Asset Distribution mix to give a consistent income in retirement?

Do they count a PPoR as an investment in the residential property category?

I think it is value of markets, with super not being a market.

If they purely counted investments only, I am pretty sure that stock market investments would be more than residential property investment.

 

Australians invest in terms of $, not institutions, business'??
I can not locate the link, source rp data

Resi housing is the largest asset class in Australia

A Profile of the Australian Investor - Who, Where and, What?

 

60 is the preservation age, so why 65 or 75?

Even if the govt changes the age it should have enough lead time going by the history.

 

I'm 35 there's a lot of time for the gubmint to change the preservation age. There's also time for them to nationalise it. Either way it's a back up. Plan B. Plan A is to be wealthy enough to retire in forties.

 

I see. Yes, I agree resi is the largest asset class. That includes PPoRs and investment properties. Personally, I don't see a PPoR as an investment.

To demonstrate Australians love their property we would need to be able to value the percentage of the resi market that is investment and not OO. Traditionally, investors have been 30% of the market, which roughly values resi investment at $1.8bn. That's not far in front of shares.

 

power of LVR is also major attraction with property

 

Leverage is possible with shares and property. However, my opinion is that it is easier and more flexible to leverage resi property.

If we assume the stock market is with $1.5tn and resi investment is worth $1.8tn, the LVR of the resi would surely be far higher.

I blame super for Australians obsession with resi property. For example, my super is worth more than my equity in resi property and most of my super is invested in shares. I feel that by investing in resi property I am balancing my overall portfolio. I wonder how many other people feel that way too?

 

That's exactly how I see it however at the moment my equity is like 5 times my super balance.

 

because my guess is your properties are in Melb

 

I'm the guy that sold them Several forum members bought as well.

 

these look good Euro73

 

Not only do they look good, they rented quickly , they make 9-10K CF+ per annum tax free and they valued @ 80-100K over the contract price, at settlement mid 2016... I would assume they are worth 700K ish now... against purchase prices of @ 550-580K

Clarendon Homes built them in a JV with Bridge Housing. NRAS compliance is managed by AAHSL (used to be called Questus)

One of many very successful NRAS projects I put together for my clients, where they have made growth and continue to make excellent cash flow.

 

aww man. wish i knew. i woulda bought 1. they are really good. and the estate is a great place to live. i live right round the corner from those ones. i walk our dogs past them every day.

 

Beautiful, the best of both worlds, growth and income....

 

One of many NRAS projects of mine that have done exactly this. Particularly satisfying showing yet another example of this to the anti NRAS brigade

 

If you have been on the forums a while you would have seen these were available.... but there are other opportunities .....

Is your dog a Border Collie?

 

Aussie shepherd