As we look towards taking a break over the Summer and setting those New Years resolutions,  I have come across some interesting research that seems to suggest that health is linked to your wealth.

But what is wealthy?

It seems that how much we exercise to stay fit is linked to how much we earn. That wealthier people are more likely to take part in physical activities more than those less well off.

According to the Australian Bureau of Statistics those in the wealthiest income groups were more likely to engage in a number of fitness activities. The least wealthy were less likely to pursue any physical activity at all.

Why?

Well the answers are partly speculation and I welcome your input on this one, but I offer up some suggestions below. I caveat this with my desire that you would think about how you can be more positive towards your health in 2012. Note that very few of the offerings below relate to how much money you have.

More Free Time

I think wealthy people have more spare time than their less wealthy counterparts. The priority of exercise and health is high on the agenda as is spending time in social settings and recreation.

More Organised Time

If they are busy – wealthier people seem better able to distribute their time well to make space for physical pursuits.

Greater Determination

Often people gain wealth through sheer determination and strict planning. This will generally flow into all areas of their lives. The determined take control of their lives and this includes keeping fit.

More income to spend on luxuries /  healthy foods

Although the wealthy are usually cautious about their spending they will have a greater disposable income to spend on extras like gyms, classes and personal trainers. They will also prioritise spending to ensure they have the best equipment to support them.

Why Is Health Important?

A 2008 published study from Cambridge found that of over 20,000 men and women between 45 and 79.

The study looked at a combination of four activities including regular exercise, moderate alcohol use, daily fruit and vegetable intake and not smoking. Over the study period those who took part in none of the above activities were four times as likely to have died than those who engaged in all four.

Practicing the four healthy habits according to the research was equivalent to being 14 years younger in chronological age. 1

Who are the wealthy?

The research I have done refers to the wealthy in terms of income status.

Wealth is also an attitude you choose long before you make sustainable money for yourself. Being at peace with where you are at, a healthy and well balanced life is available to everyone.

As you can see above – simple lifestyle choices cross over wealth boundaries – they are available to all of us. Its not conclusive but could be the start of better things for you.

It is my hope you will take 2012 by the reigns and make it your year to get healthy and build your wealth portfolio as well. At Portfolios we look forward to standing along side you as you do.

When you look at Europe and Australia you cant help but wonder if it isn’t a great time to be on the property investment journey.

There’s good news amongst all the seeming gloom. If you are a long term or cashed up investor – your time is coming (or maybe has come).

Forecast Is Sunshine

There are plenty of people out there painting a sunny forecast for the Australian property market.

For example the QBE LMI Housing Outlook report says that Australia is well placed to deal with any economic uncertainty over the coming few years. The report even suggests that Australian property will continue to perform well over the next few years.

Poor International Comparisons

Economists compare the Aussie market to Europe and USA – so surely we must see similar declines of 30-50%. Not so according to BIS Shrapnel who cite entirely different market conditions to both regions – Australia’s demand is still strong and rentals remain high.

Strong Growth Indicators

Michael Yardney (www.propertyupdate.com.au) says that two factors affect a country’s property market:

1. Population growth
2. The wealth of a nation

Australia’s popoulation growth is the highest in the developed world. Our economy is well position to leverage any future growth in Asia – obviously we look at China on a regular basis, but nations such as India are an untapped and unknown income source. All these options and Australia’s competitiveness in this region helps Australia position well for wealth creation.

Yardney suggests the current “lull” in property prices are simply part of the a normal property cycle – further reinforcing my view that the best property investment strategy is to build for the long term not short term.

Renewed Confidence

In a recent survey 58% of respondents expected property prices to rise in the coming five years. The continued resilience of the Australian economy and our financial system give Australians a general sense of optimism and confidence. 33% of respondents said they would take out a new loan over the next 12 months – about 50% planning to buy investment property (Source www.dailytelegraph.com.au 21/11/11)

So it can be the best of times and worst of times – there are great deals to be made in property and long term investors will not only gain from future capital growth but sustainable rental yields that are still on offer in the property investment market.

Most markets are at the beginning of a long term growth cycle. Property remains an excellent asset class for long term investment and definately offers more stability than the volatile share market.

