Nathan Coad of NMC Finance tells us what we need to know to retire comfortably, as long as we start now.
You know that guy. He earns the same as you, but he has two houses and you only have one. What’s his secret? GOOD FINANCIAL ADVICE. He has people working for him who know how to get the best from the existing system. And you can too. You just need to know how to make the system work for you.
I need to stress to the Over 50s that it is just so important to have a clear strategy for retirement. I work with a lot of clients in this space. The way you approach your planning at this stage of life can make all the difference to how you live in your later years. And it’s easy, legal, and very, very smart. Everybody needs to know this.
True financial freedom at retirement is about making the system work for you
For those of you with an outstanding home loan debt on your home, there is good news. You are generally sitting on a lot of equity from the uplift in property values. It may seem to be just an imaginary amount of money or simply theoretical, but it is actually an important tool that you can use to free yourself from money worries in your later years.
You probably currently have no passive income sources and are going to be reliant in retirement on your superannuation generating a small amount, and then likely the Age Pension. But you could change that, depending on how you are currently set up financially.
You need to use the equity in your home to increase your wealth. We meet with people to understand the structure of their home lending, and work out how much equity they have. And then we can work out how they can put that equity to work, rather than having it sitting there doing nothing.
The good news is that anyone with equity building up, can use that equity to buy a second property. The second properties our business associates suggest you buy, they suggest for a reason.
The second property can help you reduce your existing tax base. Our associated registered accountants provide the advice here.
The second property is expected to increase in value over time, providing capital growth and make life easier at retirement. Again I will refer you to our partnered advisors who will guide you through that.
Clients will only have to contribute $20 to $50 a week themselves to actually secure the property in the current environment.
You will pay down your mortgage five to 10 years faster.
You’ll have an extra asset at retirement. With this, you can sell it, take the capital growth or keep collecting the rent.
The second properties our business associates suggest are all across Australia. They identify suitable properties in specific areas of Victoria, New South Wales and Queensland. These properties have been selected according to population trends, infrastructure, investment, and what is going on from various levels of government.
Having equity in your home actually an important tool that you can use to free yourself from money worries in your later years.
RISKS
There are the usual risks. There’s always the potential of interest rates increasing. If the rents don’t increase as well, you’ll have to pay the difference. Our associates take some of that risk away from the actual rent side of things. Properties that carry a five-year rental guarantee provide support. Our associates work with property managers so that if the tenant doesn’t pay the rent, or if there’s a delay in being able to find a tenant, the property manager will actually cover the rent for five years at an agreed rate.
The other key risk is that there cannot ever be a guarantee that property prices are going to rise. But, if looking at historical data in Australia, property generally has only really done one thing over the long-term. Gone up over time. Over the decades, as population growth occurs, urbanisation happens and infrastructure goes in. Areas that weren’t once ideal to live in then become very sought-after areas. Inner city areas in Melbourne like Carlton, Richmond, Collingwood are examples. In Sydney, you have Surry Hills and Redfern. At some point in time they were very undesirable places to live. Redfern only 10 years ago was still undesirable, but thanks to urbanisation and population growth, those areas have become sought after because of their close proximity to the city.
This gentrification and subsequent increase in property values is expected to happen all through Brisbane and through to the Gold Coast. It’s these areas of stable increases in capital growth that we our associates focus on.
The Covid crisis has ultimately started to change our culture. Regional areas propertywise have experienced such a boost because of people realising that they’re never going to have to go back to the office five days a week in the city. Personally, I don’t believe it’ll ever go back to what it was with large corporations in Australia reducing commercial leasing capacity and assisting employees with flexible working arrangements.
A CASE STUDY
Alison (48) and Paul (53) have a combined income of $200k. They are both self-employed and have a house which they live in. The house they bought last year for $655k has just been valued at $850k now. They paid $300k as a deposit. What should they do before they retire?
We can work out how they can put that equity to work, rather than having it sitting there doing nothing.
Advice: Firstly, I would work out what the borrowing capacity is and I’d suggest property-wise, Alison and Paul can probably secure a second property around about $470k over a 30 year term. A second property is a saleable asset, if you need to sell it, you are not going to be without anywhere to live.
