tag:blogger.com,1999:blog-74792663079779448332024-02-19T05:30:46.223-08:00Investment Property FindersFinancial planning for property investment...
Call 1300 131099Anonymoushttp://www.blogger.com/profile/03689831512432872798noreply@blogger.comBlogger37125tag:blogger.com,1999:blog-7479266307977944833.post-1818595334122504352016-07-04T18:45:00.000-07:002016-07-04T18:45:29.236-07:00Millionaires are millionaires because...<div id="Oobj67" style="background-color: white; font-size: 10px; height: 2.8em; left: 44.4em; position: absolute; top: 0.3em; width: 15.4em; z-index: 3;">
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<b><span style="font-size: 22.0pt; mso-ascii-font-family: Calibri; mso-bidi-font-family: Calibri; mso-hansi-font-family: Calibri;">MILLIONAIRES BECOME MILLIONAIRES BECAUSE <u>THEY
FIND MULTIPLE WAYS TO MAKE MONEY </u>DOING WHAT THEY ARE ALREADY DOING.<o:p></o:p></span></b></div>
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<b><span style="color: red; font-size: 22.0pt; mso-ascii-font-family: Calibri; mso-bidi-font-family: Calibri; mso-hansi-font-family: Calibri;">And there is a lesson in this
for all of us... </span></b><b><span style="color: red; font-size: 22.0pt; mso-ascii-font-family: Calibri; mso-bidi-font-family: Calibri; mso-hansi-font-family: Calibri;">Even if you don’t want to be a
millionaire but would like to be financially secure.</span></b></div>
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<b style="text-align: center;"><span style="font-size: 22.0pt; mso-ascii-font-family: Calibri; mso-bidi-font-family: Calibri; mso-hansi-font-family: Calibri;"><br /></span></b></div>
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<b style="text-align: center;"><span style="font-size: 22.0pt; mso-ascii-font-family: Calibri; mso-bidi-font-family: Calibri; mso-hansi-font-family: Calibri;">We can show you how… doing what you are
already doing...</span></b></div>
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<b style="text-align: center;"><span style="font-size: 22.0pt; mso-ascii-font-family: Calibri; mso-bidi-font-family: Calibri; mso-hansi-font-family: Calibri;"><a href="http://www.moneysupermarket.com.au/">www.moneysupermarket.com.au</a></span></b></div>
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<span style="font-size: 22pt;">This
knowledge was passed on to me from a dear friend but originally came from, Chad
A Wade, who unfortunately passed away a few years ago. But his wisdom still
lives on.<br />
<br />
Chad said, "Millionaires become millionaires because they find multiple
ways to make money doing what they are currently doing."<br />
<br />
At first, this advice might seem simplistic, but let's think about this for a
minute...<br />
<br />
What Chad went on to explain was that our time is limited. If you always see
yourself trading time for money, then you will run out of hours, and will run
out of the ability to make more money.<br />
<br />
So in order to create wealth, you want to find more ways to earn income during
that same 24 hours in a day that we all have. And the more that income is based
on you trading time, the harder it will be to amass any real wealth.<br />
<br />
Our economy is based on the average person earning one income. So what we pay
to live is based on the average person's ability to pay. If it were any other
way then our economy wouldn't function.<br />
<br />
Those who earn more than one income have a better than average life... it is
that simple!<br />
<br />
That was a </span><span style="color: red; font-size: 22.0pt; mso-ascii-font-family: Calibri; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU; mso-hansi-font-family: Calibri;">HUGE
PARADIGM SHIFT </span><span style="font-size: 22pt;">for
me.<br />
<br />
You see, when you think of a regular job, like back when I used to be a barman
at a restaurant, it took every bit of energy for me to work those hours. How
could I possibly be earning more money in those same hours?<br />
<br />
But, when you look at the owner of that restaurant, he earns money from my
labour, the Chef and the other employees plus he owned multiple restaurants,
earning money from all of them, often while he wasn't even there.<br />
<br />
And this was just the beginning of the paradigm. To truly understand this
concept, let's talk about something I like to call the "Inception
Effect".<br />
<br />
</span><span style="color: red; font-size: 22.0pt; mso-ascii-font-family: Calibri; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU; mso-hansi-font-family: Calibri;">THE INCEPTION EFFECT<br />
<br />
</span><span style="font-size: 22pt;">Building a Business, within a Business,
within a Business...<br />
<br />
Let me ask you a few questions.<br />
<br />
Is McDonalds in the Hamburger business or it a Real Estate business?<br />
<br />
Are Movie Theatres in the Movie business, or the Concessions business.<br />
<br />
Is Dr. Dre in the rap business, or the business of producing rappers?<br />
<br />
The answer to all 3 of these questions is BOTH.<br />
<br />
But then, it goes even deeper...<br />
<br />
Take Dr. Dre for example:<br />
<br />
1) He is a rapper, where he trades time and skills for money to build his
personal brand.<br />
<br />
2) He is a producer, where he leverages his time for more income from overrides
on the time and skills of other rappers.<br />
<br />
3) He is an investor, where he leverages his money and branding into BIG
business opportunities to amass wealth far beyond what he could trade his time
for.<br />
<br />
Dr. Dre is well on the way to becoming the first billionaire rapper, but does
that money really come from his rapping?<br />
<br />
You see, Dr. Dre found multiple ways to make money doing what he was already
doing.<br />
<br />
He was already in the rap game. But he had a business mindset. So rather than
just trade time for money as a rapper, he decided to start producing other
rappers, and he became more of a talent scout. <u>He was building a
"team" that he could override. Similar to many business models you
might be aware of.<br />
<br />
</u>He had to review thousands of potential artists, just to find the handful
that would be hits. He had to take risks on people, many of which didn't pay
off. He had to gamble away his time, with the chance that he wouldn't find any
talented artists at all.<br />
<br />
But, his calculated risks paid off. He found artists like Snoop Dogg and
Eminem, which he produced and earned a massive residual override from.<br />
<br />
Then, he was smart enough to leverage his business mindset even further, by
getting his branding involved in commercial product endorsements where he would
get a piece of the company if it ever took off.<br />
<br />
Now, he is on his way to become the first billionaire after positioning himself
in deals like Beats by Dre, and others.<br />
<br />
</span><span style="color: red; font-size: 22.0pt; mso-ascii-font-family: Calibri; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU; mso-hansi-font-family: Calibri;">REAL PROFITS AREN'T ALWAYS WHERE THEY
SEEM<br />
<br />
</span><span style="font-size: 22pt;">Let's go back to the movie theatre
example.<br />
How much profit do you think they make on the sale of an actual movie ticket?
Not much when you consider the cost of producing a movie plus the cost of
advertising it and the theatre screening it, wages, lease on the building, and
so much more.<br />
<br />
The movie business would be a tough business to be in if it weren't for the
business within a business.<br />
<br />
Think about it. How much profit is made on a bucket of popcorn? How much profit
do you think is made on a cup of soda? A TON right?<br />
<br />
It's basically just sugar water, and post mix is just a few cents per cup. As
well as ice, which is essentially free. The most expensive part is probably the
cup itself, which is super cheap as well.<br />
<br />
But... Once you are inside the movie theatre, you have zero options. You are
not allowed to bring in your own food or drink. And you don't want to sit
through a movie without any refreshments right?<br />
So they have effectively driven you to the concession stand to buy their marked
up products that have huge profits.<br />
<br />
They make so much profit on concessions that it's worth LOSING MONEY just to
get you into the theatre, because they would still be profitable.<br />
<br />
They rely on the movie production companies to spend the money to drive people
to the theatres, and that's why they give up so much of the money on ticket
sales.<br />
<br />
But their real business only begins AFTER you have bought your ticket and you
are inside.<br />
<br />
And in the McDonalds example, if you research their history you will actually
find that Ray Croc was STRUGGLING to be profitable until one of his employees,
named Harry Sonneborn, and actually convinced Ray Croc that the REAL money in
their business was in Real Estate, not hamburgers!<br />
<br />
It's a true story.<br />
<br />
Sonneborn came up with the idea to take out mortgages to buy the land and the
building for each franchise, and then LEASE them back to the franchise owners
at a 40% increased premium!<br />
<br />
What's even crazier is that the better the franchisee did with their business,
the more they would have to pay in lease fees!<br />
<br />
Based on this model, McDonalds went on to become one of the largest real estate
investment companies in the world, under the corporate name: Franchise Realty
Corp.<br />
<br />
</span><span style="color: red; font-size: 22.0pt; mso-ascii-font-family: Calibri; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU; mso-hansi-font-family: Calibri;">WHERE IS THE "REAL" MONEY?<br />
<br />
</span><span style="font-size: 22pt;">I began looking for opportunities to
find businesses within businesses so that I could really open my mind and
expand the possibilities I could have in my personal life.<br />
<br />
Sure enough, examples were everywhere.<br />
<br />
For instance, I love golf. It's one of my passions. So I started looking at
Tiger Woods. Sure enough, it became clear as day.<br />
<br />
Everyone knows Tiger Woods as one of the best golfers in the history of the
game. And he wins MILLIONS for each tournament he takes 1st place in.<br />
<br />
But then you start to see the REAL wealth and where it comes from.<br />
<br />
Tiger Woods made $83 Million last year, and he has now earned $1.3 Billion in
his career. Golf Digest reports $71 million came from off course endorsements,
and the rest was from his tour winnings.<br />
<br />
Did you catch that?<br />
<br />
So, he made $12 million last year from his tournament winnings and $71 million
from his "other" business within his business. And what business is
that?<br />
<br />
Sponsorships and Endorsements.<br />
<br />
Wow, think about it. Are golfers in the "golf business" or in the
"endorsement business"?<br />
Well the answer is, both. But where is the "REAL" wealth generated?
It's in Endorsements!<br />
<br />
How much does a Nascar winner receive if they take 1st place in a race? Not
much, but how much more do they receive from sponsors if they wear their logo
on their clothing, or put their logo on their car? The answer is MUCH MORE!<br />
<br />
You might think that Shaquille O' Neal is a rich basketball player, and perhaps
one of the best. But did you know that he owns 40x 24-Hour Fitness clubs, 155
Five Guys restaurants, a jewellery and clothing line, nightclubs, and more!<br />
<br />
And there are hundreds of examples that I could continue to put in this post.<br />
<br />
</span><span style="color: red; font-size: 22.0pt; mso-ascii-font-family: Calibri; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU; mso-hansi-font-family: Calibri;">IN SUMMARY<br />
<br />
</span><span style="font-size: 22pt;">How can YOU find more ways to make
money doing what you are already doing?<br />
<br />
How can YOU find ways to leverage your time, your skills, your money, your
resources, and everything else in order to multiply your wealth rather than
just add to it?<br />
<br />
We all network every day. We network for business and for our social life. It
is human nature to want to socialise. We are networking when we share a
Facebook post or a Twitter or when we tell a friend about a new App for our
phone that we have found useful.<br />
<br />
Every time we meet someone new we are looking to interact with that person in
some way. Are they like us and will they like us?</span></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgfvstlfR3WI-vqamy4_VzhegTm1ZRVqPNMrdn1BRWLjk9QRB0_yy44T8dpepVcWVSp0CWvM7cdrBTj6LI5y4TjGZm-FV4-LjSa8YarcJN8l9lYtjrdOlAjLsRXFJzQ0G_rltpui_E5OmkQ/s1600/Network+women.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="293" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgfvstlfR3WI-vqamy4_VzhegTm1ZRVqPNMrdn1BRWLjk9QRB0_yy44T8dpepVcWVSp0CWvM7cdrBTj6LI5y4TjGZm-FV4-LjSa8YarcJN8l9lYtjrdOlAjLsRXFJzQ0G_rltpui_E5OmkQ/s400/Network+women.jpg" width="400" /></a></div>
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<span style="font-size: 22pt;"><br />
<br />
Network marketing is a business that uses this principle. It simply provides a
business basis for that association and the very nature of network marketing is
that you cannot benefit from that relationship unless you provide benefit and
help that person in some way. You won’t succeed in network marketing if your
intent is to use people. You succeed by helping them succeed.<br />
<br />
</span><span style="color: red; font-size: 22.0pt; mso-ascii-font-family: Calibri; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU; mso-hansi-font-family: Calibri;">As you can see there is also good reason
to consider having multiple income streams from that network that you are
building.<br />
<br />
</span><span style="font-size: 22pt;">My main point I am hoping to drive home
today is that wealthy people tend to find multiple ways to make money, doing
what they are already doing, and that my good friend made an impact when he
shared that information with me.<br />
<br />
I hope that this post impacts at least one person, and that it helps steer you
towards a more efficient path for wealth creation and abundance in your life.<b><br />
<br />
CONTACT US AND WE WILL SHOW YOU HOW...</b></span><span style="font-family: "Times New Roman", serif; font-size: 9pt;"><o:p></o:p></span></div>
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<span style="font-size: 22pt;"><b>1300 131099</b></span></div>
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Anonymoushttp://www.blogger.com/profile/03689831512432872798noreply@blogger.com0tag:blogger.com,1999:blog-7479266307977944833.post-27853575122150604362016-05-18T20:33:00.000-07:002016-06-06T20:48:20.089-07:00What's your idea of financial freedom?<span style="font-size: large;">As a
property investment adviser I am always looking for that unique piece of real estate that gives
me and therefore my clients the best return. </span><br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjyKM_nJZZ5fzLT8cGtxs-UT2EZR4BuwTTED4UrSCENAlASi5cdjPkgRlYLrz8mhOIUCUMQ9WxvY5O3qEg_HDOHUI-JLwn6qKUgUA0SrgA_XKtli0-Dc-qDHO_oaDlOEL5EF8IetoE-2TOt/s1600/Mobile-phone.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="288" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjyKM_nJZZ5fzLT8cGtxs-UT2EZR4BuwTTED4UrSCENAlASi5cdjPkgRlYLrz8mhOIUCUMQ9WxvY5O3qEg_HDOHUI-JLwn6qKUgUA0SrgA_XKtli0-Dc-qDHO_oaDlOEL5EF8IetoE-2TOt/s320/Mobile-phone.jpg" width="320" /></a></div>
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<span style="font-size: large;">
Well you are looking at the most expensive real estate in the world today. The screen of a mobile phone...</span><br />
<span style="font-size: large;"><br /></span>
<span style="font-size: large;">
Billionaires of dollars are spent by companies to place advertisements with Google,
Amazon, Ebay, Hotels.com etc to target their products onto that device you
carry in your pocket or handbag. </span><br />
<span style="font-size: large;"><br /></span><span style="font-size: large;">
And even more billions are spend on </span><span style="font-size: large;">eCommerce, </span><span style="font-size: large;">travel and accomodation which nowadays are
researched, booked and purchased using that same mobile device.</span><br />