Once confidence returns, Australia will be in good shape. Unemployment remains relatively low and rents are very strong.

A key factor is interest rates.

Buyers have been concerned about interest rates increasing and we really need to see a rate reduction. With three year fixed rates now below the variable, this indicates the banks belief that interest rates are on the way down. A great relief for home owners.

Some market observations:

* In RP Data’s June results, Canberra was the best performing capital city with property values up 0.50%. Prices are now beginning to stabilise after 3-4 years of substantial growth.

• Vacancy rates are very tight with renters competing strongly in the markets with little stock. Some renters are offering higher rents or advance payments. According to RP Data, there were 9,000 less new advertised rentals in July 2011 vs July 2010 nationally.
• There has been a record number of refinancing which indicates buyers are taking advantage of better deals so they can upgrade or at least reduce the interest rates on existing properties.
• An increasing number if young people are choosing to buy an investment property ahead of their first home.
• Many consumers have de-leveraged by paying down their loans. Whilst not good for retail, they may have more cash in the bank and their super fund. In some markets, people are downsizing to a more affordable home specifically to reduce the size of their mortgage.People are conscious of debt and are acting accordingly.

Source: John McGraths Market Review – Spring 2011

From August 1^st this year, the Queensland Building Boost Grant of $10,000 will become available to any person or corporation buying or building a new home to live in, or to rent out for investment purposes, for homes less than $600,000.

This grant is designed to re-ignite the state’s housing sector after a tough year of falling property transfers and economic impacts from the destructive floods and cyclones. We’re in for an upswing!

If this Boost isn’t enough to get you excited, the Super Boost that is going to occur in QLD definitely will. But first things first, let’s answer some essential questions about the $10,000 grant:

What is the Queensland Building Boost Grant?

It is a grant of $10,000 to any person or entity that is buying a new house, building a house, buying a house and land package, or buying a property off the plan.

Who can obtain the grant?

Home buyers, investors (18+ years of age), companies and trusts.

How long is the grant going to last for?

It commences from 1 August 2011 to 31 January 2012, so be quick!

What is the house value limit?

The home or the house and land must be under $600,000.

Do I have to live in the new home?

No you don’t, but there is an occupancy requirement. The home must first be occupied as a place of residence by somebody. This may be yourself, your family or friend, or your rental tenants.

You cannot build the house and sell it before it is occupied.

Can I obtain more than one grant?

Yes, you can receive $10,000 for each new home that is purchased or built provided that the grant conditions are met.

Can I get the grant more than once for the same property?

Good effort, but Anna Bligh won’t let you this time. However, you could combine it with a $7,000 First Home Owner Grant and the first home buyer transfer duty concession if you meet the conditions.

When do I need to buy the home or start building?

A legally binding contract for the purchase of a new home or a comprehensive home building contact must be made between 1 August 2011 and 31 January 2012.

Owner builders must start the building work between 1 August 2011 and 31 January 2012. ‘Start’ of building means laying the foundation for the house.

Are there construction time limits if I’m building a new home?

Yes, for a comprehensive home building contract, the building work must start within 26 weeks of the date of the contract and finished within 18 months of the work starting.

For owner builders, you need to finish the work within 18 months of the work commencing.

For a contract to purchase a new home off the plan, the construction must be finished by 31 July 2013.

This is great! I want my $10,000 grant from Anna Bligh! How do I apply?

The Office of State Revenue (OSR) is currently making the application form and it will become available for you before 1 August 2011 on the OSR website (www.osr.qld.gov.au).

You mentioned earlier about a ‘Super Boost’ that is going to happen in Queensland. What is it?

The ‘Super Boost’ is the double kicker that is going to make the property market around places like the Sunshine Coast experience tremendous growth in demand. Here is the reason why.

Grants such as the Building Boost and First Home Owners create ‘demand clusters’ which brings forward the buying and construction activity that was likely to happen anyways. This means that once the grant ends the level of activity drops below what they were previously before the grant. The economic benefits are not long lasting.

