With the property market booming and the local share market recently hitting a seven year high, I have found myself having conversations about whether or not this is just like the pre-GFC high. As with any big news in the market, it is always prudent to contact your Financial Planner to see how this news affects your own investments, or to find out how you can invest to make the most of these trends.
My opinion is it’s always good to take things into context, and I’ve been seeing some great investment opportunities emerge. Below is a graph put together by Dr Shane Oliver, Head of Investment Strategy and Chief Economist at AMP which shows the relationship between changes in value the top 500 listed companies in the US and the change in collective company profits. Not saying that every company on the market represents good value, that’s why careful stock and manager selection is so important.
A lot of people may think that, with the market so high, this is a bad time to invest. The fact is, it is a never a bad time to look at your options.
Home owners who want to become debt free, upgrade to a bigger home or move to a preferred suburb could take this chance to look at making the most of income producing investments. Debt Recycling is using investments and tax benefits to pay off your home loan. Your financial planner may be able to help you wipe years off your mortgage.
The property market will also have a lot of first home buyers thinking that it is time to step onto the property ladder. The problem is that the recent increase in prices could still mean you are being priced out of your preferred Melbourne suburbs. Investments and good financial planning can help build a bigger deposit in a tax effective way and help you get into your preferred home.
On the other hand, I have been working with a few people who have some money saved, but just aren’t ready to buy their first home. With low interest savings accounts offering very little, I am helping them build their wealth with tax effective investments. In some cases these investments are paying an income that helps cover rent, travel and other lifestyle needs.
These record results can be great news, if you are getting good financial advice on how to make the most of it. The best thing you can do is get in touch with a Financial Planner and find out your options, today.
Phillip Richards is a qualified Financial Advisor with more than seven years’ experience in the industry. His expertise in investment, debt management, retirement planning and insurance will help you assess your options to build your wealth. Contact Phillip today to discuss how you can build your own wealth and plan to reach your goals.
This information is general in nature and does not take your personal situation into account. If you are interested in taking control of your wealth, contact Endorphin Wealth Management.