Alison and Paul also need to have an exit strategy at retirement.
On the other side of this process, Alison and Paul would build ownership in the property that has a renter in it and the rent is paying it off. They are only approximately paying $20 to $50 per week to get into this situation. The lending is structured so that direct mortgage exposure against the primary home is limited.
THE SECOND PROPERTY
No emotion should be attached to an investment property. Think of it like purchasing a share in a company. What you’re looking for is an asset that’s going to be generating demand.
OTHER OPTIONS
There are other ways to increase your retirement pot. An example is salary sacrificing a part of your salary, into superannuation and at the same time access a part-pension from your superannuation. That round-robin transaction results in you firstly ending up with the same net salary each pay period that you would have otherwise, but you end vvsuperannuation’s a lower tax environment than your personal status, in your marginal tax rate.
Having a clear strategy for retirement is the route to financial freedom
Any superannuation strategy will be guided by our associated financial planners who are engaged to advise on the suitability of acquiring property in the fund.
So why isn’t everyone doing this? Mostly they don’t know they can. This is why financial advisors are so valuable. They understand areas in which you can quite lawfully utilise the tax laws to your advantage.
People who build up large property portfolios – all they’re doing is utilising knowledge and applying it. It’s sitting within the parameters of the tax law. Knowledge is power, and then applying it, that’s when it becomes apparent.
Property is just one asset class, and there’s many asset classes you can access. But property is one which you can utilise with the tax system to help you pay down that asset faster.
SUPERANNUATION
Superannuation is the other key area we can assist with. If people have built up a good base of superannuation over their careers, we can help clients navigate purchasing property through their superannuation.
EXPERT ADVICE
How do I know how all this works? Because I’ve been a career banker. I started in 2005 and spent most of that time in the lending environment.
Up until 2018 I worked in two of the major banks, before I started NMC Finance. I started my own brokerage because I saw a gap in the bank offering. One of the reasons why I really enjoyed being a commercial banker was being able to go out and build relationships with clients and provide that personalised experience. So setting up my own firm really allows me to do that.
I’m not limited to one set of credit policies with one bank, one set of products that probably doesn’t fit all clients. I’ve got about 38 lenders in my panel, and I’ve also got the ability to go offpanel where there’s an alternative scenario that’s suitable for a client. And so when you’ve got the power of that behind you, you can build strong relationships with clients that you can keep for life. I really enjoy working in this space and it’s thrived through the pandemic.
THE TIME TO ACT IS NOW
It’s been a really great time for clients to be able to secure extraordinary discounts on their finance which are in place for the whole of the 30-year terms. It’s also the perfect time to be refinancing, securing very cheap money. It is the lowest environment, interest-rate-wise, in the history of Australia. This is your window, jump through it.
This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is suitable for you and your personal circumstances.
Want to read more about financial planning? Check this article out.
On the corner of Bermuda and Markeri Streets in Mermaid Waters, Q Super Centre is a shopping mecca right in the centre of the Gold Coast’s style map. The Silver team catch up with all the news from the popular shopping haven.
It’s a tough life as a magazine writer, having to spend time at places like gorgeous, sunkissed shopping mecca Q Super Centre. But someone has to do it!
With the absolutely beautiful Spring weather now upon us at the Gold Coast, an outdoor shopping centre is the way to indulge in some retail therapy. We can look for our favourite things, and enjoy being outside as well. Q Super Centre is on one level only, so there are no stairs to navigate. And it is beautifully landscaped, giving the feeling of being in an oasis, protected from the hustle and bustle of the outside world. So what is happening this Spring at Q Super Centre?
Leanne Coutis, Q Super Centre’s ambassador
Doggie Calendar
As most of us know, Q Super Centre is becoming very well known as a doggie-friendly shopping centre. There are dog watering stations across the shopping centre, plus handy dog waste bags throughout the complex, and doggies are allowed in all the outdoor areas. Some stores also allow dogs inside. A fun event that takes place every year is the Doggie Face of Q. This is a competition where owners send in pics of their fur babies. One winner is selected, plus 11 other pups are chosen to be in the doggie calendar.
