Government cannot solve Housing Affordability
October 12, 2008
CEO of the Noah Group, Brett Marks, says that we have to start looking at how we can create their own solutions in relation to the housing affordability crisis instead of waiting for the government to take adequate action.
It’s hopeless to sit around waiting for the right time to buy property, Brett Marks says, as nothing “miraculous” is about to fix the housing affordability problem.
Although there has been much talk from the government, no rock-solid solutions have been laid down, and unfortunately too many people are waiting on the government to solve the problem.
“For some reason, over the past 100 years, people have believed that property in their decade was too expensive to afford. This is not looking at the problem in reality as property prices tend to increase substantially over 10 year cycles. Therefore it makes sense to get into the property market as soon as possible which can be done by talking with a financial planner and getting them to look for ways to organise your finances according to your circumstances.”
“Through the tax breaks you can get for investment property, the Noah Group can show you how it is cheaper per week to rent the house you live in and purchase an investment property,” Brett Marks says. “It’s a great opportunity if you’re just getting started.”
Buying with the view to renting a property out is the best approach to entering the property market suggests the Noah Group’s financial planners. There is no better time to get into the property market and Brett Marks tries to help people realise this.
Another big part of the Noah Group services and another option for people wanting to purchase an investment property is, if you and your partner have over $120,000 in super between you, you can create your own self managed super fund (SMSF) and leverage it to finance the purchase of an investment property.
“You are far better off to buy a property which has the possibility of high capital gain and strong rental return,” Brett explains. “Whether you like the location or the design or the colour scheme is not important. You’re not going to live there this is your investment it is a money box for your future”.
In regards to renting a place to live, the Noah Group recommends that you look for location that will suit you e.g. a place that is close to your work. Renting a place to live will also make it easier to upgrade to a bigger house to accommodate a growing family, or if you need to relocate for work purposes.
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