Thoughts, Words, Actions, Habits, and Destiny
The peak performance webinar had one of our highest response rates ever! The feedback from the polls reminds us that the fire-hose of white noise we live in, more than ever requires strategies and daily habits to keep us grounded yet still engaged, educated and motivated.
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I forecast we will see significant activity and growth in our markets during the next 6-12 months. BIS Oxford has forecasted that Brisbane will grow by 20% and Adelaide by 11% over the next 3 years.
It’s going to happen quickly. Just last weekend a property sold 20% above its reserve of $3.3m.
I say that because, as I outlined on the webinar, there is significant stimulus that we have never seen before, particularly happening all at once.
The truth in numbers:
- Lowest cash rate ever. Banks offering lots of lending products with fixed rates at 3.23-3.82%.
- APRA finally reducing the serviceability calculator from 7.25%. As of last Friday the big four are now calculating borrowing capacity at 5.25%. That could increase everyone’s BC by up to 40%.
- Tax savings. Someone on $100,000 will get another $94 per month this year and $253 next year and at $200,000 it’s as high as $970.
- Record population, job growth and infrastructure spending. Population grew 404,800 last year 230,100 jobs were created and State Governments are using the low borrowing rates to build what they should have 10-15 years ago.
Land prices will easily exceed $1,000/m². What’s more is that as land sizes continue to reduce, due to more efficient planning and house designs, I expect prices will reach as high as $5,000/m² for your 80-100m² lot.
Our top clients have now amassed a great land bank, many more than 5,000m², and with interest rates so low, their cash-flow is improving.
My message to you, as always, buy land now while you can at $600-$750 per m². In 1998 I was saying the same thing and our first clients were buying land for $66/m². A house and land package then was $175,000. That house now rents for $450 per week and the land alone is worth +$600/m². They bought then on 5%-10% deposit. Do the maths on the land price growth, current return and more importantly the compound rate. Many have multiplied their portfolio returns by using the growth.
Check your BC ASAP and move forward. If you’re standing still you’re going backwards.
Needs some motivation? Log into the peak performance webinar and use the 2 daily habits I outline; they’re a game changer.