<span style="font-size: large;"><br /></span><span style="font-size: large;">
It is predicted that within 2 years nearly 50% of all e-commerce and travel/accommodation will be searched and booked using a mobile device.</span><br />
<span style="font-size: large;"><br /></span><span style="font-size: large;">
New search engines will come into the space that Google and others don't
service. We have seen that with the likes of Airbnb, Uber, Alibaba, Gumtree and
many more. These companies were not even heard of less than 10 years ago and are now valued in the billions of dollars.</span><br />
<span style="font-size: large;"><br /></span><span style="font-size: large;">
These businesses will only grow in usefulness and therefore in revenue as their usage increases.</span><br />
<span style="font-size: large;"><br /></span><span style="font-size: large;">
But all of these businesses grow with our help. </span><br />
<span style="font-size: large;"><br /></span>
<span style="font-size: large;"><b>When we see something we like
we share it. We shared their FREE App and help them grow their business.</b></span><br />
<span style="font-size: large;"><br /></span>
<span style="font-size: large;">That might be uploading content for free that the business can
then use to attract advertising or it could be just sharing the App if we like
it.</span><br />
<span style="font-size: large;"><br /></span><span style="font-size: large;"><b>
But what if there was a way that you could make money from that sharing?</b></span><br />
<span style="font-size: large;"><br /></span><span style="font-size: large;">Well there is!</span><br />
<span style="font-size: large;"><br /></span><span style="font-size: large;">In this new world your mobile phone can become your business or at least provide you with a residual income.</span><br />
<span style="font-size: large;"><br /></span><span style="font-size: large;">
When someone searches the internet or spends money on eCommerce or a holiday you can make money because you shared the App they used to
research and purchase that product, service or holiday.</span><br />
<span style="font-size: large;"><br /></span>
<span style="font-size: large;">There is no selling because <b>the App is FREE.</b></span><br />
<span style="font-size: large;"><br /></span>
<span style="font-size: large;"><b>The App helps people save time and money</b> when they want to research and/or purchase something on the internet. If you like the App and find it saves you time and money you share it with other people. If they like it, they share it and everybody wins.</span><br />
<span style="font-size: large;"><br /></span>
<span style="font-size: large;">That process is no different to what we do now with Facebook, Youtube, Airbnb, etc. except this time when the company receives income from usage or advertising then you can share in that income, instead of it making billionaires even richer. </span><br />
<span style="font-size: large;"><br /></span>
<span style="font-size: large;">This is a business that could be run from home or on a beach somewhere. And because </span><span style="font-size: large;">eCommerce and travel are</span><span style="font-size: large;"> only going to get bigger your business will grow with those trends.</span><br />
<span style="font-size: large;"><br /></span>
<span style="font-size: large;">It is a very clever idea and is part of what is being called the "shared economy".</span><br />
<br />
<span style="font-size: large;">Want to know more? Want to know how <b>you</b> can get involved?</span><br />
<span style="font-size: large;"><a href="http://www.cashflowopportunities.com.au/">www.cashflowopportunities.com.au</a></span><br />
<span style="font-size: large;">Give me a call 1300 131099</span><br />
<span style="font-size: large;"><br /></span>
<span style="font-size: large;">Regards</span><br />
<span style="font-size: large;">Graeme</span><br />
<span style="font-size: large;"><br /></span>
<span style="font-size: large;"><b>PS</b> Just</span><span style="font-size: large;"> like it is now too late to get on board the Google train it will
eventually be too late to jump onto this.</span><span style="font-size: large;">
Call me before it takes off...</span><span style="font-size: large;">
Actually it has already taken off overseas but it's not too late. If the success overseas is any indication this could be as big as Google in the next 10 years. Call me...</span><br />
<span style="font-size: large;"><br /></span>
<span style="font-size: large;"># mobileincome #residualincome #workfromhome #ecommerce #sharedeconomy #financialfreedom #travel #accomodation</span>Anonymoushttp://www.blogger.com/profile/03689831512432872798noreply@blogger.com0tag:blogger.com,1999:blog-7479266307977944833.post-2065874068164982382016-02-28T21:06:00.000-08:002016-02-28T21:06:10.522-08:00How to Invest in Uncertain Times<div class="MsoNormal" style="background: white; line-height: 14.7pt; margin-bottom: .0001pt; margin-bottom: 0in; vertical-align: baseline;">
<span style="color: #333399; font-family: "Trebuchet MS","sans-serif"; font-size: 14.0pt; mso-bidi-font-family: Arial;">History
has proven that in times of economic change and uncertainty there exists great
opportunities... </span></div>
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<span style="color: #333399; font-family: "Trebuchet MS","sans-serif"; font-size: 14.0pt; mso-bidi-font-family: Arial;">So how can you take advantage of these times?</span><span style="color: #555555; font-family: "Trebuchet MS","sans-serif"; font-size: 14.0pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;"><o:p></o:p></span></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhuse4mBTyIJ8uHYVLstrl-SbXUiGOiHDH-vi9wv1zcBeiIBGqhaDK-3oo9bZEloVSTa0TJQRaHsbjALzALSev-Pk04C6eHdDseNAdvB5rTNsUrhuPKuXSzzb2N6UIMhE06-XbEaZyMI6SH/s1600/Uncertain.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="230" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhuse4mBTyIJ8uHYVLstrl-SbXUiGOiHDH-vi9wv1zcBeiIBGqhaDK-3oo9bZEloVSTa0TJQRaHsbjALzALSev-Pk04C6eHdDseNAdvB5rTNsUrhuPKuXSzzb2N6UIMhE06-XbEaZyMI6SH/s400/Uncertain.jpg" width="400" /></a></div>
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<span style="color: #333399; font-family: "Trebuchet MS","sans-serif"; font-size: 14.0pt; mso-bidi-font-family: Arial;"><br /></span></div>
<div class="MsoNormal" style="background: white; line-height: 14.7pt; margin-bottom: .0001pt; margin-bottom: 0in; vertical-align: baseline;">
<span style="color: #555555; font-family: "Trebuchet MS","sans-serif"; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;"><b>First of all</b> you need to find a way
to ignore the negative fog created by the media. Although it seems
inconceivable; they often write about subjects that they have not adequately
researched. </span></div>
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<span style="color: #555555; font-family: "Trebuchet MS","sans-serif"; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;"><br /></span></div>
<div class="MsoNormal" style="background: white; line-height: 14.7pt; margin-bottom: .0001pt; margin-bottom: 0in; vertical-align: baseline;">
<span style="color: #555555; font-family: "Trebuchet MS","sans-serif"; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">It is also important to remember that some people who predict doom
and gloom in the media are just seeking attention. </span></div>
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<span style="color: #555555; font-family: "Trebuchet MS","sans-serif"; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;"><br /></span></div>
<div class="MsoNormal" style="background: white; line-height: 14.7pt; margin-bottom: .0001pt; margin-bottom: 0in; vertical-align: baseline;">
<span style="color: #555555; font-family: "Trebuchet MS","sans-serif"; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">Give the media some thought but don’t
rely solely on what you read or see on TV.<o:p></o:p></span></div>
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<br /></div>
<div class="MsoNormal" style="background: white; line-height: 14.7pt; margin-bottom: .0001pt; margin-bottom: 0in; vertical-align: baseline;">
<span style="color: #555555; font-family: "Trebuchet MS","sans-serif"; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;"><b>Secondly; </b>you need to do your own
research or find someone who can provide independent advice to help you find
the right property for your circumstances. </span></div>
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<span style="color: #555555; font-family: "Trebuchet MS","sans-serif"; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;"><br /></span></div>
<div class="MsoNormal" style="background: white; line-height: 14.7pt; margin-bottom: .0001pt; margin-bottom: 0in; vertical-align: baseline;">
<span style="color: #555555; font-family: "Trebuchet MS","sans-serif"; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">You need to look for someone who can
look to the future to see what impact economic changes and other factors might
have on particular locations.<o:p></o:p></span></div>
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<br /></div>
<div class="MsoNormal" style="background: white; line-height: 14.7pt; margin-bottom: 11.25pt; vertical-align: baseline;">
<span style="color: #555555; font-family: "Trebuchet MS","sans-serif"; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;"><b>One equalizer</b> <b>for all investors</b> is
that none of us can predict the future, but looking at what changes are known
to be going to occur can be a good indicator of future property price movements. </span></div>
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<span style="color: #555555; font-family: 'Trebuchet MS', sans-serif; line-height: 14.7pt;"><b>For example</b> a closing of a factory can cause economic hardship in the
surrounding area and property prices are likely to fall as people sell up and move
away looking for new employment. Crime is also likely to increase in the area
and this will result in a lower demand for properties making those properties on
the market even harder to sell. </span></div>
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<span style="color: #555555; font-family: 'Trebuchet MS', sans-serif; line-height: 14.7pt;"><b>Conversely</b> an area where there is likely to be
gentrification of an older suburb can result in higher demand and more than
average price increases. These conditional changes can occur in both good time
and in bad but there is more money to be made in times of uncertainty.</span></div>
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<span style="color: #555555; font-family: "Trebuchet MS","sans-serif"; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">The above is <b>one area where
Investment Property Finders can help</b>. We are independent and help you find the
right property for your circumstances taking into account any known or
impending changes.<o:p></o:p></span></div>
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<b><span style="font-family: 'Trebuchet MS', sans-serif; font-size: 14pt;">Where
are we today?<o:p></o:p></span></b></div>
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<span style="color: #555555; font-family: "Trebuchet MS","sans-serif"; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">It just so happens that Australia is at a
time when there seems to be a heightened degree of uncertainty. </span><span style="color: #555555; font-family: 'Trebuchet MS', sans-serif; line-height: 14.7pt;">Our real estate
prices have consistently appreciated for over 15 years. Yields are low,
rental prices are stagnant and lending is tightening up. And the media continue
to push this non-existent “boom or bust cycle” in residential property. </span><i style="color: #555555; font-family: 'Trebuchet MS', sans-serif; line-height: 14.7pt;">(Australian property doesn’t “boom”, it
grows either slowly or more rapidly and it has never experienced a “bust”, it
simply slows down for a period. There is a well recognisable cycle, ask us for
more detail.)</i></div>
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<span style="color: #555555; font-family: "Trebuchet MS","sans-serif"; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">All of this leads us to uncertainty
in property markets. <o:p></o:p></span></div>
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<b><span style="font-family: "Trebuchet MS","sans-serif"; font-size: 14.0pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">So there are some basic truths to remember…<o:p></o:p></span></b></div>
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<b><span style="font-family: 'Trebuchet MS', sans-serif;"><span style="color: #444444;">Investing will always involve uncertainty…</span></span></b><b><span style="font-family: "Trebuchet MS","sans-serif"; font-size: 14.0pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;"><o:p></o:p></span></b></div>
<div class="MsoNormal" style="background: white; line-height: 14.7pt; margin-bottom: 11.25pt; vertical-align: baseline;">
<span style="color: #555555; font-family: "Trebuchet MS","sans-serif"; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">At any point in the future, property
values will increase, remain stagnant or go down. There are no other
alternatives. Accept that that never changes.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: 14.7pt; margin-bottom: 11.25pt; vertical-align: baseline;">
<span style="color: #555555; font-family: "Trebuchet MS","sans-serif"; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">At every point in history, you
were just as uncertain as you are today about what the future holds. You might
have felt more certain, having an opinion based on your perception of market
conditions, but your feelings of certainty were an illusion. Good times
follow bad and vice versa.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: 14.7pt; margin-bottom: 11.25pt; vertical-align: baseline;">
<span style="color: #555555; font-family: "Trebuchet MS","sans-serif"; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">This is why investing involves risk,
and therefore a corresponding return. Remember risk equals reward. When we
accept this reality, we are in a position to identify the risks, and then
proactively mitigate them. <o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: 14.7pt; margin-bottom: 11.25pt; vertical-align: baseline;">
<span style="color: #555555; font-family: "Trebuchet MS","sans-serif"; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">But we can never completely remove
the uncertainty.<o:p></o:p></span></div>
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<b><span style="font-family: 'Trebuchet MS', sans-serif; font-size: 14pt;">Don’t
let negativity paralyse you…<o:p></o:p></span></b></div>
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<span style="color: #555555; font-family: "Trebuchet MS","sans-serif"; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">Over the past months, the media
reports on the global economy have been quite bleak. China seems to be
struggling, and financial markets around the world are flashing red, creating
fear in the psyche of investors.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: 14.7pt; margin-bottom: 11.25pt; vertical-align: baseline;">
<span style="color: #555555; font-family: "Trebuchet MS","sans-serif"; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">A recent poll concluded that one in
five investors plan to do nothing in real estate for the next year. <b>This situation creates opportunities for
well informed investors.</b><o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: 14.7pt; margin-bottom: .0001pt; margin-bottom: 0in; vertical-align: baseline;">
<span style="color: #555555; font-family: "Trebuchet MS","sans-serif"; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">But if you’re sitting this year out
be sure you haven’t succumbed to irrational fear. There have only been a few
times in history when the economic sky was actually falling. <o:p></o:p></span></div>
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<br /></div>
