May 2012

Share Investors turn towards property

Investors in the Share market are turning to property , due to increasing instability in stocks, according to new research.  More than a quarter of existing home owners are currently looking to buy either investment or holiday property, according to LJ Hooker Finance.

This result comes from after a downturn was seen in the profitability of the share market, that traditionally drew Australians into investing, said LJ Hooker Deputy Chairman L. Janusz Hooker. While Australians are typically thee highest shareholders per capita, this has begun to see a change Mr.Hooker said. However the double digit losses experienced by the share market in 2011 are driving stronger interest in property investment. Data shows that over a 10 year period property investments yield higher after tax returns than shares.

The survey was conducted by Galaxy Research and involved 1017 participants aged 18 to 64 who are currently active in the property market.

What are your thoughts?  

Statement by Glenn Stevens, Governor: Monetary Policy Decision May 1st
At its meeting today, the Board decided to lower the cash rate by 50 basis points to 3.75 per cent, effective 2 May 2012. This decision is based on information received over the past few months that suggests that economic conditions have been somewhat weaker than expected, while inflation has moderated.

Growth in the world economy slowed in the second half of 2011, and is likely to continue at a below-trend pace this year. A deep downturn is not occurring at this stage, however, and in fact some forecasters have recently revised upwards their global growth outlook. Growth in China has moderated, as was intended, and is likely to remain at a more measured and sustainable pace in the future. Conditions in other parts of Asia softened in 2011, partly due to natural disasters, but have recently shown some tentative signs of improving. Among the major countries, conditions in Europe remain very difficult, while the United States continues to grow at a moderate pace. Commodity prices have been little changed, at levels below recent peaks but which are nonetheless still quite high. Australia's terms of trade similarly peaked about six months ago, though they too remain high.

Financial market sentiment has generally improved this year, and capital markets are supplying funding to corporations and well-rated banks. At the margin, wholesale funding costs have declined over recent months, though they remain higher, relative to benchmark rates, than in mid 2011. Market sentiment remains skittish, however, and the tasks of putting European banks and sovereigns onto a sound footing for the longer term, and of improving Europe's growth prospects, remain large. Hence Europe will remain a potential source of adverse shocks for some time yet.

In Australia, output growth was somewhat below trend over the past year, notwithstanding that growth in domestic demand ran at its fastest pace for four years. Output growth was affected in part by temporary factors, but also by the persistently high exchange rate. Considerable structural change is also occurring in the economy. Labour market conditions softened during 2011, though the rate of unemployment has so far remained little changed at a low level.

Recent data for inflation show that after a pick up in the first half of last year, underlying inflation has declined again, and was a little over 2 per cent over the latest four quarters. CPI inflation has also declined, from about 3½ per cent to a little over 1½ per cent at the latest reading, as the weather-driven rises in food prices in the first half of last year have, as expected, now been fully reversed. Over the coming one to two years, and abstracting from the effects of the carbon price, inflation will probably be lower than earlier expected, but still in the 2–3 per cent range.

As a result of changes to monetary policy late last year, interest rates for borrowers have been close to their medium-term averages over recent months, albeit tending to increase a little as lenders passed on the higher costs of funding their books. Credit growth remains modest overall. Housing prices have shown some signs of stabilising recently, after having declined for most of 2011, but generally the housing market remains subdued. The exchange rate remains high even though the terms of trade have declined somewhat.

Since it last changed the cash rate in December, the Board has maintained the view that the setting of policy was appropriate for the time being, but that the inflation outlook would provide scope for easier monetary policy, if needed, to support demand. The accretion of evidence over recent months suggests that it is now appropriate for a further step in that direction.

In considering the appropriate size of adjustment to the cash rate at today's meeting, the Board judged it desirable that financial conditions now be easier than those which had prevailed in December. A reduction of 50 basis points in the cash rate was, in this instance, therefore judged to be necessary in order to deliver the appropriate level of borrowing rates. 

Source: Smart Property Invest 02 May 2012


March/April 2012

"The Two Speed Economy"

Rest of the Economy                        MINING Industry

Good afternoon everyone,

Looking forward to meet the balance of all the members for Canberra before Easter weekend. Who knows I could be knocking on your door, so stay tuned as I continue my “Tour of Duty” somewhere around Australia.

