A Genuine Success Story

0829 Sooner Solutions logo email and webI’ve known him for over 20 years, but learned only yesterday of his wealth creation strategy.  He said it all goes back to advice that he received in his early 20s, something like “everyone needs a place to live”.  So, he started buying modest apartments in the 80s.  He didn’t say how many, but he did say that he now has no debt whatsoever, and that his rental income is multiples of his salary as a well-paid Radiographer.  He’ll be 55 this year.

So, for those of us without a plan to achieve financial independence, we should recognize that investments in real estate is a strategy that has worked for many.  Yes, the market is ‘hot’, but the talk of a bubble is in direct contradiction to the opinions of several different banks’ economists, who all agree that the Sydney market will remain severely under-supplied for at least another two years.

Ring me for a no-obligation assessment of how you can get started.

Interest Rate Trends Update

0829 Sooner Solutions logo email and webAs you’ll see below, the trends remain  downward, except the five-year swap rate (the red line), which has gone up since hitting a low of 2.28% in early April.  But, it’s only up by 40 points.  The big question on the minds of many is, “Are we seeing or have we seen the bottom of this cycle?”.

As an avid chartist, my read is that until we see a break in the cycle of lower highs and lower lows in the long-term trend, it’s still a down market for interest rates.  For those interested in Medical Equipment Finance, the five-year swap rate is the most relevant, and it would have to break ‘resistance’ in the high-threes to signal a reversal of the trend.

You may recall from a previous post that lenders apply a margin/risk uplift of about 2% to the swap rate, making the current five-year rates to creditworthy Healthcare and other businesses in the high-fours.trendlines 10-7-15