The Council of Social Services (ACOSS) always makes a submission to the budget. This year it notes that the top 10% of Australians have over $5.2 million in net wealth and that the gap between the top 10% and those below is somehow inherently wrong.
It also notes that the top 10% have made their wealth predominantly through property – and with their comments they infer this is somehow inherently wrong too.
My “Budget” in Reply comment is for EVERYONE that aspires to own a home – First Home Buyers and Investors alike.
Firstly – in my most recent emails $5.2m in assets can produce around $200k in income (at 4%) – $100k each for a couple.
Recently we heard that $78k in income is needed to live a comfortable life, I find it strange that ACOSS make negative connotations on people aspiring to live not markedly more than a comfortable, independent life.
We should ASPIRE then to being in that top 10% and my concern is that ONLY the top 10% are there.
The needy deserve a helping hand of course – but not to exclusion of aspiration – that is what used to make Australia… well Australia – the so-called Lucky Country.
I read their submission and say… I WANT TO BE IN THAT 10%!! Where I am working hard to live a comfortable life, independent of government.
PROPERTY is the key – and that starts with your first home. You simply cannot be content with renting.
Here is a huge clue in how to avoid the most common mistakes, that people all make in buying their FIRST home and also their FIRST rental property.
Mistake number 1 – They aim too HIGH.
A first home, a first investment property can still be found for $500k. Your first home (or rental) does not have to be the best you will ever own.
This does not mean way out in the burbs either. New and near new units can be found close to work and all the fun things in life very near to Capital City CBDs.
Make the first step – it’s how $5.2m begins.
Mistake number 2 – when buying they don’t find me (any good mortgage broker really) – to get them a VERY accurate idea of what they can borrow. Call it a pre-approval if you like.
And Mistake number 3 – they waste 6 months by not understanding the real price. I find that people make around 5 offers on average that are too low and miss out. They try to jag the elusive bargain which does not exist in the current low supply, high demand market. In wasting 6 months prices have risen by up to $50,000. By not researching the market (something as simple as onthehouse.com.au) people cost themselves 10’s of thousands because when they do buy prices have gone up.
So… if you read this want to aspire to improve your financial life but don’t know how to start…
I will help you. All you need to do to start is… Ask Alan
Mortgage Broker Brisbane