The next economic boom could be here soon as 2014 according to one chief economist, recently addressing a business leaders’ luncheon in Brisbane.

Some of Queensland’s top ASX company CEO’s were in attendance as BIS Shrapnel economist Frank Gelber predicted growth in ailing sectors including property and retail.

“Two years from September will be absolutely bloody booming”  says Gelber.

“A lot of people are employed through the mining sector including software suppliers and business services firms that are still not getting enough work, however in the next few years  they will be running ragged.”

“Invest in Queensland property will be the primary driver of growth and go off the scale. House prices are set to rise 20% in the next 3 years. Hang onto your hats, it will be a wild ride.” Businesses should not expect to cope with the upturn by simply working staff harder.

“There was zero growth in employment during the past year. We can use existing workers for a while, but eventually companies will need to hire more people” he says.

The Reserve Bank of Australia predicts staff capacity constraint issues will arise in 2 years from now. We will have to move away from cost-cutting and maximizing savings to cater for growth.

So, now we can see that our 2 speed economy is clearly defined between the Mining sector and the rest of Australia. As we are all aware there are 3 major States of Australia that are the highest producers in the Mining sector.

Western Australia  -  South Australia  -  Queensland

Western Australia –  as you are aware I have just recently returned from Western Australia. Karratha has reached capacity dominating the boom with homes in the region now over $1ml for a standard new 3 or 4 bedroom Home with rentals over $2,000 per week. I am amazed that some investors continue to buy in this area. For all those earlier members who invested 5 and 6 years ago for $350,000 are all celebrating now.  Congratulations!!!!

South Australia – is just getting into establishing the earlier stages of major infrastructure in the area however still too early to consider at the moment, we are anticipating over the next 12 to 18 months before any serious returns will begin to flourish.

Queensland – on the other hand has come of age with massive infrastructures already completed with an additional $82ml earmarked in the upcoming Budget. Specific Mining regions within strategic areas have already peaked in prices.

Look what happened when we invested in the 76 House and Land Packages in Emerald! We purchased on Bank Valuations averages at $400K to $412K and settled the last property in June 2010. Rentals were $450 per week. As you are all aware we have periodical valuations 12 months later showing around $28K to $32K increases in equity when the rest of Australia flat lined.

The rental escalated out of control within 12 months to a staggering $600 per week. We cannot continue to invest in this region as it is too expensive now. Similar areas that we invested in over the past couple of years were Gladstone and Mackay. They too have got out of control with an average $100K equity over the past 12 months, again CONGRATULATIONS to all those members.

"Are we in Top Gear or Reverse Gear?"

Future Cost for Retirement


Good morning fellow members,

RISING life expectances and the increase in living expenses means many Australians who retire in the next 30 years are going to be doing it tough. Lucky for us (members) who realized this ordeal in the past and did something about it … OR DID YOU?

Far too many Baby Boomers have ignored the thrifty habits of their Depression-scarred parents and are in for a mighty shock when their employment incomes stops and they have to go on the pension plus whatever their employer has  contributed to superannuation.

If you sit down for a moment to work out how much money you had spent over the Christmas period per week, not including your mortgage, then multiply that figure by how many years you are going to live through retirement and you will come up with a staggering figure of money that you need to survive. Deduct your Superannuation and you will have a shortfall of funds that you will need to continue the same lifestyle as you are currently accustomed to … DO YOU HAVE A PLAN IN PLACE???  … SCAIRY STUFF!!!! …

There are a multitude of solutions. Contact me on 0414 888 186 for a FREE Financial Tune-up through our trusted Financial Planners. 

One way out is to SELL the family home and rent, another is to REVERSE MORTGAGE – a loan where there is no obligation to make any repayments of principal or interest. The Debt will probably double every 9 to 10 years. Reverse mortgages tend to be misunderstood, but according to Noel Whittaker, co-founder Whittaker Macnaught Financial Planners always believed that they are a great tool in the right circumstances. They enable old retirees to get enough cash to replace the car, go on a world trip and attend to home maintenance while staying in their own home. This is what our family have been advised for my Mum to do now my Dad had passed away.

