How much do you need to invest in 2021?

Did you know what the median house price in Sydney was a decade ago?

Well, it was about $640,000 and had been hovering around that level for a few years.

Buyers agents started buying in the Harbour City back then because they knew the fundamentals that drive market upswings were well under way.

By 2012, Sydney property prices were rising and continued to do so for five years, before taking a breather for a year or two and started to increase again last year.

Now, the reason for this history lesson is not to sing the praises of Sydney over anywhere else, because we usually buy in locations that offer property price growth projections more affordably.

It is to highlight the equity that many medium-term homeowners in Sydney probably have available to them to invest.

Over the past decade, the Sydney median house price has increased by 78 per cent, and that means many homeowners now have hundreds of thousands of dollars of equity in their properties.

The key, of course, is to not to just let it sit there under-utilised, because it can be reused for wealth creation purposes.

Investing affordably

One of the first questions we ask new clients is how much they have available to invest in property.

Sometimes, people don’t understand the funds they truly have available because they believe they have to come up with cash for a property deposit.

Often, though, it turns out they have the equity in their homes that they can reuse to improve their financial futures.

One of the keys to our property investment strategy is its affordability with investors generally only needing about $80,000 in funds to buy a house in a location primed for capital growth in the future.

We buy for clients in capital city and major regional locations around the nation, where the market fundamentals are showing promising signs.

This means that $80,000 goes a lot further than it would in Sydney, where it wouldn’t even be enough to invest in an inferior unit 50 kilometres from the city!

However, by buying in strategic locations that are also more affordable, investors can secure houses on generous blocks of land as well as ones with strong cash flow for as little as $400,000.

On top of that, the low interest rate environment means that investors buying into affordable locations, such as Greater Brisbane, where the rental market is also firing, are finding that their property is neutral or even positive cash flow from the outset.

Circling back to my Sydney story at the start, it’s clear that homeowners with holdings in the New South Wales capital – or elsewhere around the state and nation – are well-placed to create wealth in the years ahead.

The key is to recognise the opportunity they already have to recycle a small proportion of their equity into another income- and capital growth-producing asset.

How long-term inflation will underpin a market boom

At the tail end of one of the toughest and most unusual years any of us have experienced, there has been something that happened that has also happened many times before.

At the start of the pandemic, seemingly, the property sky was set to fall in ways that had never occurred before, according to plenty of naysayers.

However, professional property experts knew this was unlikely to occur because history had shown us the resilience of real estate time and time again.

So, here we are, with property prices having strengthened in most locations across the nation – contrary to some of the more absurd predictions that were bouncing around at the onset of the pandemic.

Plus, these upswings are just the beginning of more property price growth in the months and years ahead in my opinion.

Cheap money

It’s important to understand that the property market relies heavily on a couple of key metrics – which are supply and demand as well as credit.

With the economy looking so grim, the Reserve Bank has started printing money to prop it up, plus interest rates have dropped to once-in-a-generation lows.

The current cash rate of 0.1 per cent has been set to encourage people to spend, but it has also given everyone a pay rise via cheaper money which has improved everyone’s serviceability along the way, too.

Historically, the availability of cheap money has always followed an economic downturn, with property prices firming in the years afterwards partly because of it.

Inflation will also play its part in property price pressure, which might seem an odd thing to say given we’re in  a low inflationary – and temporarily deflationary – environment.

This is because when coronavirus hit, everyone started saving money, which in return slowed the velocity of money down.

 

What I mean is if one person stops spending then that is another person’s income, which eventually has a knock-on effect when it comes to inflation.

However, this gives a false sense of what inflation is actually doing, because if we’re printing money and expanding its supply, but everyone is conversely saving, it becomes much harder to measure it.

As confidence returns, the velocity of money speeds up and low interest rates do their thing, we will see the effects of the expanded money supply, which will quickly devalue the dollar and create a high inflation similar to the 90s.

Like I said at the start, we have been down this road before.

Sure, the reason for the economic downturn is not the same, but the policy settings and end results are nothing new.

For example, in the recession of the early 1990s, the cash rate was reduced from an eye-watering 17.5 per cent to just 5.25 per cent in a few years to stimulate spending.

At the same time, inflation fell rapidly as the economy struggled, but within a few years that supply of cheap money saw inflation increase again to be 4.1 per cent by 1995.

