Poverty..and Marshmallows ?
Poverty and Marshmallows ?
What is a noun that has three syllables, and means different things to different people ?
And none of us “wants to experience it”.
Poverty-pov-er-tee.
“The state or condition of having little or no money, goods, or means of support; condition of being poor.
Synonyms: privation, neediness, destitution, indigence, pauperism, penury.
Antonyms: riches, wealth, plenty.”
Two million, six hundred thousand Australians now live in poverty.
Try and get your head around 13.9 per cent of the total population, living in poverty.
Many of them children.
Do many of us really know what its like ?
Or will some of us come face to face with it in our future ?
It all depends on what choices we make now !
Some people measure poverty using parameters like entrenched disadvantage, criminal convictions, unemployment, no internet access, domestic violence, lack of qualifications and young adults not fully engaged in work or study disability, low education and child maltreatment, family violence and psychiatric admissions etc.
source
 |
| Australian electorate living under poverty |
"The 2011-12 ABS data suggest that around 2.6 million ... Australians live under the poverty line. Of these, almost one-quarter (618,000) are dependent children aged less than 25 years of age and 494,000 aged less than 15 years of age."
source
Now we realise that many keyboard “social warriors” in their never ending, twitter inspired reactions to words like “poverty” will rush to do some form of “virtue signalling” ergo “ To take a conspicuous but essentially useless action ostensibly to support a good cause but actually to show off how much more moral you are than everybody else.”.
Hat tip to the inventor of the term James Bartholomew,The Spectator, 18 April 2015.
So where is this weeks post going ?
How can we segue from poverty, to “investing in property” ?
Simple.
Do most Australians, now days, look at the assets of their parents and say “wow, who would have thought a share portfolio in blue chip shares, sure did pay mum and dad back after forty years”.
Of course they don’t.
But what many do mention, is the bleeding obvious and remark how much “value” the family home has accrued over the years.
No one ever says “the value of the family home after forty years has gone down”.
Because it doesn’t happen.
We believe that the most straight forward, tried and true method of long term wealth creation, is through “financially literacy”.
But how do we define that term anyway ?
“Financial literacy is the ability to make informed judgements and to take effective decisions
regarding the use and management of money and is a complex combination of a person’s skills,
knowledge, attitudes and ultimately their behaviours in relation to money.”
And what else do we find in the report by the research arm of ANZ on financial literacy ?
“ Numbers holding high interest savings accounts were steady (47 percent) as were numbers
holding investment properties (19 percent).... Around three quarters of people had consulted other people for financial advice in the last 12 months. Main sources of advice we re: an accountant (39 percent), friends or family (35 percent), a bank manager or employee (30 percent) and financial planners/advisers (20 percent).
source
And Ample Property Services, no surprises, believes that financial literacy is primarily built around investing in the right type of new property, which leads to massive tax savings now !
This logically leads to maximum and secure forms of future wealth accumulation, for all our clients.
And ourselves of course !
And many our clients that actually get this, we believe, understand the advantages of looking into the future, and (sometimes) delaying gratification now.
And we end this article on a short note about marshmallows.
To be precise, the Stanford marshmallow experiment.
source
The purpose of the original study was to understand control of deferred gratification.
For example.
The ability to be able to make a choice to achieve instant gratification now, or, wait , amnd achieve even greater reawards later, develops when we are children.
The children could eat the marshmallow, the researchers said, but if they waited for fifteen minutes without giving in to the temptation, they would be rewarded with a second marshmallow.
Mischel found unexpected positivecorrelations between the results of the marshmallow test and the success of the children many years later.
In essence, what the researchers found was, their was a correlation between the children who delayed their “in the moment choice”, for the greater reward, and later success in life.
Which is truly amazing.
The choices you make now, with the right team helping you, will effect your future !
Taking action NOW is the key to real wealth building !
Let Ample Property Solutions help you !
Our next Free Property Seminar !
Leichardt- 27th July- 2016 at 6.30 pm.
Click HERE
Phone for more details
1300 590 594
Leichardt-27th July-2016 at 6.30 pm
When it comes to property investment, there are many steps - all of which directly influence the outcome of that investment.
We can help you
These steps include working with a number of entities like Banks, Property Managers, Valuers, Tenants and others.
We recognise our clients are people who want first rate service while acquiring the best possible property. So come along with a friend and learn more about how Ample Property Solutions is helping everyday Australians secure their financial future through Investing in Property.
Click HERE
Phone for more details
1300 590 594
Are you interested in our next Free Property Seminar ?