The 2021 doggo finalist won $500 credit with Vet Call and a $500 Petbarn gift card. Plus, a pet photo shoot with Sandy Noses Pet Photography. And, a Doggie Face of Q 2021 dog tag and a gift from Petbarn. Eleven lucky runners up received a $100 Petbarn voucher, plus a pet photo shoot with Sandy Noses Pet Photography and a gift from Petbarn. Keep an eye on Q Super Centre’s social media pages. The 2021 competition has just been closed, so the calendar will appear soon, featuring the Doggie Face of Q 2021 star!
Some contestants for the Doggie Face of Q
Donations
Q Super Centre is very active in giving to those in need. Every entry received in the Doggie Face of Q meant that the centre gave $1 to Story Dogs. The Story Dogs literacy program is built around the idea of kids reading to dogs. Kids with reading difficulties can fall behind very fast. So the charity tries to ensure that the gap between these kids and fluent readers doesn’t widen. Story Dogs has been very successful, with great improvements noticed in the participating students.
Q Super Centre are also supporters of the Animal Welfare League Queensland. They have often asked for their customers to bring any old or unwanted blankets or towels to collection points at the Shopping Centre. They also have other charity events, including food donation bins, which is especially helpful at Christmas.
Community Services
There are plenty of services for those in the community to avail of. There is now a completely free JP service operation 7 days per week except public holidays (although this can change during Covid restrictions, please check with the website to see the schedule.) The JP service is now permanently located next door to ALDI Supermarket. No appointment is necessary.
Shopping haven at the heart of Gold Coast
There’s over 80 retailers including three supermarkets at Q Super Centre. There’s also Bunnings, Pet Barn, and nine dining choices, specialty stores offering gourmet fresh food, dining, hair and beauty, home wares, medical and health, banking as well as unique and boutique fashion. For more updates, keep an eye on Q Super Centre social media (facebook.com/QSuperCentre or Instagram @qsupercentre or log onto qsupercentre.com.au).
Want to read more about the Q Super Centre finds? Check this one out.
If you want to look after others, you must look after yourself first. Tweed Mall is an all-in-one venue for your wellbeing. Spend a day looking after you.
Eye Care
OPSM look to improve vision while promoting the critical importance of good eye health. From a single store in Sydney, OPSM has travelled far in 80 years now and has 400 stores across Australia and New Zealand.
OPSM
Kyle Ward Optometrist is an independent and privately owned optometric practice, with that personal touch. Come in for optometric examinations, general eye exams for spectacles and contact lenses, or to diagnose eye disorders such as glaucoma, macular degeneration, cataract, diabetic eye disease.
L-R: Healthwise, Kyle Ward
Health Care
Healthwise Medical Centre has been operating for over 15 years in Tweed Heads. Their dedicated team are continually working to provide better health outcomes for patients. They specialise in providing proactive healthcare so that you can maintain a better health standard as you age.
We all know Chempro. They are the handiest chemist ever, being open 7 days, 7am to 7pm except Good Friday, Anzac Day and Christmas Day. Whizz in here for professional advice, blood pressure testing, and medication checks. But also, they have trained cosmetic consultants who advise for Clarins, Clinique, Estee Lauder and Napoleon.
L-R: Chempro, Bay Audio, Essence Chiropractic
Get a hearing check-up or simply speak to the Bay Audio Hearing Experts at Tweed Mall. They have the latest in hearing technology solutions. The latest technology has drastically improved hearing aids, impressive features seamlessly integrate with your lifestyle. They are located near Woolworths.
Need a blood test? QML Pathology is one of Australia’s leading comprehensive clinical laboratory and pathology services. Based in Queensland for more than 90 years, they operate one of the largest, purpose-built laboratories in the southern hemisphere.
QML Pathology
Supplements and Comfort
When you are in pain or discomfort it’s difficult to cope and to go on with daily tasks.
Essence Chiropractic in Tweed Heads strive to help people with many problems and would be honoured to help you in your healing journey. Come see Dr Andrew – Chiropractor, kinesiologist and unshakable believer of the power of the human body.
Many of us have now discovered good health for a better quality of life. Power Supps supports the local community in bettering their lifestyle, health and well-being. They provide the latest in vitamins and supplements. Plus they give advice and support, with three qualified personal trainers on hand.
