Scott Parry, founder of Crowd Money Management, covers current interest rates and property market trends in the US and Australia. He shares investment strategies for property and previews new financial software for tracking spending.
Hi and welcome to another update from Crowd Money Management. My name is Scott Parry, the founder. Three things I really want to go through with you today, really. The first is about interest rates and where they're at at the moment. I personally have just fixed in all of my loans for three years. Something where I think the fixed rate money is probably at or around about the bottom. So as we all know, best place to fix is at the bottom of the market there. And also for three years I really feel that interest rates are going to be a lot higher than what they are today in three years time. So certainly something to have a look at. We have sent you a few letters in regards to fixing your interest rates. Please get in contact with us and we'd love to be able to show you how much money you're going to be able to save just because interest rates are about half a percent lower on the fixed than what they are on a variable which is very rare. In terms of property markets. We had a few clients who bought over in the US they had fantastic results buying $60,000, $70,000 houses when the dole was at $1.05 US. Now the dollar has dropped back down to 95 cents. They've already picked up a 10% capital gain as well as their rental income has increased by 10% because of the currency change there. So a really good win for those clients who have jumped into the US property market. In terms of the Australian property market, things are absolutely pumping over in Perth still it is something where unbelievable the amount of activity going on over there. Just prices continue to rise. I don't think it's going to go forever as we know we've got a few clients who on the recruitment end of the mining sector and they're already telling me, Scott, the taps are starting to kind of slowly being turned off there. So it's not going to go forever but certainly has had a terrific run but we certainly don't see it dropping significantly over the short term. And in regards to the east coast, the Melbourne, Brisbane, Sydney areas, those markets have pretty much bottomed out and they're looking for some really strong growth over the coming years there. So just in regards to buying property, you never really want to jump into an investment property unless you're going to hold that for 10 years. It is a 10 year play. Personally my thesis is never to sell property. So if you are going to be buying an investment property over the coming years, please always have that mindset of never sell. Think of investment properties as your super funds and you want to always keep that investment property. So by the time you do get to retirement, it's going to provide that retirement income for you. Because as we all know, it's very hard to retire off equity. It's cash flow or passive income that you need. So if you're buying that Property Today, within 10 years, it's going to be in a position where the rent is going to cover the mortgage and that passive income stream that's going to create is going to be what you can live off in retirement, which is very, very important to ensure your passive income streams to provide a lifestyle for you in retirement. So that's all for today. We've got a new bit of software coming out to you over the coming months. It's amazing in terms of your living account, what it actually does is it will then chart and report to you on how you're spending what all your money that you're getting every single week in your living account. So whether that be 5, 6, $7 per week, every single week, that's then going to be able to report to you and saying this is how you spent that $500 or $600. So really good just for a visual basis of where that money is going, just for your own benefit there, it's just going to get you conscious of where that money and how that money is being spent. So, yeah, I'm very excited about getting that out to you guys and really looking forward to the new financial year ahead. Anything else, please don't hesitate to get in contact with us in the office and we're more than happy you on your road to financial independence. See you soon.