A Reverse Mortgage enables parents to effectively spend part of their Estate before they die.

The best advice for their children may be to help from their own resources – buying the home at fair market price, giving the parent life occupancy or, at least paying the interest on the Reverse Mortgage. This would stop the debt rising and reduce the effect of rates rising.

Thank goodness we added to our structure to EXPAND our Property portfolio so we could supplement our income during retirement, we don’t have to worry about the rising cost of living like my 80 year old Mum.   

Please note that these comments are of a general nature and members should seek their own professional advice before making any financial decisions. 

WESTFIELD secures Coomera Town Centre


Good morning fellow members,

Welcome to 2012 as this is our first Newsletter for the New Year. Also welcome to all the new members I met over the Christmas New Year period. We now stand at 8,853 members.

Thank goodness 2011 is behind us now as it was certainly a tragic year for many, including myself. This year my schedule includes catching up with last year’s goals. Let’s hope my prayers from New Years Eve pays off where I have a fat Bank Account and a thin body unlike the reverse of last year …Ha-ha!!!

WESTFIELD has secured a massive discount on infrastructure charges for the proposed Coomera Town Centre, clearing the biggest hurdle to the $400 million project in recent years. But while Council has put Westfield on notice to start construction within 12 months of approval, local business owners and residents -- let down by countless false starts for the project over the past 20 years -- are finding it hard to get excited.

The Coomera Chamber of Commerce has slammed the continued secrecy from the council, state government and Westfield over progress on the town centre, delays of which have stymied development on the eastern side of the M1.Chamber president Lionel Barden said it could be five to eight years before a single shop opened in the development which will be a catalyst for a major new CBD for the Gold Coast. "We can't even draw an opinion (on the centre) at this stage because we don't know what's going on," he said. The town centre has stalled in recent years after Westfield was stung with a reported $140 million in infrastructure charges. can reveal that Westfield and the city council came to agreement last November on significantly lower charges, which are understood to be well below $100 million.

A relaxation of state government fees last year is understood to have whittled proposed charges to around $40 million. The final figure has not been disclosed and a council spokesman said it would ultimately depend on the approved master plans, of which the first of four has been lodged. A start date is still some time away, although a council spokesman said it "wants to see the project up and running as soon as possible because of the obvious benefits it will have for the Coomera region".

The town centre is being developed by Westfield in partnership with the government-owned QIC on a 35ha site adjacent to the railway station on Foxwell Road next door to FIRMWOOD Estate. Westfield declined to comment on the infrastructure charges or an estimated start date.

Good afternoon everyone,

Trust you had a relaxing time over the festive season as we waddle around saying we have eaten too much and will never do that again, until next time, when we forget that terrible bloated feeling of Christmas Day meals.

My prayer for 2012 is for a fat Bank Account & a Thin Body.
Please don’t mix these up like you did last year.

With 2012 nearly upon us, many of us will be spending this week reviewing the events of 2011 and setting resolutions, goals or visions for what we’d like to accomplish next year.

It will come as no surprise that the most common New Year resolutions fall into the categories of getting organized and getting fit … physically and financially.

Financial fitness includes getting your real estate business in order, but you cannot set up your real estate plans in a vacuum. They must coincide with the market.

Here are 4 predictions about what the market context will look like in the coming year for the USA market –

1.    Even more Foreclosures – Earlier this year New York Times reported that the additional hurdles New York State courts are requiring banks to leap in the wake of the robo-signing revelations, like additional settlement meetings with the homeowner to see a modification can be brokered, have created a backlog of foreclosures that will take 62 years to clear, at the current rate of foreclosure.
This is scary stuff for the USA, we here in Australia may complain about our banking system and Government restrictions however because of these strict regulations the whole westernized world now is focused on Australia and it successes to ride out this ugly International recession.