However, some regions in QLD are in line for a second boost that is going to kick in at the same time the effects of the Building Boost wears off. What is this second boost? The Queensland government is undertaking several significant infrastructure projects in the Sunshine Coast over the next 48 months. The first one on the list is starting in October 2011. It is the construction of the $2 billion dollar University Hospital that is estimated to expand the local economy by 10-15%. This is significant since it would make Sunshine Coast the only non-mining community in all of Australia to experience growth of this magnitude. However, it is the timing of this project that makes it a ‘Super Boost’.

Even though the construction of the University Hospital is starting in 2 months, the real economic effect from the projects would not be felt until 2012. The effects of the Building Boost should start to flow to the economy in the latter part of 2011, and just when you think the effects are wearing off, the benefits from the hospital stimulus and other projects are going to start kicking in 2012. This ‘Super Boost’ will bring forward the growth phase of the Coast. When you combine these two stimulus with the other billions of dollars worth of projects that the QLD government will start within the next 5 years, you can understand why the team at Portfolios is so excited.

The Building Boost and infrastructure and building projects have now brewed up the perfect storm for the Queensland property market. If you can see this opportunity as clearly as we can, contact us at Portfolios to create your property investment strategies to take advantage of this upswing that you have been waiting for. Make sure you check out our top Queensland investment properties at www.portfoliosproperty.com.au and please call us to discuss your strategy in moving forward.

1. Supply and Demand

Currently in Australia there is a forecast shortfall in the supply of houses of 180 000 per year and rental vacancy is at an all time low. This lack of supply and huge demand is driving up real estate prices and rents.

2. Historic Capital Growth Results

The capital growth statistics over the last 30 years show that property has doubled in value every 7-10 years. This growth had been through recessions, flat markets and property booms.

3. Pay off your home loan faster

Smashing your mortgage and other personal debt sets you up in life. It is amazing that owning investment property can greatly assist this when structured and implemented correctly.

4. Reduce tax

People need a legal way to reduce the amount of tax they pay. With property investment there are numerous benefits and ways to legally reduce your tax paid through portfolio cashflows and depreciation.

5. More control and options to add value

Owning property allows you to consider renovation, refresh and/ or subdivision as ways to increase the property value and rental return. All increasing the potential return and yield. You have control over the value add.

6. Wide Price Range

Property can be purchased from within a wide price point range, so each new property can cater for you and your portfolio requirements at the time. Its all about the numbers and how they work for you.

7. Minimal Funds required

Using finance for most of the property purchase and ongoing costs assists you with minimising the funds required for purchase and ongoing ownership.

8. Real rate of return on your money invested

The real rate of return on your money invested is a key consideration and with property it can be 100’s of percent per annum. We target at least 300% per annum for our properties offered to you.

9. Funding and structure allows it all to happen

A sound property investment strategy that includes the correct funding and structure allows all the benefits of property ownership to be a reality for you. Our strategies allow for these plus personal buffers and other financial considerations to keep you and your portfolio safe and secure.

10. Live from your portfolio

A sound property portfolio and strategy allows you to use the excess funds to add to your current lifestyle and set you up for your retirement. Now that is worth working on, to create wealth through property

Click here to download the Why Property brochure.

For more information contact Portfolios.

Have you ever wanted to have a high quality NSW property that is never to be repeated on deal and location?

Built right on the sand of a beautiful beach with uninterrupted views of the ocean.

The key benefits:

1. Priced at $199 000 inc GST , under current market valuation
2. A guaranteed nett rental return of 7% for the first 3 years with the first year rent paid upfront in full at settlement
3. No stamp duty payable under a current NSW government initiative
4. High depreciation benefits, now and ongoing, Year 1 is a forecast of $12 300 alone.
5. Has an independent body forecast for capital growth of 7.2 % for the next 5 years and the last 10 years historically 9%
6. An experienced owner operator that acts in your interests
7. Free complete furniture package
8. Positive cashflow up to $146 per week

View Property Now

You Will Need To Be Quick

We have been given the opportunity to make 30 of these properties available to you, but you have to jump at this.

It’s a case of first in best dressed because I am sending this to 24 000 people and after our newsletter late last week now only 24 remain.

One of the main reasons people fail to create wealth through property is procrastination.