Remembering that our current inflation rate is 0.7 per cent, the current super-low interest rate environment will ultimately increase inflation, which in turn will devalue the current debt held by the government and private debt holders such as property.

Long-term, it will further inflate property prices and wipe out the savers who are struggling to get on the property ladder because they won’t be able to save quick enough.

But those of us who have secured strategic property investments are in-line to benefit significantly – as long as they keep an educated eye on what has happened many times before.

What do recessions mean for house prices?

It is unfortunately common for falling house prices to become a hot topic during economic downturns.

During the pandemic, this has again been the case, with some early “predictions” forecasting imminent double-digit property price falls.

Of course, nearly six months into the crisis that has not been the market reality with median dwelling prices posting minimal reductions.

According to CoreLogic, the national median dwelling value just fell 0.6 per cent in the three months to July.

What can history teach us?

While no one has a crystal ball to forecast what might happen to property prices post-pandemic, looking back can provide some insights about what may be ahead.

In times of past economic turmoil, real estate has been resilient in Australia due to it being a stable asset as well as providing shelter during turbulent times.

While there may have been a brief softening of market conditions, within a few years, research shows that property prices have continued to strengthen.

In fact, according to the Property Investment Professionals of Australia, house prices increased by as much as 100 per cent in the five years after the most recent recessions or economic downturns.

5 years Sydney Melbourne Brisbane Adelaide Perth Hobart Darwin Canberra
ending % % % % % % % %
1980 100.7% 37.6% 49.7% 37.7% 64.7% 40.2%  N/A 33.0%
1988 64.1% 67.7% 20.4% 31.3% 61.9% 51.8% N/A 20.2%
1996 16.0% 3.1% 23.3% 5.9% 27.3% 20.5% 47.3% 11.6%
2014 39.7% 18.5% 6.9% 7.1% 11.4% 1.7% 16.6% 8.3%

Source: PIPA

While these results should provide some confidence about what’s ahead, the current economic situation and lending environment are also different to previous economic downturns, which is more reason for optimism in my opinion.

Low rate environment

Compared to previous economic downturns, when interest rates had to be reduced rapidly to support the economy as well as the eventual recovery, rates are already historically low.

On top of these record low interest rates, lenders are providing mortgage repayment pauses to borrowers who have been financially impacted by the pandemic.
Previously these property owners may have had to sell their assets due to financial stress.

However, that is less likely to be the case this time – especially with financial support packages like JobKeeper also in play.

We certainly have not seen any marked increase in mortgagee in possession, or distressed, sales since the start of the crisis.

Another difference between now and then is that previous downturns have generally been caused by significant and prolonged economic shocks,which is not the same situation this time around.

Let’s consider that the GFC first began in 2008, yet interest rates have remained unusually low since that time, partly due to its prolonged economic impact around the globe.

While the economic impact of the crisis is forecast to be pronounced, it will also likely not linger as long as previous financial slumps.

Property price resilience

Within five years of the most recent downturns, the PIPA research shows that median house prices in every capital city had strengthened – in some cases significantly.

Part of the reason for this is that during times of trouble, the safest returns are usually found in property, especially when supported by low interest rates.

Also, many property markets around Australia had healthy market conditions prior to the pandemic, which will be another positive for prices during the eventual economic recovery.

It is always important to remember that real estate is an asset that tends to grow in value quite slowly and sustainably.

This means that even if property prices were to soften over the next year, or even the next two, homeowners and investors should not panic.

Like any journey, there are always bumps in the road, with property prices generally experiencing periods of growth, stagnation, and softening over a 10- or 15-year period.

Yet, over this same time period, property prices are much higher than they were at the start.

Over the short-term, it is difficult to forecast the market cycle direction of any location with any certainty because of the unknown trajectory of the virus and the economic recovery.

However, the significant reduction of international migrants may negatively impact Sydney and Melbourne markets for a time.

Conversely, the work from home movement may see more people choose to migrate away from capital cities to regional areas that offer lifestyle as well as affordable property prices.

However, while we are in unprecedented territory when it comes to the way people will work in the future, the fundamentals of real estate as a stable asset over the long-term will never change.

How to turn a negative property into a positive one

We often receive enquiries from potential new clients whose first investment property is costing them money.

Sometimes, it’s because they have unfortunately bought the wrong type of dwelling in an inferior location.

But, quite often, their property could be neutral or even positive cashflow if they just did one simple thing.

