BSI Innovation blogs about Innovation, Money, Venture Capital, Grants, Exports and Research and Development (R&D)
Alliance Partners
Sunday, November 29, 2009
RBA’s running scared about house price rises
I listened to a report last night on the radio relating to comments from Glen Stevens, Governor of the RBA. The crux of this report was the Reserve Bank is concerned house prices are going to continue to rise due to an undersupply in housing and a large population increase on the way. Now property prices have generally risen for as long as the statistics on house prices go back. His concerns, however, are for a rapid increase.
The point the journalist was trying to explain was that if you have a house & it goes up in value; you’re really no better off. This theory has been thrown around by both property skeptics and property lovers (like Dolf Deroos) for many years, and if I take the skeptics side for just a moment, I agree that if you had a house worth $400,000 and it increased to $500,000 within any timeframe, then logic suggests that if you sell to upgrade, you’ll need to spend say $600,000 for the house that was worth $500,000 back when you bought your last purchase (for $400,000). So the real loser in this instance is the renter who is forced to enter the market at a higher price.
BUT, the true winner is he or she who has multiple properties, the astute property investor.
Let’s say you had 4 properties (3 rentals & 1 you live in) and you paid $400,000 per property on the same day. Now let’s say the Reserve Bank is right (and we hope they are) and the price increases in the next 2 years to $500,000. Now we’ve just had an increase of $400,000 (4 x $100,000) and yes, if we were to sell the home we live in, replacement value would be $500,000, but if we sold the other 3 because we want to cash up our investments, we’ve just pocketed $100,000 per property (less any expenses – this is a very simplistic and hypothetical explanation for illustration purposes).
So if this is the case, it shows that there is a loser, a status quo and a winner in this circumstance. It’s not a secret, never has been, but you invariably will be in one of these 3 categories. My old boss told me a saying many years ago “The difference between a rort and a perk is that a rort is just a perk you’re not in on!”
There’s many things to learn along the journey of multiple property ownership one of the most important is to realise than investing in property is a journey not just an event or series of events (one of the many things we do and teach as part of our property sourcing model through our property coaches and support evenings), so choose to be the right person in this story.
The last point in the report on the radio by the journalist said this “there is one group of people who are going to gain from this, landlords [aka the person with 4 properties], but unfortunately usually it’s the wealthy upperclassman who have investment properties so we now see a divide between the upper and lower class.” Last point, if you do research (which the RBA has) you’ll find the majority of investment property owners are ‘middle class’ at best, average Australians not the elitists, but more on this in another blog. Opportunity knocks, the time is now.
Friday, November 27, 2009
Survey on Top 5 Issues that will effect you and your business in 2010
2010 will be a defining year for Australia when you consider:
On the political front – Victoria, South Australia and will hold State elections in 2010, while a Federal election will be held no later than February 2011. We are still waiting on NSW election news, and we tip the Tasmanian boundary changes will undoubtedly result to Federal election implications.
On the economic front – the global economic environment remains uncertain post-GFC, however many economists expect the A$ to reach parity, and beyond, with the US$. Continued strong demand for Australian exports of iron ore and coal by China and rising interest rates in Australia will likely be a feature in 2010. At the same time the Henry tax review is likely to recommend the largest tax reform since the introduction of the GST.
On the environmental front – the introduction of a comprehensive ETS remains front of mind, while the summit in Copenhagen next month should set the framework for global cooperation.
I am sure you already know what issues are most important to you and your business.
If you send me your survey, we will provide you with an analysis of responses across our diverse contacts – hopefully these insights will be a good return on a few minutes of your time.
Please note, specific comments will not be attributable and nor will we make reference to your name/organisation in any way.
Please take a few moments to consider the following five questions:
1. What are the three key issues that will impact your industry in 2010?
2. What are the three key opportunities for Australia post the GFC?
3. What are the three key issues you would like to see your State Government address in 2010?
4. What are the three key issues you would like to see the Australian Government address in 2010?
5. What do you think are the leading [social; political; economic; environmental; global] challenges impacting the Australian community in 2010?
Thank you and we look forward to your thoughts and comments by Friday 11 December 2009.
