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John Manciameli handed a letter to the Prime Minister of Australia

John Manciameli handed a letter to the Prime Minister of Australia

I personally handed a letter to the Prime minister of Australia On Friday night 7th December 2018, I did something I have never done before. I personally handed a letter to the Prime Minister of Australia. The letter below was written on behalf of my 15,000+ colleagues in the mortgage brokering industry and all the clients I disappointed this year because of the Royal Commission into Banking Misconduct. On behalf of all mortgage brokers in Australia, I am sorry if you had your home loan aspirations affected by this Royal Commission. The good news is the mortgage brokering industry has banded together and started exerting pressure to find a middle ground where lending kicks starts again. To all my colleagues in finance, if a humble mortgage broker in the suburbs of Sydney can find his way to the prime minister, may I encourage you to take up the call to arms from the MFAA/FBAA to contact your federally elected member. Feel free to to copy and paste the letter I wrote below. Your clients need you, our industry needs you, Australia needs you. PS – that really is box of Pannetonne I handed our prime minister!   Dear Scott Thank you for taking the time to read this letter. My name is John and I am a humble mortgage broker working in Sylvania Waters, Sydney. I speak on behalf 16000+ mortgage brokers whom act on the dreams and aspirations of hundreds of thousands of ordinary Australians. The Royal commission into banking has had unintended consequences on Australians. I thank you in advance for the opportunity to bring what’s happening...

How to Get Ahead by Rentvesting

The idea of rentvesting has been used by highly dedicated and committed wealth creating property investors for decades. However, it remains a lesser-known approach to building an asset base. It deviates from the traditional ‘buy a home, pay it down and then buy an investment property’ approach, but it may well be the ideal path forward for many modern Australians.The intent of a rentvestor is to remain a tenant while also becoming a landlord. In doing so, they build their asset base independently of home ownership until such time as they can afford their much sought-after dream home. The question is: does it work and how effective is it really?In order to illustrate the value of rentvesting, let’s take a typical low- to middle-income couple and look at the choices they have in order to get started on their investing journey. We’ve introduced you to Kelly and Hamish, a hypothetical couple in their ’30s (see boxout, right).Kelly and Hamish essentially have two options available to them:Save a deposit, borrow as much as they can and buy their own home – even if it takes them years. Then get into their first investment property by saving another deposit through earned income and by drawing on any possible equity raised in their own home. Again, this may take several years.Rent, save a deposit, borrow as much as they can, and buy an investment property. Repeat this while renting. READER SCENARIOKelly and Hamish are beginning to feel like they’re missing out. Aged in their mid-’30s, they think they’ve been doing all right so far but believe there’s so much more they could...
How would you feel being a 1% Property Investor?

How would you feel being a 1% Property Investor?

Have you considered playing a bigger game than the average property investor? What if we were to say that it might not be as far-fetched as you think?In fact, it’s quite feasible for a dedicated property investor to eventually be ranked in the top 1% of property investors in Australia. This would sound outrageous if it weren’t for the fact that we have clients and colleagues that fall into this ‘elite’ investor category.  They’re not all high-income earners either. In fact, from our observations over the years, having a high income doesn’t always guarantee the best investment results.Ok, so what does it mean to be just an average property investor in Australia? Surprisingly, it means that you would be among the over 70 percent of landlords that have just one investment property. Even more surprising is that it’s quite likely that you would sell your investment property within five years.Despite media speculation portraying greedy investors snapping up multiple properties and making housing un-affordable for the rest of Australia, the commonplace reality looks quite different.If we focus on the 2014-2015 column in the table below, you can see that the decrease in numbers of landlords that have more than one property is dramatic. There are 1,468,949 landlords with just one property. If you look at the next row you can see the number of landlords with 2 properties is 383,505. You can see that relatively few investors have more than one property, and this drops rapidly to a low number having three or more: Owning two investment properties would put you in the top 19% of property investors, then the percentages decrease noticeably...
Podcast – Getting finance approved in this tightening lending environment

Podcast – Getting finance approved in this tightening lending environment

Many investors who would have been successfully approved for finance last year are struggling now to either begin or continue their property investment journey because of the current financial climate.In this episode of the Smart Property Investment Show, broker John Manciamelli and Momentum Media director Alex Whitlock joins host Tim Neary to discuss how APRA changes and the royal commission have resulted in a tighter lending economy and what that means for Australian investors.They discuss what traps investors should avoid if they are trying to obtain finance, the four key growth drivers in a property market and unpacking trust structures while revealing one type of trust that you should...

Why Migration is going to Shift Demand toward Brisbane

Real estate prices in Australia have been on an uptrend since the start of the new millennium. One of the significant factors driving property prices has been population. In fact, since the Sydney Olympics in 2000 Australia’s population has increased by 25%.Australia’s population growth rate has been driven primarily by migration. More immigrants have arrived on Australia’s shores after the year 2000 than between the years 1950 and 1980 – the so-called “Golden Age of Immigration”. A progressive economy since the end of the Second World War has established conditions that are ideal for migrants to find new opportunities in Australia.New South Wales and Victoria have received double the long-run average contribution to population growth from net migration. These states’ above average net overseas migration inflows are given a boost by positive net interstate migration.On the other hand, the population growth rates of Queensland and Western Australia appeared to have troughed in 2014 after several years of faster-than-average growth.However historical data suggests that interstate population flows to New South Wales and Victoria have begun to ease as the price differentials of houses in Sydney and Melbourne have reached stretched levels when compared to properties in Brisbane.When price differentials between housing in NSW, Victoria reach more than double the value of properties in Queensland reversions in migration occur. The median housing prices of properties in Sydney and Melbourne are currently 2.2 times and 1.5 times the median housing price of properties in Brisbane respectively.Property prices in Queensland have been subject to the effects of a declining population and the rising number of dwellings. Queensland has a situation whereby the number...

Is Brisbane the New Sydney?

Search any travel guide on Australia and chances are Sydney will be named as the best city to visit. What is there not to love about Sydney? It has two of the most iconic tourist attractions in the world in the Sydney Opera House and Sydney Harbor Bridge. The University of Sydney and the University of New South Wales are among the top 50 educational institutions in the world. Sydney is also widely regarded as the financial hub of the Pacific.These conditions plus a thriving economy, friendly interest rates and a growing population have contributed to the consistent rise of Sydney’s real estate prices. Sydney is currently ranked 4th to 7th in most surveys on the most expensive real estate properties in the world. Yet interest in Sydney real estate continues to grow particularly from overseas markets like China, the US and Singapore.But recent data suggests that property growth in Sydney has slowed down and Brisbane may be the new investment hotbed in Australia. The consensus among market analysts is that Sydney real estate prices have risen to a point that Sydneysiders can no longer afford to buy property.According to MacQuarie Research, when price housing differentials in Sydney and Melbourne have grown to nearly twice that of Brisbane (See Fig.1), it leads to shifts in demand that favor the capital of Queensland. This is because demand for properties in Sydney and Melbourne is no longer sustainable. Fig 1 House price relativities – Price differentials between Sydney and Melbourne, relative to Brisbane, have reached stretched levels, which have historically been followed by multi-year reversions.  Currently, properties in Sydney and Melbourne can purchase 2.2 times and 1.5 times properties...