What I’m talking about is a depreciation schedule, which many investors still don’t understand nor do they utilise to their financial advantage.


What is a depreciation schedule?

According to our friends at MCG Quantity Surveyors, tax depreciation on a residential investment property is a deduction against assessable income that allows the owners to reduce the amount of tax payable.

The deduction is based on the depreciating value of the property asset with an investor able to claim for two distinct types of depreciation on buildings, which are capital allowance, and plant and equipment.

A tax depreciation report is prepared by a qualified quantity surveyor and generally outlines the depreciation that can be claimed in the property over the life of the building or about 40 years.

The schedule is then supplied to your tax accountant who includes the relevant years deductions in your tax return each year.

One of the main misconceptions about depreciation is that it’s not worth doing for properties that are older, which this is usually not the case.

This is mainly because depreciation came into effect in 1987 so investors often think that if their properties are older than that they will not qualify for any deductions.

The truth of the matter is that buildings constructed before 16 September 1987, which is the line in the sand date, have usually had some sort of renovations or improves that will qualify for deductions.

Indeed, according to MCG, about 64 per cent of properties built before 1987 had undergone improvements with the average improvement value being nearly $40,000, which would likely be tax deductible over time.


Turn that loss upside down

A friend of mine owns an art deco investment apartment that was built in 1939 but as a seasoned investor she knew the value of having a depreciation report prepared for it when it became an investment property.

Over the years she had owned it, the building had been repainted inside and out, plus had new cabinetry and air conditioners installed.

These improvements meant that there was actually $3,450 of depreciation on the property each year.

While it might not seem like much, it certainly can make the difference between a property being in negative, neutral, or positively geared territory.

Indeed, the yearly depreciation was the equivalent of the annual body corporate fees for the property.

We often talk about how important cash flow is for investors so they can hold their properties for the long-term and capital growth can grow.

However, it’s vital that you understand that cash flow happens at different times and in different ways.

Depreciation schedules are part of this cash flow equation because they can often result in investors receiving increased tax returns compared to if they hadn’t claimed depreciation on their properties at all.

These extra funds, which flow every year, potentially for decades, can then be considered as part of an investor’s cash flow pool.

Fundamentally, every dollar can make a big difference to your wealth creation plans, because it allows investors to retain their portfolios for the length of time needed for compounding capital growth to become a reality.

Five top tips for first-time property buyers

Did you know that in May this year, nearly 32 per cent of all property purchases were by first-time property buyers?

Some of these also opted to buy an investment property as their very first property.

However, whether you are buying a property to live in or to rent out, first-timers should adopt the same investment strategies, including these five.


1. Don’t be afraid of LMI

 

LMI or Lenders Mortgage Insurance is often seen as an expense that must be avoided at all costs.

In short, LMI is a fee that lenders charge when a borrower doesn’t have a 20 per cent deposit.

However, some first-time potential buyers scrimp and save for so long for that magical deposit figure, while property prices are increasing faster than they can save, so they are forever chasing their financial tails.

This often means they don’t buy at all or pay a much higher price, which is an opportunity cost far greater than the LMI would have been in the first place.

For example, the LMI on a $500,000 property with a $50,000 deposit on average $12,000 depending on the location of the dwelling.

But if it takes you another few years to save the other $50,000, prices are likely to be much higher again.

 

That’s why it’s important to use smaller deposits in the accumulation phase of building a portfolio.

 

Indeed, also, if you did manage to save, say, $100,000 you could potential buy two $500,000 properties with 10 per cent deposits rather than just one, which will mean that any capital growth is doubled.

 

2. Balance your portfolio

One of the decisions that often stumps new investors is whether they should buy a capital growth or a cash flow property.

The best strategy is to create a balanced portfolio that features both of these types of properties, which will help you to grow, and keep, your portfolio over the long-term.

What I mean by that is capital growth properties that grow in value and create equity that you can recycle into more property purchases.

While, cash flow properties, on the other hand, help you to service your borrowings by way of rental income.

Over time, this becomes passive income as the mortgages reduce but rents rise.

 

3. Find a team of experts

 

Gone are the days when having a home paid off by the time you retire will mean you’ve got it financially made in your twilight years.

In fact, that was never really the case, but in generations gone by our grandparents and great-grandparents didn’t travel overseas as much as we generally do.

Unfortunately, people didn’t live as long either back then, so they probably didn’t need to worry about financing decades of retirement like we do.

