As DPN's Business Development Leader, Michael has extensive experience in the Financial Planning industry and passion for improving clients financial wealth and stability.
What’s the most common complaint you hear from small business owners? It’s usually the sheer lack of time. Most small business owners tend to be hardworking, very driven people who are absolutely stretched to capacity.
Little wonder then - that small business owners have no time to think beyond their immediate world. The rigorous slog of managing the day-to-day operation means it’s too difficult to look into anything else.
Small businesses are typically overworked and understaffed. It’s also rare for small business owners to switch off when they get home. Running a business can be a 24 hour, around-the-clock occupation filled with exhaustive BAS statements, chasing suppliers and invoices and fine-tuning marketing strategies. Small business owners can often feel like they’re struggling to keep their heads above water, rather than enjoying their success.
Yet it has been shown that diversifying investments is highly prudent. It’s the “don’t put all your eggs into one basket” fact of capital growth. It makes a lot of sense to have a second income that requires little management. So if your business has turned a corner and you’re starting to reap the rewards of your hard work, it makes sense to invest some of the profit elsewhere to generate multiple revenue streams.
Running a business can be a 24 hour, around-the-clock occupation.
Australians have long had a love affair with property. Property investment continues to be a key staple of our market. Despite market fluctuations and stories in the media about the housing bubble about to burst, Australian’s continue to invest. It’s worth remembering that if you look at Australian property historically there has been an upwards trajectory in terms of growth. The median house price in Australia doubles every seven to ten years. The population is rapidly growing and there is always demand for housing. When the Australian market rises too fast the worst that happens is a correction where prices plateau for a period before going up again.
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So because of this, investing in property in Australia seems a sound decision. Having said that, where many investors make mistakes is in the wrong kind of investment. A common trap is buying the wrong kind of property type in an already heated part of the market. A good example would be investors who purchased off the plan apartments in Melbourne in the last few years. In Melbourne there’s been an oversupply of apartments and so buying off the plan has led to a sudden drop in the property’s value. Or think of investors who bought into Perth at the height of the mining boom and are now left with an overpriced property as housing prices have plummeted and demand has shrunk.
There are many armchair speculators and amateur investors who feel confident that they can pick where the market is going. But the truth is that the Australian market is highly complex with each area having its own peculiarities. It’s only through careful research and a study of long-term trends that you can safely pick an area to invest in.
To ensure you have a stable second income with minimal risk and effort, you need to speak to a professional. DPN specialises in helping small businesses create a steady stream of wealth. We do this through tailoring a plan that fits in with your income, your requirements and your future plans. It means you can sleep soundly at night and concentrate on your core business. Having a solid secondary source of revenue gives you tremendous safety and flexibility. Talk to us today to find out more.