L-R: Sun’s Massage Centre, Qing Fu traditional Massage
There is no better way to treat yourself than to get a Qing Fu traditional massage. They specialise in treatment massage, including remedial, sciatica, Swedish, pregnancy massage, and deep tissue massage.
Sun’s Massage Centre specialises in acupoint massage and treatment to assist with a number of health issues including muscle aches, sports injuries, nerve pain, ligament swelling, sciatica, and more. Health rebates are available.
Fitness
At Snap Fitness there is something for everyone, regardless of your fitness level, age, goals or fitness aspirations. In addition to world class facilities, and a large range of cardio and weights equipment, they have a team of qualified personal trainers to get your started, keep you motivated and help you achieve your goals!
Fitstop is a family-owned business that is focused on creating happy, healthy humans in a community- based environment. They run group fitness classes, with over 30 classes per week to choose from. Social Saturday is free to the whole community to join, all you need to do is download the Fitstop app and book in your session!
L-R: Snap Fitness, Fitstop
Tweed Mall is only a short stroll from Coolangatta Beach, right next to the Twins Towns Services Club and the Jack Evans Boat Harbour. There are over 900 car parking spaces, and a bus stop on Wharf Street.
When it comes to over-50s lifestyle communities, Halcyon Greens is smashing it. The development can’t stop winning awards. It has been attracting buyers from all over the country who are flocking to the Gold Coast in unprecedented numbers. With the Pimpama community’s final stage now selling, Silver Magazine took a spin around the development to see all of the good stuff before it sells out.
Several years ago, Halcyon founders Dr Bevan Geissmann and Paul Melville took a trip to Florida, the epicentre of over50s lifestyle resorts. Returning to Australia with the latest thinking on the good life, the vision for Halcyon Greens was born. “Our vision for Halcyon Greens was to create modern, country club living, the size and scale of which has never been seen in over-50s living in Australia,” Dr Geissmann said.
Masterplanned by Sanctuary Cove architect Brian Toyota, the northern Gold Coast community is located on an 84-acre island. It is surrounded by a nature reserve, and stunning native wetlands. Also, it is nestled next to the ultramodern community of Gainsborough Greens. Residents have private access to the club’s 18-hole Championship golf course and clubhouse.
Homeowners at Halcyon Greens enjoy connecting with neighbours through various activities
Many homeowners enjoy free golf as a benefit of living at Halcyon Greens. They are incredibly active in organised competitions… but are also partial to a social game with friends. Outside of golf, there are plenty of activities, with groups and events being organised to keep homeowners busy and connected.
$20 MILLION LIFESTYLE AND RECREATIONAL PRECINCT
Running through the community and located across six acres is the $20 million lifestyle and recreational precinct. This is the largest, purpose-built facility of its kind in Queensland. It rivals many of Queensland’s five-star tourism resorts. Homeowners have access to 22 different functional spaces, it caters to more than 40 individual sporting, leisure and recreational groups. Homeowners can enjoy both casual and formal events, in different spaces, which are connected by enclosed walkways.
The Lodge is the more formal of the leisure facilities. It features a luxe seated area with stone fireplace, commercial kitchen and bar, private dining room, a 40-seat Gold Class cinema, library and sala.
Surrounding The Lodge is an outdoor seating area which looks out over the resort pool. It has sun lounges, a beach entry and disability rail for ease of entry. Plus there’s a sunken firepit, which is perfect for afternoon meets.
On the other side of the resort pool is the Recreation Club. It has a commercial kitchen and bar, parquet dancefloor, function space, 25-metre heated mineral pool, spa, gym, hair salon, beauty treatment spaces and bocce court.
The Pavilion opens to eight pickleball courts, tennis court and a championship-size bowling green, all floodlit so homeowners can play well into the evening. It also offers BBQ facilities, kitchenette, function space and a billiards area.
Recreation Club’s heated mineral pool
LET’S GET THE PARTY STARTED
Halcyon communities are designed to provide homeowners with the ability to do as much or as little as they like. The homes are built to allow ageing in place and the facilities offer a platform for homeowners to form vibrant sporting and leisure groups. The social club at Halcyon Greens, known as the ‘fun club’ is incredibly active. It organises many events and activities ranging from live concerts, themed dinners, fashion parades, mystery bus trips, excursions and trivia competitions.