These are some of the reasons why more and more people have become property investors, because living on the pension for years is just not appealing.

And the way that they improve their chances of building a successful portfolio is by leveraging off a team of experts.

The ideal team of experts generally includes a mortgage broker, buyer’s agent, accountant, solicitor, pest and building inspector, property manager and quantity surveyor.

 

4. Look outside your backyard

Something else that has changed over the past few decades is the rise of interstate investors.

More and more investors understand that there are different market cycles happening at the same time across the country.

So, rather than buying down the street from where they currently live or where they grew up, they consider locations where prices are primed to strengthen over the short- to medium-term.

Sometimes this is interstate, with affordability considerations being part of the equation, too.

Rather than being limited to being able to afford, say, just one investment property in their home city or region, they may well be able to supercharge their portfolio by two or more properties by looking further afield.

One of the reasons why they are able to do that is because they also recognise that strategic property investment should be emotionless.

 

5. Stress-test your portfolio

Another fundamental that all first-time property buyers must do is stress-test their portfolios.

Essentially this means ensuring they have the cash flow, or easy access to funds, that can see them through financial upheavals.

 

This could be a cash buffer sitting in an offset account or perhaps access to a line of credit.

Whichever way it is, sophisticated investors have enough funds available to them to cover their livings costs as well as their personal mortgage repayments for several months if they lost their job expectedly.

Having this cash buffer will essentially mean that they won’t have to sell any of their properties during times of financial stress.

 

Demand for Brisbane property soaring

Buyer demand for Brisbane property, imparticularly houses have returned to levels pre-crisis over recent weeks with dozens of people at some open homes.

Negotiations for strategically placed properties are much tougher than they were with more buyers competing for a low volume of listings.

During coronavirus, we remained active in middle-ring locations that offer houses around the $400,000 to $500,000 mark, and mostly had the pick of the crop.

Now, listings are still constrained, but the number of active buyers has surged two- to three-fold compared to March and April.

In fact, we have have seen up to 30 groups going through just one open home because of the lack of stock with first home buyers and owner occupiers the most common buyer type.

This state of play is reflected in the latest data and analysis by the Real Estate Institute of Queensland (REIQ).

The REIQ’s Queensland Market Monitor (QMM), released on Friday, found that the Sunshine State property market was in fine shape during the first three months of the year.

According to the QMM, Brisbane’s median house price increased 0.7 per cent over the March quarter and had strengthened by 1.5 per cent over the year ending March as well.

Greater Brisbane’s market – including the Logan, Moreton Bay, Ipswich, and Redlands regions – was also performing well, posting median house price growth of one per cent over the year as well.


Temporary pause

Local experts interviewed for the analysis say the Brisbane property market, as well as all other major markets, took a breather in April as peak virus uncertainty hit the State.

However, by May, green shoots of confidence and improved consumer sentiment had started to appear.

This market resurgence continued into June, which is what we are currently witnessing on the ground in Brisbane.

It seems that owner occupiers and first home buyers with the means to purchase are attempting to do so.

First-time buyers in particular are active in those suburbs that still have affordable investment-grade housing.

A few months ago, when asked by the media how the Brisbane property market was faring, I said properties were achieving their listing prices but there wasn’t the fight from buyers to push prices much higher.

Fast forward a few months, though, and that situation has started to change, mostly because of the continued reduced stock levels.

CoreLogic’s Home Value Index found that median house values in Brisbane stayed stable in June and had increased by 1.9 per cent since the start of the year – a result superior to Melbourne over the same period.

Brisbane property index results
But I wouldn’t say it’s a seller’s markets by any stretch.

That’s because, while there are definitely more buyers out there, most of them don’t seem to have any sense of urgency.

Mostly, this is because they believe there will be a significant property price slump come September when the JobKeeper payments are wound back as well as mortgage repayment pauses.

Long-term focus

Personally, and professionally, I don’t believe the Brisbane property market will experience any major impact from the ending of these initiatives.

Lenders will not want a flood of mortgagee sales for starters, so will work with customers experiencing financial distress to prevent such a thing happening by extending repayment holidays or reductions.

That said, it is almost a moot point, because savvy property buyers and investors always purchase when conditions are right for them, including when there are market opportunities.

They also understand that to create property wealth, they need to hold their investment properties for the long-term, so it is irrelevant to them what may or may not happen in September.