<div class="MsoNormal" style="background: white; line-height: 14.7pt; margin-bottom: .0001pt; margin-bottom: 0in; vertical-align: baseline;">
<span style="color: #555555; font-family: "Trebuchet MS","sans-serif"; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">Even during the Global Financial Crisis we had client
grabbing bargains and make money.<o:p></o:p></span></div>
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<br /></div>
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<b><span style="font-family: 'Trebuchet MS', sans-serif; font-size: 14pt;">Find
creative solutions to boosting your income<o:p></o:p></span></b></div>
<div class="MsoNormal" style="background: white; line-height: 14.7pt; margin-bottom: 11.25pt; vertical-align: baseline;">
<span style="color: #555555; font-family: "Trebuchet MS","sans-serif"; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">Depending on your goals, strategy and
your financial situation, the best use of your time if you are definitely not
investing may be to focus on increasing your income.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: 14.7pt; margin-bottom: .0001pt; margin-bottom: 0in; vertical-align: baseline;">
<span style="color: #555555; font-family: "Trebuchet MS","sans-serif"; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">Many investment experts emphasise the importance of creating a “Passive Income” that will fast track your
progress toward financial freedom. <o:p></o:p></span></div>
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<br /></div>
<div class="MsoNormal" style="background: white; line-height: 14.7pt; margin-bottom: .0001pt; margin-bottom: 0in; vertical-align: baseline;">
<u><span style="color: #555555; font-family: "Trebuchet MS","sans-serif"; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;"><a href="http://www.ipfinders.com.au/CashflowOps/resinc.jpg" target="_blank">Passive Income</a></span></u><span style="color: #555555; font-family: "Trebuchet MS","sans-serif"; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;"><a href="http://www.ipfinders.com.au/CashflowOps/resinc.jpg" target="_blank"></a>(an income accelerator) adds to your income, but not on a pay per hour of work
basis. Passive income is income you derive through leveraging, so you don’t
need to trade your time for money. <o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: 14.7pt; margin-bottom: .0001pt; margin-bottom: 0in; vertical-align: baseline;">
<br /></div>
<div class="MsoNormal" style="background: white; line-height: 14.7pt; margin-bottom: 11.25pt; vertical-align: baseline;">
<span style="color: #555555; font-family: "Trebuchet MS","sans-serif"; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">It may involve starting an Internet
business, harnessing your intellectual capital, trading options or even direct
sales. In this new world of internet and the power of social media don’t
completely discount network marketing without giving it a reasonable due
diligence.<o:p></o:p></span></div>
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<span style="color: #555555; font-family: "Trebuchet MS","sans-serif"; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">There are also certain types of
property that will produce Passive Income.<o:p></o:p></span></div>
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<span style="color: #555555; font-family: "Trebuchet MS","sans-serif"; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">Figuring out your income accelerator may
be just as important as working out your property investing strategy, because
the money you’ll bring in the door with your accelerator is what you’ll be
taking out the door to buy properties.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: 14.7pt; margin-bottom: 11.25pt; vertical-align: baseline;">
<span style="color: #555555; font-family: "Trebuchet MS","sans-serif"; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">We have some ideas you could consider
here: </span><span style="font-family: "Trebuchet MS","sans-serif"; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;"><a href="http://www.investmentpropertyfinders.com.au/CashflowOps">www.investmentpropertyfinders.com.au/CashflowOps</a><span style="color: #555555;"><o:p></o:p></span></span></div>
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<b><span style="font-family: 'Trebuchet MS', sans-serif; font-size: 14pt;">Focus
on information and education<o:p></o:p></span></b></div>
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<span style="color: #555555; font-family: Trebuchet MS, sans-serif;"><span style="line-height: 14.7pt;">When situations of heightened
uncertainty arise, the best </span><span style="line-height: 19.6px;">defense</span><span style="line-height: 14.7pt;"> is to increase your knowledge, skills and
competency. That way, you’ll be able to recognise opportunities that already
exist, avoid opportunities that are foolish, and take advantage of
opportunities that arise when the market shifts in your </span><span style="line-height: 19.6px;">favor</span><span style="line-height: 14.7pt;">.<o:p></o:p></span></span></div>
<div class="MsoNormal" style="background: white; line-height: 14.7pt; margin-bottom: 11.25pt; vertical-align: baseline;">
<span style="color: #555555; font-family: "Trebuchet MS","sans-serif"; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">In fact, seasons of heightened
uncertainty often lead to the greatest opportunities, as long as you have
positioned yourself well. On the other hand, if you’ve sat idle and inactive
while waiting for your fears to pass, then you’re more likely to miss out or
make a financial mistake.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: 14.7pt; margin-bottom: .0001pt; margin-bottom: 0in; vertical-align: baseline;">
<span style="color: #555555; font-family: "Trebuchet MS","sans-serif"; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">Investment Property Finders are
always happy to answer any questions that you might have on your path to
successful property investment.<o:p></o:p></span></div>
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<br /></div>
<div class="MsoNormal" style="background: white; line-height: 14.7pt; margin-bottom: .0001pt; margin-bottom: 0in; vertical-align: baseline;">
<span style="color: #555555; font-family: "Trebuchet MS","sans-serif"; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">Good luck and we hope to hear from
you…<o:p></o:p></span></div>
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Anonymoushttp://www.blogger.com/profile/03689831512432872798noreply@blogger.com0tag:blogger.com,1999:blog-7479266307977944833.post-68336038589981998492016-02-16T20:39:00.000-08:002016-02-16T20:39:11.420-08:00Financial Planners cop the blame... Open note to Financial Planners<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhZwvZujWYv8gA0YSXZjYNKjy1YHbfbcKhrB12bcCoHWY0KbWXHIzNQDe6Un0Umdu2Q58LUh41u8yC5_fodFELZtTF7IBdssjGGGorOvRhssFg-KFpjJtVXVmMZL9tZhA9kR-Pkl7I7PczY/s1600/Financial-Plan2.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="120" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhZwvZujWYv8gA0YSXZjYNKjy1YHbfbcKhrB12bcCoHWY0KbWXHIzNQDe6Un0Umdu2Q58LUh41u8yC5_fodFELZtTF7IBdssjGGGorOvRhssFg-KFpjJtVXVmMZL9tZhA9kR-Pkl7I7PczY/s400/Financial-Plan2.jpg" width="400" /></a></div>
<div class="MsoNormal">
<span style="font-family: "Trebuchet MS","sans-serif"; font-size: 14.0pt;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: "Trebuchet MS","sans-serif"; font-size: 14.0pt;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: "Trebuchet MS","sans-serif"; font-size: 14.0pt;">It's
your fault that the stock market hasn't been performing well. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: "Trebuchet MS","sans-serif"; font-size: 14.0pt;">It's
your fault your client hasn't achieved his goals. But is it really? <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: "Trebuchet MS","sans-serif"; font-size: 14.0pt;">Or
is it just a misunderstanding?<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-family: "Trebuchet MS","sans-serif";">As
most of you know I was a Financial Planner for over<span style="color: #1f497d;">
</span>15 years…<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: "Trebuchet MS","sans-serif";">So I
know what you go through day by day to justify to your clients results that are
out of your control. <o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-family: "Trebuchet MS","sans-serif";">It's a
funny thing but I had clients with both share based portfolios and many with
large property portfolios. </span><span style="font-family: 'Trebuchet MS', sans-serif; font-size: 14pt;">And
I discovered one interesting thing:</span></div>
<div class="MsoNormal">
<span style="font-family: "Trebuchet MS","sans-serif";">When
the share market fell <b>it was my fault</b> but when property went into the
doldrums <b>that wasn't my fault</b>... <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: "Trebuchet MS","sans-serif";"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: "Trebuchet MS","sans-serif";">The
client’s perspective was that property results were out of my control. <o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-family: "Trebuchet MS","sans-serif";">It's
pretty easy to see now why I gradually moved most of my clients into
properties. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: "Trebuchet MS","sans-serif";"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: "Trebuchet MS","sans-serif";">But in
those days we were commission based income so until I worked out how to get
paid for property it wasn't good on my income... Butat least I didn't get yelled
at. <o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-family: "Trebuchet MS","sans-serif";">Nowadays it's a whole new world with most clients paying their Financial Planner an annual fee
for service. </span><span style="font-family: 'Trebuchet MS', sans-serif;">That
makes it easy for Financial Planner to suggest that their clients consider property in their
portfolios but still not many do. </span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-family: "Trebuchet MS","sans-serif";">Those
that do however have very happy clients with Property averaging over 9% for the
last 10 years. <o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-family: "Trebuchet MS","sans-serif";">So how
do you do it and get around compliance? <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: "Trebuchet MS","sans-serif";"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: "Trebuchet MS","sans-serif";">Give
me a call and we can talk about making your clients happy... Or at least them
not blaming you. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: "Trebuchet MS","sans-serif";"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: 'Trebuchet MS', sans-serif;">I now
have nearly a thousand happy clients. So can you…</span></div>
<div class="MsoNormal">
<span style="font-family: "Trebuchet MS","sans-serif";"><br /></span></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgxpSVd9BDPAEL_6cpJb6g4ebd21GE9QBZ3fC0-cy3Id51kGSVTvVMXb3Txrn7UZLeGT3YFSJAKY5U1Uij5c9uv45esFIwy1B-F5MuJkuE7KDWY3jXWhXT2U6Vny4x92grHKssMF4o94h5W/s1600/banner-compass.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="137" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgxpSVd9BDPAEL_6cpJb6g4ebd21GE9QBZ3fC0-cy3Id51kGSVTvVMXb3Txrn7UZLeGT3YFSJAKY5U1Uij5c9uv45esFIwy1B-F5MuJkuE7KDWY3jXWhXT2U6Vny4x92grHKssMF4o94h5W/s400/banner-compass.jpg" width="400" /></a></div>
<div class="MsoNormal">
<span style="font-family: "Trebuchet MS","sans-serif";"><br /></span></div>
<h3 style="text-align: center;">
<span style="font-family: "Trebuchet MS","sans-serif";">1300 131099</span></h3>
Anonymoushttp://www.blogger.com/profile/03689831512432872798noreply@blogger.com0tag:blogger.com,1999:blog-7479266307977944833.post-64621235955372351852015-12-22T17:54:00.000-08:002015-12-22T18:16:00.301-08:00How to Make Money on the Internet... and Facebook, Twitter etc<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgtZS5mg9jl8-j0xtqjckXhVIUdnKeXAQfHRBFb-tKLk1881cf8p2Ce9tI3R9ss9UfgSLkUDiXXAWErR0g3-PUgcugfyfPU6TbUoRsyoOBukcbZ6mDGYb2pOaVVp1OvlZTgJTd1onqJWYNE/s1600/work+life+balance.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgtZS5mg9jl8-j0xtqjckXhVIUdnKeXAQfHRBFb-tKLk1881cf8p2Ce9tI3R9ss9UfgSLkUDiXXAWErR0g3-PUgcugfyfPU6TbUoRsyoOBukcbZ6mDGYb2pOaVVp1OvlZTgJTd1onqJWYNE/s320/work+life+balance.jpg" width="320" /></a></div>
<div class="MsoNormal" style="margin: 0cm 0cm 12pt;">
<span style="mso-fareast-font-family: "Times New Roman";"></span> </div>
<div class="MsoNormal" style="margin: 0cm 0cm 12pt;">
<span style="mso-fareast-font-family: "Times New Roman";">A lot of people have noticed that there is something
extraordinary happening.<br />
<br />
More and more people are breaking the chains of fear that kept us locked into
the 9-5 system. <o:p></o:p></span></div>
<span style="mso-fareast-font-family: "Times New Roman";">Last year my wife took a “work from home” job and now I see
the world from a different perspective. </span><br />
<span style="mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span><br />
<span style="mso-fareast-font-family: "Times New Roman";">The change I have seen in her is a more relaxed and happier person
and a more productive employee.<o:p></o:p></span><br />
<span style="mso-fareast-font-family: "Times New Roman";"></span><br />
<span style="mso-fareast-font-family: "Times New Roman";">So employment is going through changes and many of us are
unaware of that.<br />
<br />
Why is the employment world changing? <o:p></o:p></span><br />
<i style="mso-bidi-font-style: normal;"><span style="mso-fareast-font-family: "Times New Roman";"></span></i><br />
<i style="mso-bidi-font-style: normal;"><span style="mso-fareast-font-family: "Times New Roman";">In this post,
I'll point out some of the reasons that lead me to believe why this change in
inevitable.<br />
</span></i><span style="mso-fareast-font-family: "Times New Roman";"><br />
</span><span class="Heading1Char"><span style="font-size: 14pt;"><strong><span style="font-family: Cambria;"><span style="color: #365f91;">1. No one can
stand the 9-5 employment model any longer.</span><span style="color: #365f91;">
</span></span></strong></span></span><span style="mso-fareast-font-family: "Times New Roman";"><br />
</span><span style="mso-fareast-font-family: "Times New Roman";"></span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 12pt;">
<span style="mso-fareast-font-family: "Times New Roman";">We are reaching our limits of how much pressure we can and will take. <o:p></o:p></span></div>
<span style="mso-fareast-font-family: "Times New Roman";">People working with big corporations can't stand their jobs.
They want out. <o:p></o:p></span><br />
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 12pt;">
<span style="mso-fareast-font-family: "Times New Roman";">They want to drop everything and “move to the country” so to
speak. Take a look on how many people are willing to risk entrepreneurship,
people leaving on sabbaticals, people with work-related depression and people
in burnout.<br />
<br />
</span><span class="Heading1Char"><span style="font-size: 14pt;"><strong><span style="font-family: Cambria;"><span style="color: #365f91;">2. But the
entrepreneurship model is also changing.</span><span style="color: #365f91;">
</span></span></strong></span></span><span style="mso-fareast-font-family: "Times New Roman";"><br />
</span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 12pt;">
<span style="mso-fareast-font-family: "Times New Roman";">Over the past few years, with the explosion of start-ups, thousands of
entrepreneurs turned their garages into offices to bring their billion-dollar
ideas to life. <o:p></o:p></span></div>
<span style="mso-fareast-font-family: "Times New Roman";">But what happens after they get funded?<br />
<br />
They get back to being an employee. They may have brought in people/employees who
didn’t share their dream and soon it became all about the money. The financial end
becomes the main driver of their business.<br />
<br />
People are suffering with it. Excellent start-ups began to tumble because the
money-seeking model is endless.<br />
<br />
A new way to make money is needed. Or is there an old way that has come of age.
