$1 TRILLION THE BIG WEALTH SHIFT - How Property Investors Can Profit - Lifecorp
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PROPERTY REPORT 2020-2025
PROPERTY REPORT 2019
THE BIG WEALTH SHIFT
& How Property Investors Can Profit
$1 TRILLION OVER NEXT
5 YEARS ALONE
1
INVESTOR REPORT
What’s Next For The Australian Property Market?
Welcome fellow property investors,
I’m confident we are about to see an unprecedented volume of wealth and population movement that
will impact the entire national property market. Some investors could find themselves stuck with quality
properties that are all of a sudden much harder to sell, whilst other investors will benefit from skyrocketing
property values in what are currently some of Australia’s most affordable markets.
Single Biggest ‘Game Changer’ I’ve Seen In 30 Years
I don’t pretend to have a crystal ball, but this report will give you a clear insight as to why the national
property investment landscape is about to change. I’ve been a passionate property investor for 30 years and
I believe these events will very likely create the single biggest ‘Game Changer’ many investors will see in their
lifetime.
Which Investors Will Benefit Most?
I’m shocked that this information is largely unknown by property investors . This report has been designed to
help todays often time poor property investors gain a quick insight into this powerful phenomenon.
If you are looking to create wealth through property over the next 5-15yrs
you will gain incredible value in this knowledge. The great news is that
many of the locations set to explode with a huge influx of population,
employment and wealth are currently also some of the most affordable
property investment locations in Australia.
In fact, many of the locations are already ‘Sweet Spots’ that tick every
box for the most discerning investor, offering low vacancy rates,
generous rental returns and strong capital growth forecasts.
I hope you enjoy the report. My aim is to also give you access
to a range of other information that I’m confident you will find
very helpful to navigate the ever changing property market,
so keep an eye on your inbox.
Wishing you investment success,
Phil
Phil Anderson
National Property Market Commentator
Founder & CEO - Lifecorp
THE BIG WEALTH SHIFT - PROPERTY REPORT 2020 - 2025
2
We are about to witness the biggest
movement of wealth in history, giving
informed investors an opportunity to
perfectly position their investments
directly in this flow.
THE BIG WEALTH SHIFT - PROPERTY REPORT 2020 - 2025
3
IN THIS REPORT
The ‘Game Changers’
PAGE 6: The 5.5 million Australians about to
deliver a big shock to our property market.
Downsizing On The Rise
PAGE 8: The trend that’s picking up pace thanks to
Government incentives and underprepared retirees.
The Impact On Melb & Syd
PAGE 10: The effects a potential flood of property
sales could have on our biggest cities, and how
wealthy neighbours may provide a safety net.
1 Million family homes to sell in
next 5 yrs alone!
THE BIG WEALTH SHIFT - PROPERTY REPORT 2020 - 2025
4
The ‘Ripple Effect’
PAGE 12: What property markets will benefit most
from this massive movement of population and
wealth?
Unexpected Wave Of Families
PAGE 14: How affordability, thousands of new jobs,
and a better lifestyle is seeing families relocate.
Access Additional FREE Reports
PAGE 16: Learn more about upcoming reports
highlighting the ‘Big Shifts’ in various states and
how investors can profit.
DISCLAIMER: The content contained within this report is for information purposes only. Although great care has been taken
in preparing this report, we provide no warranty or guarantee around its accuracy. It is not intended to provide accounting,
legal, investment, or other advice, and you should not rely upon the information to provide any such advice. A property
investment may not be suitable for all people and the information in this report does not take into consideration your
personal situation. As with any investment, we encourage you to seek professional advice before making any investment.
THE BIG WEALTH SHIFT - PROPERTY REPORT 2020 - 2025
5
THE PROPERTY GAME CHANGERS
The Property Market Is About To Get A Big Shock!
Investors need to prepare for an unprecedented event that
will effect property cycles in a dramatic way over the next
15 years in Australia and around the world.
More than 5 Million Australian Baby Boomers, believed
to control more than half of the nations wealth, will be
transitioning into retirement during this period. Research
tells us that as many as half, or more, of these Baby Boomers
will choose to sell their family homes and downsize into more
affordable housing to help fund their retirement years.
Baby Boomers Plan To ‘Cash In’
Their Family Homes
The GFC didn’t do any favours to the much needed Super 5.5 Mil Australian Baby Boomers
Fund balances of Baby Boomers approaching retirement
and many were forced to roll up their sleeves and delay their
retirement plans. Now thanks to rising property values and
generous Government incentives encouraging Downsizing,
Australian Baby Boomers are preparing to cash in their
family homes and start living it up.
