The first issue you’ve raised is how to SYSTEMATICALLY start this process. A lot of you have mentioned that you’re probably “doing OK” and a lot of the time that is actually your down-fall… You’re too comfortable.

Many of you are unsure of the first steps involved in making this happen for you.

That’s what this call is all about - I’m going to take you through a 7-step process that if you follow, you can’t help but succeed.

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It created fabulous stimulus into the market than any other single economic event. I actually feel Kevin Rudd been pretty smart about this, because he is trying to stimulate the economy.

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I actually feel Kevin Rudd been pretty smart about this, because he is trying to stimulate the economy.  He is creating an environment of calm and trying to dispel a lot of the media hype that I have already talked to you about and so, he is doing a number of things.

Now, one of the things that he is doing is guaranteeing the deposits for some financial institutions.  Well, that just gives a little bit of a warm and fuzzy kind of feeling.  In reality, what it is doing it is creating a calm and that is about it.  It is highly unlikely that the guarantee will actually ever be called on.  Particularly, in this country with the regulations, the way we have them around the banking institutions, anyway.

But, in his efforts to stimulate the economy.  He introduced the doubling of the First Home Owners grant for existing properties from $7000.00 to $14,000.00 and he has tripled it for new houses.  Now, there is something like 150,000 potential first homeowners in the country that is another 150,000 new properties that can come on to the market?

Now, just think about what that actually means.  Think about what it does not just to the building industry, but all of the associated trades and manufacturers and suppliers to the building industry.  And then, take it further think about the families of all the people that are tied up within the construction industry.  Think about the way that they spend their money.  Think about where they send their kids to school, where they shop, where they buy their bread, where they buy their cars and all that kind of stuff.  And, that is slow on effect.  All has an impetus for growth.  And the thing is, is at the grassroots level and that was one of the things when the first homeowners grant was actually first introduced into this country.  That is what the economist found, was that the stimulation.  Was it a real grassroots level, which meant that the wealth was from the bottom up and not top down.  Because, a lot of the policies that add growth to the economy and things like that, they affect the middle class or the upper class more than they do the lower, the grassroots of the economy.  Whereas, the first homeowners grants really does affected that bottom level and as from the bottom up.  It filled is from that first point of access into the construction industry, which is a benchmark indicator for growth.  True to all of the associated building industry and services and construction and importers and grosser and everything that you can possibly think off right through the chains through to the investors.

Whereas, when you look the cuts in the interest rates, which again we have seen that over the last few weeks.  Those cuts in the interest rates, again, yes they stimulate the economy, but they stimulate it from the middle out.  They stimulate from the middle dynamics of the economy.  So, I actually feel that this made a very smart move in targeting the first time homeowners grant as being one of the first impetus for stimulation of growth.  And, he has kept it; he has kept it to a point where people cannot go silly with it.  There is a timeframe on it.  But, you are going to notice a lot of the advertising and target marketing and all those type of things, are going to be very much targeted at the lower end of the scale and to the cheaper housing and the townhouses as supposed to the single-family homes.

You are going to see a downsizing in the production of new products.  It is going to be more focused on the economical smaller housing market than it will be on the four-bedroom, two-bath, three living areas and all of these kinds of stuffs, two living areas.  So, there will be a change in the market affordability.  There will be a change in the type of supply that is hitting the market.  But, that demand is clearly there.

Now, when you start looking at what is happening from a demand for housing and the supply of housing, I have been trying for the last six months, there is a huge discrepancy between what has been available and what the demand as been.  And, that is only going to get worse, as we go through this period of people being jittery and unsure of what is going on and not doing anything.  What you are going to find is that differential between the cool demand for housing and the supply of housing.  Particularly, in some places like in Sydney where the discrepancy at the moment is huge.  But, to a lesser extent into Brisbane and into Melbourne as well.  When you look at that and you got this long period that is just getting further and further apart.  You are getting more and more pressure on that, which means that when that little bit of confidence really starts to kick and you are going to see that at the March quarter onwards next year, there is going to be such an explosion in that demand to get back into the market.

Ad if the runoff of the first time in this grant, the cuts in the interest rates and things like that continue for that crossover period.  We are going to be in for some very good times in the future.  I am so excited about the market right now.  There are so many opportunities to get into properties on terms and into deals that previously, perhaps may have been out of the question for you, but you got to think like a businessman and you got to think like an entrepreneur.  You are not going in there and buying emotionally you should not be.  What you should be doing is getting really smart right now and focusing on properties that will recession proof you.  Focus on properties that will give you that ability to see you through no matter what happens.  That will positively cash flow that you can create that cash flow coming in to you, because that is what sees you through.  You got to look at the underlying economic factors that drive Australian economy.  And, when you do that, you recognize that all of the fundamentals are as strong as they were three or four months ago.  The only thing that is different is the market jitters.  The only thing that different is the drop in the stock prices, which is purely on people’s lack of confidence.

Now, when you go back to those fundamentals and you look at how the demand is compared to the supply of products as in housing in this country.  They are so out of whack it has to respond.  So, what I am saying is the first homeowners grant is fantastic, because what it does is it bridges that interim gap.  It bridges that interim gap to when things start to settle down.  The American elections over and done with, the markets are done, whatever they are going to do and everything will revert back to fundamentals.  And, the fundamentals in this country are strong and that is what is going to see us through a really good medium term prospect in this country.  We do not have the foreclosures.  We do not have the bad debts.  We do not have the banking regulations the way that they are on other countries.  We do not have the lending and irresponsible lending that is going on in other countries.

Fundamentally, we are strong and as I said, the only thing that is causing any kind of hurts or angst in this country, not around the world, but in this country, it is the market jitters.  It is the lack of confidence in who we are and what we are about.  But the fact is we have more people demanding housing than we are supplying.  And, this period now where you got a bit of a low in the construction industry, what that means is that when things return a little bit more to uneven hill, that discrepancy is going to be even greater.  And, the impact is going to be even greater.  So now, is the time to act.  Not in three or four months time, but now.  Now, is the time to jump in on the bandwagon.  Now, is the time to be taking advantage of these market jitters.

Guys now, is your time.  Now, is your time to really make a mark.  And, I will be back again to talk to you again real soon.  Bye for now.