An old way that is more relevant today.<o:p></o:p></span><br />
<span style="mso-fareast-font-family: "Times New Roman";">Some people have been doing it for years. But now the
environment is right for it to succeed where the existing system is failing.<br />
<br />
</span><span class="Heading1Char"><span style="font-size: 14pt;"><strong><span style="color: #365f91;"><span style="font-family: Cambria;">3. The rise of
collaboration.</span></span></strong></span></span><br />
<span class="Heading1Char"><span style="font-size: 14pt;"></span></span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 12pt;">
<i style="mso-bidi-font-style: normal;"><span style="mso-fareast-font-family: "Times New Roman";">"Isn't it
absurd that 7 billion of us, living on this planet have grown further apart
from each other?"<br />
</span></i><span style="mso-fareast-font-family: "Times New Roman";"><br />
Many people have awakened from the "each man for himself" mad
mentality and have figured out that it doesn't make any sense to try to do
things by yourself. <o:p></o:p></span></div>
<span style="mso-fareast-font-family: "Times New Roman";">It doesn’t make sense to turn your back on the thousands,
maybe millions, of people living around you in the same city? <o:p></o:p></span><br />
<span style="mso-fareast-font-family: "Times New Roman";">Fortunately, things are changing. Sharing, collaborative
economy concepts are being implemented, and it points towards a new direction. <o:p></o:p></span><br />
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 12pt;">
<span style="mso-fareast-font-family: "Times New Roman";">The direction of collaborating, of sharing, of helping and
teaching each other and it’s beautiful to watch. <o:p></o:p></span></div>
<span class="Heading1Char"><span style="font-size: 14pt;"><strong><span style="font-family: Cambria;"><span style="color: #365f91;">4. We are finally figuring out what the Internet is
good for:</span><span style="color: #365f91;">
</span></span></strong></span></span><span style="mso-fareast-font-family: "Times New Roman";"><br />
</span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 12pt;">
<span style="mso-fareast-font-family: "Times New Roman";">The Internet is an incredibly spectacular thing, and only now, after so many
years, are we starting to understand its power and it usefulness at opening up
the world. <o:p></o:p></span></div>
<span style="mso-fareast-font-family: "Times New Roman";">With the Internet, the world is more opened, the barriers
fall, the separation ends, the togetherness starts, the collaboration explodes
and help emerges.<o:p></o:p></span><br />
<span style="mso-fareast-font-family: "Times New Roman";">Google and YouTube can teach us how to do virtually
anything.<br />
<br />
Internet is taking down the control that the News and TV media has had on us. <o:p></o:p></span><br />
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 12pt;">
<span style="mso-fareast-font-family: "Times New Roman";">The big media groups controlling news to what they want the
message to be and what they want us to read, are no longer the sole owners of
information. <o:p></o:p></span></div>
<span style="mso-fareast-font-family: "Times New Roman";">The internet and Facebook, Twitter etc. now give us a bigger
picture.<o:p></o:p></span><br />
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 12pt;">
<span style="mso-fareast-font-family: "Times New Roman";">With the advent of the Internet, the small are no longer
speechless. <o:p></o:p></span></div>
<span style="mso-fareast-font-family: "Times New Roman";">We can now do business without leaving home.<o:p></o:p></span><br />
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 12pt;">
<span style="mso-fareast-font-family: "Times New Roman";">And that means we can spend more time doing what we really
want.<o:p></o:p></span></div>
<span style="mso-fareast-font-family: "Times New Roman";">Just that saving on travel time alone gives us more time
with our families.<o:p></o:p></span><br />
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 12pt;">
<span style="mso-fareast-font-family: "Times New Roman";">And that can reshape the whole economy.<o:p></o:p></span></div>
<span style="mso-fareast-font-family: "Times New Roman";">I’ll be doing a series of seminars in 2016 to show people interested
in moving with this change “How to make money on the Internet”<o:p></o:p></span><br />
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 12pt;">
<span style="mso-fareast-font-family: "Times New Roman";">Let me know if you would like to attend.<br style="mso-special-character: line-break;" />
<!--[if !supportLineBreakNewLine]--><br style="mso-special-character: line-break;" />
<!--[endif]--><o:p></o:p></span></div>
Anonymoushttp://www.blogger.com/profile/03689831512432872798noreply@blogger.com0tag:blogger.com,1999:blog-7479266307977944833.post-7043318718310841492015-10-18T18:46:00.000-07:002015-10-20T17:03:52.008-07:00Do you know how much money you will need in retirement?<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhjOx7hf8HA2EWeAPgCKkHhmmY4ojxU6XVsU4SDMn9RNQq0Q2KBnTv8g6dam2qup0PXAPKB8quaXM_sOUxIRem_7ePcne1fJcMPxJADBQc7uSMwNDQq1UWBGIVg8tCVa_pF3rgSn9Ekjuxi/s1600/0000-2.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="133" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhjOx7hf8HA2EWeAPgCKkHhmmY4ojxU6XVsU4SDMn9RNQq0Q2KBnTv8g6dam2qup0PXAPKB8quaXM_sOUxIRem_7ePcne1fJcMPxJADBQc7uSMwNDQq1UWBGIVg8tCVa_pF3rgSn9Ekjuxi/s400/0000-2.png" width="400" /></a></div>
<div class="separator" style="clear: both; text-align: center;">
<br /></div>
<h2 class="MsoNormal" style="margin: 0cm 0cm 10pt;">
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o:title=""/>
</v:shape><![endif]--><!--[if !vml]--><!--[endif]--><span style="font-family: "Century Gothic","sans-serif";">Do
you know how much money you will need in retirement?<o:p></o:p></span></h2>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: "Century Gothic","sans-serif";">Too
far away to worry about… <strong><span style="background-color: yellow;">think again!<o:p></o:p></span></strong></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: "Century Gothic","sans-serif";">The
experts say that you will need about $1M to provide a reasonable lifestyle.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: "Century Gothic","sans-serif";">If
you are not on track to having that or more then you need to start think about
what you can do…<o:p></o:p></span></div>
<br />
<h3 class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: "Century Gothic","sans-serif";">TAKE CONTROL BECAUSE THERE ARE ALTERNATIVES!</span></h3>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: "Century Gothic","sans-serif";">Depending
on how far away from retirement you are you might consider buying a property
overseas.</span><br />
<span style="font-family: "Century Gothic","sans-serif";"><br />
<b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: "Century Gothic","sans-serif"; font-size: 11.5pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">A modest amount of money can have you
living like a KING overseas.</span></b><b style="mso-bidi-font-weight: normal;"><span style="color: #222222; font-family: "Georgia","serif"; font-size: 11.5pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;"><o:p></o:p></span></b><br />
<span style="font-family: Times New Roman;">
</span></span><span style="font-family: "Century Gothic","sans-serif";">Australian
property is expensive… but overseas you can buy a mansion for a fraction of the
cost for a similar house in Australia.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: "Century Gothic","sans-serif";">In
Bali for example you could buy a one or two bedroom Villa with a pool for
$250,000 - $300,000 or a 3 or 4 bedroom 2 storey mansion for $400,000 -
$500,000 in popular family holiday location (NOT Kuta) that would rent in
Airbnb for about <span style="background-color: yellow;">$USD150 per day per room.<o:p></o:p></span></span></div>
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="http://www.ipfinders.com.au/superannuation.html" imageanchor="1" style="margin-left: auto; margin-right: auto;" target="_blank"><img alt="www.ipfinders.com.au/superannuation.html" border="0" height="257" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEidwmcaaMAuwqKxbE36PPD54Zz7WbO68sd3oYvJ-miMVUwQY4iIk3Ljlr3ZTpHe7RgJYglygqwuzyeSsHskPfgQVi8wKnGwYUmR8p5UfFJcKmNl3Kc9S-jalEItFVXl-68YR5rAtfVBbTmW/s400/brochure+8+page-2.jpg" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Request a brochure...</td></tr>
</tbody></table>
<br />
<div class="separator" style="clear: both; text-align: left;">
<span style="font-family: "Century Gothic","sans-serif";">Existing
properties in these locations are getting between 75 – 90% occupancy.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: "Century Gothic","sans-serif";"><strong>So
that is a return on your investment of around the 20% per annum.<o:p></o:p></strong></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: "Century Gothic","sans-serif";">You
could rent it out all year and live off the income…<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: "Century Gothic","sans-serif";">Or
rent it for part of the year and live in it for some part of the year. <o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: "Century Gothic","sans-serif";">The
cost of living in Bali is so low that we have friends that live there and pay
to fly their family over once a month. <span style="mso-spacerun: yes;"> </span>It
is still cheaper doing that than living in retirement in Australia.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: "Century Gothic","sans-serif";">So
how do you do it? Give us a call and we can explain how... or request a brochure.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: "Century Gothic","sans-serif";"><span style="background-color: yellow;">If
you have any interest in talking about this or other property related retirement
strategies, feel free to give us a call…</span> <o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: "Century Gothic","sans-serif";">As
they say in Bali <strong>“FREE TO LOOK”<o:p></o:p></strong></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: "Century Gothic","sans-serif";"><o:p> </o:p></span></div>
Anonymoushttp://www.blogger.com/profile/03689831512432872798noreply@blogger.com0tag:blogger.com,1999:blog-7479266307977944833.post-54412421621087010252015-09-22T19:19:00.000-07:002015-09-22T19:19:36.004-07:00Why do you need to listen to an expert? And who do you choose?
<span style="font-family: "Century Gothic","sans-serif";">Today
we seem to be surrounded by experts at everything....</span><br />
<span style="font-family: "Century Gothic","sans-serif";"></span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: "Century Gothic","sans-serif";">We all judge Master Chef, Dancing with the Stars and X Factor like we know what we are talking about.</span></div>
<span style="font-family: "Century Gothic","sans-serif";">I
know that I am an expert at Football and I have never played the game at any
level that counts.<o:p></o:p></span><br />
<br />
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<span style="font-family: "Century Gothic","sans-serif";">We
have political experts that tell us how well or badly our politicians are doing
and we have politicians that are experts at running the country where they have
never run anything except a political campaign.<o:p></o:p></span></div>
<span style="font-family: "Century Gothic","sans-serif";">Now I
have been providing property investment advice for about 20 years now and still
don’t consider myself to be an expert but I have seen a lot of mistakes and
learned from what others have done.</span><br />
<span style="font-family: "Century Gothic","sans-serif";"></span><br />
<span style="font-family: "Century Gothic","sans-serif";"><strong>If you do something long enough you get very good at it or you just don't last.</strong></span><br />
<span style="font-family: "Century Gothic","sans-serif";"></span><br />
<br />
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<span lang="EN-US" style="font-family: "Century Gothic","sans-serif"; font-size: 14pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU; text-transform: uppercase;">Why do you need an expert’s advice WHEN IT COME TO PROPERTY?<o:p></o:p></span></div>
<span lang="EN-US" style="font-family: "Century Gothic","sans-serif"; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">Answer; It’s just too hard to try
and do it by yourself.</span><br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgI_nB4u65c7t1cuJWj9aaKTGWm6_7dEI1oILm60E-OowlKYsa7Fl1Ot3qIL93RiOBpGnXiNhNqStQn7yz_1WgC1MIoLnypyX3fvi98hJyNxgcfpUBxTrcYPpZhDeUPr-wzDd4pUXb9Lymz/s1600/hand-shake2.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="240" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgI_nB4u65c7t1cuJWj9aaKTGWm6_7dEI1oILm60E-OowlKYsa7Fl1Ot3qIL93RiOBpGnXiNhNqStQn7yz_1WgC1MIoLnypyX3fvi98hJyNxgcfpUBxTrcYPpZhDeUPr-wzDd4pUXb9Lymz/s320/hand-shake2.jpg" width="320" /></a></div>
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</div>
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<span lang="EN-US" style="font-family: "Century Gothic","sans-serif"; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">Most property investors
don’t achieve financial independence because:</span></div>
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<span lang="EN-US" style="font-family: "Century Gothic","sans-serif"; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;"><strong>the first decade of anyone’s
investing career is their learning curve.<o:p></o:p></strong></span></div>
<span lang="EN-US" style="font-family: "Century Gothic","sans-serif"; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">Of course many never
survive this stage… about 70% drop out during the first few years.<o:p></o:p></span><br />
<br />
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<span lang="EN-US" style="font-family: "Century Gothic","sans-serif"; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">Those that make it past 10
years have to make up for the lost time and lost money and often take
unnecessary risks.<o:p></o:p></span></div>
<span lang="EN-US" style="font-family: "Century Gothic","sans-serif"; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">There is a huge learning
fee involved – of time, money, effort and heartaches.<o:p></o:p></span><br />
<br />
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<span lang="EN-US" style="font-family: "Century Gothic","sans-serif"; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">On the other hand following
the teachings and proven systems of those who’ve already achieved what you want
to achieve while
not guaranteeing your success, makes it very much more likely that you will
succeed.<o:p></o:p></span></div>
<span lang="EN-US" style="font-family: "Century Gothic","sans-serif"; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">But…<o:p></o:p></span><br />
<br />
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<span lang="EN-US" style="font-family: "Century Gothic","sans-serif"; font-size: 14pt; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">WHO DO YOU CHOOSE?<o:p></o:p></span></div>
<span lang="EN-US" style="font-family: "Century Gothic","sans-serif"; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">Google makes everyone an
expert nowadays and it seems that property investment is no exception.<o:p></o:p></span><br />
<br />
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<span lang="EN-US" style="font-family: "Century Gothic","sans-serif"; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">During the years that I have
been doing this I have seen more experts come and go than I can count. They all
supposedly made millions and now want to share that knowledge with others. They
all have very compelling stories to tell and it gets you in. I have to admit that even I am intrigued at times.</span></div>
<span lang="EN-US" style="font-family: "Century Gothic","sans-serif"; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;"><strong>But I suspect that that is
all they are… stories.<o:p></o:p></strong></span><br />
<br />
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<span lang="EN-US" style="font-family: "Century Gothic","sans-serif"; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">In the past 20 years I have
heard the Negative Gearing argument, then the various Positive Cash-flow arguments.
There was the NRAS story, the Mining towns boom/bust and a number of so called
strategies to make millions including Option Agreements, to name just a few.<o:p></o:p></span></div>
<span lang="EN-US" style="font-family: "Century Gothic","sans-serif"; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;"><strong>Experience has shown that
they only make money for the promoter.<o:p></o:p></strong></span><br />
<br />
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<span lang="EN-US" style="font-family: "Century Gothic","sans-serif"; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">So who can you trust? <span style="mso-spacerun: yes;"> </span>The answer is someone who has been through it
all and has a simple uncomplicated strategy. <o:p></o:p></span></div>
<i style="mso-bidi-font-style: normal;"><span lang="EN-US" style="font-family: "Century Gothic","sans-serif"; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">“The
schemes are more scams than strategies”.<o:p></o:p></span></i><br />
<br />
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<span lang="EN-US" style="font-family: "Century Gothic","sans-serif"; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">That strategy should
involve understanding the property cycle (the 5 to 7 and 3 to 5) so that you
buy in the right place at the right time. It should be easy to explain and
understand and usually will involve a simple purchase of a well located property
in a location with a proven track record.<o:p></o:p></span></div>
<span lang="EN-US" style="font-family: "Century Gothic","sans-serif"; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">Give us a call if you would
like to know more…<o:p></o:p></span><br />
<br />
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<span lang="EN-US" style="font-family: "Century Gothic","sans-serif"; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">1300 131099</span><span style="font-family: "Century Gothic","sans-serif";"><o:p></o:p></span></div>
Anonymoushttp://www.blogger.com/profile/03689831512432872798noreply@blogger.com0tag:blogger.com,1999:blog-7479266307977944833.post-25683832817591613492015-09-17T21:29:00.001-07:002015-09-17T21:29:56.919-07:00Top 10 Criteria for Good Investment Growth - Residential Property<span style="font-family: Calibri;"><span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: "Helvetica Neue", Arial, Helvetica, sans-serif;">So how do we choose the best property for capital growth? </span></span><br />
<span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: "Helvetica Neue", Arial, Helvetica, sans-serif;"><br />
Do you look in the newspaper, look on the internet, or ask a real estate agent?