53%
Control 53% Australia’s Wealth
Baby boomers could drive housing Source: ABS
demand for next 20 years
The upside to downsizing:
Why downsizing was the best drive housing demand
alia’s capital cities could
decision we ever made BABY boomers from Austr
in Bundaberg for the next
20 years but only if stakeh
olders act now.
56%
Australians optimise downsizing
rule to fatten their super fund 56% Plan To Downsize
Downsizing Day: Why a wave of Source: Baby Boomer Housing & Lifestyle Report
Baby Boomers will be cashing in - realestateview.com.au
sizing incentive that
On July 1 last year
Federal Governme
aged 65 or over to
nt introduced a down
use the proceeds of
up to $300,000 from their homes from July 1
allows Australians tippe d into their super.
to be
the sale of one home other contribution
caps.
not count towards
The contribution does
THE BIG WEALTH SHIFT - PROPERTY REPORT 2020 - 2025
6
Baby Boomers have worked hard
in recent years, many choosing
to stay in the workforce longer
than expected, due to set backs
financially from the GFC.
Post GFC a Whopping 86% of Baby
86% Boomers felt totally underprepared
financially for retirement.
Source: REST Industry Super
THE BIG WEALTH SHIFT - PROPERTY REPORT 2020 - 2025
7
DOWNSIZING ON THE RISE
Many Baby Boomers Have Little Choice But To Sell
Post GFC, the financial position of an average Australian Baby Boomer was alarming. Surveys highlighted
that as many as 86% of Baby Boomers felt totally underprepared for retirement and they had little choice
but to continue working until their situation improved.
Today our Baby Boomers still rate amongst the worst prepared in the world, with all hopes firmly pinned on
the successful sale of their family homes to release capital that will help fund their retirement years.
Generous Government Downsizing Incentives
The Australian Government has changed
superannuation laws to provide greater incentive for Reasons for Selling (%)
Australians to downsize. These law changes recognise Release
Other 2
the need for this huge sector of our population to be capital for
Unemployment 1 retirement
self sufficient in retirement, and the role downsizing
could play in helping make housing more affordable Illness or 10
death of
in our biggest city markets. spouse 13
45
Under these changes, from July 1st, 2018, people over Switch to
65 are able to more easily top-up their super when investment
property 29
selling their family homes. This financial reward can
Increased
be as much as $600,000 per couple. convenience
Source: Digital Finance Analytics
Change in number of downsizers
(% YoY)
Australians optimise downsizing
+13.26%
rule to fatten their super fund 2017
2018
On July 1 last year Fede
ral Government introduce
allows Australians aged d a downsizing incentive
65 or over to use the proc that
the sale of one home to eeds of up to $300,000 from
be tipped into their supe
The contribution does not
r. +7.63%
count towards other cont
ribution caps.
+6.77%
+5.03%
+3.91%
Downsizing Trend Picks Up Pace
+1.49% +1.52%
Data now tells us that there is growing evidence pace +1.46%
is picking up in the number of people downsizing
nationally. This trend is expected to continue over the Owner Investor Super Total
Occupied Investor
next few years.
Source: Digital Finance Analytics
THE BIG WEALTH SHIFT - PROPERTY REPORT 2020 - 2025
8
Aust Gov: Downsizing Incentive
Available to people over Must have lived in home min Per Person into Super up to
65 years 10 years $300,000
Total of $600,000 per couple
Substantial Government incentive encouraging
Baby Boomers to Downsize has opened the
flood gates to an unprecedented transfer
of property ownership and wealth movement.
THE BIG WEALTH SHIFT - PROPERTY REPORT 2020 - 2025
9
IMPACT ON SYDNEY & MELBOURNE
What Happens If Downsizers Flood The Market?
Whilst this report is aimed at bringing your attention to the
opportunities created for investors when this huge movement
of wealth is released from traditional Australian suburbs and
redistributed to new markets, it’s hard not to bring some reference
to the impact this will have particularly on the Sydney and
Melbourne property markets.
In the strongest growth periods Sydney and Melbourne
successfully handle around 10,000 property sales per quarter
each. In the slower periods the numbers fall to around 5,000 each. “There is a growing
If the surveys are correct, 1 million properties could be listed by air of panic”
downsizes over the next 5 years alone…. that’s 50,000 per quarter.
Martin North - Digital Finance Analytics,
estimates 1.2 mil+ properties are being
readied for sale.
Better Jobs = Improved Buying Power
Retiring Baby Boomers will free up hundreds of thousands of new, often better paying employment
opportunities which will add to an increase in buyer ability for those looking to enter these markets or
upgrade into more prestigious postcodes. This could certainly help provide a good volume of suitable
purchasers for these homes.
Wealthy Neighbours May Provide Safety Net If Required
It seems that the Australian Government holds a range of Trump Cards if the Australian property market
should ever need a boost.