HTT Associates is a boutique, politically-focused consultancy providing a range of specialized services to individuals, corporations, institutions, and organizations.
Best Regards
Ivan Kaye
ikaye@bsi.com.au
Wednesday, November 18, 2009
Tuesday, November 17, 2009
BSI Investor Forum Spring 09
at the Hamilton Room, NSW Trade and Investment Centre
Level 47, MLC Centre, 19 Martin Place, Sydney
for more information about the event and Companies that are presenting.. CLICK HERE
Wednesday, 2nd Dec 09 | Registration at 8.30am for a 9am start
at Hamilton Room, NSW Trade and Investment Centre
Level 47, MLC Centre, 19 Martin Place, Sydney
Alan Milwidsky or Casey Whitehead
(02) 9212 5505 or amilwidsky@bsi.com.au, cwhitehead@bsi.com.au
Monday, November 16, 2009
Sunday, November 15, 2009
Ark Total Wealth
Friday, November 13, 2009
Investors Remain Coy but seed investors remain
Best Golf Day Ever - Well done "ARK TOTAL WEALTH!!
Hopefully this will be a regular event!!
Thanks to Simon at mediasauce for making an awesome video and the event so memoriable!!
Sunday, November 08, 2009
Saturday, November 07, 2009
Foreign investors flock to Australian property
The strong Australian dollar has done little to cool overseas demand for real estate as foreign cash seeks out a lucrative home in the nation's residential property market.
Real estate agents say overseas-based bidders are increasingly common at auctions around the country, with the resulting additional demand stoking already rising clearance rates and prices.
John Bongiorno, director of Marshall White & Co, in Melbourne said international buyers had typically made up 5 to 10 per cent of sales, a figures that had recently risen to about 15 per cent. And the dollar's rise had not yet dampened demand.
Mr Bongiorno said his overseas clientele was ‘‘predominately mainland Chinese'', some of which adopted a fly-in, fly-out approach to house hunting.
‘‘We have people who fly in on a Saturday morning for auctions and will fly out the same day,'' he said. ‘‘They'll just arrive in Melbourne specifically for the auction.''
Marshall White & Co has forged alliances with immigration services firms in China to promote local property.
Further north, the rising demand from Asia, especially China, is even more pronounced.
Tina Edwards, sales manager at Brisbane-based Yong Real Estate , which caters to local and international Asian buyers, said investment from China had ‘‘really soared recently''.
She said the surge may have peaked at as much of 90 per cent of the transactions handled by the firm, with the Aussie dollar's recent jump above 90 US cents (about 6.2 yuan) deterring some buyers.
But Ms Edwards also said temporary lull may also reflect the shortage of suitable properties to sell after a period of sustained demand.
Real estate agents credit the overseas demand as contributing to rising home prices, which have increased nationally 8.1 per cent in the first nine months of the year, according to the RP Data-Rismark Index released today.
Changed rules
Australia's run-up in house prices is far from unique, with markets as far-flung as London, Singapore and mainland China itself reporting rapid rises in recent months.
The local market, though, has also seen a jump because of a relaxation in the rules covering foreign investment in Australia's property market since April, agents say.
A spokesperson for Assistant Treasurer Nick Sherry said despite the rule changes the FIRB rules were designed to spur the creation of additional housing supply rather than add to affordability problems.
"Foreign non-residents are still prohibited from owning existing dwellings in Australia," he said. "They can only purchase a new dwelling or build one from scratch."
Temporary residents are only allowed to purchase one existing dwelling, he said "and only if they will live in it."
Nonetheless, the recent FIRB rule change redefined "new dwelling'' to mean unsold property rented out for 12 months or less.
The changes also allow foreign companies to buy established dwellings for use of Australian-based staff.
Chinese investments on the rise
Keeping tabs on the size of inbound property investment is difficult. But looking at the most recent data from the Foreign Investment Review Board in Canberra, covering the 2003-04 to 2007-08 period, China-sourced investment approvals rose to a share of 3.3 per cent of the total foreign investment, up from just 0.4 per cent at the start.
