WW: Hi, everyone. In this video, I’m going to speak to Andrew Rocks from the Announcer Group who is the CEO and Founder. Andrew, thanks for joining us today.
AR: You’re welcome.
WW: In your opinion, what factors are influencing the Upper North Shore property market at the moment?
AR: Well, I suppose, just to give you a bit of a personal insight, I’m a fellow Tamarama resident myself. So although our business looks after the entire continent, I’m way over-passionate about it in my local area.
And I think that the property market at the moment—the influences—are coming from people’s opinion. So there’s a lot of speculative mania around whether or not properties are overpriced or underpriced.
But the one thing I can tell you is this is a super city. And when you look at the world and look at all the cities that are above 5 million people, people want to go there in their economic powerhouses and there’ll be continual demand, intergenerational demand, for people to live in this fair city of ours.
And on top of that, the Upper North Shore probably presents, if not Australia’s best educational belt, I believe. So it’s an added attraction for the area with just spectacular schools.
WW: There’s a lot of speculation about interest rates. Will they rise? What’s your opinion?
AR: Oh, absolutely. So there are two answers to that. The overall Australian market so if you take all the markets in, it doesn’t necessarily need an interest rate rise. There are markets such as Western Australia or parts of Queensland where they actually need a fall to stimulate demand and what-not.
So the government cannot really rely on the Reserve Bank to do that for them anymore. What they then do is they do what’s called macro-prudential tightening which is more of a direct approach.
An example that is they’ll say, well limit interest-only loans or increase requirements in these suburbs or these post codes. And that’s been going for about two years around Australia and I believe it’s doing a good job in preventing a hard landing.
And what it’s probably doing is taking out of the market people who are speculating. To speculate is quite often, you know, distorts the market and it’s probably keeping the market to the people who genuinely want to live in that area and make it a fair market, I believe.
WW: Andrew, a lot of my clients are downsizing at the moment. What is available to them in terms of contributing to superannuation?
AR: The definition of downsizing in the local area that we both live in is, people raise their families and have these really big houses and they’re fantastic. But there comes a time where they want to have a lifestyle choice. The government has—a budget before last—allowed up to $300,000 per person so if it’s a couple, $600,000, that can be put directly as a contribution into their superannuation. Why that’s relevant is that you could put $600,000 into a tax environment where you pay maximum 15 percent that most probably with shrewd investments, they are about 0% with franking.
So it is a fantastic tool to assist you in creating that income stream to enjoy the lovely unit or lifestyle that you want in retirement.
WW: What are some of the key habits that you see for successful investing for future wealth?
AR: Great question. That question can’t be answered by looking at an asset class at all. In the 25 years that I’ve been doing this, the key to what makes a successful person over that period of time is their ability to make a decision.
They go out, they seek professional advice, real estate, accounting, investment advice. But after doing that, they actually make decisions. People who don’t make decisions, you put it off or rely on opinions of other people, generally are far less better off than people who make decisions even if some of those decisions aren’t correct.
That’s why my answer is decision-makers are the key to success.
WW: There’s a lot of information if you click through below, we’ve got sheets provided by Andrew and the Announcer Group with lots more information. Also some contact details for Andrew as well.
Andrew, it’s been fascinating talking today. Thank you very much.
AR: You’re welcome.
WW: We really appreciate your insights.
AR: Thank you very much.