With interest rates so low, and with a reduced volume of buyers compared to the average currently in the market, there has never been a better time to secure a holding in Brisbane in my opinion.

Not only does the Sunshine State capital offer affordable house prices, rental yields are usually much higher than in southern states.

Plus, I’m picking that interstate migration into Queensland will start to soar once borders are reopened as more people opt to work from home from one of the most beautiful places in the world.

Homebuilder program to benefit affordable areas and first-timers

The new Federal Government HomeBuilder grant is set to ignite affordable locations and further help first-timers across the nation. The HomeBuilder program will be of huge assistance to the construction sector over the next six months, which is good news for everyone given the industry’s importance to the overall health of our economy.

The eligibility criteria of the scheme, including maximum income and purchase price limits, means that it will likely benefit first home buyers as well as buyers in more affordable areas the most.

First home buyer incentive

The HomeBuilder grant program will provide $25,000 for the construction of a new property, which for first home buyers will be additional grant funds to what is already available.

In most States, there are First Home Owner Grants for the construction of new homes already in place.

In NSW, it is up $10,000, in Victoria the grant is up to $20,000 (depending on the location) and in Queensland it is $15,000.

 

So, a quick calculation shows that first home buyers could receive up to about $35,000 to $45,000 between the two grants depending on which they state they live in and where they buy.

On top of that, most states have stamp duty concessions for first home buyers, which sees them pay no, or a much reduced, transfer fee.

Plus, there is the existing First Home Loan Deposit scheme that provides deposit guarantees for first home buyers who have a deposit size as low as five per cent of the purchase price.

This scheme means first-time buyers don’t need to pay Lenders Mortgage Insurance, which is another significant saving for them.

So, with all of these schemes and incentives bundled together it’s fair to say it’s the best time to be a first-time buyer in a very long time!

However, like any significant financial decision it is imperative that they access expert advice before proceeding with a property purchase.

That’s because it is a long-term financial commitment that could have negative connotations if they select the wrong location or construct an inferior dwelling type.

Affordable areas set to shine

 

All the various grants outline above, including the HomeBuilder program, have one thing in common mind you – and that’s the maximum purchase price, which is $750,000.

In some cities, like Sydney and Melbourne, that won’t buy you much real estate anywhere close to the city, but in others, like Brisbane, it will.

However, in outer ring and regional areas, where property prices are more affordable, the numbers change and with it so do the opportunities.

With the maximum price point for the HomeBuilder program set at $750,000, I believe it will be the more affordable areas that will benefit the most.

My picks in Sydney would be the west and south west, as well as the Hunter region.

In Victoria, areas such as Geelong, Ballarat as well as Melbourne’s western and south-eastern suburbs are set to strengthen from this new activity and demand.

In Queensland, where affordable property is almost its middle name, the outer ring suburbs of Brisbane, such as the Logan, Moreton Bay and Ipswich regions, are on track for good times.

But so is the Sunshine Coast, where there is a huge number of major infrastructure projects under way already.

At the end of the day, the HomeBuilder program is designed so stimulate a major part of our economy but the by-products of it will be more people becoming property owners as well as improved market conditions in myriad affordable locations.

Why the market is set to boom

Predictions of massive price drops always happen when there is an economic shock of some sorts.

Forecasts of 30 per cent property prices drops that are seemingly imminent, but which ultimately never happen.

In fact, after the GFC and the last recession, any temporary softening of prices soon turned into sustained growth.

Source:Corelogic

This time again, the same is likely to be true, but in a more significant way.

That’s because we have the lowest interest rates on record, which the Reserve Bank has told us will remain that way until Australia again reaches full employment – a timeframe of a number of years into the future.

 

What have prices been doing?

Property investment is, unsurprisingly, impacted by consumer sentiment.

So, when people are fearful, sales drop off and prices flatline.

Conversely, when people are confident, sales soar, along with prices.

The uncertainty about the impact of coronavirus on the economy has seen sales prices reduce somewhat, but it’s not what it seems in my opinion.

Rather, people are currently paying the listing price instead of five or even 10 per cent above it, which is not a technical price reduction at all.

At the time of writing this, we aren’t seeing significant price falls come through the data, but that is also because most property metrics lag reality by about three months.

So, when the data for the current quarter becomes available in a few months, it is already old news and the bottom of the market would have already passed.

 

One of the factors that generally causes sudden price falls is mortgagee sales and that is not happening – and is unlikely to happen as well.

