Financial PlannersNews Perth Financial Planners Discuss 2016 Real Estate Outlook

Outlook for Real Estate Assets in 2016

Perth financial planners who recommend real estate as a way to diversify portfolios are on the right track if a recent AMP Capital blog entry is any indication. The blog post being referenced is called, “Strength in real assets to continue – 2016 outlook.” The article had contributions from AMP Capital’s Heads of Infrastructure Equity, Infrastructure Debt, Global Listed Infrastructure, Property and the Deputy Head of Global Listed Real Estate.*

Generally, the real estate and infrastructure managers of AMP Capital expect global demand to strengthen in 2016 for all of the above listed categories. Here are capsules of each asset class projections for 2016 according to their respective managers.*

Boe Pahari, Global Head of Infrastructure Equity

Mr Pahari expects the markets to be the most active in North America and Western Europe. More managers are expected to launch funds during 2016, making this segment more competitive. Also, larger investors appear to be developing a preference for direct investments in infrastructure assets.*

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Investment PlanningNews Pitfalls of Property Investment

Do You Think Property Investment is a “Sure Thing”? Think Again.

Perth financial planners field a lot of questions about property investment on a daily basis. The concept sounds simple: purchase an investment property in a hot Perth suburb, rent it out and wait for capital gains to outperform all other forms of investment. But does it really work that way?

The Pitfalls of Property Investment

We have helped plenty of investors with well-managed investment property portfolios do well. So we aren’t saying that you can’t make plenty of money with investment property. However, there are plenty of pitfalls that can stop property investors before they gain a foothold in the market. Here are a few of them.

Unexpected Expenses

Were you ever a renter? Think back to what happened when something went wrong. Did the air conditioner go out? Did your roof suddenly spring a leak? Did an appliance such as a refrigerator or oven stop working? Do you remember who fixed the roof, replaced the appliance or bought a new air conditioner? It was the property owner.

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Financial PlannersNews Money Mistakes to Avoid

Money Mistakes to Avoid

There are certain patterns or money mistakes that Perth financial planners see on a regular basis. Once we have put them on a program, those mistakes usually don’t occur as often as they used to. Remember that all financial suggestions here are general in nature and that we can’t specifically give advice to anyone’s individual financial situation without a consultation.

Settling for What You Get

This is in reference to bills and premiums. Many companies give new customers great deals but won’t extend the same courtesy to their current customers. They are counting on you to stay put and not complain. Meanwhile, it is possible to save thousands just by changing the mortgage on your home. It pays to shop around.*

Spending More Than You Earn

Credit cards make it too easy to spend money you don’t have, putting yourself in debt and paying high credit card interest rates. This is a very common malady.*

Having No Emergency Fund

It is wise to have at least three months’ worth of expenses saved up in an emergency fund. It is better to have six months’ expenses. A lot of Australians are still living week to week, leaving them vulnerable if they can’t earn money for even a month. *

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