2.    In the coming year, distressed home sales will continue to represent an increasing share of homes on the market. This in-turn will empower buyers to make smart decisions about what to offer and what to expect on any listing they like, as well as to set smart priorities and make realistic comparisons between listings based on their own personal priorities around timing, certainty and seller flexibility.
Here in Australia we have been buffered by new Government reform to reduce the level of distressed home sales. Lenders have become more understanding to renegotiate terms and conditions where they can so distressed sales are reduced.

3.    So, called smart cities will do well. This year a number of housing markets saw double or triple dips in the home values. In others stayed relatively flat. However in areas of technology powers the economy, home values prospered along with the industry.
The FIRM continues to research good stock all around Australia especially over the past 5 years it has become apparent that the mining regions are continuing to grow at unbelievable rates. I will announce our findings in the following bulletins next year that will make you really think.

4.    Consumers will get hopeless. I mean hopeless in the best possible ways. For years buyers and sellers have been waiting for that singular event to occur that would cause a quick market recovery. But 2012 will mark the 5th or 6th year in real estate recession depending on who you talk to. The predictions are those consumers who have not already done so will drop unrealistic hopes for a fast return to the heady real estate fortunes of the subprime era. Instead people will make their real estate plans based on –

·         Today’s low home prices, rather than fantasy of what could happen if the market miraculously came back.
·         Assumptions of very low, or no appreciation in home values for years to come.
·         Very conservative estimates of their own finances and how they will grow.

As a result home owners won’t break their necks to hurry and buy before prices rise, rather they save and plan to buy when it makes the most sense for their finances, they will either refi, remodel and be content where they are for the long haul, or decide their homes no longer fit their lifestyle and their finances, divest and move on. But the good news is people will make decisions based on what is or is not sustainable for their lives and their finances, and not based on inflated hopes on what the market will do or not do.

Investors (members) on the other hand, will make well informed decisions based on factual information on the past, present and future of the economy. Being provided with the latest statistics, risk analysis, etc. to make an unemotional decision based on affordability, tax benefits and opportunities. The FIRM continues to deliver all of the above and will continue to do so through 2012.

Enjoy the celebrations and look forward to share a very prosperous New Year for 2012.   

So stay tuned for the next exciting episode.

Have a great week!

The Banks & then there is us!!!
Who is the fat little piggy going to market now?


Good afternoon everyone,

Welcome to all the new members who have recently come on board with us over the past few months whilst I  have been doing my “Tour of Duty” A very big welcome as we now have reached 8,794 members … CONGRATULATIONS!!!

Over the coming months you  will receive plenty of new information relating to the Hottest growth Areas in Australia that are about to explode in the market place, so be prepared to move quickly as these developments are going to be in very short supply.    

The BIG  four banks have passed on the Reserve Bank of Australia’s Interest Rate cut in full following intense public and media pressure.

The ANZ was the first of the major banks to announce the cut since the Reserve Bank of Australia reduced its overnight cash rate by 25 basis points to 4.25% on Tuesday.

The NAB, CBA and finally Westpac followed ANZ’s move tonight. 


As you are aware in the past that The FIRM Money offered very attractive Interest Rates to all the members. We are pleased to announce that our Banker’s Licence has been approved to offer even more attractive rates for the future, exclusive to members only. Our Wall St. Funders will be arriving here in January to finalize negotiations in preparation of the launch in March 2012.  

So stay tuned for the next exciting episode.

Have a great week!

September 2011

“Is it time to Buy or Sell”

64% said … Good time to purchase Investment Property


Thanks to our Sunday Mail property survey, you can take a peek into the collective minds of the 600 polled Queenslanders who have bought recently or intend to buy soon. Source: The Sunday Mail (Qld)

Good morning everyone,

Another beautiful day in Paradise as we prepare for Natasha’s Engagement Party this weekend, naturally for those members who know Annette she has everything organized. Secret women’s business as they all huddle together planning the special event … I guess this is where us mere males will have to run on instincts as it all unfolds …Ha-ha!!!

QUEENSLANDERS overwhelmingly believe it is a good time to buy property and that there are plenty of bargains to be had.

In what could be the first sign of a long-awaited recovery, a Sunday Mail property poll has found 74% believe there are "good bargains" to be picked up.
The poll - based on responses from 600 Queenslanders who have bought recently or intend to buy soon - comes as potential buyers move out of their winter hibernation for the traditional spring selling season.

