Hi friends,
Welcome to your December 2019 newsletter.
For the past 2 years I have only recommended 3 strategies in this market.
#1. – Airbnb – can make great cashflow, up to 12% net yield, you don’t need a lot of money to start the way we teach it, can automate 90% of the process and you don’t even need to own any property to do it. It’s a low-risk, high-reward strategy.
#2. – Commercial Property – incredible returns done well up to 10% and more, incredible potential for upside and manufactured capital growth. Great, self-funding, asset accumulation strategy.
#3. – Buying, Renovating and Holding Digital Assets (websites) – can be very low entry prices, can increase cashflows quickly, and there’s no limit to that increase, which also means strong manufactured capital growth potential. Diversified, global strategy and easily duplicatable.
AND #4. – This month I have added a fourth, BRAND NEW STRATEGY – investing in Gold and Silver with a potential cashflow of 12% to 26% PER YEAR, plus capital appreciation potential.
This brand new strategy ticks my boxes for investing in what I believe is an undervalued asset... An asset with very strong potential for growth, plus generates a monthly cashflow while we wait for that growth to occur.
So whilst I believe in having a percentage of your net wealth in physical precious metals, stored safely and close at hand, this new strategy is a great way to generate cashflow from precious metals anywhere in the world.
If this sounds interesting to you, be sure to check out my Gift of the Month below.
Now, I was in Sydney last week speaking directly with a couple of principals of real estate agencies.
They’ve had a very good quarter and property prices are noticeably up.
They believe the combination of reduced interest rates, positive media sentiment suggesting the bottom is in, and the increase in young and first home buyers into the market has turned things around.
That’s great. I think just about everyone benefits from higher property prices.
But I’d be very cautious.
Over the past year, I’ve been pretty direct and focused with you, on my take on where the economy, world and financial system is at.
With 1/5th of the world in negative bank interest rates, record-breaking un-payable government, corporate and personal debts, and a casino operator running the U.S., anything could happen from here.
I even recorded for you a special video on how to play the year. I spoke about playing both a great Offence & Defense game, balancing out Digital & Physical tangible Assets, plus converting Active Income to Passive Income strategies.
... and nothing has changed on that front.
I personally don’t wish to be holding large amounts (or any) debt at this stage (even though, despite all the bad news, I suspect the world economies are about to boom).
Now, if you are still 100% set on property, remember Stuart says only buy one of the 6 commodities with which you can ADD VALUE quickly, and always have more than one exit strategy.
Those 6 commodities are: i. Discount ii. Renovation iii. Strata Title iv. Sub Division v. Development, and iv. Commercial.
Interest rates are the lowest in history. Is it the best time ever to borrow, or a sign that something is seriously wrong and about to collapse?
Australia could well see 0% official cash interest rates by this time next year. Aside from convenience and perceived security, in my view there’s already little reason to keep your money in a bank, and even less moving forward.
Maybe that’s why the government is so keen to ram through laws to make the use of cash limited, and perhaps then eventually illegal?
For those of you following the government’s attempted progressive ban of use of cash in Australia, this is from the latest CEC website report...
Victorian Liberal Party rejects cash ban!
The Liberal Party’s Victoria State Council voted overwhelmingly on 23 November against Treasurer Frydenberg and Assistant Treasurer Sukkar’s cash ban. Both ministers attended the meeting, but fled before the vote that they obviously knew they wouldn’t win. They are gutless cowards—trying to ram through a law that the rank and file of their own party despises.
The vote was around 98 per cent against the cash ban! Rachel Baxendale from The Australian tweeted this gem from a party official who spoke to the motion, but which did not make it into any media reporting: “‘I have a simple message for the Treasurer Josh Frydenberg and Assistant Treasurer’ says opponent of the proposed ban on large cash transactions: ‘Get out of my wallet’.”
Make sure every MP knows about this vote, and contact your local newspaper or talk back radio!
In these interesting times, never lose sight of what an incredible country we live, on an amazingly abundant planet, and what an incredible gift this life experience is.
Make the most of it today.
Wishing you and your loved ones a wonderful festive season, and your most prosperous New Year ever.
Catch you in 2020!