Whilst it's true that not everybody has the same mental and physical attributes, we each have the opportunity to make decisions and do certain things that can directly effect the way we live our lives in the future. Navigating your way through life may seem like a mystery tour at times - in order to arrive at your destination you need a mixture of luck and foresight - just what position you're in when you get there depends on the standard of the objectives you initially set and the quality of the goals you seek to achieve. There are many things that people want from life - happiness, health, friendships, peace of mind, hope and a reasonable level of prosperity. It may be said that with a better than reasonable level of prosperity you would have a fair handle on everything else, right? Yet why is it that the majority of people fall well short of their lifetime goals and aspirations? | LIFESTYLE PLANNING© - YOUR KEY TO PERSONAL SUCCESS! In regards to future Lifestyle Planning considerations, studies have told us that “Australian householders are generally short sighted in their lifetime economic planning and tended not to provide adequately for their retirement unless there were strong incentives to do so”. You remember the old saying "Most people don't plan to fail, they fail to plan!" No matter what your goal in life – whether it’s personal, professional, or financial – you must have an individual strategy to succeed. Lifestyle Planning© has been designed simply to help you evaluate your current situation and determine the most effective way of achieving your future goals and ambitions! DEVELOPING YOUR LIFESTYLE PLAN Step 1. Set clear, achievable goals and definite timeframes Step 2. Match your investment goals with your lifestyle objectives Step 3. Use the 3 Avenues to Wealth - Saving, borrowing & investing Step 4. Diversify your investments and mobilise your Superannuation Step 5. Utilise tax minimisation strategies Step 6. Be decisive and progressive with your financial decisions and develop A WILL-DO ATTITUDE! Step 7. Engage the services of a Professional Property Consultant THE POWER OF 3 - Gearing/Leverage/Deductions - an exponential force! Australians have always had an enduring pre-occupation with property ownership and the benefits of investing in property revolve around its underlying security, capital growth, rental income, tax-efficiency and overall affordability. Gearing means borrowing and is normally associated with the purchase of an investment asset. Current tax legislation means that the interest payments associated with your property investment are tax deductible along with many of the associated costs of the investment (this often translates into an an annual tax rebate). So in addition to the income generated from a reliable tenant, these tax deductions create a highly affordable investment option for even an average income earner. Leverage is the concept of using a small amount of money to secure a larger valued capital asset and getting the higher returns on that asset over time. No better is this illustrated than in the examination of a property investment through a Personal Cashflow Analysis. Depreciation and tax deductions - The Australian Government offers valuable tax incentives for hard working people to invest in their future so that through our toil and thoughtful planning we can ensure that we live a comfortable lifestyle in the years ahead and are not a drain on the welfare system. When you borrow money to invest in an asset, there are a number of components of that investment which are tax deductible. In general, no matter what the asset class (whether it’s property or shares) the interest costs on the borrowings are deductible. In property these deductible items also include the costs of construction (div. 43), the fittings and fixtures (div. 40) as well as some of the start-up costs (e.g. legals & loan costs). It’s just a matter of making the right decision at the right time and there’s no time like the present. You should seek independent financial advice before entering into a geared property investment strategy to ensure you’re making the right decision and based on your personal financial circumstances. INVESTING IN PROPERTY OWNERSHIP CAN CHANGE YOUR LIFE FOREVER! The Importance of Getting Professional Advice Investing in property has been a method of wealth creation for Australians over many decades. The process of assisting an investor with guidance and direction in the acquisition of property as an investment can be seen as property investment advising. Whilst the property investment advice industry is not regulated, there does exist an accepted framework within which property professionals and advisors should operate to ensure the property investor's experience is a positive one. Greenfield Residential Developments is proud to be an individual Member of the peak industry body PIPA (Property Investment Professionals of Australia) and abides by a strict Code of Ethics and professional conduct. Call me directly on 0420 886826 for an obligation free consultation on how you too can become a property investor - it's easier than you think! |