While analysts say the proportion has risen further, the increase over that period "is illustrative of the increased role of Chinese and other Asians in the Australian property market,'' said George Bougias senior economist strategic research at Charter Keck Cramer.
Under one of the rule changes, temporary residents became exempt from notifying the proposed acquisitions of established residential real estate for their own residence, or for new property or vacant residential land.
In practice, buyers' advocates and real estate agents report wealthy Chinese buyers purchasing homes and units near schools where their children are enrolled.
Brett Draffen chief of development for property developer Mirvac said the property developer saw "improving'' interest coming out of China in two areas of the Australian market.
Mr Draffen said the trends were so far not "massive'' nor "across the board'' but were dependent on the types of residences offered to foreign investors.
"In the $400,000 to $600,000 band we've seen a slight increase,'' he said. At the other end of the range, wealthy Chinese were looking at "de-risking'' their holdings of assets in their home country by moving money abroad, including into Australian property.
Scott McGeever, director of Brisbane-based buyers advocate Property Searchers, said some Chinese buyers have been attracted to Australian property as a way to ride both the gains in the surging dollar and the value of the property itself.
As long as the value of the dollar didn't fall dramatically - or the yuan suddenly strengthen - "if they bought and sold it for the same price ostensibly, well, they'd make money off of it because of the currency,'' he said, adding that his firm didn't serve those investors.
Asia and beyond
Rich Harvey managing director of Sydney-based Property Buyer said he had a couple clients pursuing such strategies, although investment in Australian properties was also of interest to investors from other parts of the world.
"It's about the timing of entry and exit for your currency play, which you can overlay with a property play and do very well out of it,'' said the buyer advocate, who serves Australian and international clients.
These types of investors typically held the property for three years, as opposed to the minimum of five years most investors prefer, Mr Harvey.
The rise in investor interest from China reflects Asia's emerging status as an engine of world growth. More wealth gives Asians more options for investment, which in turn translates into more interest in property, education and business relationships with Australia.
The number of settler arrivals from China, defined as the arrival of people entitled to permanent residence entering the country, rose 14.9 per cent - the third fastest growth of any source - to 14,035 people, in the 2007-08 year, the Department of Immigration and Citizenship.
New Zealand, United Kingdom, India all ranked ahead of China in the number of settler arrivals, the data shows.
Affordability worries
Nonetheless, the impact of the new investment has raised questions about housing affordability for would-be owner-occupiers.
One Melbourne real estate agent, who asked not to be identified, privately worried about what the Chinese demand would do for the chances of local buyers.
He said the topic was a constant subject within the real estate industry, although few agents wanted to question a trend that generated financial benefits for them.
In his view, "the rising Australia dollar has not impacted at all the demand from Chinese,'' he said, estimating that currently in Melbourne about 40 per cent of properties over $1 million in the inner suburbs were being sold to Chinese and Indian investors.
http://www.brisbanetimes.com.au/business/foreign-investors-flock-to-australian-property-20091105-hzx3.html
a great psychological test
No cheating!!! This is a great psychological test and
extremely accurate. It is amazing what modern math can do
FIND OUT WHO TRULY IS YOUR ROLE MODEL. DON'T SCROLL DOWN
YET, DO THE SIMPLE MATH BELOW, THEN SCROLL DOWN TO FIND YOUR HERO.
It's CRAZY how accurate this is!
no peeking!
1) Pick your favorite number between 1-9
2) Multiply by 3 then
3) Add 3
4) Then again, multiply by 3 (I'll wait while you get the calculator....)
5) You'll get a 2 or 3 digit number....
6) Add the digits together
Now Scroll down
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With that number, see who your ROLE MODEL is from the list
below:
1. Einstein
2. Sandra Day O'Connor
3. Prince Charles
4. Genghis Khan
5. Bill Gates
6. Gandhi
7. Ronald Regan
8. Elvis Presley
9.Ivan Kaye from St Ives
10. John F. Kennedy
I know, I know....I just have that effect on people. One day, you too
can be like me :-)
P.S. Stop picking different numbers!! I AM YOUR ROLE MODEL,
JUST DEAL WITH IT!!!!!!