Asia Pacific to add most millionaires globally
Australia is now considered the favourite
Growth in millionaires in Asia Pacific 2010 - 2024
destination for international high net
wealth individuals wishing to migrate, 4 200
Millions
Trillions
4
beating out the US for the forth year in
3 150
a row as the No.1 country for Millionaire
3
Migration. 2
100
2
Our proximity to the emerging Asia 1
Pacific powerhouse offers countless 50
1
opportunities for the government to 0
-1 0
adjust foreign ownership and immigration
2010- 2012- 2014- 2016- 2018- 2019-
*
laws to counteract the impact of potential 2012 2014 2016 2018 2019 2024
record home sales levels by Downsizers Total AP Wealth Estimates in USD
over the coming years. Asia Pacific China India
THE BIG WEALTH SHIFT - PROPERTY REPORT 2020 - 2025
10elands - and
Mill ires ar
iona108,000 e fleeing their hom
About
r a new
millionaires migrated across borders
ce fo
oiyear,
lastlif ea
year,
centis
ralia
stper .1 ch
Nothe
theirfrom
Au14 increase prior and more than double
the level in 2013, according to Johannesburg-based New World
Wealth.
Wealth On Our Doorstep
1st Australia is World No1
for migration of High
Net Individuals
82
New People
Asia-Pacific: Individuals
with wealth above
Per Week $500M
5
New People
China: Individuals with
Per Day wealth above $500M
2.6M China: Individuals with
New People wealth above $1M
Last 3 yrs
Source: Asian Bankers Research
THE BIG WEALTH SHIFT - PROPERTY REPORT 2020 - 2025
11THE RIPPLE EFFECT
An Unprecedented $1 Trillion ‘Grey Tsunami’
Many surveys have highlighted that a high percentage of Downsizers have their sights firmly set on relocating
to a new area. This research has helped dozens of councils in regions expected to benefit most, invest in
substantial infrastructure upgrades to support an unprecedented population influx over the next 15 years.
1. Sea Change
56% 85% 2. Affordability
3. Lifestyle
56% Plan To 85% Want To Move Top 3 Reasons
Downsize To New Area For Moving
Source: Baby Boomer Housing & Lifestyle Report - realestateview.com.au
What Property Markets Are Set To Benefit Most?
Given that the whole idea of downsizing is aimed at freeing up funds currently trapped in family homes,
affordability will be a top consideration. Aging Baby Boomers will also have a growing requirement to stay
close to high quality medical facilities.
Investors shouldn’t underestimate the needs Baby Boomers will place on how attractive these areas are to
visit and how easy it is to travel to these areas from our major cities. This will ensure they see their families
more regularly.
Key Market Requirements
More than one million home owners with
property valued upwards of $1 trillion
are planning to downsize over the next five
years as retiring Baby Boomers opt
for more leisure and cash.
Housing Affordability Winners and losers in the baby
boomer downsizer deluge
The flood of properties in a falling property
Ideally $500,000 to $700,000 over-supply as demand
market is likely to add to growing
begins to slow, rates rise and borrowing conditions
tighten, despite massive immigration, analysis shows.
Most are expected to be
sold over the next three years.
Easy Connection There are lessons to be learned from many
adapt to their more compact lifestyles, those
downsizers who are struggling to
who face nightmarish financial and
Multiple connections daily regulatory headaches as they attempt to sub-divi
tougher to sell their family homes at the price
de and others who are finding it
they expected.
Medical Facilities
Within 30 mins of all medical
Australia’s best spots to retire
Retail/Lifestyle Facilities
Great Lifestyle available locally
THE BIG WEALTH SHIFT - PROPERTY REPORT 2020 - 2025
12BABY BOOMERS SET THEIR SIGHTS
Idyllic locations offering easy connections to Sydney
and/or Melbourne, superior health care facilities and
popular lifestyle elements, will benefit most.
THE BIG WEALTH SHIFT - PROPERTY REPORT 2020 - 2025
13UNEXPECTED WAVE OF FAMILIES
Young Families Flee Sydney & Melbourne
It seems the recent property boom in Sydney and Melbourne was the final straw for many young Australian
families struggling to get a foothold on the property ladder. In ever increasing numbers, young families
are packing up and moving to the same growth markets that will benefit most from the relocation of Baby
Boomers.
Thousands Of New Jobs Are Attracting Families
Billions of dollars are being invested in major new infrastructure projects that is creating thousands of new
short and long term jobs across a number of designated growth hubs. Many families have seen this as an
opportunity to relocate to areas offering improved lifestyle benefits, a much lower cost of living, and a real
potential for them to enter the property market due to affordable median house prices.
Projects Creating Employment
Billions are being invested creating tens of thousand of new jobs.