</span></span><br />
<br />
<span style="font-family: Arial;">That is what most people do....</span><br />
<span style="font-family: Arial;"></span><br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgpdK3pfH1g9h-lRSw-xLkGSmw5we-P7kFheLf9l4mPDYw11bl1nWnhMj2sqtKo91kLvRrgl6JfgXpL37IyrccrThb0Z4A43c0WuEk2GGpRNgi16uiYHwF0mb1NCqScXOO_uhP9zSf4Mgec/s1600/Newspaper.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="143" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgpdK3pfH1g9h-lRSw-xLkGSmw5we-P7kFheLf9l4mPDYw11bl1nWnhMj2sqtKo91kLvRrgl6JfgXpL37IyrccrThb0Z4A43c0WuEk2GGpRNgi16uiYHwF0mb1NCqScXOO_uhP9zSf4Mgec/s400/Newspaper.jpg" width="400" /></a></div>
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<span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: "Helvetica Neue", Arial, Helvetica, sans-serif;">They say that property doubles every 10-12 years so can we just buy any
property and it make money for you? <br />
</span></span><br />
<span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: "Helvetica Neue", Arial, Helvetica, sans-serif;">Unfortunately not all property will double... </span></span><br />
<span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: "Helvetica Neue", Arial, Helvetica, sans-serif;"></span></span><br />
<span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: "Helvetica Neue", Arial, Helvetica, sans-serif;">Statistically <u>the average of all
properties</u> will usually double in that time, but that means that statistically
some will more than double and some will less than. That is how you end up with an average.</span></span><br />
<span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: "Helvetica Neue", Arial, Helvetica, sans-serif;"></span></span><br />
<span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: "Helvetica Neue", Arial, Helvetica, sans-serif;">Actually because some
properties will boom some must do virtually no growth at all. <br />
</span></span><br />
<span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: "Helvetica Neue", Arial, Helvetica, sans-serif;">So how do you choose those properties that will outperform the averages? <br />
</span></span><br />
<span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: "Helvetica Neue", Arial, Helvetica, sans-serif;">With nearly 25 years of assisting clients (through a couple of entities) we have quite a bit of experience and data
to help make those decisions. </span></span><br />
<span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: "Helvetica Neue", Arial, Helvetica, sans-serif;"><br />
One thing we have learned is that property growth is not consistent. It does
not grow each and every year. It follows a cycle of good and not so good times... The Property Clock. (see link below for more detail on the Property Cycle)</span></span><br />
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<span style="font-family: "Helvetica Neue", Arial, Helvetica, sans-serif;">
</span></div>
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<span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: "Helvetica Neue", Arial, Helvetica, sans-serif; font-size: large;"><strong>What are the criteria to look for?</strong></span></span></div>
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<span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: "Helvetica Neue", Arial, Helvetica, sans-serif;">Firstly: </span></span></div>
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<span style="font-family: Calibri;"><strong></strong></span> <strong><span style="font-family: "Helvetica Neue", Arial, Helvetica, sans-serif;">The Right Time in the Property Clock Growth Cycle</span></strong></div>
<ul>
<li><div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: "Helvetica Neue", Arial, Helvetica, sans-serif;">For that City and Location </span><a href="http://investmentpropertyfinders.blogspot.com.au/2015/07/the-property-cycle-not-boom-and-no-bust.html" target="_blank"><span style="font-family: "Helvetica Neue", Arial, Helvetica, sans-serif; font-size: x-small;">(More on the Property Clock click here...)</span></a></div>
</li>
</ul>
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<span style="font-family: "Helvetica Neue", Arial, Helvetica, sans-serif;"></span> </div>
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<span style="font-family: "Helvetica Neue", Arial, Helvetica, sans-serif;">Then as many of these factors as you can get:</span></div>
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<strong><span style="font-family: "Helvetica Neue", Arial, Helvetica, sans-serif;">Location</span></strong></div>
<ul>
<li><div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: "Helvetica Neue", Arial, Helvetica, sans-serif;">Less than 10kms (Adel) and 15kms (Eastern States) from a CBD... Usually not in the CBD.</span></div>
</li>
<li><div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: "Helvetica Neue", Arial, Helvetica, sans-serif;">Diversity of Economy, Employment and Social Demographic</span></div>
</li>
<li><div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: "Helvetica Neue", Arial, Helvetica, sans-serif;">Surrounded by Quality Housing</span></div>
</li>
<li><div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: "Helvetica Neue", Arial, Helvetica, sans-serif;">Surrounded by Quality Suburbs</span></div>
</li>
<li><div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: "Helvetica Neue", Arial, Helvetica, sans-serif;">Going through some Urban Renewal</span></div>
</li>
</ul>
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<strong><span style="font-family: "Helvetica Neue", Arial, Helvetica, sans-serif;">Price</span></strong></div>
<ul>
<li><div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: "Helvetica Neue", Arial, Helvetica, sans-serif;">Median Price or slightly above for the location (but don't pay too much i.e. Bank Val.)</span></div>
</li>
<li><div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: "Helvetica Neue", Arial, Helvetica, sans-serif;">In Demand but with No Oversupply Possibility</span></div>
</li>
<li><div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: "Helvetica Neue", Arial, Helvetica, sans-serif;">Good Tax Deductibility Factors</span></div>
</li>
<li><div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: "Helvetica Neue", Arial, Helvetica, sans-serif;">Good Rental Yields</span></div>
</li>
</ul>
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<strong><span style="font-family: "Helvetica Neue", Arial, Helvetica, sans-serif;">Transport (Public and Highway)</span></strong></div>
<ul>
<li><div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: "Helvetica Neue", Arial, Helvetica, sans-serif;">Good Public Transport to CBD and Hubs</span></div>
</li>
<li><div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: "Helvetica Neue", Arial, Helvetica, sans-serif;">Good Highways to CBD and Hubs with Limited or No Bottlenecks</span></div>
</li>
</ul>
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<strong><span style="font-family: "Helvetica Neue", Arial, Helvetica, sans-serif;">Shopping</span></strong></div>
<ul>
<li><div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: "Helvetica Neue", Arial, Helvetica, sans-serif;">Close to Supermarkets</span></div>
</li>
</ul>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<strong><span style="font-family: "Helvetica Neue", Arial, Helvetica, sans-serif;">Education</span></strong></div>
<ul>
<li><div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: "Helvetica Neue", Arial, Helvetica, sans-serif;">Close to Quality Schools and Universities</span></div>
</li>
</ul>
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<strong><span style="font-family: "Helvetica Neue", Arial, Helvetica, sans-serif;">Medical</span></strong></div>
<ul>
<li><div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: "Helvetica Neue", Arial, Helvetica, sans-serif;">Close to Emergency Hospitals</span></div>
</li>
<li><div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: "Helvetica Neue", Arial, Helvetica, sans-serif;">Close to Local Medical Centres</span></div>
</li>
</ul>
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<strong><span style="font-family: "Helvetica Neue", Arial, Helvetica, sans-serif;">Restaurants and Cafes</span></strong></div>
<ul>
<li><div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: "Helvetica Neue", Arial, Helvetica, sans-serif;">Close to Popular ones</span></div>
</li>
</ul>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<strong><span style="font-family: "Helvetica Neue", Arial, Helvetica, sans-serif;">Walkability</span></strong></div>
<ul>
<li><div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: "Helvetica Neue", Arial, Helvetica, sans-serif;">Parks and Walking Trails for Recreation</span></div>
</li>
</ul>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<strong><span style="font-family: "Helvetica Neue", Arial, Helvetica, sans-serif;">Community Feel</span></strong></div>
<ul>
<li><div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: Arial;">You want it to be a nice place to live</span></div>
</li>
</ul>
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<o:p><span style="font-family: "Helvetica Neue", Arial, Helvetica, sans-serif;"> </span></o:p></div>
<o:p><div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: "Helvetica Neue", Arial, Helvetica, sans-serif;">We've
done the homework and found those properties that meet in some cases all and in others most of the criteria throughout Australia... (and elsewhere)</span></span></div>
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<span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: "Helvetica Neue", Arial, Helvetica, sans-serif;">If you are thinking of investing in property anywhere please give us a call.</span></span></div>
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<span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: Arial;"></span></span> </div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: Arial;">Graeme Clark </span></span></div>
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<span style="mso-fareast-font-family: "Times New Roman";"></span><span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: Arial;">1300 131099</span></span></div>
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</div>
</o:p><div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
</div>
<span style="font-family: "Helvetica Neue", Arial, Helvetica, sans-serif;">
</span><br />
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<o:p><span style="font-family: Calibri;"> </span></o:p></div>
Anonymoushttp://www.blogger.com/profile/03689831512432872798noreply@blogger.com0tag:blogger.com,1999:blog-7479266307977944833.post-41296237890430203432015-09-08T20:11:00.000-07:002015-09-08T20:11:02.098-07:00Green light for SMSFs to get serious about property.
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjPbMDhcYlam87W6HAsu0VSKs8QCLo2_20kKq9d3PcmaaRF8Nh4PaFsFkap75Vnkbmla0q-1HpQyBn18lXS2L8GEMkImhHUP9mlIK334tuFl3_LojLt4xWC9Ra2_wsIDclCfQzWujrPbReN/s1600/traffic+light.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="190" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjPbMDhcYlam87W6HAsu0VSKs8QCLo2_20kKq9d3PcmaaRF8Nh4PaFsFkap75Vnkbmla0q-1HpQyBn18lXS2L8GEMkImhHUP9mlIK334tuFl3_LojLt4xWC9Ra2_wsIDclCfQzWujrPbReN/s320/traffic+light.jpg" width="320" /></a></div>
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SMSFs have been giving the green-light to become serious property
investors.<o:p></o:p></h3>
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<span style="color: #404040; font-family: "Helvetica","sans-serif"; font-size: 10.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">Fear, uncertainty and doubt (FUD) are what stops most of us from doing
things, even though there are occasions where we know we need to do something.<o:p></o:p></span></div>
<br />
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<span style="color: #404040; font-family: "Helvetica","sans-serif"; font-size: 10.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">Money to provide for our future is one such thing that we know we need
to do something about, but many of us, put it off for too long because of FUD…
or we are too busy.<o:p></o:p></span></div>
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<span style="color: #404040; font-family: "Helvetica","sans-serif"; font-size: 10.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">Recently the Murray Financial Review commissioned by the Govt. created
FUD around SMSFs because it proposed that self-managed super funds should be
banned from borrowing to invest in property.<o:p></o:p></span></div>
<br />
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<span style="color: #404040; font-family: "Helvetica","sans-serif"; font-size: 10.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">That proposal seem quite strange because borrowing to build wealth is an
excellent way to maximise the growth on what, for most of us, is limited supply
of surplus funds (the money left after paying taxes and living).<o:p></o:p></span></div>
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<span style="color: #404040; font-family: "Helvetica","sans-serif"; font-size: 10.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">So smart investors only borrow to buy safe assets, and property is
probably the safest. <o:p></o:p></span></div>
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<span style="color: #404040; font-family: "Helvetica","sans-serif"; font-size: 10.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">But what they were saying was if you want to try to maximise your somewhat
limited superannuation money, then you can’t.<o:p></o:p></span></div>
<span style="color: #404040; font-family: "Helvetica","sans-serif"; font-size: 10.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;"></span><br />
<span style="color: #404040; font-family: "Helvetica","sans-serif"; font-size: 10.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">Given that they don’t want to pay us a pension, that didn’t make sense.<o:p></o:p></span><br />
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<span style="color: #404040; font-family: "Helvetica","sans-serif"; font-size: 10.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">In my opinion the original idea was that we didn’t want people taking
gambles with their superannuation. They wanted to make sure people only invested
in safe assets… like the stock market. (You would have to wonder how that is working
out for most people!)<o:p></o:p></span></div>
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<span style="color: #404040; font-family: "Helvetica","sans-serif"; font-size: 10.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">It made no sense to me; property has been a consistent performer over
the years particularly long term, which your superannuation is. Property is
about as safe as you can get, hence the expression ‘safe as houses’. <o:p></o:p></span></div>
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<span style="color: #404040; font-family: "Helvetica","sans-serif"; font-size: 10.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">So that <u>was</u> the recommendation. But now the government has rejected
that idea.<o:p></o:p></span></div>
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<span style="color: #404040; font-family: "Helvetica","sans-serif"; font-size: 10.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">Last week, Assistant-Treasurer Josh Frydenburg said:<o:p></o:p></span></div>
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<i><span style="color: #404040; font-family: "Helvetica","sans-serif"; font-size: 10.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">“In the final report of the financial system inquiry, which the
government commissioned David Murray to prepare, he recommended a complete ban
on limited recourse borrowing arrangements in SMSFs.</span></i><span style="color: #404040; font-family: "Helvetica","sans-serif"; font-size: 10.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;"><o:p></o:p></span></div>
<br />
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<i><span style="color: #404040; font-family: "Helvetica","sans-serif"; font-size: 10.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">“I want to emphasise that we have been considering this recommendation
very carefully but flag that we want to make sure the approach we take is
proportionate to the risks that have been identified.”</span></i><span style="color: #404040; font-family: "Helvetica","sans-serif"; font-size: 10.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;"><o:p></o:p></span></div>
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<span style="color: #404040; font-family: "Helvetica","sans-serif"; font-size: 10.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">I find that just about everything he says needs a translation, so most
agree that translated means “The ban was a sledge hammer to crack a nut so it’s
not going to happen”.<o:p></o:p></span></div>
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<span style="color: #404040; font-family: "Helvetica","sans-serif"; font-size: 10.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">We know from survey data that people with SMSFs have a keen interest in
property, both residential and commercial. So now the door is open for them to
get serious. <o:p></o:p></span></div>
<span style="color: #404040; font-family: "Helvetica","sans-serif"; font-size: 10.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">Obviously we’d like to help.<o:p></o:p></span><br />
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<span style="color: #404040; font-family: "Helvetica","sans-serif"; font-size: 10.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">So this is a good news story. SMSFs are on train to be a major force in
Australian property.<o:p></o:p></span></div>
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<span style="color: #404040; font-family: "Helvetica","sans-serif"; font-size: 10.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;"><strong>A WORD OF WARNING THOUGH:</strong> Beware of the self-proclaimed SMSF experts/specialists.
