Infrastructure development is frequently associated with strong demand in local markets, that drives economic growth, employment and productivity.
Savvy investors often seek locations with infrastructure development in the pipeline as it can unlock future capital growth.

Infrastructure Provides Essential Services

These can be classified into three main categories:

1. Utilities: electricity, gas, communications and water
2. Social: schools, hospitals and community facilities
3. Transport: airports, roads, and rail

Upcoming Infrastructure Boosts Local Economy

With state-funded projects across Australia these can provide attractive opportunities for those looking to invest in property.

Planned projects are strong indicators of employment growth and due to the strong correlation between job growth and property price growth, investors would be smart to look for opportunities in areas where infrastructure projects have been announced.

There is historical evidence to suggest that new infrastructure projects boost the local economy by creating new jobs and attracting more people to a precinct. New infrastructure also provides indirect benefits to the community such as consumer expenditure and social benefits of community development – all of which drive demand.

Specifically, road developments and upgrades play a vital role in driving up property values, as these projects make areas more accessible.

Where To Invest Today?

Queensland is a state with improved economic and population growth which would suggest the Brisbane housing market is positioned very well for some solid growth. Queensland has the highest interstate migration in Australia with people exiting Sydney and Melbourne due to the high property prices keeping them out of the market.

The Brisbane City Council is heavily investing in to the infrastructure in Brisbane, creating more to see and do in a clean and green Brisbane, including new recreational river hubs and opportunities for tour boats to help locals connect with Moreton Bay and its beautiful islands.

South-East QLD Major Infrastructure Projects

Queens Wharf Redevelopment | 1 of the largest developments undertaken in QLD, 20% of CBD. Tourism spend $1.6bn p/y
Invested: $3bn
Jobs: 8,000
Completion: 2024

The new world-class integrated resort development will put Brisbane on the map as a tourism, leisure and entertainment destination. Watch video HERE.

Brisbane International Airport 2nd Runway | One of the largest aviation projects globally. By 2035, will handle 50 million passengers a year

Invested: $1.35bn
Jobs: 2,700
Completion: 2020

Once fully operational in 2020, the runway was estimated to effectively double Brisbane Airport’s current capacity, drawing comparisons with Singapore’s Changi and Hong Kong International. Watch video HERE.
Brisbane Airport has said previously it expected annual passenger traffic through its domestic and international would more than double from 22 million in 2014 to 50 million by 2035. It also forecast the number of annual aircraft movements would grow from 227,000 currently to 360,000 by 2035 and 500,000 by 2045.

Brisbane Metro | A high frequency, high capacity public transport system along a 21km route servicing 18 stations

Invested: $944m
Jobs: 7,000
Completion: 2022

Brisbane Metro was first announced in 2016 as a solution to address the current congestion and capacity challenges facing Brisbane’s bus network.

Brisbane Metro will cut travel times, reduce congestion, and put more buses in the suburbs. Delivering the first stage of the new Brisbane Metro will mean a 21-kilometre turn-up-and-go service, with two dedicated lines connecting 18 stations from Eight Mile Plains to Roma Street and Royal Brisbane Women’s Hospital to University of Queensland. Find out MORE.

Recently opened
Howard Smith Wharves – the new river hotspot, Brisbane’s newest dining and entertainment precinct. Formerly industrial land for decades, Council undertook an extensive process to transform the 3.43-hectare site into a vibrant riverfront destination.

Recent enhancements
With its Botanic Gardens, Planetarium, biking and walking trails, picnic areas and panoramic lookout, Mt Coot-tha is one of Brisbane’s top destinations. Recognising its growing popularity, Council is investing $14.8m in enhancements including a green leisure precinct including a zipline.

New Bikeways underway
Construction has started on two of Brisbane’s busiest cycling corridors.

How To Build A Sustainable Investment Property Portfolio

There has been a lot of negative talk in the media about property prices coming down. Yes, there has been a downturn in Sydney and Melbourne but 15 million people live elsewhere and there are more than two property markets in Australia, hundreds in fact. Also, it’s worth noting that unless you purchased in these areas in the last year or so the value of your asset would have grown considerably.

This is a good reminder however, you don’t buy into a market at the top of a growth cycle as typically a boom will last for 3-4 years and then go through a correction phase, which is exactly what we are seeing in Sydney and Melbourne. Perth did this between 2002 and 2006/07, the median house price doubled in value in 4 years, then it went through a correction. The media are putting all property markets under the one umbrella which is totally flawed and not the case at all.