Click HERE
This will be held in Leichardt on the 27th July, 2016.
When it comes to property investment, there are many steps - all of which directly influence the outcome of that investment.
We can help you
These steps include working with a number of entities like Banks, Property Managers, Valuers, Tenants and others.
We recognise our clients are people who want first rate service while acquiring the best possible property. So come along with a friend and learn more about how Ample Property Solutions is helping everyday Australians secure their financial future through Investing in Property.
And those numbers will just keep on rising of course.
(source
http://www.worldometers.info/world-population/)
Think about this..
In Australia.
One birth every 1 minute and 46 seconds.
One death every 3 minutes and 27 seconds.
With a net gain of one international migrant every 2 minutes and 39 seconds.
A Total population increase of one person every 1 minute and 32 seconds.
On 21 June 2016 at 11:12:29 AM (Canberra time), the resident population of Australia is projected to be hit 224,108,867 Tuesday, according to the Australian Bureau of Statistics.
(source http://www.abs.gov.au/ausstats/abs%40.nsf/94713ad445ff1425ca25682000192af2/1647509ef7e25faaca2568a900154b63?OpenDocument)
See the numbers for Australia below.
Regarding state population growth, state by state its Victoria, followed by Western Australia,NSW,QLD,South Australia.Tasmania,NT,ACT.
Job vacancy figures for Victoria's jobs market are one of the best in the nation, with 4.8 unemployed people searching for each vacant job, a result only bettered by NSW which has 4.4 unemployed per vacancy.
Melbourne has become Australia's biggest-growing city and is set to overtake Sydney as the country's biggest city in 2056, according to the latest Bureau of Statistics projections.
Yes we realise that this will spark some gloating from our friends down below the border.
But hey..we still have the Opera House and the harbour bridge..and the Victorians have..docklands.. :)
And many people will not be surprised to find out that there are large numbers of people living on Melbourne and Sydney’s “outer” fringes which are continuing to explode at a rapid rate, with new data showing outer suburbs in the two cities are growing larger and faster than the rest of the country.
Cranbourne East in Melbourne’s southern growth corridor was the country’s largest growing and second-fastest expanding suburb.
Sydney’s high-rise hot spot Waterloo was the fifth largest growing suburb, with the number of residents in the high density area.
So, by looking at the above information, we can see, that despite some ebbs and flows due to interest rates,and local fluctuations in sales..its a linear trend literally forever in house and unit prices as well as demand.
Sure some groups will claim there will be an over supply of X at Y location..thats fine and logical.
But if you have a strong team of advisors working for you, on your behalf, the risks are reduced considerably..
There is a reason why the term “safe as houses” has been around for years.
What choice, do we have between investing in houses, or units, for long term capital growth and leverage, and something like the stock market for instance ?
Do you really have the time to research the share market, the different forms of financial instruments used as ell as finding brokers and fund managers..?
And don’t forget the Australian S&P/ASX index fell 105 points last year..the index itself closed below 5k points.
That was the first time since July 2013 for the index to reach that level.
And are we calling it a crash, or a dip, or a pull back.?
Many people don’t even understand how long the crashes take to play out. Even the fabled crashes of 1929 and 1987 took weeks to play out. In 1929, the Dow Jones Industrial Average peaked on 3 September. But the precipitous crash didn’t start until weeks later.
How do you get a loan, for buying stocks ?
What do you think your bank manager would suggest to you, if you suggested, with a straight face, what you needed to borrow capital for..and then said shares.?
Home loans are a major part of any bank’s business model, and lenders are more likely to lend on residential property than any other asset class – as evidenced by the fact that they will lend a higher proportion of the value (up to 95%) and at lower interest rates than any other asset class – including commercial property.
Unlike houses/units, you do not get the same high leverage for borrowing(if at all) using blue stock shares.
If you buy a share, you buy it at the market price at that time: there’s no scope to negotiate. In the property market, it’s exactly the reverse: buying and selling is all about negotiation.
And there is more, lets see.
Tax breaks where you can write off investment expenses against your tax,benefits from depreciation as well as tax benefits.Sell your own home, you don’t pay any tax on the profit; meanwhile, if you sell an investment property that you’ve held for more than 12 months, you only pay capital gains tax on half of the profit.
And unlike shares, you can use your super funds for investing.
How good is that ?
All in all, Australias economy is pretty damn solid, populations are always going up and the government offers so many incentives to invest in houses and units, that it would be insane to place large amounts of capital, into shares.
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