FINANCIAL FREEDOM IS THE RESULT OF CONCENTRATING ON THESE MAIN AREAS.
REDUCING DEBT, TAX SAVINGS, INVESTING & LEVERAGING YOUR EARNINGS.
Components of creating wealth
There is no one area of your finances that is more important than the other. You need to evaluate all areas and apply a strategy that will tie them all together in the best way possible for you. Financial freedom is the result of concentrating on these main areas. Reducing Debt, Tax Savings, Investing & Leveraging your earnings. One cannot do it by savings alone.
Leveraging to maximise your wealth.
The average Australian weekly wage is $1,164.00 which totals $60,528 pa.
It’s, therefore, necessary to leverage your earnings. This means you either borrow to invest in property or you borrow to invest in shares.
The banks will not lend extensively to buy shares, even if it’s their own shares. That means leveraged exposure to well-located, investment grade property is the fundamental best option.
Investing in Property
When you take into account the fact that realestate.com has 195,000 properties listed for sale it is apparent that property selection is far more than simply selecting properties within investment grade locations which are close to transport, schools and shops and are located within roughly 30-40 minutes of main city CBDs.
Other factors include; quality of build, the reputation of the developer, area vacancy rates, investment analysis, design and layout, finishes, landscaping, suburb analysis, depreciation assessment, deposit requirements, suitability for SMSF purchase (for SMSF funds) if applicable, and loan suitability. At Colonial Pacific, we have the experience to remove the guesswork and cross-reference with our criteria on what’s is a good fit for you personally.
Colonial Pacific uses advanced operating algorithms to calculate Property Investment Analyses (PIAs) similar to those used widely in the industry, however, any algorithm will only produce results commensurate with the skills and experience of the individual running the input and conducting the various ‘what if’ analyses involved.
Financing – Your investment strength.
Our affiliates research the mortgage market right across Australia and match appropriate loans to appropriate client circumstances. Selecting the ‘wrong’ loan can end up costing you many $10s of thousands in additional and unnecessary costs and because many mortgage brokers choose the ‘path of least resistance’ they may place with existing banks or other more expensive and unsuitable loan structures.
Get on your way to creating more wealth today!
A. Leverage is the investment strategy of using borrowed money: specifically, the use of borrowed capital to increase the potential return of an investment.
A. Because property prices are more stable, banks are more willing to lend against them. This means it’s far easier to build a portfolio of properties using debt than it is with shares. Bank usually lend up to 50% on shares and 80% on property.