The Perth market has been underwhelming since 2010. However, there are some positive signs that Perth’s economy has stabilised and it’s anticipated to strengthen in 2019. The resources sector is heating up with many new projects in the pipeline, jobs are being created and population growth is going in the right direction. The rental vacancy rates across Perth have rapidly reduced over the last 12 months with the vacancy rate now under 3%.

If you’d like to discuss any of the above or would like to have a strategy and planning session with one of our consultants we’d be happy to discuss your individual circumstances. You can reach us on 08 6323 2306.

Grab a Copy of Our E-book

We’ve put together our essential guide on how to build a sustainable property portfolio. Get your copy HERE. https://curtisproperty.online/w-guide

Regardless if you’ve started investing or it is something you are looking in to, your psychology will be playing a role in how you approach your wealth creation.  

We meet many people who say they want to build wealth with property, a favourite asset class for the majority – but who actually don’t purchase because of their current mindset. So it’s an interesting question. What are your thoughts?

Are you scared people will judge you, come and steal from you, be jealous? Perhaps in the back of your mind you’re wondering if it will really work. Maybe you’ve heard stories from people who have had a bad experience and are telling you that you’d be crazy to invest.

Fear is a very natural part of being human and the number one reason most people don’t do things.  Fear is a learned belief and you must ask yourself “is it serving me?” And if it’s not, you need to find a way to work through that.  

Letting go of fear does not mean that we are not vulnerable or fearful but rather means that we are aware of our feelings, and we do it anyway. 

Here at CPG we find education helps, discussing your concerns with someone who has been on the journey is good and we know that understanding the numbers and what is involved can also be beneficial.

One of the common things we hear from clients who do actually purchase property is how relieved they are that they’ve taken steps to create financial security for themselves, and hopefully some financial freedom too.

What 3 Things Can you Do?

1. Learn From Those Who’ve Done It

No matter where you are on your financial journey you need to know it is possible to turn your financial life around.  Making small changes in your life can fatten your savings, help you budget better and achieve greater success financially.

Research shows that 85% of wealthy people read two or more education, career-related, or self-improvement books per month.

We’ve highlighted some of the best books about managing your money and achieving wealth out there, from expert-recommended classics to some of our favourites. Discover our favourites HERE.

2. Create Success Habits

In the 1990’s, management guru Dr. Stephen Covey explained what he believed to be the defining characteristics that distinguish ‘highly effective people’ in his book The Seven Habits of Highly Effective People. This book has become a modern-day business classic.

Not surprisingly the 7 habits Covey suggests we should aspire to if we want to replicate the achievements of others are also very important to the business of property investment.

Find out our top 10 habits of a successful investor HERE.

3.Work With A Mentor

Are you surrounding yourself with inspirational people, people who encourage and support you, people who elevate your thinking, your performance?  Jim Rohn says ‘We are the average of the 5 people we spend the most time with’. This relates to the law of averages, which is the theory that the result of any given situation will be the average of all outcomes. 

When it comes to relationships, we are greatly influenced (whether we like it or not) by those closest to us – it affects our way of thinking, our self-esteem, and our decisions.  It’s common for those building wealth to underestimate the importance of the company they keep.

Here’s the kicker… Critiquing those around you may sound ruthless, but understanding their influence on your performance is critical to your success.  As someone who is wanting to create a better lifestyle financially, there is too much at risk.  If someone is continually bringing you down, you may have to reduce their involvement in your life.  Not doing so will alter your ultimate success.

A tell-tale way to tell is to check your energy levels – uplifting people give you more energy and toxic people drain it.

We strongly recommend working with a coach or mentor to move yourself forward and get the success you desire. 

We highly recommend starting with education. Wade’s Free Guide “13 Step Process To Buying An Investment Property” is a great place to start and understand the tips and tricks to building a successful property portfolio.

Download it here for FREE: https://curtisproperty.online/w-guide

Our role is to navigate our clients safely and successfully through the complex world that is wealth building. For some, this means starting with improved budgeting, savings plans and mortgage reduction strategies. For others, it’s helping them break down the barriers, both financial and emotional, that prevent them from taking the first step.

Here are 3 things you need to get right to be a successful property investor:

1. Income

When you invest in property you will receive two streams of income. 

  Rent
  Tax benefits

These amounts will differ greatly depending on the type of property and often people get it wrong. Before investing you need to establish whether these two streams of income will actually cover all costs associated with the property. If you have money left over every week it could improve your lifestyle or help you pay down your home loan quicker.