Sales and prices across Queensland have been falling since before the floods and cyclones hit early this year, prompting some sellers to slash prices below their original purchase price to attract offers.

The poll found it was generally a good time to buy (67%), as well as a good time to purchase an investment property (64%).

The strong belief that it is a buyer's market comes despite the view that homes are still over-valued.

More than half those surveyed said prices were too high and only 17% said they were undervalued.

REIQ chief executive Dan Molloy said Queensland real estate prices were at the bottom of the cycle and he expected the market to stay there for at least another six months.It is a question of what happens in the next few months as to whether we will stay at the bottom for a little while before the cycle turns upward again," he said. "We might be at the bottom of the cycle for a little while yet."

Galaxy Research chief David Briggs said while the results suggested Queensland could be heading for another property bonanza, buyers were cautious.
"Few expect property prices to take off any time soon," he said. "In fact, one in three (32%) expects prices to fall in the next six months and 43% expect prices to stay where they are. Only 18% expect prices to go higher in the next six (months)."

Mr Molloy advised buyers not to wait too long or they risked buying as the market started to rise again. And sellers are wary. Only 3% thought now was a good time to sell and real estate agents said many had taken their properties off the market.

August 2011


Courtesy of the Sunday Courier Mail

Good afternoon fellow members,

Another beautiful day in Paradise yet all the doom and gloom around the world makes us all realize that we are certainly in the lucky country or are we!

This interesting article from the Sunday Mail Noel Whittaker’s column says it all.

Have a great day!

July 2011

Massive Developer incentives from $258,000
Less $15,000 Govt. rebate.

How does QUEENSLAND compare…
Stamp Duty on a $400,000 INVESTMENT



Good afternoon fellow members,

Many of our developers are offering very attractive incentives now that the Stamp Duty has increased across the board, yet Queensland is still the attractive alternative.

We have just been informed of another development about to be released in an extremely good location for capital growth from $258,000 less Government bonuses… Interested!!!!

So, the madness continues until the Gold Coast City Council’s clock stops. Spread the word!!! …

“Ten years from now you will be more disappointed by the things you didn’t do than by the things you did”

Call me NOW to be the first 500 people to receive the GRANT.

JUNE 2011

Good morning fellow members,

Well, getting back in the world of reality has been extremely difficult with flashback memories of all the good times, serious times and the difficult times I shared with Gary, I can now sympathise with those who have lost someone very close and the pain that follows. Again, thank you to everyone whose sent their support through email, cards and flowers our family really appreciated your kind generosity and well wishes.


Okay, moving on to other matters, as you are all aware the Gold Coast has been hit with property values declining as the ripple effect from the GFC. As an indication properties that we all purchased 2 years ago are roughly showing that they are worth around the same values. No need to panic as we are all geared well to factor in the shortfalls through our Financial Planners. The good news out of all of this is that building developments have declined with the Gold Coast Residential and Commercial building starts -

Gold Coast 2010       Gold Coast 2011

January: 295              January: 69

February: 475              February: 100

March: 521              March: 69

April: 423               April: 15


Traditionally when these results happen we find that Rentals will start to climb due to the lack of properties available. The FIRM Property Management is in preparation for the increase on demand.

As you can realise now more than ever before, developers and property prices are at their most vulnerable right now to negotiate the best deals. Emerald Lakes (above) are very keen to talk turkey in preparation to the next stage of development.

For more information please go direct to

Enjoy your day!

April 2011

Good morning fellow members and associates,

Another beautiful day in paradise as I just finished my daily walk of 4km.

Checking my emails I just received the latest R P Data statistics for February 2011 which I have to share with you.

Good news for all our members as at it meeting today , the Reserve Bank Board decided to leave the cash rate at 4.75%

Did you Know:

The Governor and the Treasurer have agreed that the appropriate target for monetary policy in Australia is to achieve an inflation rate of 2-3 per cent. (Consumer Price Index)

You too can predict a most likely outcome of the RBA by looking at inflation.

