Quantum Wealth Summary
- If you’re worried about the bottom of the stock market, forget it. Things are moving on fast. We look at why.
- Forward-pricing by investors mean that the opportunity window for the next 12 months is open now.
- We look at 2 specific opportunities to capture growth, profits, and income in a changed property market over the medium to longer term.
- We report on a key Company at the forefront of this potential revolution.
- And we share with you the Top 5 Quantum Wealth Trends on our reporting radar for this week.
The residential property market has got gloomy here in Auckland.
There’s a similar trend afoot in other Pacific Rim cities, from Vancouver to Sydney. But it seems to be more pronounced here.
Crowded markets and investments also need a regular flush-out. Liquid equities see this all the time. They are priced daily.
Yet, in the property market, I’m hearing of more and more clients and associates selling residential rental and commercial property.
‘We have too much money tied up in this and it doesn’t deliver a good return anymore,’ is what I hear.
Often, an event will spark this realisation. Such as the need to refurbish the property to attract a new tenant.
Not only has the owner earned years of low yields — sometimes below 2.5%. They are now staring into the barrel of an entire year of return wiped out from a costly refurbishment process.
Well, property improvement should, in time, pay for itself with a greater future ROI.
But as equity investors, with the world’s opportunities on our trading desks — and at much lower potential financing rates — the direct property option looks very hard. Particularly for smaller investors.
Yet property over the next 12 months will present arresting opportunity.
And here’s how we may capture that within the Wholesale Portfolios we manage…