Investa Solutions

If you want to improve your life and well being in particular your wealth and
fi nancial freedom this is the day is for you!

You will learn how to:
> retire in 10 years

> pay your house off in 10 years or less

> stop working full time and spend more time with your family

> find balance in your life

> develop a property ...investor mindset

> set lifestyle and investment goals

> pick the next best property Market

> maximize your tax benefi ts with property


Now is a great time to invest in property. Investa Solutions can help you learn how to successfully invest in the property market.

Steve Zimmerman, certifi ed Life Coach and founder of Barossa Life Coaching Academy will share some life changing principles of successful
living which can be applied in all major areas of life.




Speakers Ian Lloyd
Investa Solutions CEO, avid investor & property commentator

Steve Zimmermann
Life Coach
Barossa Life Coaching Academy

When Saturday 7th November 2009
9:30am for registrations and morning tea. 10am to 4:15pm

Cost $49 per person
Includes all sessions, lunch,
with morning and afternoon tea

Where Barossa Weintal Resort
Murray Street
Tanunda SA 5352

Seats are very limited
Bookings are essential


Call 1300 133 582 or visit us on www.investasolutions.com.au to secure
your booking now.Read More

Well, interest rate rises are upon us again! Many were hoping against hope that they would stay at historic lows for a bit longer. Is this a good thing or a bad thing? I think it is a bit of both. Though the timing of the first rise is being argued by economists from all walks, if you refer back to my earlier article o...n interest rates, I suggested that the average variable interest rate for the last 20 years has been 7.2%. Combine this with the fact that we have currently been on the lowest rates for 45 – 50 years it was inevitable. The greater insights the Reserve Bank of Australia (RBA) and the Government obviously have into Australia’s and the world economy beyond what the average person on the street knows indicates that we are going to experience further growth and strengthening in those economies, especially Australia’s.

The unexpected fall in unemployment figures for Australia after the announcement of the interest rate rise would add weight to the RBA’s decision to raise rates. It will also give weight to another rate rise soon. I don’t think any economist has the precise insights some would suggest and there is still a large unknown aspect to the predictions offered. Predictions are all they are, with odds offered as to the chance of a rate adjustment in any given month. The uncertainty and speculation often only contributes to the fear factor in the consumer or borrower. Don’t let fear dictate your investment decisions!

What we don’t know at the moment is how retail sales will perform this Christmas without the Government’s $900 stimulus in each pocket combined with the impact of the current rate rise and fear of further rate rises. Many will be circumspectly keeping back some reserves to cover the increases on the mortgage or mortgages in the case of investors holding multiple loans and properties. This is an unusual market because the Government tries to keep the inflation rate (CPI) between 2 – 3% and raises rates when it is above 3% to kerb growth or “bubbles” forming in particular sectors of the economy such as housing and usually lowers rates when it falls below 2% to stimulate the economy and growth. Our inflation rate at June 30th 2009 was 1.5% which is well below the 3% mark but we have already seen the rate rise(s) begin. Another influencing factor in my mind for Christmas retail sales are all the first home buyers who have extended their borrowing capacity to the max because of home “boosts” from government up to $42,000 depending which state you live in. Many are going to be nervous about the interest rate rises especially because many are still in the midst of building their homes or even as many as 50% have not even started to build yet. What rate will apply to them once they have their new homes? That is the perceived or real destabilising fear factor many first home buyers are facing.

Our dollar is strong therefore investment into the country will be desirable further stimulating the economy which in turn should drive inflation. Because the dollar is strong we may see a move towards people spending more on cheap imports such as plasma TV’s etc. because we can now buy them at cheaper prices compared to other currencies.

Growth usually reduces unemployment which again is somewhat confirmed by the latest figures. Our resources sector appears to be heading back to solid ground (not to use the boom word) but this will be affected by the countries like China, India, Brazil etc who all are heading into stronger financial growth figures also.

Another aspect to drive growth for Australia is our population increase. The figures released recently show another record year on the books with an increase of 439,000. The figure for immigration was 278,000 with the remainder being births. This is up by nearly 100,000 on the previous record year. Surely this has got to have a further effect on the supply and demand imbalance.
Check out the RP Data report attached for more details.

Most aspects of the Australian economy and its linked influences are looking positive so in a snap shot here is how I see it affecting property investors:

> Interest rates rising towards 20 year average variable rate (delivery rate of 7.2%) over the next 18 – 24 months – watch your cash flows and keep a bit more in reserve.

> Rental demand still high and vacancy rates still low – rising rents over next 2 years – compensation for rising interest rates.

> Property Values increasing – BIS Schrapnel still on track for projections of 20% growth over 36 months with 12 months already gone so within the next 24 months. Figure excludes CPI so growth per annum forecast only about 4.8% pa. Potential to release independent securities (properties Titles) for further funding.
(See latest RP Data report attached)

> Lenders loosening criteria with added competition in the next
18 – 24 months coinciding with valuation increases. Potential for
top ups on loan facilities. Some relaxing on lo-doc loan requirements. Plan for these time periods for cash flows!

> Development funding to remain tight for the next 24 months. (2 units or more) Use Line of credit.


Speak to an Investa Solutions Property mentor today about your options and to organise a Property Cashflow Analysis. (PCA) This is a powerful tool in managing your portfolio.



Successful Investing

Ian LloydRead More