If CPI looks like it will be increasing above 3% rates will go up.
If CPI looks like it will be decreasing below 2% rates will come down.
If the economy is not in Doom or Boom, then they will most likely say put.

If you too would like to learn more about rocket science 101 click here:

If you missed the latest Newsletter with all the exciting news on our Modular Housing
We are currently designing our 1st of 4 Modular Homes to be located in Coomera which will be released very soon, so stay tuned.

Also, interested to hear your feedback on setting up a 2nd Hand Division for all our aging properties.

Have a great week and we will chat again soon.


"How does your property investment value today"

SOURCE: REIQ Data made available by QLD Department of Environment and Resources Management (qvas)via pds live and RP Data
Courtesy The Sunday Mail February 20, 2011

Good morning Fellow members,

The official figures have just been released for the past quarterly change October to December 2010. The best selling suburb on the Gold Coast for the quarter was Hope Island 73.3%. I dont mean to boast but is'nt that where most of us focused on investing over the past couple years? ... We did it again ... Thankyou for your support!!!

Desperate sellers are are slash home prices just to get a sale. It is a bonanza for buyers as desperate sellers drop their price, in some cases by millions.

One beachfront mansion on Hedges Aveon the Gold Coast sold for less than half the $11ml the owner paid 3 years ago. But it isn't just the luxury market that has suffered. A two-bedroom two-bathroom apartment at Portside, Brisbane which the owners paid $760,000 for in 2004 is now listed at $725,000.

Meigan Hetherington, from buyers agency Property Pursuit said there are more sellers than buyers, banks are more cautious with home loan approvals. The financiers have been quite strict and tightening up their lending criteria.

We are optimistic that property values will climb this year. A Galaxy Poll survey revealed that 39% of the people believe will rise in the next 12 months with another 40% expecting to stay at current levels. Only 18% of the respondents are picking a drop in values. But their view is not shared by experts. Property analyst Michael Matusik predicts values to drop by 5% to 8% this year potentially bouncing back next year.

It's not all doom and gloom as the market rises and it falls from time to time, thanks to our Financial advise in the past, we have weathered the storms to sit and hold our port-folio's which are well serviced with strong rental returns and maximum tax benefits. The downside is that our acquisitions over the past couple years have only risen slightly compared to the other years and we do not have sufficient equity to leverage our expansion. It is so frustrating to see all these bargains slipping through our fingers and not able to jump on board at the moment.

So, it is really a buyers market out there, if you have the cash available to take advantage of the frenzy, then call me. We now have new bargain properties available from $375,000 upto $25,000,000

Check out Hot Property for some real bargains - and

As a footnote, Jayden now 12 years old has been competing over the weekend in the District Ironman tournament and came 4th yesterday so now he goes to State. Today he has other events and will keep you posted. Have a great Sunday!

Coomera Myer Planned

Courtesy Gold Coast Bulletin Friday 19th November 2010

This will be the 3rd Myer Store on the Gold Coast as the newest store opened in Robina last week. Scheduled to open in 2014 makes Coomera definatley the Hot Spot for the future. Congratulations to all those members who have supported the area over the past 18 to 20 years and also to all those new members who have just realised that Coomera Central is the place to be. The new school opposite will be opening soon for next year as they put the finishing touches of landscaping, driveways and fencing around the perimeters.


Property prices LOWEST + HIGH Rental return + LOW Bank interest = BUY - BUY - BUY!!!

Courtesy Gold Coast Bulletin Monday 1st November 2010

Good morning everyone,

Trust you survived the onslaught of kids screaming 'trick or treat' over the weekend, great excuse for another social which ended up at the park next door with all the locals supplying the cheese and wine. Who said Halloween was just for kids ... Ha-ha!!!

Melbourne Cup Day tomorrow, hope you back a winner. I will be sharing the activities with new members from Blackwater.

Interesting response from our latest Headlines where the Federal Government are considering abolishing the Aged Pension. Thank you for referring your friends and relatives, hopefully we can save them before it is too late.

Another rise in the Australian Dollar against the Greenback from last Friday with an increase of 1c.

Economists have shrugged off fears of a housing bubble and point to rent increases as a key driver of property growth over the next 18