Remember the best time to increase your property was 10 years ago, the next best time is now.

View Property Now

The Area

Birubi Beach in Port Stephens NSW is just over 2 hours drive from Sydney and 45 minutes from Newcastle.

A local experienced resort developer and operator is offering Portfolios Property some lots in their new and exciting development.

This property is offering a nett 7% rental return for the initial 3 years. The studio and dual key apartments current valuation is 5% over the contract price excluding furniture.

Overseas investors have already exchanged on 30% of this project.

The immediate area boasts 7 tour operators bringing over 800 tourists to the beach every week, this discounts the additional local tourist trade in the wider Port Stephens area. This resort development offers tourists a unique experience in accommodation, immediate coastal beach access, and of course a wide range of activities.

This adds up to a red hot real estate investment for you.

View Property Now

Other Information

Project is set to commence in March 2011 with completion expected May 2012. A Sunset clause is inplace for December 2012. Terms are 10% cash upfront with a FREE furniture package for the first 30 people.

You can download a Portfolios Property investors report on the Birubi Beach Resort or View Property now.

A more detailed development brochure will be posted here soon.

There are a limited number of these properties available and we’re telling over 30,000 people.

Don’t delay! Call Us NOW or visit our property website.

With Summer around the corner we start to think about our properties, the wild summer storms and dry heat bringing bush fires – summer is a volatile time for property investors.

But have we considered ourselves in the equation?

What would happen to your loved ones if you were no longer around to pay the bills?

I know it sounds morbid on this fine Spring day but the reality is these things happen, and quite often it is the family that is left holding the financial ball, so to speak.

This is where Portfolios can help.

Portfolios Plus provides the services of insurance professionals through our network of trusted providers.

Personal Insurance

Protecting yourself and your family is a vital part of a successful property investment strategy. If you were to suffer in an accident or be unable to repay your investment loans through disability or death would your family be able to support your portfolio?

What kind of legacy will you leave?

Protecting yourself is one of the greatest gifts you can give to your loved ones if you should be unable to support them.

Portfolios through our insurance providers can offer you one or all of the following insurance products:

• Life Insurance
• Accident Insurance
• Income Protection Insurance
• Temporary Or Permanent Disability

Insuring Your Portfolio

Whilst Portfolios does not provide insurance in this area we recommend you contact your property insurer to discuss a deal with them.

There are other forms, the important thing is to make sure you are covered.

A chat with a trusted Portfolios insurance advisor will ensure you are not in the dark.

Are You Wanting To Know More?

Expressing interest in insurance is simple, contact Portfolios today by downloading and filling out Insurance Signup Form and we will pass your details onto Peter Bentley, our trusted advisor, who will contact you in the coming days to discuss your requirements on behalf of Portfolios.

Are you getting the most from your investment property?

Up to 80% of property investors are not properly depreciating their investment property asset – missing out on the potential to make thousands more.

Its a simple problem – often over looked.

Depreciation on an investment property is effectively free money.

Are you missing out on free money?

Bradley Beer from BMT Tax Depreciation says that “If you own an investment property and have not been claiming depreciation, you will be missing out on thousands of dollars. Even if you are claiming depreciation you may not be maximising your claim. Property depreciation will help an investor to increase their cash flow by reducing the tax they pay.”

Asset depreciation is nothing new to a business owner.  If you earn an income from an asset you can depreciate that asset as an expense, albeit a ‘paper’ expense. Expenses of course are tax deductible.

The difference with property investors is that the Australian Tax Office allows property owners to claim this depreciation as a deduction against their taxable income. Depreciation expenses, along with other ‘paper’ property costs can cause a property to make a loss on paper thus allowing Australian tax payers to claim this loss against their pre-tax income.

What Is Depreciable?

All aspects of a property and the property’s fixtures and fittings are depreciable as all aspects of the property age. If the building was constructer prior to 1985 you can not claim depreciation on the building, only the fixtures and fittings.

What About Older Properties?

Purchasing an investment property should always be about the deal and your personal outcome not whether it is depreciable or now. However, you should know that all properties are likely to have aspects that are depreciable.

We recommend you get a proper depreciation schedule on an older property before settlement. After all it is part of your due diligence on the property.