** Avoid traps** Wondering how to avoid falling in to the traps most investors make? Would you like to know how to avoid losing money and putting yourself at risk when buying a property as an investment? Learn more Here.

2. Get The Lending Right

Avoid Cross Collateralisation

The bank uses your home or another investment property to secure a new loan for your next property. You know you have this structure if the loan to buy a new property is larger than the value of the property being purchased. In the majority of cases there is no need for banks to take two properties as security. Even worse, many people are unaware that the bank has cross-collateralised their properties and it can prevent them accessing further equity in the future.

  Structure Is The Most Important Thing

The single most important component of obtaining finance is not which bank, it’s not about the interest rate and it’s not the package the bank is willing to give you. The most important factor when considering borrowing to purchase investment properties and building a portfolio is all about the structure.

The right structure in place from day one ensures you can keep borrowing and building your portfolio, particularly as you will need to invest in more than one property to achieve your long-term goals.

 Purchase The Right Property

Property investment, regardless of your level of experience, requires a commitment and skill that can only be acquired through research, experience, astute judgement and a willing financial institution. Get any one of those factors slightly wrong and the chances of obtaining the sought-after returns can be dramatically compromised.

Having been in the investment space for many, many years we know what to look for and help our clients overcome the numerous obstacles that can arise through property investing.

3.Working With A Strategic Team  

If We Could Show You A Way To

 1. Pay down and eliminate your home loan years earlier
 

2. Find more cashflow in your existing pay cheque, without sacrificing your lifestyle

3. Give the tax-man a big pay cut (100% legally)

4.Fund your first (or next) investment property with the extra cash you’ve gained at the banks’ and the tax-man’s expense

5. Build a portfolio of 3+ properties that will set you up in retirement

…Would You Spend An Hour With Us To Learn How?

If you answered yes, we look forward to hearing from you on 08 6323 2306. Check out our blogs for more info or watch a helpful video and see a whiteboard training session where Wade Curtis explains how you can generate two rental incomes from one property using “Dual Key Occupancy Property”. Watch Here.

We all want to create something great for our future, right? To give ourselves choices to live the life we desire.

Here at CPG we find that most people we meet dream about owning their own home, travelling once a year or so, and usually say they just want to be comfortable in their retirement. Some want to help with education and be able to provide opportunities for their kids. Others would like to be able to contribute to their communities or chosen charities. And some just want to be able to do all the things they’ve wanted to do in life but haven’t yet had the chance to do. What we do find though is that most don’t want to be restricted by lack of money, in what is supposed to be the best time of their lives.

Fact is we all want a full and happy life but the reality of living today can leave us unprepared money-wise for what lies ahead.

A Few Facts To Put Your Finances Into Perspective

• By 2051 almost half of Australia’s population will be aged over 50
• Many of these people will need to continue to work because their super isn’t enough to retire on
• In fact, they say you need to save 12% of your income as super over 40 working years to come close
• As at March 2018, the maximum rate for an age pension is $826.20 p/fn for a single person and $622.80 each for a couple

Most people believe they’ll be able to fall back on their Super to support their lifestyle. Unfortunately, the reality may be vastly different.

How Much Super Do I Need?

The Association of Superannuation Funds of Australia (ASFA) calculated in 2016 that the average superannuation balance required to achieve a comfortable retirement was $640,000 for couples and $545,000 for singles. This would cover expenses such as medication, rent, food and leisure activities.

How much super you need will depend on the standard of living you want to maintain. In short, it depends on what needs you have, and what extra perks you would like to be able to afford during your retirement.

The current average life expectancy for Australians at age 65 is just over 22 years for a female, and just over 19 years for a male. The longer you live the better your average life expectancy becomes.

For example, if you reach the average life expectancy that you had at 65, that is, you reach the age of 87 for a female, and 84 years for a male, then you can expect to live another 6 or so years.

The average life expectancy for an Australian female aged 87 is 6.11 years (reaching the age of 93), and for a male aged 84 years, roughly 6.5 years (reaching the age of 90.5).

When the pension was first introduced over a century ago, it was only available to people who outlived their average life expectancy by as much as 10 years. It was an absolute safety net for those who had no other means of support. Today some level of Age Pension is paid to approximately 75 per cent of Australians over the age of 65.

This trend is not economically viable as there simply won’t be enough workers to pay retirees.

TIP: Read more about setting yourself up appropriately for your retirement and discover when you can get your super or apply for the age pension Here.

