Economic recovery in Australia invariably means that state and federal governments will throw buckets of money at infrastructure spending. This, in turn, ‘adds fuel’ to the residential property boom that’s already underway.

Infrastructure spending has a profound, perhaps the most profound, influence on the future value of real estate.

Shovel-ready projects

Many ready-to-start projects, i.e. planned, but waiting for funding, will soon receive what’s needed to get started.

While the Australian residential property boom that’s already well underway, it is a ‘no-brainer’ that these ‘shovel-ready projects’ will fan the boom, like petrol on a fire.

Infrastructure spending may be to upgrade public transport, schools, medical and retail precincts and so on. However, new infrastructure spending has the greatest impact on residential real estate price growth. Such spending would be on:

• Motorways
• Railway corridors and other public transport
• Schools and Universities
• Hospitals
• Etc.

Lemons or Lemonade?

There’s wisdom in the saying “when life gives you lemons, make lemonade”!

Success is tied to attitude, not circumstances. The results we enjoy (or endure) are tied to how we responded to such circumstances.

Choose to participate in the amazing opportunity real estate currently offers investors, or not. It’s your call, but don’t be deceived... no action will produce consequences and real estate affordability will be further from your reach.

Results-based Investing

We really only invest to bring about desired results. These include:

• Reduce taxes paid
• Pay off my home loan in record-time
• Add to my disposable income
• Build equity and wealth to retire on
  

It makes a whole lot of sense to:

• Do something
• Act now ahead of the imminent price rises
• Be intentional
  

QUESTIONS?

1. Do you want to add to your portfolio?
2. Can you afford to add to your portfolio?
3. Are you better off with a focus on cash flow or equity
4. What results are you looking for, 10 years from now?
5. Are you paying more than is necessary servicing your existing loans?

HOW DO THESE OPTIONS SOUND?

1. Add a brand new home to your property portfolio that earns up to 8% in rental income, making your new investment VERY positive cash flow
2. Add $350,000 of manufactured value / equity to an older Brisbane home (about 10km from the CBD). Achieved in under 20 months BY investing wiser, not working harder
   

Smart investors are opportunists

*** If your real estate rental returns are too low; increase them (up to 8%) ***

*** When equity growth is not quite there - manufacture it ($350,000 in 20 months) ***

RIGHT NOW, various MRD clients have under construction new houses to INTENTIONALLY produce the cash flow and equity mix, revealed during their investment strategy session as most appropriate.

Some clients need their investments to produce very strong cash flow, while others are making up for ‘lost time’ by investing into projects that we can improve and add value to, by manufacturing equity throughout the development process.