Gatherings are also being held at the social rooms
A team of busy volunteers work hard to organise the many events. Group president Ann Ryan said the best thing about being involved with the social group is having the opportunity to meet more people in the community. “It brings homeowners together from the single homeowners to the couples who socialise and connect with the rest of the community. It’s great watching people who haven’t danced in a long time hit the dance floor. It’s also great seeing the people who have just joined our community talking to new friends, and happy.”
The community has recently had trips to Maleny, the theatre in Brisbane and one of Gold Coast’s most fun cover bands, Koi Boys, played live at the Recreation Club. “We are spoiled for choice as you need to prioritise what you want to go to each week as there are so many things on offer,” said Ann.
A theater in Brisbane where community events are held
AWARDS
Halcyon is no stranger to industry recognition being the most awarded creators and operators of over-50s lifestyle communities, with almost 30 national and state awards.
Halcyon Greens is no exception with the Pimpama community winning the prestigious Urban Development Industry Australia (UDIA) Queensland’s 2020 awards for Best Seniors Living and Best Master Planned Community.
The community was shortlisted in the national awards. This made it the first developer of over-50s communities to be a finalist in the Seniors Living and Master Planned categories.
The UDIA recognition was off the back of the community’s $20 million Recreation and Lifestyle Precinct winning the Master Builder’s award for Best Tourism and Leisure Facilities over $10 million, beating many hotels and tourist resorts on the Gold Coast.
More so, Halcyon Greens is also a final in this year’s national Urban Developer Awards, which are yet to be announced.
GREEN CREDENTIALS
Halcyon Greens has been designed and built to take advantage of green technology. This lowers the carbon footprint of the community and offers homeowners more certainty over energy costs. The community has six-leaf UDIA EnviroDevelopment certification for its sustainability initiatives across ecosystems, landscaping, waste and recycling, energy, materials and water.
In addition to this, Halcyon homes are built using materials such as steel frames, Hebel panels, insulation and 3.5kW solar panels and solar hot water as standard, with many homeowners choosing to upgrade to 5.0kW. Many homes have Tesla batteries which drive down energy costs even further, with one homeowner revealing they were averaging around 1.0kWh per day compared to their previous home (also solar powered) of around 11kWh per day. “The cost comparison isn’t simple because we had solar in our previous home with a very good feed-in rate. However our average daily cost in our previous home was $1.00 per day compared to a credit of $2.70 per day at Halcyon Greens,” the homeowner said.
Greenery is a key point at Halcyon Greens
THIS IS THE LIFE
The lush island oasis has allowed the community developers of Halcyon Greens to dream big and create an exceptional lifestyle community. The team at Silver have visited and can vouch that the development is everything that the builders have promised. We highly recommend doing the tour. The final stage of the Pimpama community is now selling and with the Gold Coast real estate market set to get hotter over the coming years, the time to inspect Halcyon Greens in now. Enjoy!
Now that staycations are all the rage thanks to Covid, here’s an idea for you. You can swap your house for someone else’s house and live with all the comforts of home while being somewhere new. 79-year-old Ingeborg tells us about her swapping escapades.
I have been a member of aussiehouseswap.com.au since 2014. As for my home, I live at Southbank, in Melbourne. I have swapped all over the place. I’ve been to the north of Queensland, I’ve been to Western Australia, and to Tasmania. Also, I have swapped around Victoria too, just for weekends away. But I have spent 15 years going mostly to North Queensland, because I don’t like Melbourne winters.
Enjoying the rainbow lorikeets in the Townsville house
Swap History
The longest swap I have ever done is three or four months. The other swappers came down here and stayed at my apartment at South Bank. They were free to do whatever they wanted to do here. They are retired as well, so we had a lot of time to enjoy the swap. I went to their place, in Townsville.
Ingeborg’s house in Townsville
The house was fabulous. It was on a huge hill, just off the city. Anyone relatively fit could walk right into the CBD. The view was absolutely fantastic, and the people are lovely, and we’re still friends.
