General Advice The material shown in this presentation is for - - PowerPoint PPT Presentation

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General Advice The material shown in this presentation is for - - PowerPoint PPT Presentation

Nov 05, 2023 199 likes •367 views

General Advice The material shown in this presentation is for general information purposes only. It is not intended to be, nor should it be read as specific personal investment or risk advice. Whilst all care is taken in the preparation of this

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SLIDE 1

General Advice

The material shown in this presentation is for general information purposes only. It is not intended to be, nor should it be read as specific personal investment or risk advice. Whilst all care is taken in the preparation of this material no warranty is given with respect to the information provided, and accordingly no responsibility for errors or omissions, including responsibility to any person by reason of negligence is accepted by Investors Direct Financial Planning Pty Ltd, or any member or employee of Investors Direct Financial Planning Pty Ltd, or its subsidiaries. Before acting on any of the information contained in this presentation you should obtain special advice from a specialist investment or risk professional, which is appropriate to your specific investment or risk needs, objectives and financial situation.

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SLIDE 2

What we will cover today

  • Challenge your beliefs & strategy on investing
  • Confront your personal Utilisation
  • Empower you to seek advice
  • Take the “leap of faith”
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SLIDE 3

Average Super Balances for Australians*

Age Group Low Middle High Average 25-34 $12,000 $59,000 $150,000 $14,000 34-44 $14,000 $60,000 $176,000 $28,000 45-54 $14,500 $63,000 $240,000 $55,000 55-59 $15,000 $66,000 $300,000 $75,000 60-64 $16,500 $70,000 $310,000 $73,000 All $13,000 $63,000 $250,000 $40,000

*www.superreview.com.au

  • Average working Australian could face the prospect of a $280,000 shortfall
  • Expected shortfall for Gen X is $380,0000 – 35 to 50 year olds
  • The Average Home Loan now lasts for over 40 years
  • Many do not have a strategy for retirement and are believe the system will do it for

them

  • Most people will now retire with a Home Loan of $170k

We have a BIG problem

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SLIDE 4

Where to get Good Advice?

What has been your Advice experience to date?

  • Parents?
  • Internet?
  • Industry super funds?
  • Property developers?
  • Accountants?
  • Financial Planners?

Inheritanc e

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SLIDE 5

Are MY goals being achieved?

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SLIDE 6

Where does my money go?

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SLIDE 7

No one gives me what I need!

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SLIDE 8
  • Understand your relationship with money

Its not What you earn, its What you Keep!

Minimum Living Expenses Discretionary Expenses

$60k net Income Surplus

Minimum Living Expenses Discretionary Expenses

$80k net Income Surplus

Minimum Living Expenses Discretionary Expenses

$80k net Income Debt expense

Missed Opportunity Missed Opportunity

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SLIDE 9

Leveraging can equal higher returns

$15k (Rent)

$15k (Interest)

$100k Investment $100k Debt $100k Debt $100k Investment

Asset A Asset B

$300k Investment $100k Debt $100k Debt $100k Investment

Asset A Asset B

$30k (Growth) $10k (Growth)

  • 10% Growth
  • 5% Rent
  • 7.5% Interest

$5k (Rent)

1 year later

$300k Investment $15k Profit

“Good Debt”

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SLIDE 10

Property Price Pattern

30% Median

  • Rent: 2-3%
  • LVR: 60-80%
  • Rent: 3-4%
  • LVR: 80-95%
  • Rent: 4-5%
  • LVR: 95%
  • Rent: 6%+
  • LVR: 60-80%
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SLIDE 11

How lower volatility Property can Accelerate your Wealth creation

……And how not getting it right can erode your

cash flow and strangle your freedom

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SLIDE 12

We are the lucky country!

10 20 30 40 50 60 70 80 Indonesia Belgium Malaysia Canada Italy Australia Finland Philippines United States South Korea Hong Kong Chile Ireland Japan Taiwan Portugal South Africa India Turkey Argentina

Labor participation

200 400 600 800 1000 1200 1/02/2000 1/11/2000 1/08/2001 1/05/2002 1/02/2003 1/11/2003 1/08/2004 1/05/2005 1/02/2006 1/11/2006 1/08/2007 1/05/2008 1/02/2009 1/11/2009 1/08/2010 1/05/2011 1/02/2012 1/11/2012 1/08/2013 1/05/2014

Average Weekly Australian Wage in $

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SLIDE 13

Where are Property Prices going?

$0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600

$10,000 $110,000 $210,000 $310,000 $410,000 $510,000 $610,000

1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Australian Money Supply vs Property Prices

Average of Median Price for Melbourne, Sydney, Brisbane & Perth (AUD) 8.6% Growth Australian Money Supply (AUD$bln)

Source: www.econometrics.com

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Money and quasi money (M2) in Australia was last measured at $1516 B in 2012, according to the World Bank.

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SLIDE 14

Money supply drives Prices

25 year average

Source: http://www.tradingeconomics.com/australia/money-supply-m3

Jan 2015

Sydney $770K Melb $650K Perth $520K Brisb $450K Adel $420K

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SLIDE 15

The main messages to note!

  • 1. Banks objective is to lend as much money as possible to

benefit Shareholders, their People and their customers / communities

  • 2. Population growth & consumer confidence are catalysts to

sustainable growth and rapid growth, respectively

  • 3. Australians have a high affinity for property which draws on a

large percentage of household income

  • 4. Australia is an attractive country to live and for foreign

investment

  • 5. Banks lending criteria is not applied equally across the

population, its sensitive to postcode level: Focus is on household income

  • 6. Property Investing is a leveraged forced savings plan. To be

winners you need (1) average Growth (2) positive cash flow

  • 7. We live in a well designed system – ARE YOU AWARE?