Successful property investors need to own the types of properties that are going to be in continuous strong demand in the future.
Demand is driven by demographics.
That means all real estate investors should become students of demographics, so in today’s episode, I want to discuss the major demographic milestones that Australia has recently reached.
I’ll also share a mindset moment, with a lesson in the kind of people you should avoid.
After that, we’ll chat with Ken Raiss about the five essential documents you need for Estate Planning.
You really should know about these demographic milestones
- At the end of August 2018, Melbourne’s population was projected to reach five million people.
- Victoria accounts for over a third of Australia’s population growth.
- Melbourne had the largest annual population increase of any city in Australia’s history.
- Victoria is getting more migrants than anywhere else.
- All this population growth is a positive sign for the Victoria property market’s long-term prospects.
- Melbourne is projected to hit 6 million people by 2025, the same year Sydney is projected to hit a similar population.
- There’s an imbalance between the types of housing that’s being built with what key buying groups want and can afford to buy properties.
- There are three types of home buyers: first-time homebuyers, upgraders, and downsizers - remember home buyers make up 70% of the market.)
- Research suggests that demand from young renters and upgraders is going to be declining.
- First home buyers and downsizers will drive Australia’s housing market over the next decade.
- First home buyers are getting older.
- First home owners are looking for room to grow and the ability to add value. Affordability is also a concern.
- Downsizers are aged between 60-74.
- About ¾ of downsizers are couples or live alone.
- Downsizers are looking for low-maintenance, convenience, access to the same amenities near where they’ve been living, but smaller projects.
5 Critical Estate Planning Documents
- A Will – And this should be linked to a Testamentary Trust which protects your assets and greatly reduces potential taxes.
- Non-Estate Distributions – Your Superannuation is not technically yours and can’t be passed on in a regular will. You’ll need a Binding Death Nomination or Superannuation Will to pass on control of those assets.
- Enduring Power of Attorney – If you become unable to handle your finances before death, an enduring power of attorney can authorize someone to act on your behalf. These documents can be very broad or very specific, depending on need.
- Medical Power of Attorney – Allows you to specify medical wishes and after-death wishes like organ donation.
- Personal Details – A list of things like passwords, bank account access information, and other personal details that your surviving spouse or relatives will need after you’re gone.
Links and Resources:
Some of our favourite quotes from the show:
“We must be cautious about who we surround ourselves with, because of both the short and the long-term implications.” –Michael Yardney
“You need to surround yourself with people who can run circles around you in as many areas as possible, people who are exponentially better than you in a variety of ways. Because they’re going to help you grow to the next level.” –Michael Yardney
“You can’t expect to live a positive life if you surround yourself with negative people.” –Michael Yardney
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