Friday, November 06, 2009
Property or Shares? Hear from 2 Experts
Pow Wow Events aims to provide you with an environment conducive to learning and with speakers who are not only leaders here in Australia but throughout the world.
We are delighted to invite you to learn the secrets of building a growth generating, tax shedding, high growth property portfolio PLUS how to generate cash flow, growth and minimise risk from share investing.
Events are in Sydney and Brisbane
Peter Spann (multi-millionaire share investor who advises on over ½ a billion in client funds) and Maurice Goldberg (property expert who has advised on over ½ a billion in residential investment property) join together to fight it out – shares v’s property – and you’re the winner.
Too often people either love shares OR they love property. Even if (and it’s pretty unusual) they like both they learn by making mistakes…and lots of them.
Peter and Maurice have made millions (and both have, many times over) but they have also made the mistakes so that you won’t have to!
Most “experts” don’t want to tell you about their losses, only their wins, and as you become an expert Peter and Maurice will not only help you achieve the financial freedom you always wanted but also help you build an exciting and risk managed solution. A plan that’s not just a hope or a dream and certainly not a gamble…. Real, considered, intelligent and exciting.
You will leave this day with more certainty about your next steps on your path to financial freedom.
From broke to multi-millionaire in just 7 years
Peter’s rise to wealth was swift and exciting. At 21 he was broke and working for Woolworths as a check out operator. At 28 he had built a property portfolio of over 100 individual properties and a cash flow generating share portfolio that enabled him to fund them.
His wealth creation motto is “if I can do it you can too” and he set out to prove it by teaching his strategies to literally tens of thousands of ordinary Australians – he was so successful he became known as…
The Millionaire Maker!
You can become wealthy.
You can be making more money than you are now – without working.
You can get good investment returns without taking extraordinary risk.
But you won’t be able to do it without a great wealth creation strategy.
And that’s exactly what we intend to give you.
What you’ll learn from Peter…
Super charge your wealth strategy
You’ll learn the strategy that made Peter, and hundreds who followed him rich – almost anybody can do it and you can start today.
Your Ticket to Freedom
Most people never start investing because they think it’s too hard or they don’t have enough. Peter will show you how you could retire rich starting from just $10 a day.
Easy Wealth Creation
Becoming wealthy doesn’t have to be hard – with the right strategy you can be on your road to riches the easy way
Generating Cash Flow
How you can turn your share portfolio into a money spinning cash machine to fund your lifestyle or investing – $50, $100, to thousands of dollars a month are possible
Where Billionaires hang from trees
Billions of dollars are made each day from the new industrial revolution but most people don’t even know it’s happening – you can invest the same way Billionaires do – Peter shows you how
Would you rather $16,289 or $137,858?
For example one strategy you will learn can produce up to 3% per month! Many of our clients are netting 20% to 30% PA by using it. To give you an idea of how exciting that is, if you invested $10,000 in the bank at 5% PA in 10 years it would have grown to $16,289. If you were able to get 30% PA that same $10,000 would have grown to $137,858! Pretty extraordinary isn’t it?
Click Here to Register for BRISBANE free to your family and friends
Click Here to register for Sydney free to your family and friends
Taking you beyond what you thought was possible
Maurice Goldberg is a thought leader in wealth creation. Not only has he created hundreds of millionaires but he has taught wealth creation ”experts”’ around Australia how to “think smart” when it comes to residential real estate A qualified architect, financial planner and real estate agent, he has combined his passion for property with his love of helping people achieve their goals.
Taking people beyond what they thought possible is the main purpose of my work. Wealth creation is just part of that picture, however, I have observed that when people move in the direction of their financial potential, many other areas of their lives also open up and flourish.”
7 ways to rapidly build your property portfolio
Many people sit around for years waiting to invest when they should be rapidly and safely compounding their wealth creation – Maurice teaches you when and where you should start looking for properties and when you should start buying.
Squeezing financers – save thousands
Let’s face it nobody likes paying banks anything more than you absolutely have to – Maurice explains how you could be paying thousands of extra dollars in hidden fees and costs that are better off in your pocket and how you can use creative financing strategies to get you into your next property.