From what I have seen of them some are ex-Financial Planners that have seen an
opportunity to make a quick buck from this seemingly complicated financial
structure. Generally they charge an absolute premium for providing no better
advice than you can get from your Accountant or existing Financial Planner. It’s
not that complicated, the rules while different are not hard to learn.<o:p></o:p></span></div>
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<span style="color: #404040; font-family: "Helvetica","sans-serif"; font-size: 10.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">The idea of an SMSF is to make money for your future, not to give it to
someone else for their future.<o:p></o:p></span></div>
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<span style="color: #404040; font-family: "Helvetica","sans-serif"; font-size: 10.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">If you would like to know more please feel free to give us a call… <o:p></o:p></span></div>
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<span style="color: #404040; font-family: "Helvetica","sans-serif"; font-size: 10.5pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;"><span style="font-size: x-large;">1300 131099<o:p></o:p></span></span></h2>
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Anonymoushttp://www.blogger.com/profile/03689831512432872798noreply@blogger.com0tag:blogger.com,1999:blog-7479266307977944833.post-39799525797710264602015-08-24T21:02:00.000-07:002015-08-24T21:02:29.500-07:00One of the best ways to make a profit from real estate is...
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhIS-mF9wSosSzpXVZCP8JuvFUcvP-t-GNrxNEslU7hEPY40utOtNN4sLsj_gGe2XiJssrl0M82FqzLaiMRGcLzcoCcMze8EByqQRWi8XhFPSAP2GFI7FHNtx6AeGi0e13QHJqiMmiRSMRy/s1600/Blackboard+Do+something+today.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="242" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhIS-mF9wSosSzpXVZCP8JuvFUcvP-t-GNrxNEslU7hEPY40utOtNN4sLsj_gGe2XiJssrl0M82FqzLaiMRGcLzcoCcMze8EByqQRWi8XhFPSAP2GFI7FHNtx6AeGi0e13QHJqiMmiRSMRy/s400/Blackboard+Do+something+today.png" width="400" /></a></div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<b><span style="font-family: "Century Gothic","sans-serif"; font-size: 14pt;"></span></b> </div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<b><span style="font-family: "Century Gothic","sans-serif"; font-size: 14pt;">One
of the best ways to make a profit from real estate is…</span></b><span style="font-family: "Century Gothic","sans-serif"; font-size: 14pt;"> </span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="font-family: "Century Gothic","sans-serif";">to
find areas where there is going to be change of use or what they call
gentrification.<o:p></o:p></span></div>
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<span style="font-family: "Century Gothic","sans-serif";">Developers
use this strategy to buy vacant land or old factories/homes on large blocks and
redevelop the site.<o:p></o:p></span></div>
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<span style="font-family: "Century Gothic","sans-serif";">But
for those of us without the expertise or prepared to take the risk to do a
development <b>we can still make a profit from finding change of use locations</b>
being developed by others <b>but get in early so that there is still some
upside</b>.<o:p></o:p></span></div>
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<span style="font-family: "Century Gothic","sans-serif";">We
did just this with our clients 5-10 years ago with the redevelopment of
Brompton in SA from old factories into upmarket medium density townhouses. The early
adopters were able to buy in what seemed expensive at the time, a 3 bedroom
townhouse for just under $300,000. I remember my first client to purchase
in Brompton saying “You’re kidding… look at that old factory across the road”.<o:p></o:p></span></div>
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<b><span style="font-family: "Century Gothic","sans-serif";">Today
that old factory is gone and the property would be worth about $600,000. A good
profit in less than 10 years and during some tough times.<o:p></o:p></span></b></div>
<br />
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<span style="font-family: "Century Gothic","sans-serif";">Brompton
seems to have peak for the moment. Those who know my <b>5-7/3-5 principle</b>
will know what I mean. <a href="http://investmentpropertyfinders.blogspot.com.au/2015/07/the-property-cycle-not-boom-and-no-bust.html" target="_blank">(More on that here)<o:p></o:p></a></span></div>
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<b><span style="font-family: "Century Gothic","sans-serif";">But
now there is a new area in SA where change of use could see good profits made
in the next 7-10 years by those who get in early. That area is Prospect.<o:p></o:p></span></b></div>
<br />
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<span style="font-family: "Century Gothic","sans-serif";">The
properties at Prospect are not yet on the market but the developer has let me
put in “registrations of interest” for my clients and that will give them first
option when they are released to the public, in a few weeks time. (artist impression below)<o:p></o:p></span></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiiZpYMhIjea9grGTAo_PxLYGl-ybnFR1zuXq3i2pDZQzv8XFb3LxnRhwY87ZNPjRki8QliQfQ4Uq39nG-5Ik2jWjNSkkRFJXDCpX2i7LjfL1PclWIWKjR-89G_7AwLYzQsSptElqteRP5r/s1600/Camera2sml.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="282" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiiZpYMhIjea9grGTAo_PxLYGl-ybnFR1zuXq3i2pDZQzv8XFb3LxnRhwY87ZNPjRki8QliQfQ4Uq39nG-5Ik2jWjNSkkRFJXDCpX2i7LjfL1PclWIWKjR-89G_7AwLYzQsSptElqteRP5r/s400/Camera2sml.jpg" width="400" /></a></div>
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<span style="font-family: "Century Gothic","sans-serif";">I
now have plans and specifications with tentative pricing for the Prospect
townhouses. There are 2 and 3 bedroom options.</span><br />
<span style="font-family: "Century Gothic","sans-serif";"></span><br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj0K0sjMtXj_MJz2RLbsI4H4pCOn75J1jJ2KOW25sVn8EGHo5t6hu_JqjuSV-Tk0C5EgNFK0sqoURwSXF4zfCNP60flEexq8N17sArVUwFutRr5sQ_EtGYA0LdDwRCPctY7bMhxmxuAoQeM/s1600/Scott+Salisbury+THRF-2105_2-popup-50b.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="204" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj0K0sjMtXj_MJz2RLbsI4H4pCOn75J1jJ2KOW25sVn8EGHo5t6hu_JqjuSV-Tk0C5EgNFK0sqoURwSXF4zfCNP60flEexq8N17sArVUwFutRr5sQ_EtGYA0LdDwRCPctY7bMhxmxuAoQeM/s320/Scott+Salisbury+THRF-2105_2-popup-50b.jpg" width="320" /></a></div>
<span style="font-family: "Century Gothic","sans-serif";"><o:p></o:p></span><br />
<span style="font-family: "Century Gothic","sans-serif";">On
the weekend I went to look at the Scott Salisbury Hospital Lottery home at
Gilberton. <o:p></o:p></span><br />
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<span style="font-family: "Century Gothic","sans-serif";">While
I think the lottery is a great cause and whoever wins the home will be very
pleased, I couldn’t help thinking $1.5M for this home makes what I have found
at Prospect a bargain… and bodes well for the future growth of the Prospect
properties.<o:p></o:p></span></div>
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<span style="font-family: "Century Gothic","sans-serif";">Give
me a call if you have any interest or would like more information.</span></div>
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<span style="font-family: "Century Gothic","sans-serif";"> </span></div>
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<span style="font-family: "Century Gothic","sans-serif";">1300 131099<o:p></o:p></span></h2>
Anonymoushttp://www.blogger.com/profile/03689831512432872798noreply@blogger.com2tag:blogger.com,1999:blog-7479266307977944833.post-67305544941537832852015-07-27T21:15:00.001-07:002015-07-27T21:22:00.090-07:00The Property Cycle... not a "boom" and no "bust" coming.<br />
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<span style="font-family: "Century Gothic","sans-serif";">The
Australian Property market moves in cycles…<o:p></o:p></span></div>
<br />
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<span style="font-family: "Century Gothic","sans-serif";">Not
as the media would have you believe “booms” and “busts” but in regular and
reasonably predictable cycles.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="font-family: "Century Gothic","sans-serif";">And
those cycles are tracked by Property Valuers and Property Research businesses. (see below where your city fits)<o:p></o:p></span></div>
<br />
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<span style="font-family: "Century Gothic","sans-serif";"><o:p> </o:p></span><span style="font-family: "Century Gothic","sans-serif";">You
might have heard that property doubles about every 10 years and if that were
true then property would go up in value by 7.2% each and every year.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="font-family: "Century Gothic","sans-serif";"><strong>But
we know that it does not do that!<o:p></o:p></strong></span></div>
<span style="font-family: "Century Gothic","sans-serif";"><o:p> </o:p></span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="font-family: "Century Gothic","sans-serif";">Instead
it goes in cycles of about 10 -12 years… And different locations will be at
different stages in the cycle at any particular time.<o:p></o:p></span></div>
<br />
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<span style="font-family: "Century Gothic","sans-serif";">Typically
you will see about 5 - 7 years of property going nowhere or even slightly down
in value…<o:p></o:p></span></div>
<br />
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<span style="font-family: "Century Gothic","sans-serif";">Then
<b style="mso-bidi-font-weight: normal;">there will be 3 – 5 years of rapid
growth</b>… double figures! <span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="font-family: "Century Gothic","sans-serif";">That
is where the media gets excited and calls it a “boom” but it is not…<o:p></o:p></span></div>
<br />
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<span style="font-family: "Century Gothic","sans-serif";">It
is just the normal cycle.<o:p></o:p></span></div>
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<o:p><span style="font-family: Calibri;"> </span></o:p><br />
<div class="separator" style="clear: both; text-align: center;">
<span style="font-family: Calibri;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh1VGJleWtgQ5vmJgOsS-ybXzJprrwqkgL2K2G8-2fCy7D8-t-Cy6J2km0ZnddZ9lSoKCSfEh0z82YgGiW7Qp5GIaOdvLdWrS_tgUgTreGFrMiOi2_S59S-v-OImnEgWqzwViV5eG0NwLOh/s1600/Market+cycle.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="362" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh1VGJleWtgQ5vmJgOsS-ybXzJprrwqkgL2K2G8-2fCy7D8-t-Cy6J2km0ZnddZ9lSoKCSfEh0z82YgGiW7Qp5GIaOdvLdWrS_tgUgTreGFrMiOi2_S59S-v-OImnEgWqzwViV5eG0NwLOh/s400/Market+cycle.png" width="400" /></a></span></div>
<o:p><span style="font-family: Calibri;"> </span></o:p><br />
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Century Gothic","sans-serif";">So why is this relevant?<o:p></o:p></span></b></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="font-family: "Century Gothic","sans-serif";">Well
it is a fact that about 70% of people who invest in property will sell out in
less than 5 years and never invest again.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="font-family: "Century Gothic","sans-serif";">Many
do that because they invested in the wrong part of the cycle for the location that
they bought their property. <o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="font-family: "Century Gothic","sans-serif";">Hence
the first few years of their ownership of a particular property they saw no
growth… they just had expenses.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="font-family: "Century Gothic","sans-serif";">And
others will simply pay too much in the first place.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="font-family: "Century Gothic","sans-serif";">So
it is important to not only consider <b style="mso-bidi-font-weight: normal;">location</b>
and <b style="mso-bidi-font-weight: normal;">price</b> but to consider the <b style="mso-bidi-font-weight: normal;">property cycle</b> before you decide to
invest in a particular location.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="font-family: "Century Gothic","sans-serif";">That
way your property investment should increase in value from day one and within a
short period (12- 18 months) have created enough equity for you to buy another. At the very least enough growth to demonstrate that property investment works.</span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="font-family: "Century Gothic","sans-serif";">On
the property clock above you want to invest anywhere between 7 o’clock and 10 o’clock.
