SSS – Sep/Oct 2017

G’day All,

3-minute read:

Interest Rates

If you’re still considering whether to fix or split your lending (owner-occupied & investment), now is a good time to get onto it. Because the economies of Europe, Asia and the US are greatly improving, expectations are that interest rates there will be increased within the next 12-18 months. This affects us as Australian banks source a lot of their wholesale funding from these overseas markets.

Australia’s unemployment rate has just fallen to 5.5% and wage rises may follow in the medium-term causing a rate rise from the RBA. I’ve now fixed around 85% of my own portfolio on a mixture of IO and P&I. As always, please get in touch if you’d like the finance team to assess and discuss your current situation including DHOAS loans.

Greater Brisbane

Our focus still remains within the SE Queensland market and will do so for a while yet. The amount of infrastructure planned for the greater Brisbane area include the:

  • BNE runway duplication (permitting aircraft movements on par with Hong Kong)
  • Brisbane Quarter CBD development ($1billion)
  • Queens Wharf CBD precinct (adding $4billion to GSP per year)
  • Cross-river rail construction commencing
  • Ipswich CBD redevelopment ($500million)
  • Ripley Town Centre ($1.5billion)
  • Gold Coast Commonwealth Games infrastructure nearing completion
  • Pimpama Village ($100million)
  • New university and commercial precincts within Sunshine Coast region and upgrades to the Bruce Hwy
  • Logan LGA undergoing widespread gentrification.

By positioning now and locking in a well-located investment property close to amenity and transport and with sufficient land content, you will stand to benefit from the ripple effect that the above projects will create. Of note, our team are now competing with cashed-up buyers from Sydney and Melbourne for land within our preferred estates.

Adelaide also presents tremendous potential when you consider the combined submarine and frigate projects total $85billion. Of note the Inpex gas plant in Darwin was $32billion and those who positioned early extracted tremendous gains despite the ensuing downturn. If you or anyone you know would like to discuss how the team can assist you in your property investment journey, then please get in touch! We can assist in the relevant areas of finance, tax & accounting and asset selection.

RAAF Amberley Expansion

Recent article on what the RAAF Amberley expansion will bring to the local economy. https://www.theurbandeveloper.com/raaf-base-set-bring-2800-jobs-amberley/

Strategy

The Defencewealth strategy of TWO-50-TEN™ is based on acquiring a $2 million portfolio at 80-90% LVR over a 6-8 year timeframe. Once acquired we work to reduce the LVR to 50% over the next 4-7 years using a combination of capital growth, offset accounts and principal repayments. Once at 50% LVR, you will have some serious financial options but it will take time (10-15 years) to achieve. The new property packages we recommend are considered investment-grade based on first-hand experience and results and are selected for their balance in anticipated cash flow, capital growth and risk.

Quote

Knowing is not enough, we must apply. Willing is not enough, we must do – Bruce Lee

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