That’s because of the various financial support programs available, such as JobKeeper, but also mortgage repayment pauses and rental support packages.

This means that property owners aren’t suffering the same level of financial distress as perhaps has been the case during other economic downturns.

Also, with fewer active buyers, many vendors are holding off listing their properties for sale, which is helping to prevent price falls.

 

What will happen to prices next?

Like with pretty much every market cycle, most people sit on the sidelines until there is “proof” of better times on the horizon.

Of course, by then, they have already missed the best buying opportunities.

This is currently the case, with many potential buyers waiting until restrictions have been eased and a more normal life has returned before entering or re-entering the market.

This means that there are presently excellent property investment opportunities available because there are fewer buyers competing on the same properties.

Indeed, it is almost the Holy Grail of a property investment cycle, with the combo of softer property prices and cheap credit.

However, not long after the fear has dissipated and restrictions have been removed, hordes of buyers will scramble to get back into the market, because of the following factors:

  • It’s the safest asset class with a history of withstanding even the most severe of economic downturns.
  • With hundreds of billions of dollars entering our financial system, we will see higher than usual inflation over the next five to 10 years, which will devalue the dollar and see real estate prices rise. The inflation will also devalue debt.
  • Money is becoming worthless because of cheap credit, plus with savings doing nothing for you in the bank, people are looking for a safer return via real estate.
  • We are in a deflationary period. So, to get us out of this situation, we will be printing money. Perhaps we will even move to negative interest rates to stimulate spending, which will likely motivate more people to invest their cash into a stable asset like real estate.

That’s why, with interest rates on track to be only two to three per cent for a number of years, as well as fewer buyers transacting, my money is on property markets starting to boom before the year is out.

The impact coronavirus will have on the property market

It’s at moments like these that I’m glad I’m not a share market investor. The stock market has always been one to jump up and down and I’ve never had strong enough nerves to ride its bull or bear markets. The coronavirus has certainly given our financial markets a shake-up, with share markets down significantly in most major markets.

At the time of writing, the ASX had just recorded its largest daily points and percentage decline since the December quarter of 2008 – ouch!

The Dow also closed down 7.8 per cent, its sharpest daily decline since 2008 as well.

Property prices, on the other hand, are usually tracked over a quarter or a year, which smooths out any temporary economic ups and downs.

While the coronavirus is no doubt having an impact on our economy at present, I believe it will be short-term and the status quo will soon be back in play.

Since the start of this year, markets in many locations have been firming with the latest CoreLogic data showing capital city prices have increased everywhere, apart from in Darwin, over the past quarter.

Likewise, auction clearance rates have skyrocketed compared to the same period last year.

Sydney’s auction clearance rate has soared from 52 per cent in early March last year to about 82 per cent now.

Ditto in Brisbane, with an auction clearance rate of 53 per cent versus just 28 per cent at the same time last year.

Even Perth’s auction market is on fire – recording a clearance rate of 58 per cent in early March.

Low rates, lots of opportunity

The recent interest rate cut was not unexpected.

In fact, I wrote last year about the potential for the cash rate to hit zero and now it seems we are nearly at that point with coronavirus taking part of the blame it seems.

However, while some people stockpile toilet paper, the latest rate cut has motivated savvy investors to add to their portfolios.

Since the rate reduction, a number of our clients have contacted us to say they are keen to buy another investment property as soon as possible.

And, with rates so low and yields so high, why wouldn’t they?

Some are relatively new investors, while others are seasoned veterans.

However, they have all been telling us that their money is doing nothing for them in the bank and it could potentially cost them money in the future to have it there.

So, they all want their cash to be directed into the safe haven of real estate to secure future returns.

Apart from an understanding of property as a reliable investment vehicle, they all also share a desire to invest in a stable asset – and you don’t get much more secure than bricks and mortar.

There is a reason why the saying “as safe as houses” exists after all.

They don’t have any desire to fret about the value of their wealth from day to day – like share market investors are doing at the moment.

Rather, they recognise that property is about as safe as an investment can possibly be.

Over the decades, real estate has shown its resilience time and time again – through recessions, global financial meltdowns, and more than one public health panic.

Unlike stocks, which literally can be here one day and gone the next, property is not going anywhere anytime soon.

Its illiquid nature makes it difficult to offload quickly, which in times like these is a good thing.

While some people worry about the risk to their health and the wider economy from the coronavirus, even if they wanted to sell down their portfolio, it would likely take many weeks to do so.