What Can You Do?

You might choose to work longer, make extra contributions or get a plan together to grow your money right now, to get you in to a better financial situation.

Often, we meet people who would like to get ahead in life but who have never actually sat down and worked out the steps they will need to take to create something better for themselves. In fact, most have absolutely no idea how much they have left over at the end of the week once all their bills have been paid. Scary stuff!

How can you better impact your financial future, you might ask? Firstly, be aware of your spending – a budget is a very important tool to use on your journey to financial security and is one of the most basic and effective tools for managing your money.

Budgeting clearly shows you how you allocate your money and present you the choices on what stuff to enjoy – based on your financial limitations.  It will save you the grief of overspending and being too much in debt. Budgeting does not stop you from enjoying stuff, it ensures that you enjoy stuff when you want it.

Secondly, invest in assets that will grow your money. You simply cannot save yourself to wealth and as property is a proven strategy most Australians feel comfortable buying this asset and building a portfolio.

Why Invest In Property?

You may have heard the saying ‘safe as houses’… Investing in property is a safe and reliable way to grow your money to build a better future for yourself, over time.

Fact:

• Property has made more people wealthy than any other investment class
• You don’t need specialist knowledge or be a rocket scientist to invest
• You don’t need large amounts of cash (you can use equity)
• You can leverage your money very well
• Investing in property bring big tax benefits
• Your rental income grows over time and can even go towards covering your costs
• You make the choices with all investment decision firmly in your control
• Improvements made to the property can increase your rental return
• Even a poor purchase decision will eventually experience growth

Even at an average 7% growth property doubles its value every 10 years. Buy the property, hold on to it and just watch it grow.

If you would like to discuss your individual situation feel free to contact us for a complimentary, no obligation chat on 08 6323 2306, send us an email to info@curtispropertygroup.com.au

We all know that property is the preferred asset class for most Australian’s looking to grow their wealth. However, most don’t ever buy more than one investment property. Why is that?

What The Stats Say

ATO statistics say that about 2 million Australians own an investment property with about 75% of them only owning one.

There are a number of reasons people buy their first but never their next investment property and we list some of the more common reasons below:

1.Think One Is Enough

One of the main reasons why people only purchase one investment property is because they think one will be enough. Most are aware they need to invest and grow their money for their future but many will only buy one, thinking that this will be enough.

No-one had shown them how investing in property creates retirement income, when done the right way.

2.Fear Of Taking On Debt

Many Australians have a fear of going in to more debt and think buying property has their finances become more risky. The opposite is true – when buying well located property you’re going to have less risk, because you’re setting yourself up for financial security. When you understand the facts and figures and what you’re likely to achieve in the next 5 – 10 years it can help you feel more comfortable with your decision.

3.Low Borrowing Power

Another challenge investor’s face is their lack of borrowing power and we talk to people often who have been advised by their bank that they aren’t in a position to borrow any more. It is always best to work with an experienced broker rather than go directly to your bank, one that specialises in investment lending who can look at your personal financial situation and identify opportunities for you to leverage further.

4.Something Goes Wrong With The First One

Rather than researching the fundamentals of the market most investors purchase a property in an area that they know so don’t necessarily make money out of their first transaction, immediately. They may end up with something that costs them money and over time they become despondent about investing in property.

Or it may be that their first tenants were ‘bad’ ones and that has soured the experience for them.

Or perhaps they hired a property manager that tends to make life difficult for them and this has brought up its own challenges.

5.Fear Of Making The Wrong Decision

It’s easier not to have to make a decision than to make the wrong decision. However, making no decision is still making a decision!

The weight of the responsibility often holds investors back and often they’re dealing with huge sums of money, so want to make the right decision.

If all they are focusing on is what could go wrong, it hardly puts them in the right frame of mind to go out and make a purchase.

6.Lack Of Education

We don’t learn how to invest at school and if you don’t come from a family who are investors, or have trusted people around you to learn from and guide you it can be challenging to continue the journey of building wealth for your future.

We find the majority of our clients aren’t really sure what they’ re doing and come to us to find out the best way to invest and enjoy working as part of a team to get the best results. They also understand the importance of being able to simply pick up the phone and chat things through.

This is where education and research is crucial, as is having the right financial and investment advice – particularly if either party in the relationship has been burnt by property in the past.

7.Worry About Things You Often Can’t Control

People often will worry about things which they have very limited control over like, ‘What if I can’t get a tenant? What if I do get a tenant and they trash the place? What if interest rates rise?’ .

