Earlier in the year we ran a property investment seminar and made some bold forecasts.
Many of them as you know have come true and have been spot on.
One of those forecasts which we had to fight tooth and nail for with our legal department was the prediction that rents would increase by 30-50%.
We didn't indicate which areas, of course that's a little bit more tricky and you need a lot more research. However, the general theme and prediction was around rents rising.
I have to tell you, when my lawyer saw this he freaked out and said, “You can't publish that. There is no way that rents will increase by 50%.”
My lawyer is a smart guy, but he's not a property investor. In most of our advertising we dialled that back to 15-30%. Who wants to be misleading? Not us.
So why am I telling you all this?
I've just seen a report that came out a couple of days ago and I want to show you these numbers.
* Wendouree, Ballarat – Rents up 38.5%.
* West End, Brisbane – Rents up 39.4%.
* Bulimba, Brisbane – Rents up 44.4%.
* Griffith, ACT – Rents up 41%.
* Rose Bay, Sydney – Rents up 58.3%.
* Toorak, Melbourne – Rents up 43.8%.
I picked a handful of different examples from different parts of Australia just to keep everyone happy.
So what does that all mean?
Well, when rental yields go up, investors typically follow.
It makes sense doesn't it?
With interest rates still at historical lows, and rental yields pushing upwards, it means there's still more upside to go in property prices across Australia.
Now in another interesting report that you may or may not have seen, is the government enquiry into the financial planning industry.
The government came out with a report and recommended that all financial planners stop getting backdoor commissions from product suppliers in their industry.
The report was a reaction to the billions that were lost in the recent Storm Financial debacle.
The government wants financial planners to move from a commission remuneration system to a fee for service.
I have to tell you, this is a political hot potato and whilst I wish it did happen it isn't going to happen.
If the financial planning industry moved from commission to fee for service, you'll wipe out 60-70% of the industry overnight.
A better plan would be to educate the population on matters of investing and money. That would keep financial planners more accountable and on their toes.
But hey, that's not going to happen either.
So like all things with governments, a bit of noise at the moment and everything will just settle back into the way it used to be.
Let's see what happens in a couple of months.
Here's something else that is interesting…
Storm Financial's collapse cost around $2 billion. Most of that was ordinary everyday Australians given poor advice.
However, every year ordinary everyday Australians are losing $10.6 BILLION – and that's perfect legal – with many local and state governments making a killing… But you'll never hear of a senate enquiry that investigates this juicy income stream for the government.
What is it?
You may have already guessed…
In 2008, the latest figures that I could find, $10.6 BILLION was lost on poker machines in clubs and hotels… A further $1.3 BILLION was syphoned away in poker machines in casinos.
To put that into perspective, if you average it out, means that per capita, individuals lost $2,025 in NSW and $1,605 in Victoria.
This information should be on the front page of every newspaper in the country – but you'll never see it there. You may find it tucked away, deep in the paper where no one can really notice it.
There's another downside to this financial disease, gambling, and that is the trail of emotional carnage that happens to Australia families.
You can't put a price on that of course, but that's the real tragedy in what is going on.
So what can you do?
Well, it's all about awareness and knowing that it's happening, and not getting trapped into the downward spiral.
They're my thoughts…
Signed with Success,
P.S. A plan, a vision and education is the secret to how you deal with most of these problems. Educated decision making should be a subject at school.