By that time, some of the more alarmist reporting on the virus is likely to have disappeared – hopefully along with their desire to bunker down while they wait for the end of the world.

PRIVACY POLICY

Respecting your Privacy

Your Property Your Wealth Pty Ltd (YPYW) is committed to supporting the Australian Privacy Principles for all fair handling of Personal Information which set clear standards for the collection, use, disclosure, storage of and access to Personal Information collected during the course of business operations and compliance with the Privacy Act 1988 (Commonwealth) and its amendments (the Act), and the Australian Privacy Principles (APPs) set out in that Act. You can see the full text of the APPs online at the Office of the Australian Information Commissioner’s website at:

http://www.oaic.gov.au/privacy/privacy-act/the-privacy-act

Personal Information means your name, mailing or residential address, telephone number, email address and other transaction and registration details including the company you work for and your role and financial information, including credit card information and information collected from credit reporting agencies.

Our respect for your rights to the privacy of your personal information is paramount.  We have policies and procedures in place to ensure that all personal information, no matter how or where it is obtained, is handled sensitively, securely and in accordance with the APPs.

This Privacy Policy sets out:

  • What sort of personal information is collected and stored;
  • How information is collected and used;
  • What happens if you choose not to provide the required information; and
  • How you can request access to the personal information we hold about you.

From time to time it may be necessary for YPYW to review and revise this Privacy Policy. We reserve the right to change our policy at any time. Amendments or replacements of the Privacy Policy will be posted on our website.

Collection of Your Personal Information

We only collect personal information relevant to our business relationship with you so that we can provide our services and products. We may collect your personal information:

  • directly from you including via telephone, email or facsimile;
  • when your register on our website;
  • when you place an order or service request with us;
  • where you access and interact with our website;
  • from other sources including a third party such as credit reporting; and
  • any correspondence we receive from you.

Is your personal information secure

Where you submit personal information, we manage it by using up-to-date techniques and processes that meet current industry standards to ensure that your personal information is kept secure and confidential. We also take measures to destroy or permanently de-identify personal information if it is no longer required.

Use and Disclosure of Personal Information

You acknowledge and consent that by providing your personal information to us that we may use and disclose your personal information for the purpose for which it was collected or for a related or ancillary purpose such as:

  • supply of our services and products to you in accordance with our Terms and Conditions and any agreement entered into with you, to facilitate, process, carry out and respond to your request;
  • to our third party service providers to assist us in providing and improving our services and products to you and developing, improving and marketing our services and products to you;
  • for regulatory reporting and compliance with our legal obligations, to various regulatory bodies and law enforcement officials and agencies to protect against fraud and for related security purposes;
  • to the seller or supplier of any products to you for the purpose of ascertaining and obtaining any information required to perform our services for you;
  • to identify you and conduct appropriate checks, including credit checks;
  • set up, administer and manage our services and products and systems, including the management and administration of an account;
  • to train and develop our staff to better provide services to you;
  • to contact you; and
  • to our successors and/or assigns

What happens if you do not want to disclose personal information?

You have no obligation to provide any personal information requested by us, but if you choose to withhold personal information, we may not be able to provide you with the products and services that depend on the collection of that information.

Removing your personal information

You may contact us at any time in writing and request that we remove and delete your stored personal information.

Providing Personal Information About Another Person

You represent to us that where you provide personal information to us about another person, you are authorised to provide that information to us, and that you will inform that person who we are, how we use and disclose their information, and that they can gain access to that information.

Linked Sites

YPYW’s website may contain links to websites which are owned or operated by other parties. You should make enquiries as to the privacy policies of these parties. We are not responsible for information, or the privacy practices of such websites.

How can you access your personal information?

You may in writing request access to personal information that we hold about you. We will provide you with access to personal information in accordance with the Act and APPs and we may not grant you access to the personal information that we hold where the APPs allow us to do so. If you are refused access to information, we will provide you with reasons for the refusal in writing.

How to contact us

If you have any questions in relation to privacy, please contact us on 0490 912 045 or email Daniel Walsh – admin@ypyw.com.au. For more information about privacy law please visit http://www.oaic.gov.au/privacy.

High-Performance Property Investment in 5 Simple Steps

In this free guide, you will learn how to Implement the same strategies that led me to build a $3.5 million dollar portfolio in less than six years. – Daniel Walsh