(about 3 - 5 years)<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="font-family: "Century Gothic","sans-serif";">And
you definitely don’t want to invest anywhere between 12 o’clock and 6 o’clock. </span><i style="mso-bidi-font-style: normal;"><span style="font-family: "Century Gothic","sans-serif"; font-size: 10pt;">(In overly
simplistic terms you could consider each hour of the clock to represent
approximately 1 year*)<o:p></o:p></span></i></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="font-family: "Century Gothic","sans-serif";">I
hope that helps clear up the “boom” that we are hearing about in the Sydney
market at the present time.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="font-family: "Century Gothic","sans-serif";">There
shouldn’t be a bust coming for Sydney. It should just be a regular slowdown of
growth.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="font-family: "Century Gothic","sans-serif";"><strong>Going
forward should be Melbourne and Brisbane’s time in the sun</strong>… then later Adelaide
and Perth.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="font-family: "Century Gothic","sans-serif";"><strong>So I
am off to Melbourne</strong> to look at some new developments and expansions to existing
developments.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="font-family: "Century Gothic","sans-serif";">Then
in the next few weeks I will be off to Brisbane.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="font-family: "Century Gothic","sans-serif";">That
way I can offer you the best locations within the cycle for your investment growth.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="font-family: "Century Gothic","sans-serif";"><o:p> </o:p></span><span style="font-family: "Century Gothic","sans-serif";"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<i style="mso-bidi-font-style: normal;"><span style="font-size: 10pt;"><span style="font-family: Calibri;">*the above representation of 1 hour of the clock
representing 1 year of the cycle cannot be relied upon as an accurate measure
of time within the cycle. It is meant as a guide only.<o:p></o:p></span></span></i></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<i style="mso-bidi-font-style: normal;"><span style="font-size: 10pt;"><o:p><span style="font-family: Calibri;"> </span></o:p></span></i></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<o:p><span style="font-family: Calibri;"> </span></o:p></div>
</div>
Anonymoushttp://www.blogger.com/profile/03689831512432872798noreply@blogger.com1tag:blogger.com,1999:blog-7479266307977944833.post-39897174272274114752015-07-16T18:55:00.000-07:002015-07-16T23:13:26.530-07:00Will removing Negative Gearing help Housing Affordability?<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="mso-fareast-font-family: "Times New Roman";">The
Reserve Bank wants the Govt. to remove negative gearing as a Tax deduction so I
have been asked to give my thoughts. <o:p></o:p></span></div>
<span style="mso-fareast-font-family: "Times New Roman";"><br />
The first thing I want to make clear is removing negative gearing will NOT fix
the problem. <o:p></o:p></span><br />
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="mso-fareast-font-family: "Times New Roman";">And
the second is, I could write a book on this subject but I will try to be as
brief as is possible to explain what is a complex and far reaching issue.<o:p></o:p></span></div>
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj5NNX0C9bQOP9Fcb2207wJ1BhYWx7U4bbKeHGfHGfNpNHerN7RAzLC_ny9-I6l6zeG9sMa60WGn4xlXVUg3455nbIqkq38jdhBP80cgigHhAwX27dZWgG5_LVwgMsIpZTTVYVf4bXAa7Lb/s1600/Neg+Gearing+Cartoon+-+Housing.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj5NNX0C9bQOP9Fcb2207wJ1BhYWx7U4bbKeHGfHGfNpNHerN7RAzLC_ny9-I6l6zeG9sMa60WGn4xlXVUg3455nbIqkq38jdhBP80cgigHhAwX27dZWgG5_LVwgMsIpZTTVYVf4bXAa7Lb/s320/Neg+Gearing+Cartoon+-+Housing.jpg" width="267" /></a></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="mso-fareast-font-family: "Times New Roman";">The
problem that most Australians want to fix is, housing affordability, but as you
will see in the following paragraphs negative gearing is only a very minor part
of housing affordability and in fact its removal might make things worse for
young Australians wanting to buy a home… while not slowing property investment
by anything appreciable.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-AU; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">So let's look at it in a bit more detail...</span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
</div>
<span style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-AU; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;"></span><div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-AU; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;"><span style="mso-fareast-font-family: "Times New Roman";">There
are 2 aspects to Negative Gearing to consider:<o:p></o:p></span></span></div>
<span style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-AU; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
</div>
<div class="MsoListParagraphCxSpFirst" style="margin: 0cm 0cm 0pt 36pt; mso-list: l0 level1 lfo1; text-indent: -18pt;">
<!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><!--[endif]--><span style="mso-fareast-font-family: "Times New Roman";">Financial
and <o:p></o:p></span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
</div>
<div class="MsoListParagraphCxSpLast" style="margin: 0cm 0cm 0pt 36pt; mso-list: l0 level1 lfo1; text-indent: -18pt;">
<!--[if !supportLists]--><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><!--[endif]--><span style="mso-fareast-font-family: "Times New Roman";">Functional<o:p></o:p></span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
</div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="mso-fareast-font-family: "Times New Roman";"></span> </div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="mso-fareast-font-family: "Times New Roman";">Let’s
look at just the numbers first because it will demonstrate that the negative
gearing Tax refund that investors receive is only a very minor incentive to
invest in property. In fact it helps the tenant arguably more than it helps the
investor.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
</div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="mso-fareast-font-family: "Times New Roman";"></span> </div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="mso-fareast-font-family: "Times New Roman";">From
an investment point of view, property is a good investment because it has
consistent growth with low volatility. It has been quoted that on average
property doubles in value every 10 years. While that is not true of all
property it is reasonable to expect that sort of growth whether a particular
property doubles every 7, 10, 12 or 15 years (the true nature of property growth is another
subject worth discussing in another article).<o:p></o:p></span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
</div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="mso-fareast-font-family: "Times New Roman";"></span> </div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="mso-fareast-font-family: "Times New Roman";">For
the sake of this exercise let’s assume that a particular property doubles in 10
years ie 7.2% per year and let’s assume that growth is consistent each year
(which it is not) but for the sake of simplifying this example.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
</div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="mso-fareast-font-family: "Times New Roman";"></span> </div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="mso-fareast-font-family: "Times New Roman";">Let’s
also assume that interest rates for the mortgage on the property are 7%
(Australia’s average). Rates are currently less than 5% making negative gearing
deductions almost non-existent in today’s property market anyway, and hence the
ridiculousness of the argument to remove it.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
</div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="mso-fareast-font-family: "Times New Roman";"></span> </div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="mso-fareast-font-family: "Times New Roman";">So a
property investment is costing the investor 7% per year to hold (mortgage) plus
holding costs (Council Rates etc.) on average those cost would add to about 1%
to the property cost.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
</div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="mso-fareast-font-family: "Times New Roman";"></span> </div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="mso-fareast-font-family: "Times New Roman";">So the
total holding costs are about 8% of the asset value each year (based on average Bank interest rates).</span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
</div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="mso-fareast-font-family: "Times New Roman";"></span> </div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="mso-fareast-font-family: "Times New Roman";">To
reduce those holding costs the investor will receive rent from a tenant of
about 4.5-5.0% of the property value (in South Australia).<o:p></o:p></span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
</div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="mso-fareast-font-family: "Times New Roman";"></span> </div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="mso-fareast-font-family: "Times New Roman";">So a
negative gearing deduction on such a property would be 8.0 - 4.5/5.0 = 3-3.5%
as a negative gearing Tax deduction at the investors marginal Tax rate. For the
average investor that would reduce the holding cost by about 1%, making the
holding cost now just 2-2.5% of the purchase price.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
</div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="mso-fareast-font-family: "Times New Roman";"></span> </div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="mso-fareast-font-family: "Times New Roman";">But
most property investment will also attract some Tax deductions for
depreciation. On a new property those deductions could be as high as 2%, scaling down to
maybe 0.5% for an older property.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
</div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="mso-fareast-font-family: "Times New Roman";"></span> </div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="mso-fareast-font-family: "Times New Roman";">S</span><span style="mso-fareast-font-family: "Times New Roman";">o
as you can see property is a good investment because for this example the
investor is paying less than 1% of the property value to hold an asset that is
increasing in value by about 7.2% per year.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
</div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="mso-fareast-font-family: "Times New Roman";"></span> </div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="mso-fareast-font-family: "Times New Roman";">If
we remove negative gearing from this equation then the asset is costing the
investor less than 2% to hold but still growing in value by 7.2%.</span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="mso-fareast-font-family: "Times New Roman";"><o:p><em>(Remember that this is based on an interest rate of 7% from the Banks not on current rates)</em></o:p></span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
</div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="mso-fareast-font-family: "Times New Roman";"></span> </div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="mso-fareast-font-family: "Times New Roman";">But
negative gearing was introduced to justify Capital Gains Tax so the Govt. would
have to remove or alter Capital Gains Tax at the same time, making all grains
in property value potentially Tax free.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
</div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="mso-fareast-font-family: "Times New Roman";"></span> </div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="mso-fareast-font-family: "Times New Roman";">And
then they would have to consider the inequality between property investment and
share investment for both gearing and capital gains tax… and this would
constitute a huge loss of Tax to the Govt.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
</div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="mso-fareast-font-family: "Times New Roman";"></span> </div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="mso-fareast-font-family: "Times New Roman";">Additionally
the flow on effect from investors would also put pressure on increasing rents
to offset that loss of cash-flow. Increased rents would make it harder for
young Australians to save for the deposit needed to get into their first home.
We saw this in the 80’s when the Hawke/Keating Govt. removed negative gearing.
As much as you might hear on TV that rents did not increase, that is just not
true. I increased the rents (as did everyone I know) on my properties by nearly
20% over a 3 year period without the loss of a single tenant.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
</div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="mso-fareast-font-family: "Times New Roman";"></span> </div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="mso-fareast-font-family: "Times New Roman";">So
that is the financial side of the equation. Let’s now look at the functional
side.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
</div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="mso-fareast-font-family: "Times New Roman";"></span> </div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="mso-fareast-font-family: "Times New Roman";">Negative
Gearing has been around for about 30 years or more and during that time we have
had what the media call "booms" and "busts" regularly, about every 7 years. So if
negative gearing is the cause of this so called “boom” then why hasn't it been
the cause previously?<o:p></o:p></span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
</div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="mso-fareast-font-family: "Times New Roman";"></span> </div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="mso-fareast-font-family: "Times New Roman";">As
mentioned earlier, in today low interest rate environment most investors would
not be claiming negative gearing deductions because their property would be
positive in cash-flow so removing negative gearing to help affordability would
have no effect at all.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
</div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="mso-fareast-font-family: "Times New Roman";"></span> </div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="mso-fareast-font-family: "Times New Roman";">Now
let's talk about this so called “boom”... <o:p></o:p></span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
</div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="mso-fareast-font-family: "Times New Roman";"></span> </div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="mso-fareast-font-family: "Times New Roman";">Only
Sydney is experiencing higher than average growth, but even there the current growth is less
than it was in 2002-2004, in fact it is about half the growth of that period… so
not really over the top.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
</div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="mso-fareast-font-family: "Times New Roman";"></span> </div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="mso-fareast-font-family: "Times New Roman";">Other
states are growing at differing, but at reasonable rates, slightly higher than
inflation which is “situation normal”. <span style="mso-spacerun: yes;"> </span>In
fact, the real growth rate is less than real inflation because the Govt. have
fiddle with how they measure and report inflation to make the numbers look
better. <o:p></o:p></span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
</div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="mso-fareast-font-family: "Times New Roman";"></span> </div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="mso-fareast-font-family: "Times New Roman";">So
we are NOT in a “boom”... <o:p></o:p></span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
</div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="mso-fareast-font-family: "Times New Roman";"></span> </div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="mso-fareast-font-family: "Times New Roman";">The
real problem for affordability is the lack of available land to keep up with
demand. <o:p></o:p></span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
</div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="mso-fareast-font-family: "Times New Roman";"></span> </div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="mso-fareast-font-family: "Times New Roman";">Now
the current demand is being made slightly worse by foreign investment but again
removing negative gearing won’t help that situation because they don’t get to
claim it.<o:p></o:p></span></div>
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<span style="mso-fareast-font-family: "Times New Roman";">For
a moment let’s look at why Chinese investors like Australian property as an
investment. Clean air, clean water and a stable economy, plus an exchange rate (Dollar
to Yuan) that gives them about a 25% discount on the property… plus they can
borrow money in China at an almost zero interest rate. That is a pretty healthy
incentive to invest here.<o:p></o:p></span></div>
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<span style="mso-fareast-font-family: "Times New Roman";">So
what happens if our dollar recovers and goes back from 75c to 90c or even $1
then many Chinese will sell their properties making a substantial profit just
on the change in the exchange rate. And all that has happened is some Chinese
investors paid the Australian Govt. a lot of Stamp Duty.<o:p></o:p></span></div>
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<i style="mso-bidi-font-style: normal;"><span style="mso-fareast-font-family: "Times New Roman";"></span></i> </div>
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<i style="mso-bidi-font-style: normal;"><span style="mso-fareast-font-family: "Times New Roman";">(We did much the same thing
with USA property when our dollar was at $1.05 against the US $1. Our clients bought
US property paying with the inflated Australian dollar and now that the rate
has dropped to $0.75 our clients are selling at a 30% profit plus any growth.
That is how capitalism works)<o:p></o:p></span></i></div>
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<span style="mso-fareast-font-family: "Times New Roman";">Affordable
housing is a problem all over the world and possibly worse in Australia because
we have such large areas of land that are under developed.<o:p></o:p></span></div>
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<span style="mso-fareast-font-family: "Times New Roman";"></span> </div>
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<span style="mso-fareast-font-family: "Times New Roman";">In
Australia, lack of infrastructure spending by past Governments has become a real
problem. Plus we have among the world’s highest costs of entry, Stamp Duty,
Council development costs etc. <o:p></o:p></span></div>
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<span style="mso-fareast-font-family: "Times New Roman";"></span> </div>
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<span style="mso-fareast-font-family: "Times New Roman";">In
years past there were still areas of land that could be developed without the
need for expensive roads and services but that land has now mostly been
developed and hence we are having to look up (to high density housing) and out (to
green fields developments).<o:p></o:p></span></div>
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<span style="mso-fareast-font-family: "Times New Roman";"></span> </div>
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<span style="mso-fareast-font-family: "Times New Roman";">That
is a Govt. problem that we need to either accept or be prepared to pay higher
Taxes.<o:p></o:p></span></div>
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</div>
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<span style="mso-fareast-font-family: "Times New Roman";"></span> </div>
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<span style="mso-fareast-font-family: "Times New Roman";">There
are more reasons for the property affordability question like Australia’s employment
centralisation (the sand pile effect) that could be discussed but I think you
get the idea. It is not about negative gearing.<o:p></o:p></span></div>
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<span style="mso-fareast-font-family: "Times New Roman";">I
hope that helps with your understanding of what you see on television when they
talk about removing negative gearing to help affordability but feel free to call
me if you would like to discuss it or any other issue around property
investment.</span></div>
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<span style="mso-fareast-font-family: "Times New Roman";"></span> </div>
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<span style="mso-fareast-font-family: "Times New Roman";"></span> </div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="mso-fareast-font-family: "Times New Roman";">Graeme Clark </span></div>