Property profits
How you can use your portfolio to build your wealth and retire rich
The 5 keys to scientific property research
How you can find the properties that will make you the most. How to identify suburbs, even streets that are most likely to outperform the smart way – Pulse , the research company that Maurice started provides research to investment advisers all over Australia and this alone could save you tens of thousands when buying and more importantly compound your profits by hundreds of thousands of dollars.
The 4 Stages to creating total Abundance
Once you know these you will be aware of your patterns that prevent you “living the life you were born to live “. You will then be able to make the choice to have the wealth you desire and deserve.
Click Here to Register for BRISBANE free to your family and friends
Click Here to register for Sydney free to your family and friends
Discover how you could build a cash flow positive portfolio of quality investments
There are many ways to invest for positive return – property, high yield share funds and more but most people are mystified by the complexity of it. This workshop unravels the confusion and puts everything in plain English.
100% Full-On Wealth Education
What you get is a strong, solid, practical, and realistic education in wealth thinking, prosperity practice, quality investing, income generating, fast track strategies and tactics to safely build your wealth.
We’ve gone to a lot of trouble to ensure that these seminars will provide you with considerable value and at a price no one can refuse – FREE!
A lifetime investment in your most precious resource…
you!
Should you attend Automatic Wealth…
You should do everything you possibly can to be a part of The Automatic Wealth seminar if…- You want to move your investment strategy to the next level
- You want to shrink the time it will take for you to achieve financial freedom …
- You have been thinking about investing, but don’t know where to start…
- You have spare time that you could devote to increasing your income or investing but you don’t have the knowledge you need to take those first steps…
- You have all the knowledge you need but, for some reason, you just can’t seem to be able to begin investing…
- You are worried about the future and want a plan that will ensure your financial independence…
- You want to get out of the rat race, establish a passive income for yourself, and spend the rest of your life lying on the beach, or playing golf, or skiing …
- You have an investment portfolio, but the returns you are getting are not as exciting as you suspect they could be …
- You have been burned in your previous attempts at investing, and you’re concerned you may have lost your nerve …
- You just love being with other motivated, success oriented people who are working together to extract the most they possibly can from their lives …
- You feel as if you are the only person you know who is struggling to get ahead – everybody else seems to be taking advantage of you!
If any (or all) of these possibilities gets you nodding, then Automatic Wealth is definitely for you!
Remember, there is no risk to you!
And even if you are sceptical (and when it comes to investing money you should be) the seminar is free – you’ve got nothing to lose and everything to gain.
Don’t you owe Automatic Wealth to yourself?
Reflect for a moment about everything you will learn at the seminar.
The investment strategies, the personal skills and the hard-won experiences Peter and Maurice will share freely with you.
Think about the step-by-step plan you’ll create for yourself – a plan to leave mediocrity behind and step into a new world of true financial freedom.
And think about just how good you’ll feel when you return to your friends and family to celebrate your success.Please register now!
Click Here to Register for BRISBANE
Click Here to register for Sydney
FREE to you AND your friends and family
1800 878 878
The team will answer any questions you may have, and help you through the enrolment process.
It’s time to make a genuine difference to your life and investing.
And get ready for a big difference to your financial future.
Thursday, November 05, 2009
The 6th Sense
Ark Total Wealth Golf Day at Northbridge
Thanks so much to our clients, friends and suppliers for a great day and an awesome year.
Sunday, November 01, 2009
Gotta love SYdney - and Bondi Beach
Bondi Beach, home to some of the worlds greatest surfers, became home to a new surfing phenomenon today when Towel Surfing was born!
Over 200 people joined in synchronous dance on their towels to the music of Australian music icon Ben Lee in a perfectly choreographed routine that amazed onlookers.
It started with one, lone individual, who walked through the crowd of sunbathers and surfers and placed his boombox on the sand in the middle of the crowded beach and pressed play. What followed was a contagion of rhythm and dance as one by one other beachgoers joined in began surfing on their towels.
They kicked their feet, paddled with their hands and bobbed up and down checking for waves all while remaining on their towels, dry on the pristine sand of Bondi Beach.