December 2007 Newsletter
Dear Fellow Investors A New Labor Government As the end of 2007 approaches, we reflect that since our last newsletter, we now have a new Labor Government in Australia. We see the Coalition parties in disarray, with severe losses in terms of leadership and experience. The Coalition faces a major challenge in terms of the need to re-invent itself, build unity around new leader Brendan Nelson, and articulate policies that will find relevance and favour amongst its traditional support base. In the meanwhile the new Labor team under Kevin Rudd has been announced, and is busy rolling up its sleeves and getting to work as Labor seeks to capitalise on its crushing election win by turning promises into action. While the polls spoke all year of a Labor win, the extent of the swing, and the impact on the leadership of the Liberal and National parties and the loss of experienced politicians, would have been hard to predict just a few weeks ago. Life Under Labor The consensus of opinion is that we won’t see dramatic changes to the business and economic environment, other than the progressive dismantling of Work Choices and a restoration of the former order in that regard. In terms of inflation prospects and interest rates, we expect increases in both, which would have happened irrespective of who was in power, given the strength of the economy, the shortage of skills, and the need of the Reserve Bank to keep a firm hand on the tiller to keep inflation in check. In terms of the investment property environment, we anticipate “business as usual”, and with the shortage of housing, and the growing stress on households in terms of meeting mortgage repayments or rental costs, there could even be a case for further encouragement for investors to meet the significant and growing imbalance between supply and demand. BIS Shrapnel estimates a national shortage of new housing of approximately 100 000 dwellings by June 2008. The implications for rentals in such a situation of undersupply are clear for all, and aside from capital growth, the environment provides solid rationale for the investment property proposition. Australia needs accommodation. Private investors will provide it. Labor will support it. Koala Blue Commercial With pressure on land and construction costs driving the costs of residential properties to new highs across the country, our experience is that some investors are being tested in terms of their ability to raise the fresh deposits and gearing shortfalls needed to fund their next investment. With affordability in mind, and with the opportunity to diversify adding further rationale, McCarthy Group has formed a Commercial Property division within Koala Blue Real Estate and has launched with a 32 unit offering in a project in Meadowbrook, south of Brisbane. Demand for affordable investment opportunities has been such that the project is virtually sold out even before the marketing has begun, prompting the launch of two further projects in Townsville, titled “Titanium” and “Linear”. For further details please visit our new website www.koalabluecomm.com.au A Dinner Party with “Attitude” Inside our Christmas Card you will find an early alert regarding our first function in 2008, which takes the form of a dinner party at Star City, Darling Harbour, Sydney, and where we will enjoy a keynote speech from Justin Herald, author of “Would You Like Attitude with That?” The key date to note is Friday 28 March 2008. Our recent dinner in Parramatta where Chris Anderson was the guest speaker was a sell-out success, and the overwhelming feedback from you was that more opportunities were needed where you could mingle with like-minded investors, have a great night out to celebrate achievement, and be inspired by the success stories of those who have turned their life goals into reality. Here’s an extract from Justin’s website to whet your appetite and to trigger your RSVP when your formal invitation arrives in the new year. Successful entrepreneur Justin Herald, who retired from his multi-million dollar Attitude clothing business at the age of 31, shares his motivational tips to help you achieve your goals. If you think you can't...you won't. At the age of 25, with only $50 in his pocket, Justin Herald decided that he would give his own business a go. With no experience, he started up Attitude Gear®, which today is a multi-million dollar company, with products being sold throughout the world. Successfully retired at the age of 31, Justin believes that we all have the potential to make it in life, the only thing standing in the way is our ATTITUDE. Discover the secrets of his success and his "I can do anything I set out to do" attitude to help you achieve your own goals. After all, life is 1% inspiration, 99% perspiration equaling 100% Attitude! McCarthy Group WA Comes On Stream McCarthy Group is expanding its footprint into Western Australia as a result of the demand for investment opportunities that has accompanied the dramatic surge in the economy of that state coupled with the limited availability of affordable local opportunities. The ability to connect interstate investors with excellent opportunities lies at the heart of the success of McCarthy Group’s model, and WA investors have quickly acquired a taste for what we have to offer, and the way we do it. Our first “Meet the Team” evening in WA will be attended by over 50 investors and guests, which is testimony to the rapid growth that we are experiencing in WA and to the suitability of our investment model to their needs. Welcome aboard! Merry Christmas, and Many Happy Returns! As we get set for the approach of Christmas and a welcome break for most of us, we would like to thank you for all your support throughout the year. We wish you a blessed Christmas and a relaxing holiday with your loved ones, and we look forward to seeing you in the new year as we take up from where we left off. In keeping with property owners and investors throughout Australia, you will leave 2007 in a stronger wealth position than you went into it, and we at McCarthy Group would like to say “Well done” for all your investment savvy and success, and to encourage you to keep investment uppermost in your mind as we get ready to do it all again in 2008 and continue together down the road of “Building Family Assets”.
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