Hi friends.
Welcome to your March 2021 newsletter.
As I foretold in last month’s edition, “I think 2021 will be a strong year for property in Australia, in general” – and we’ve already seen some strong price growth and sales results.
According to Corelogic, “there were 2,451 homes taken to auction last week of February across Australia’s combined capital cities, up from 2,128 over the previous week” with an average clearance rate of approximately 80%. These are very strong numbers.
Further, “Australian home values surged 2.1% higher in February; the largest month-on-month change in CoreLogic’s national home value index since August 2003. Spurred on by a combination of record low mortgage rates, improving economic conditions, government incentives and low advertised supply levels, Australia’s housing market is in the midst of a broad-based boom.”
I know personally, up where I am much of the time in Northern NSW prices have jumped in the recent months significantly.
Now, keep in mind that the amount of money-printing going on in the US and globally is unprecedented and causing all-time bubbles in just about every market in the world – except maybe Gold and Silver, which are being severely manipulated and depressed in my opinion.
I recently read a figure showing the Federal Reserve in the US (a private company by the way, that is neither Federal nor has any reserves) has printed more money in the past 12 months than during the entire QE1, 2 and 3 programs combined over 10 years. Figures indicate 35% of ALL US dollars in existence have been printed in the past 12 months.
This is extreme to say the least, and in a world flooded with cash, a rising tide lifts all boats......
But what people never suspect is that it’s not that the prices of assets are rising, its that the value of the dollars being used to purchase them is disintegrating.
It takes more and more of the de-based fiat currency dollars to buy the same amount of real-world goods – just compare what you spend on groceries today with a couple of years ago and you’ll see what I mean.
(And for similar reasons, it won’t be long before petrol is over $2 a litre at the pump in my opinion either.)
Of course there are other factors like supply and demand which cause prices to rise, but the point is, sooner or later the piper must be paid... and history shows this doesn’t end well.
Most people don’t realise all the ‘free’ money for the stimulus programs – such as JobKeeper which ends this month – was borrowed, with interest, and will have to be repaid.
This is why they are pushing so hard for the ‘Great Reset’ as they know the current system is past its ‘use by’ date... corrupt... and all fiat currencies in history have gone to zero. It’s a race against time.
So in this environment, do I still like property? Yes, but...
Only if you can ADD-VALUE quickly (as I espoused in my best-selling book, ‘The New Way To Make Money In Property Fast!’); have multiple exit strategies; strong positive cashflow; and manageable debt (if any).
If you don’t, or even if you do, consider a strategy that produces great positive cashflow and little or none of your own money, and zero debt, like our Airbnb strategy.
If we ever get high-inflation or hyper-inflation as a result of all this money printing, well selected property (and farmland), and Gold (and Silver) have historically been great inflation hedges.
In addition to this, I think you want to consider having some exposure to the massive trends and opportunity in the digital space.
Of course, I have suggested a small asymmetrical bet on Bitcoin and some other cryptocurrencies may be appropriate for some of you. Since last month, Bitcoin went another $10K up to hit over USD $58,000 – which is astonishing and a strong indicator of the de-valuing of the US Dollar.
But what I haven’t spoken about for a while is the power of online Digital Assets, such as websites..
With the incredible and ongoing trends to online shopping, online entertainment, online communication – in fact, online everything – it’s really up to your imagination what you could create in this space.
With the right information, right research, and a good idea, you could be investing in positive cashflow websites and increase their earnings and capital value very quickly.
That’s why I’ve invited our Digital Asset experts, Liz and Matt Raad to deliver a “NEW for 2021” Live Market Update and overview on this space, as our Gift Of The Month below.
Enjoy this month’s video success tips, recipe and recommended book, and...
Be Your Best Self... Always!