Are You Renovating – What About The Old Fixtures?

Renovating a property – you may be eligible for scrapping benefits.

Scrapping occurs when the items you are removing from a property, to improve that property, still have both a value and future depreciation benefits in them. You write off the potential depreciation benefit as a deduction against the property income. This also applies to the building.

If you are renovating do not throw away fittings and fixtures without understanding their depreciation potential.

Just more proof that a properly through through strategy and finance deal can get you set up to make the most from your property investment journey. Make it happen with Portfolios.

You Haven’t Missed It!

Sign up today and watch previous sessions from your computer…

Portfolios is supporting this event with our partners Renovating For Profit. We have had a long and fruitful relationship with Renovating For Profit and believe this program will suit any one interested in investing in real estate. If you wish to ask us more questions please leave your details in the fields following Cherie’s letter below. You can also register and catch up with past seminars at any time.

Hi, its Cherie from Renovating For Profit here.

I’ve got some great news to share with you. I’m involved in a brand new ONLINE event where myself and five more of Australia’s most knowledgeable real estate professionals are coming together for a new online conference.

Its called the Masters of Real Estate Investment and this event is new and unlike anything I’ve seen, because it will deliver good quality property educational content straight to your computer from the internet, at absolutely no cost to yourself.

Topics to be included cover developing a positive cash flow property portfolio, renovating for profit, creative property deals – including how to buy property with next to no money, property tax structures and smart property development strategies.

Many of you who have seen me speak before, know I’m a big advocate of self education. Even if you pick up only one new tip, its that one tip that could potentially help you on your way to financial independence.

To date, I know that 9 hours of online property content has already been developed, all put together by professional investors and speakers like myself. The content will be good and more importantly, share information and strategies that you can use in the current property market right now.

The conference series kicks off on September 16th with an overview of the Australian property market with John Lindeman, head of research at Residex, Australia’s oldest property research company.

John’s presentation is amazing and a must for serious property investors!

I think you will really love this and truly hope you value the information. To be part of the event, please CLICK HERE to register now.

Enjoy!

With the Kindest of Regards

This Property Pays You – Roma Qld Property of the Month

We’ve scoured the Australian investment property market and found it, an investment property that will pay you from day one.

Roma in South Western Queensland is a small town offering big opportunities with high rental yield and good capital growth potential.

Now with a positively geared property to add to your portfolio you could build on your strategy to pay off your mortgage sooner. Roma offers the benefits of long term growth and high rental yields. A well connected town, the urban centre is also a regional hub boasting schools, retail and other essential community services. Roma also has a relatively low unemployment rate of around 3% with property occupancy rates below 1%

About Roma

With a population around 7,000 people, Roma is also located in the Suarat Basin in the western Darling Downs area of Queensland approximately 480kms WNW from Brisbane. It is situated at the junction of the Warrego and Carnarvon highways and is the centre of a rich pastoral and wheat-growing district.

The local agriculture industry is worth approximately $620 million annually, 64.3% being generated from crops. 58.7% of businesses in the Maranoa are in the agriculture, forestry and fishing sector, which employs 32.7% of the region’s workforce.

A Changing Industry Mix

But the industry mix is changing.  The “mining boom” is creating towns that are producing exceptional rent and capital growth. The Queensland Resource Council estimates more than 18,000 new jobs will be created in coal seam, gas and LNG industries and another 23,000 in the minerals sector.

Since 1906 natural gas from the local area was used for lighting in Roma. The industry is now expanding exponentially, particularly with coal seam gas.

Origin Energy’s Spring Gully Coal Seam Gas Development is located about 80 km north of Roma and its projects include an 87 km gas pipeline to Roma’s neighbour town of Wallumbilla, Queensland to connect with the 434 km Roma-to-Brisbane gas pipeline hub there.

The Proposed Spring Gully Power Station is an $870 Million, 1000MW power station will provide electricity to South-East Queensland.

Great Potential

If you prefer positively geared property to balance out your portfolio, contact us quickly as there are a limited number of these properties available. In the fields below leave your name and phone number – this will be sent to our private server and we will be in contact.

Add Roma to your portfolio today.