We also swapped cars. They had a manual car, which was a nightmare on that hill! I know Townsville well because my daughter lived there for six years. So, it was almost like visiting relatives.
Spending time with loved ones in Townsville
Travel Buddy
I travel with my dog. He flew up with me in the same plane, although, he has to go in the hold, in a cage. Sometimes the dog’s plane ticket is more expensive than mine!
The other family knew I was bringing my dog, and they were okay with that. Sometimes, you can swap for months. I wouldn’t leave my puppy dog behind, lets face it. I wouldn’t have gone if I couldn’t have taken my dog. We did lots of good walks around Townsville. We did go to all sorts of places. I lived almost as if I was at home.
The dog comes too!
I had my son visit me in Townsville too. My son is autistic. He lives in a group home, in Melbourne. House swapping is better for him than a hotel, it’s much more comfortable for him in an established home and that has everything he needs
Ingeborg’s son enjoying the pool at their swap house
Melbourne
The people I swap with always have a reason to be in Melbourne. Sometimes it is people who are doing a trip around Australia, and they wanted to stay for a bit longer – usually only three or four weeks in Melbourne. They may have a relative here, or they just want to see Melbourne properly.
I did have more swaps planned, I was going to go to New South Wales for several months, right up until Christmas. But with Covid hanging around, that fell flat. Everything is uncertain right now. But hopefully, I will be swapping again very soon.
THOSE CUPS OF COFFEE that you drink every day to keep alert appear to have an extra perk – especially if you’re an older adult. A recent study monitored the memory and thinking processes of people older than 65. It was found that all those with higher blood caffeine levels avoided the onset of Alzheimer’s disease in the two-to-four years of study follow-up.
Coffee Science
Researchers from the University of South Florida and the University of Miami say the study provides the first direct evidence that caffeine/ coffee intake is associated with a reduced risk of dementia or delayed onset. “These intriguing results suggest that older adults with mild memory impairment who drink moderate levels of coffee – about 3 cups a day – will not convert to Alzheimer’s disease – or at least will experience a substantial delay before converting to Alzheimer’s,” said study lead author Dr. Chuanhai Cao, a neuroscientist at the USF College of Pharmacy.
Coffee Protection
The study shows this protection probably occurs even in older people with early signs of the disease, called mild cognitive impairment, or MCI. Patients with MCI already experience some short-term memory loss and initial Alzheimer’s pathology in their brains. Each year, about 15 percent of MCI patients progress to full-blown Alzheimer’s disease. Blood caffeine levels at the study’s onset were substantially lower (51 percent less) in participants diagnosed with MCI who progressed to dementia during the two-to-four-year follow-up than in those whose mild cognitive impairment remained stable over the same period.
No one with MCI who later developed Alzheimer’s had initial blood caffeine levels above a critical level of 1200 ng/ml. This is equivalent to drinking several cups of coffee a few hours before the blood sample was drawn.
In contrast, many with stable MCI had blood caffeine levels higher than this critical level. “We found that 100 percent of the MCI patients with plasma caffeine levels above the critical level experienced no conversion to Alzheimer’s disease during the two-to-four year follow-up period,” said study co-author Dr. Gary Arendash. “We are not saying that moderate coffee consumption will completely protect people from Alzheimer’s disease,” Dr. Cao cautioned. “However, we firmly believe that moderate coffee consumption can appreciably reduce your risk of Alzheimer’s or delay its onset.”
A Cup a Day
“Moderate daily consumption of caffeinated coffee appears to be the best dietary option for long-term protection against Alzheimer’s memory loss,” Dr. Arendash said. “Coffee is inexpensive, readily available, easily gets into the brain, and has few side-effects for most of us. Moreover, our studies show that caffeine and coffee appear to directly attack the Alzheimer’s disease process.”
In addition to Alzheimer’s disease, moderate caffeine/coffee intake appears to reduce the risk of several other diseases of aging, including Parkinson’s disease, stroke, Type II diabetes, and breast cancer. A study tracking the health and coffee consumption of more than 400,000 older adults for 13 years found that coffee drinkers reduced their risk of dying from heart disease, lung disease, pneumonia, stroke, diabetes, infections, and even injuries and accidents. I think we all need to make our local barista our new best friend. Right, Now. ■
