When considering any investment, there are a series of criteria that I have developed for myself to ensure I select investments that fit my circumstances – whether I am after a high risk, fast growth investment or more of a secure, long-term investment.
In all honesty, I only invest after careful, methodical research into the viability of the opportunity. Which is why I actively invest in our CFMG Land & Opportunity Fund.
I absolutely believe in the fund I promote, so much so I’ve also had my extended family invest as well.
Right now, the South East Queensland property market is performing consistently, with property professionals predicting retail growth in Queensland of 1.3% over the next 12 months and to have grown by 1.9% in two years.
We’re seeing a surge of interstate migration into QLD – in particular Brisbane, Sunshine Coast and Logan regions, along with an increase in demand for house and land packages. There has never been a better time to invest in residential property in these locations than now.
At CFMG Capital, we have been tracking these trends quite closely, having been focussed on new project acquisitions in South East Queensland for 18 months, while completing and exiting projects in Sydney and operating one large project in Melbourne that will be finalised in 2019.
This has resulted in a strong weighting to the Brisbane market at present which is proving to be stable, and while it continues to rise, also retains a good affordability dynamic. As a result, I currently hold personal investments in four of the CFMG Land & Opportunity Fund projects. Three of these are via my SMSF and one is in available surplus cash. This has allowed me to diversify across multiple markets and maintain investments in the property market - which is obviously where a majority of my professional and personal investment expertise lies.
Through the CFMG Land & Opportunity Fund, investors receive both certainty (the fund offers a 12% per annum fixed return, net of all fees), attractive return and diversification into multiple markets and the comfort that the experts at CFMG Capital have been ahead of the game with our acquisitions strategy, having exited the Sydney market just as it peaked, nearing the exit of the Melbourne market after enjoying unprecedented growth and securing strategic sites around Brisbane over a 2 year period.
In addition, I own a single investment property outside super and this property is located in a strong growth market and has been positively geared since the date of purchase. Whilst I understand the benefits of negative gearing, I’ve never believed in the concept of purchasing an asset that has a negative impact on my cash flow in order to give me tax savings, so it’s not a strategy I’ve personally ever adopted. With four healthy and active children approaching high-school age and a significant mortgage on my principle place of residence, I’m not a particularly active investor outside my SMSF - as to be honest, there isn’t significant enough surplus cash flow to do so!
As a result, most of my active investing is done within my SMSF, and in addition to my investments with CFMG Capital I also invest in listed and unlisted REIT’s, bonds, managed funds and have some limited exposure to the Australian equities market through both blue chip bank stocks as well as some growth focussed IPO investments or similar. My SMSF is certainly more weighted to property or property related investments than it perhaps should be, however I think this is probably natural given it’s a market I’ve essentially spent my entire working life in and likely have a greater depth of understanding about the moving parts within the property market than the average investor as a result.