic market.

They realised they could not rely on exports forever and the secret to their prosperity is domestic consumption. This is not a new phenomenon for them, in a lot of ways they saw the writing on the wall and have been actively promoting domestic consumption for years.

Here’s another mind-numbing statistic…

Through June of this year, auto car sales increased a record 17.7% to 6.1 million vehicles.

China is now the largest car manufacturer, and this is another mega-trend with long-term growth potential.

Here’s why…

There is only 1 car per every 100 people in China. Compare that to the US where there is 7.6 cars per every 100. Incredible upside.

Here’s another reason that is going to push domestic growth through the roof…

Beijing recently enacted consumer loan reforms that allow credit card companies (local and foreign) to expand into financing durable goods purchases such as appliances and electronic goods.

You probably weren’t aware of this, but until recently the Chinese could not buy an air conditioner, a stereo, or a flat screen TV on credit – now they can!

All of the above has incredible upside if you’re an Australian.

As the domestic Chinese market matures over the next 10 years and Australia being a resource of raw materials, we will be swept along for the ride of our lives.

You can sit on the sidelines and be completely ignorant to what’s going on – or you can participate by expanding your awareness and keeping in touch with this mega-trend that has already begun and hunt for profit opportunities.

Here’s how…

What you have to do is think of all of the resources that the Chinese need, which companies in Australia supply them and simply and astutely invest in them for the long term. This has already happened with the likes of Rio Tinto and BHP. There are others of course.

I’m not just talking about the stock market… Property investors will make a fortune.

Also, you might consider where these companies are situated in regional centres within Australia and also invest in the real estate that surrounds those areas, where you’ll get both positive cash flow and capital growth.

Here’s another phenomenon that is currently happening that is really underpinning what the Chinese are up to.

The Chinese have a large war-chest of American dollars. With the demise of the US currency of late, that has given the Chinese a once in a lifetime opportunity to use the current financial crisis and the weakness in the dollar to conquer the world on the cheap.

They’re doing this primarily by the acquisition of primary resources. This does two things for them. It gives them control over global commodities and it gives them a built-in hedge against a dollar-decline.

Here’s what’s really important – when the US dollar declines, the price of tangible assets… oil, copper, gold, iron, nickel all rise. Are there any companies in Australia that you know of that supply these raw materials?

Yes, we truly live in a lucky country and it’s about to get a lot luckier.

I sometimes find it amusing when I meet people and they say they’re either a property investor or a stock market investor… Personally myself, I follow the money and don’t have a bias as long as I can control my investments and jump on board some significant mega-trends.

I’m a long-term investor with a 7-10 year horizon. Right now is a perfect time to build a substantial capital base that will set you and your family up for life.

Will you do it?

Signed with Success,

Jon Giaan
Knowledge Source

P.S. Yes, it would be easier if you could just invest in Chinese companies – but you can’t. So you have to do some homework and figure out who will profit from this mega-trend in Australia and invest in those companies specifically.

P.P.S. You can also invest through specific managed funds with a heavy Chinese focus. I’m working at the moment with one group who is bringing a new concept together that is heavily focussed on Chinese growth opportunities. More about that at the end of the year.