Airport Health Care Highway Employment Retail Education
Upgrades Facilities Upgrades Precincts Centres Facilities
Follow the infrastructure:
Top 10 investment hotspots
AN addition
al 30,000 tradie
the next coup s will be need
Wanted: 30,000 tradies for big projects
le of years as ed across Qu
ramps up. $46 billion wo eensland in
rth of infrastru
Construction cture projects
Sky’s the limit for this jobs boom training pack
concreters, pla
Skills Queen
age to meet the
nt operators
sland (CSQ)
expected sur
has announced
ge in demand
a $37.6 millio
n
and plumbers for electrician
. s,
THE BIG WEALTH SHIFT - PROPERTY REPORT 2020 - 2025
14More Life
…. At Half The Price
18,000+ people are fleeing
Sydney each quarter.
Source: ABS
Young families flock to coastal Thousands of people are fleeing
areas in search of homes Sydney each month as the city
becomes unlivable
THE BIG WEALTH SHIFT - PROPERTY REPORT 2020 - 2025
15REPORT SUMMARY
Warning Signs For ‘Buy & Hope’ Investors
The days of justifying investing in heavily negative geared investment properties, with terrible, lifestyle
draining cash flow in Sydney & Melbourne, may be at an end. Today this ‘Buy & Hope’ model seems to have a
much higher risk profile, and far less confidence around the benefits over the next 5+ years.
Potential To ‘Skyrocket’ Your Investment Success
Whilst millions of potential investors will sit on the sidelines waiting to see what the next few years brings the
Australian property market, others will capitalise on an optimal buying window. Best of all, astute investors
will move their focus away from markets restricted by high price points, low rental yields and poor outlooks,
and instead target areas with affordable price points, double the rental income, and much stronger growth
forecasts.
Investors should find gaining finance approval in many of the best performing markets much easier due
to the lower price points and strong rental yields that will assist the loan serviceability component. And
with interest rates at record low levels, many investors will target investment properties that offer a strong
positive cashflow allowing them to focus on reducing personal debts and grow their portfolios more
aggressively.
Learn To Set Higher Expectations How Many Properties Do
Australian Investors Hold?
Australian property investors have unfortunately proven to be
very poor at building a strategy that allows them to grow their 1,309,000
portfolio above one or two investment properties. The statistics
speak for themselves (see graph).
What’s Possible: 73%
17%
own one
own two
6% own three
Smart Cashflow Properties 4% own four or more
Often cashflow positive and affordable
($350,000 to $550,000)
Dual Income Properties
One property, two rents. Often 6 - 8% Yields
($550,000 to $750,000)
302,000
Instant Equity Properties
Often creating $100,000+ on day one
104,000
($650,000 to $720,000) 85,000
SMSF (Super Fund) Properties
Often leveraging $200,000 Super funds
to own a property debt free within 12yrs 1 2 3 4+
THE BIG WEALTH SHIFT - PROPERTY REPORT 2020 - 2025
16FREE INVESTOR TOOLS
Here’s How You Can Learn More
If you have enjoyed this report please keep an eye out for a
number of new Free Reports that I’m happy to share with you
early in 2020.
These reports will drill down into the ‘Big Shifts’ happening in
various states around Australia and how informed investors
are profiting.
My regular property news and views
NSW ‘Big Shift’ Report
SEQ ‘Big Shift’ Report
VIC ‘Big Shift’ Report
$100k Instant Equity Strategy
$50k/yr Extra Cashflow Strategy
5 Year Wealth (or Exit) Strategy
Our Buyers Group is our Best Evidence
If you have enjoyed this report please keep an eye out for a number of new
free Reports that I’m happy to share with you.
These reports will drill down into the ‘Big Shifts’ happening in various states
around Australia and how informed investors are profiting.
I love to help investors succeed and I already help a group of 1,000 individual
property investors to achieve their goals. Entry to our group is currently
closed but is available from time to time for those committed to creating
wealth through property.
I sincerely hope you find my insights helpful. Unfortunately, it’s rare
to find unbiased commentary from highly active, successful property
investors and I hope my ‘no strings attached’ approach encourages you
to pass on your knowledge with other fellow investors when possible.
DISCLAIMER: The content contained within this report is for information purposes only. Although great care has been taken
in preparing this report, we provide no warranty or guarantee around its accuracy. It is not intended to provide accounting,
legal, investment, or other advice, and you should not rely upon the information to provide any such advice. A property
investment may not be suitable for all people and the information in this report does not take into consideration your
personal situation. As with any investment, we encourage you to seek professional advice before making any investment.
THE BIG WEALTH SHIFT - PROPERTY REPORT 2020 - 2025
17www.investapproved.com.au
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