The Sumo Group of Companies - PowerPoint Presentation

Slide1

The Sumo Group of Companies

Slide2

Economic HistoryPre and Post GFC

Glass-Steagall Act Repealed in 1999

Banks Too Big to Fail – Governments Step InSovereign Debt Crises – Reserve Banks to the Rescue

Vicious Circle in the Wild West

Slide3

Key Issues for Key EconomiesEurope – Uniform Currency but Political Diversity

USA – Huge disparity between Public and Private

Japan – Aging Population and DeflationIndia and Asia – Living Conditions

Slide4

How does the Macro Economy Interact with Personal Wealth Gain

?

Slide5

Golden Principles of the Past Macro Environment Now Challenged

Buy and Hold is a Safe way to Invest vs Affordability

Share markets Always Outperform – Is this True with Monetary Printing ?

If its all too Uncertain, keep cash in the Bank !!

Is there a New Paradigm ?

Slide6

These are Unprecented

Economic Times !!

Slide7

Relative debt positions

Slide8

Sustainability of Debt - USAUS Tax Revenue - $2,170,000,000,000Federal Budget - $3,820,000,000,000

New Debt - $1,650,000,000,000National Debt - $14,271,000,000,000

Budget Cuts - $38,500,000,000OPTIONS : Raise Taxes, Lower Government Spending or Borrow more ?

Slide9

Let’s Assess the FactsHave All the Economic Bullets Been Fired ?

Too much Capital chasing Too Little Yield

Changing of the Guard – The RiskWhich Country is Most Likely to be Left Still Standing ?

Slide10

AUSTRALIA

Slide11

Australia’s international standing

Organisation for Economic Co-operation and Development

(OECD)

Better Life Index 2012

Slide12

Australia’s Economic Position12th largest national economy by GDP (US$1.57 trillion)8

th largest Stock Exchange in the World

Global trading valued at $627 billion (Financial Year)The Test of Time ?

Slide13

Australia’s Track Record1987 Stock Market Crash1997 ASIAN Currency Crises

2007 Global Financial Crises

Slide14

KNOWLEDGE TESTWhich Country is the biggest Investor in Australia and Why ?Which Country had the 2nd best Performing Stock Market in the World over 100 Years ?

Why has the Australian Economy been Growing

Consistantly ?

Slide15

Slide16

Where do we Start to Build Wealth in the New Economic World?

Slide17

Where Money Printing Ends Up – On Real Assets, in the Safest Economic Geography !

Slide18

What About Property ?

Source:

Residex

S

ydney Morning Herald

ANZ tie-up looks to boost

Chinese investment

in

Australia

The Australian-18 hours ago

“This will not only support the growing two-way trade and

investment

relationship between

Australia

/New Zealand and

China, but

will also help 

.

Slide19

AUSTRALIAN PROPERTY

There are a range of important factors that point the overseas buyer to invest in Australian residential real estate.

Stable and transparent governmentProvision of optimum yielding prime grade assets.

Strong economic performance –GDP growth.

Well maintained and improving infrastructure.

A skilled and educated work force.

Australian Government encouragement to offshore buyers.

Compares highly against other Asian property markets.

Slide20

Is Property a Good Investment ?AFFORDABILITY higher NOW despite higher PricesGovernment Incentives – Tax and 1st Home Buyers

Ratio between Supply and Demand

Restricted Finance to developers

Slide21

Major Cities

Sydney

New South Wales

Melbourne

Victoria

Brisbane

Queensland

Gold Coast

Queensland

SUMO AUSTIN GLOBAL WEALTH

Slide22

Slide23

Slide24

Where does one start to Find Opportunities in Australia ?

Slide25

Investing in

Australia

Some Key Financial Facts…

Slide26

Borrowing Rate

Rental

Vacancy Rate

Key Facts

CHINA

AUSTRALIA

22.4

%

**

1.4

% (Sydney)*

Source: *

http://www.yourmortgage.com.au/article/rental-yields-in-sydney-set-to-rise-as-vacancy-rates-plunge-78808.aspx

Source:**

http://www.chinanews.com/gn/2014/06-10/6265850.shtml

Slide27

Key Facts Continued

CHINA

AUSTRALIA

Source:

http://

www.chinasmack.com/2013/stories/chinese-land-use-rights-what-happens-after-70-years.html

Source

:

http://

www.ausproperty.cn/instruction/61971.html

Source:

http

://mt.sohu.com/20141223/n407219454.shtml

Slide28

AUD / RMB Exchange Rate

AUD / RMB Exchange Rate

Key Facts Continued

CHINA

AUSTRALIA

*Source:

http://www.globalpropertyguide.com/real-estate-house-prices/I

Source

:

http

://

www.boc.cn/sourcedb/whpj/enindex.html

Source

:

http

://www.zhihu.com/question/27310210/answer/36091343

RMB 4.6= 1AUD(was 6.7)

BEST TIME TO INVEST!

Slide29

Typical Property Investment

Investment Property Value $750,000

Your Investment

- 10 % on contract $75,000

- 10 % on settlement $75,000

Other Costs

- Stamp Duty + legal + accounting(around) *

$

35,000

Total

$185,000

Property Value grows by @ 6 %

of

$750,000

Year 1 ($795,000 – $750,000)

$ 45,000

Year 2 ($842,700 -

$

750,000)

$ 92,700

=

RMB

426,420

Year 3 ……

……

*Stamp

duty varies from State to State

Slide30

The

longer

you hold the property, the more value you received

1 2 3 4 5 6 7 8 9 10 Years

Value

$750,000

Loan

$600,000

Value

$1,343,234

Loans can be “Interest Only”

Slide31

Income / Expense Working

Income

Rent Received

Monthly (

@ 5 % of Value )

$3,125

Expenses

Interest on Loan ( @ 5 % of Loan )

$2,500

Other

expenses*

$529

-------------------

Total Expenses

$3,029

===========

This means you do not need to worry about the loan as the rental can almost cover the mortgage as Australia has lower Rental Vacancy Rate.

* This rate is based on average

Water,

council ,strata and agent service fees, they may vary from case to case.

How to

Manage

the

Mortgage

?

Slide32

What we can do for you ?

Selection of appropriate property for you

Legal – assist you in conveyance of the property

3. Arrange for the Bank finance (Loan)

a. Property Management

b. Finding the tenant

c. Managing property

d. Collecting rent

Accounting services

Cross border tax advise

7. Assist in selling your property