This, together with doom and gloom headlines in the media, the well-meaning but negative comments of friends and family can cause many potential investors to stop their wealth building journey.   

How Can Curtis Property Group Help You 

We understand that investing in property can be a little confronting for some, which is why we enjoy educating our clients while also helping them to avoid the common mistakes most investors make.

The First Step is your Free Investment Planning Session

Register for your free Investment Planning Session with one of our team, where you will learn practical and easy to implement wealth strategies suited to your current financial situation. Call our office on 08 6323 2306 or email info@curtispropertygroup.com.au  

Read some of our other blogs:

7 Mistakes Commonly Made By Property Investors – http://curtispropertygroup.com.au/7-mistakes-commonly-made-by-property-investors/

What Does The Perfect Investment Property Look Like – http://curtispropertygroup.com.au/what-does-the-perfect-investment-property-look-like/

How To Be Smarter Than The Banks – http://curtispropertygroup.com.au/smarter-banks-investing-property/

When investing in property you will want to make sure you are claiming as many Tax benefits allowable by the Australian Tax Office, to maximise your cash flow. 

The amount that can be deducted depends on the age and value of the building and it is advisable to have a tax depreciation schedule completed by a Quantity Surveyor which will itemise the age of the property, what materials it is built from, the internal fittings such as carpets, window treatments, appliances etc. An estimated value is placed against these various items and they are depreciated, depending on their age and value.

The financial benefits of such a depreciation schedule can be large, especially for new properties which could be up to $10,000 each year. Ideally, it helps investors reduce their taxable income, pay less tax and improve cash flow.

See below our top questions and answers about the benefits of using a Tax Depreciation Schedule:

1.What is a Tax Depreciation Schedule (also known as a property depreciation report)?

A comprehensible list of all the property allowances claimable under the Income Tax Assessment Act. It is a tool used by property investors to show the amounts allowable as deductions in your annual tax return, resulting in significant tax savings each year of ownership of the property.

It allows you to claim a tax deduction for wear and tear over time on an investment property. It allows you to claim on the construction costs of the building and also be able to claim on internal items like ovens and carpets.

Put simply, property depreciation basically reduces your taxable income, optimising the financial return on your investment, allowing you to claim the maximum benefits.

2.What allowances are available?

The following allowances, where eligible, are summarised in a yearly cash flow showing the amounts

• Depreciating Assets

Depreciating assets which include items such as blinds, ovens, stove tops, carpets, and hot water systems are written off over a number of years based upon their effective life determined and are calculated from the settlement date of the property.

• Capital Works Deductions

Capital works deductions are based upon the historical construction cost of the property and vary depending on the commencement date of construction and type of building.

Residential properties can be written off at 2.5% per annum for buildings constructed after 15 September 1987. If construction started between 19 July 1985 and 15 September 1987 then it can be written off at 4% per annum.

• Structural Improvements

Structural improvements such as foot paths, fencing and other hard landscaping can be written off at 2.5% per annum if construction started after 27 February 1992.

3. Can I also claim the cost of the land?

No, unfortunately this is non-eligible and will be excluded from the depreciation schedule.

4. How long does the schedule last for?

You only need to get one report done, which is valid for 40 years – unless you conduct substantial works or alterations on the property and then you may look to get an updated one. Your accountant will be able to look after most items of additional future expenditure such as new carpets, blinds, etc.

5. I haven’t previously claimed any depreciation. Can I still claim?

Don’t fret. The ATO allows you to request an amendment to your tax return within 4 years. You can therefore backdate your tax claim to take into account of your depreciation allowances accordingly.

6. How do the 2017 Federal Budget changes affect me?

The great news is that if you purchased a brand new property or a property in a company name, you can continue claiming depreciation as you would have before the Budget.

If you purchased a second-hand, residential property in your name or SMSF after 9^th May 2017, you can not claim depreciation on ‘previously used’ plant and equipment. You can still claim deductions on the building allowance (bricks and mortar) of the property, which typically represents about 85% of the construction costs.

What Next?

If you have any questions regarding our content or would like a complimentary consultation where we can show you the most effective strategies you can use to eliminate your tax legally.  You can email us at info@curtispropertygroup.com.au or call our office on 08 6323 2306 or register for your free consult here.

For more articles about being a successful property investor, see:

3 Ways To Better Prepare for End Of Financial Year

Top Tips For Landlords – How To Rent Your Investment Property Successfully

Ways To Create And Maximise Your Wealth Opportunities With Property