A quick note from the desk of Nick Lockhart...
I said back in July that the entire global financial system was about to change… and I was right.
The media are now starting to hint at BIG changes coming.
Don’t be fooled. The changes leaked / announced are only a fraction of what’s headed our way.
In ‘The Age’ newspaper, David Crowe reported on September 24th that “Simpler lending rules for home loans and credit to free up the economy” are being introduced.
Customers will be promised faster access to loans under simpler rules that aim to free up credit and lift the economy by ending confusion over lending obligations for banks and finance companies. Treasurer Josh Frydenberg will overhaul the laws governing mortgages, personal loans, credit cards and payday lending to streamline decisions on whether customers can afford the loans they seek.
Money, earmarked for nation-building purposes, will soon be awash. Budget night on October 8th is going to be very interesting.
The level of spending about to be unleashed on the Australian economy will, in my opinion, be like throwing petrol on a fire.
Different sectors of the housing market are about to experience a HUGE shot in the arm. This, together with the new ‘lockdown paradigms’, have left many people wanting to build a new home in Queensland.
SO STOP DREAMING!
Don’t just dream of living in SouthEast Queensland! YOU CAN NOW thanks to COVID-19. Here’s someone else’s dream that could be your reality.
Back in 2010, my brother, along with his family of four, relocated to the Gold Coast, from Sydney. Leaving the ‘rat-race’ behind for a bigger and better home (with a greatly reduced mortgage), lifestyle, beaches and great weather etc. were the drawcards. Because he was a builder he could simply commute to Sydney and base himself there for four days / three nights out of each week. This allowed him to earn a Sydney builder’s income, while enjoying the lifestyle and greatly reduced price-tag that Queensland offers - the best of both worlds.
It may not yet be apparent, but the COVID-19 experience of 2020 will result in tens of thousands of workers continuing to work from home! They will when they realise that they are so much better off financially - even paying for a return flight to Sydney once a week, to attend meetings etc.
A door has opened and I think it is going to stay open - or ajar at worst!
What do you think this will do to the values of homes in sought after lifestyle locations?
Can’t Afford to Buy a Home?
Perhaps you can’t afford to buy a home in Sydney or Melbourne, but does it have to be there?
You could potentially qualify for the $25,000 home builder boost and maybe the first home owners grant (and stamp duty concessions etc.). What about building that home in Queensland and living in it for a season, before moving out and putting a tenant in?
First Home Owners Grant (FHOG) | Qualifications
In Queensland, the FHOG legislation says that “you must move into your brand new home as your principal place of residence within 1 year of the completed transaction, and live there continuously for 6 months”.
It goes on to say that “you can rent out one or more rooms in the home during your 6-month residency period, as long as this arrangement doesn’t affect your use of the home”.
I’m not offering financial advice, but is your brain starting to tick over with ideas around how you may be able to qualify for a lot of help to build your own personal real estate portfolio?
You MAY OR MAY NOT, personally, want a sea-change… but can you see how this is likely to happen regardless and, when it does, people who own real estate in the lifestyle locations will reap the rewards?
So, the bottom line is that if you cannot afford a home in Sydney or Melbourne, all may not be lost - talk with us!
2020 may be your year to STOP dreaming and take ACTION. It all starts via a conversation with us around your goals.
NEGATIVE POPULATION | Melbourne and Sydney to take the Biggest Hit?
The insights I have concerning current global events are varied. Some I’m happy to air publicly with others reserved for one on one conversations I have with people.
Politics, yet to be announced, will promote a global movement of people. That is, I see many governments financially incentivising their citizens (ex-citizens) to relocate back home - i.e. to their country of origin.
Nation building programs for countries with the greatest need i.e. victims of war, will abound and perhaps some people reading this today will ultimately decide to go back and be a part of their nation’s rebuild. The markets that house the largest migrant populations, Sydney and Melbourne, will potentially be the cities most impacted by the easing of housing demand.
A quick word to those who think the country will be awash with delinquent mortgages after JobKeeper ends in March 2021, allowing them to swoop in on an abundance of bargains.
You’re dreaming! If you actually believe that our government (and the other 206 around the world) will sit back and allow the economy to be decimated then I have a big arched bridge in Sydney for sale that you may be interested in buying.
While I do expect ‘everything’ is about to change, those investing today into well located, capital city homes will be the real winners, potentially sitting on a lot of equity not long from now. N.B. The economic justification behind my reasoning / predictions will be addressed with individual client-investors during our strategy / planning session.
If you are completely lost or confused by what I have written to this point, I’m sorry. Best you sit down, shuttup, hold on and enjoy the next few months. I said enjoy, intentionally… even though endure may seem more appropriate at times.
You may not yet realise it, but we are all on an amazing journey right now. Yes, the path has some twists and turns (as 2020 has already demonstrated), but where this all leads is amazing!
Leave your best contact details for us if you want to discuss either:
And remember, we are also active in the greater Sydney and greater Melbourne property markets, so speak with us if your next purchase is in either of those locations.
I’m 100% fair dinkum when I say that I am ONLY interested in speaking with you if you want me to. There’s not enough life left in me to care about wasting it on someone who thinks I’m just trying to ‘sell them’.
NEWS FLASH: If I can help you get ahead you win and I win as I'll get paid a commission. BUT, if you're not really that interested I'd rather relax and enjoy myself. I love mentoring and helping hungry people… but I really don’t need the practice with someone only half interested. Thanks, I’m sure you hear my heart on this.
Have a great week and I look forward to speaking with you, when the timing is right for you.