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<span style="mso-fareast-font-family: "Times New Roman";"><a href="http://www.investmentpropertyfinders.com.au/">www.InvestmentPropertyFinders.com.au</a></span></div>
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<span style="mso-fareast-font-family: "Times New Roman";">Tel 1300 131099</span></div>
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</span><br />
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Anonymoushttp://www.blogger.com/profile/03689831512432872798noreply@blogger.com0tag:blogger.com,1999:blog-7479266307977944833.post-5316979559150731122015-07-08T22:06:00.000-07:002015-09-22T19:20:08.665-07:00How to Pay off your Home Loan sooner and at the same time create long term wealth.<br />
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</div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiWH1Ffecmnr6MZYnCq1g5Z2_I4vLOQu26gF4VCSuVCCcLdLnxWb0KpgF7ZUkDWUnxcN2w8fyOyPrPH39ppQaFSsG2bBcbazK1qiJyX7NaY3VkTAhmATlUFBEiFSqvdyaoUgvZYA3Jennr9/s1600/423406_339368519419850_289813371042032_1148887_1710822948_n.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="360" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiWH1Ffecmnr6MZYnCq1g5Z2_I4vLOQu26gF4VCSuVCCcLdLnxWb0KpgF7ZUkDWUnxcN2w8fyOyPrPH39ppQaFSsG2bBcbazK1qiJyX7NaY3VkTAhmATlUFBEiFSqvdyaoUgvZYA3Jennr9/s400/423406_339368519419850_289813371042032_1148887_1710822948_n.jpg" width="400" /></a></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<span lang="EN-US" style="color: #2c3e50; font-family: "Century Gothic","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">For most of us, our home loan will be the biggest expense we will have
during our life time, with the exception of Tax. That is unless you decide to
become a property investor, but we will talk about how that can help later.<o:p></o:p></span></div>
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</div>
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<span lang="EN-US" style="color: #2c3e50; font-family: "Century Gothic","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">Most of us we will fork out between $10,000 and $20,000 each year (some
maybe more) in interest payments alone plus paying off the principle. That’s a
lot of money to be throwing away each and every year and takes many hours of
work to earn, pay the tax and then give to the bank.<o:p></o:p></span></div>
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</div>
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<span lang="EN-US" style="color: #2c3e50; font-family: "Century Gothic","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">The average home buyer will pay to a bank over $700,000 in principle and interest
payments for a $300,000 loan during the lifetime of the loan. For every $1
extra, paid into the loan early in the loan term, can save up to $3 in interest
payments long term.<o:p></o:p></span></div>
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</div>
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<span lang="EN-US" style="color: #2c3e50; font-family: "Century Gothic","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">So it makes sense that we should aim to pay it off as soon as possible to
significantly reduce the amount of interest we pay.<o:p></o:p></span></div>
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</div>
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<b><span lang="EN-US" style="color: #2c3e50; font-family: "Century Gothic","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">But what most
people don’t realise is that you don’t necessarily need extra cash or more
income to pay off debt. What you need to do is learn to use your existing cash-flow
to your advantage.<o:p></o:p></span></b></div>
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</div>
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<span lang="EN-US" style="color: #2c3e50; font-family: "Century Gothic","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">So here are some tips to help you get rid of that mortgage more quickly:
(the last strategy might surprise you)<o:p></o:p></span></div>
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</div>
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<span lang="EN-US" style="color: #2c3e50; font-family: Oswald; font-size: 13.5pt; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU; text-transform: uppercase;">1. Negotiate the best
possible interest rate<o:p></o:p></span></div>
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</div>
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<span lang="EN-US" style="color: #2c3e50; font-family: "Century Gothic","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">Today’s
buoyant market and low interest rate environment provides homeowners with the
perfect opportunity to negotiate a better rate with their lender.<o:p></o:p></span></div>
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</div>
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<span lang="EN-US" style="color: #2c3e50; font-family: "Century Gothic","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">All the banks
are aggressively competing to gain new business and retain existing clients.<o:p></o:p></span></div>
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</div>
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<span lang="EN-US" style="color: #2c3e50; font-family: "Century Gothic","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">But it’s not
just the Big 4 you should consider when determining the best possible loan
product and interest rate for your circumstances, with a few of the smaller
players starting to vie harder for a bigger piece of the mortgage market pie,
great deals are around.<o:p></o:p></span></div>
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</div>
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<span lang="EN-US" style="color: #2c3e50; font-family: "Century Gothic","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">If
approaching your lender or refinancing to another provider seems too hard,
consider the difference a 1% variance in interest can make to a 25 year loan at
$300,000.<o:p></o:p></span></div>
<div class="MsoSubtitle" style="margin: 0cm 0cm 10pt;">
</div>
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<span lang="EN-US" style="color: #2c3e50; font-family: "Century Gothic","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">If you were
to pay 4.9%, as opposed to 5.9% for instance, you’d save $53,000 over the life
of the loan.<o:p></o:p></span></div>
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</div>
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<span lang="EN-US" style="color: #2c3e50; font-family: "Century Gothic","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">Suddenly a
chat with your lender or Broker looks a little more appealing doesn’t it?<o:p></o:p></span></div>
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</div>
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<span lang="EN-US" style="color: #2c3e50; font-family: "Century Gothic","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">Of course,
interest rates will trend up and down according to the going market
fundamentals of the day, but the bottom line is, the lower your rate, the less
interest you pay.<o:p></o:p></span></div>
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<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj1PtS9KRNFyxL_tjjP5p85VFbQkWBkcVZqaXiZaj10bHoF7GBS3tYh36PLLpOxekSfAoWJlNi9LRGEPCJWt8_mBxpH07IbFeMz_A0-0w7soEajfXg9EING4ahEb72lK0zoG9LOXSjU4K-B/s1600/Adjust+the+sails.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="110" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj1PtS9KRNFyxL_tjjP5p85VFbQkWBkcVZqaXiZaj10bHoF7GBS3tYh36PLLpOxekSfAoWJlNi9LRGEPCJWt8_mBxpH07IbFeMz_A0-0w7soEajfXg9EING4ahEb72lK0zoG9LOXSjU4K-B/s320/Adjust+the+sails.jpg" width="320" /></a></div>
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<span lang="EN-US" style="color: #2c3e50; font-family: Oswald; font-size: 13.5pt; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU; text-transform: uppercase;">2. REgular Reviews<o:p></o:p></span></div>
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</div>
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<span lang="EN-US" style="color: #2c3e50; font-family: "Century Gothic","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">Everyone
knows that lower interest rates will cost you less in total interest payments
but it amazes me how few people discuss their loan on a regular basis with a
mortgage broker. It seems that to most people it is a set and forget and the
Banks rely on that to make huge profits.<o:p></o:p></span></div>
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</div>
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<span lang="EN-US" style="color: #2c3e50; font-family: "Century Gothic","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">As we have
seen above the savings can be significant and it costs nothing to have a Broker
review you loan regularly. The Bank certainly won’t tell you if they suddenly
can do a better deal. <o:p></o:p></span></div>
<div class="MsoSubtitle" style="margin: 0cm 0cm 10pt;">
</div>
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<span lang="EN-US" style="color: #2c3e50; font-family: "Century Gothic","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">How far would
you go for $20,000? Because every year saved on your mortgage repayments could
be an extra $20,000 in your pocket.<o:p></o:p></span></div>
<div class="MsoSubtitle" style="margin: 0cm 0cm 10pt;">
</div>
<div class="MsoNormal" style="background: white; line-height: normal; margin: 30pt 0cm 7.5pt; mso-outline-level: 5;">
<span lang="EN-US" style="color: #2c3e50; font-family: Oswald; font-size: 13.5pt; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU; text-transform: uppercase;">3. Pay extra off the
principle<o:p></o:p></span></div>
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</div>
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<span lang="EN-US" style="color: #2c3e50; font-family: "Century Gothic","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">1. One way of
achieving this without too much financial pain is to change your repayment
schedule from monthly to fortnightly.<o:p></o:p></span></div>
<div class="MsoSubtitle" style="margin: 0cm 0cm 10pt;">
</div>
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<span lang="EN-US" style="color: #2c3e50; font-family: "Century Gothic","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">While you
might think that doing so wouldn’t make much of a dent in your mortgage, it
actually means you effectively make one extra fortnightly repayment each year.<o:p></o:p></span></div>
<div class="MsoSubtitle" style="margin: 0cm 0cm 10pt;">
</div>
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<span lang="EN-US" style="color: #2c3e50; font-family: "Century Gothic","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">Using the
above example of a 25-year loan worth $300,000, at today’s interest rate of around
4.9% that represents a saving of $34,000 in interest and three and a half years’
worth of time paying back the bank!<o:p></o:p></span></div>
<div class="MsoSubtitle" style="margin: 0cm 0cm 10pt;">
</div>
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<span lang="EN-US" style="color: #2c3e50; font-family: "Century Gothic","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">2. Another
option in line with this type of strategy is to make higher voluntary
repayments. And a simply way of doing that is to use your existing cash-flow
more efficiently. An Offset Transaction Account can do that very effectively.<o:p></o:p></span></div>
<div class="MsoSubtitle" style="margin: 0cm 0cm 10pt;">
</div>
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<span lang="EN-US" style="color: #2c3e50; font-family: "Century Gothic","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">You simply
deposit your salary into the Offset Account and then draw it out as needed to
pay bill and expenses. Every day that the money is in your Offset Account the
bank treats that balance as if you had paid it off the principle of your loan.
Therefore every day that money sits in that account it is saving you interest
for that day.<o:p></o:p></span></div>
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</div>
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<span lang="EN-US" style="color: #2c3e50; font-family: "Century Gothic","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">3. Another
way to make extra payments might be when interest rates are dropping; you might
consider maintaining your monthly repayments at the higher level you’re already
comfortably managing. <o:p></o:p></span></div>
<div class="MsoSubtitle" style="margin: 0cm 0cm 10pt;">
</div>
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<span lang="EN-US" style="color: #2c3e50; font-family: "Century Gothic","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">My suggestion
here though would be to use the freed up cash-flow to buy an investment
property. With the right strategy an investment property should cost no more
than a few dollars a day (lunch money) and there are significant other benefits
to improve your wealth position.<o:p></o:p></span></div>
<div class="MsoSubtitle" style="margin: 0cm 0cm 10pt;">
</div>
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<span lang="EN-US" style="color: #2c3e50; font-family: Oswald; font-size: 13.5pt; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU; text-transform: uppercase;">3. Buy an investment
property</span><span lang="EN-US" style="color: #2c3e50; font-family: "Century Gothic","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;"><o:p></o:p></span></div>
<div class="MsoSubtitle" style="margin: 0cm 0cm 10pt;">
</div>
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<span lang="EN-US" style="color: #2c3e50; font-family: "Century Gothic","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">It might seem
strange that taking out another loan to buy an investment property could
possibly help in paying off your home loan sooner, but it can, and is probably
the most effective strategy in that regard.<o:p></o:p></span></div>
<div class="MsoSubtitle" style="margin: 0cm 0cm 10pt;">
</div>
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<span lang="EN-US" style="color: #2c3e50; font-family: "Century Gothic","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">It all has to
do with Tax deductions.<o:p></o:p></span></div>
<div class="MsoSubtitle" style="margin: 0cm 0cm 10pt;">
</div>
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<span lang="EN-US" style="color: #2c3e50; font-family: "Century Gothic","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">You home loan
is not Tax deductible but the Investment loan is, so there is an arbitrage
between these two loans that if done correctly can see you pocketing the
difference.<o:p></o:p></span></div>
<div class="MsoSubtitle" style="margin: 0cm 0cm 10pt;">
</div>
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<span lang="EN-US" style="color: #2c3e50; font-family: "Century Gothic","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">An investment
property generates cash-flow by way of rent, negative gearing and depreciation.
That cash-flow can be used via an Offset Account as discussed above.<o:p></o:p></span></div>
<div class="MsoSubtitle" style="margin: 0cm 0cm 10pt;">
</div>
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<span lang="EN-US" style="color: #2c3e50; font-family: "Century Gothic","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">The cash-flow
while it will eventually be needed to make payments on the investment mortgage
it can be parked for a short period of time in an Offset Account that is
attached to your Non Tax deductible home loan.<o:p></o:p></span></div>
<div class="MsoSubtitle" style="margin: 0cm 0cm 10pt;">
</div>
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<span lang="EN-US" style="color: #2c3e50; font-family: "Century Gothic","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">As an
example; if you were to receive $20,000 per year in rent and another $10,000 in
Tax deductions that is $30,000 of additional cash-flow that can be used for a
period to reduce the interest on your home mortgage, if done correctly. (NOTE:
You should check this with you Accountant or Tax Agent before entering into any
investment)<o:p></o:p></span></div>
<div class="MsoSubtitle" style="margin: 0cm 0cm 10pt;">
</div>
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<span lang="EN-US" style="color: #2c3e50; font-family: Oswald; font-size: 13.5pt; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU; text-transform: uppercase;"><o:p> </o:p></span><span lang="EN-US" style="color: #2c3e50; font-family: Oswald; font-size: 13.5pt; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU; text-transform: uppercase;">Summary/Conclusion<o:p></o:p></span></div>
<div class="MsoSubtitle" style="margin: 0cm 0cm 10pt;">
</div>
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<span lang="EN-US" style="color: #2c3e50; font-family: "Century Gothic","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">So negotiate
the best interest rate, review your loan arrangements regularly with a Mortgage
Broker, use your cash-flow effectively and buy an investment property. In 10
-20 years you could be hundreds of thousands of dollars better off.<o:p></o:p></span></div>
<div class="MsoSubtitle" style="margin: 0cm 0cm 10pt;">
</div>
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<span lang="EN-US" style="color: #2c3e50; font-family: "Century Gothic","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">The best
advice I can give anyone would be to discuss your situation with a Mortgage
Broker and your Accountant and make sure you review it regularly because things
change.<o:p></o:p></span></div>
<div class="MsoSubtitle" style="margin: 0cm 0cm 10pt;">
</div>
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<span lang="EN-US" style="color: #2c3e50; font-family: "Century Gothic","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">Investment
Property Finders have nearly 20 years’ experience at developing strategies and
finding the best investment property for that strategy to help people create
wealth for the long term. Don't wait too long...</span></div>
<div class="MsoSubtitle" style="margin: 0cm 0cm 10pt;">
</div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgw49cJlz4ohUlThBKhEQYrBJxP1Hmm8MvTL_B3L0ZKwjXKojjVDR0oUGMXUo3PrAOltZphjV3_4x6_HVZFnJGOp24doALQHgINT9zjkZCzOWM19D3mOoP3BEh3LfLzBrWl_A0yU9Ya4SyG/s1600/407145_243648375717327_100002165005199_534463_1271823034_n.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgw49cJlz4ohUlThBKhEQYrBJxP1Hmm8MvTL_B3L0ZKwjXKojjVDR0oUGMXUo3PrAOltZphjV3_4x6_HVZFnJGOp24doALQHgINT9zjkZCzOWM19D3mOoP3BEh3LfLzBrWl_A0yU9Ya4SyG/s1600/407145_243648375717327_100002165005199_534463_1271823034_n.jpg" /></a></div>
Anonymoushttp://www.blogger.com/profile/03689831512432872798noreply@blogger.com0tag:blogger.com,1999:blog-7479266307977944833.post-66343728983250400402015-04-21T20:23:00.000-07:002015-04-21T20:23:19.660-07:00WARNING - Please read and forward
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="font-family: Calibri;">PLEASE WARN YOUR FRIENDS AND CLIENTS:<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="font-family: Calibri;">This is a great article for anyone considering property
investment or paying for property education with the likes of Park Trent or
Dymphna Boholt… and there are plenty of others:<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<a href="http://www.perthnow.com.au/news/western-australia/home-truths-of-perths-property-investment-pitch-from-the-homebuyer-seminar-circuit/story-fnhocxo3-1227295776295"><span style="color: blue; font-family: Calibri;">http://www.perthnow.com.au/news/western-australia/home-truths-of-perths-property-investment-pitch-from-the-homebuyer-seminar-circuit/story-fnhocxo3-1227295776295</span></a></div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
or <a href="http://www.perthnow.com.au/news/western-australia/home-truths-of-perths-property-investment-pitch-from-the-homebuyer-seminar-circuit/story-fnhocxo3-1227295776295" target="_blank"><Click here></a></div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<o:p></o:p> </div>
<span style="font-family: Calibri;">It is also why we insist on our clients:<o:p></o:p></span><br />
<br />
<div class="MsoListParagraph" style="margin: 0cm 0cm 0pt 36pt; mso-list: l0 level1 lfo1; text-indent: -18pt;">
<!--[if !supportLists]--><span style="mso-bidi-font-family: Calibri; mso-fareast-font-family: Calibri;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">1.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><!--[endif]--><span style="font-family: Calibri;">“Taking their time”… you can’t buy anything at
our seminars. You will have to go away, think about it, get advice and then
come back if you want our help.<o:p></o:p></span></div>
<br />
<div class="MsoListParagraph" style="margin: 0cm 0cm 0pt 36pt; mso-list: l0 level1 lfo1; text-indent: -18pt;">
<!--[if !supportLists]--><span style="mso-bidi-font-family: Calibri; mso-fareast-font-family: Calibri;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">2.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><!--[endif]--><span style="font-family: Calibri;">We insist on getting properties valued before
you sign anything and where possible put a clause in the contract that the
valuation must be within an acceptable range or the contract is cancelled.<o:p></o:p></span></div>
<br />
<div class="MsoListParagraph" style="margin: 0cm 0cm 0pt 36pt; mso-list: l0 level1 lfo1; text-indent: -18pt;">
<!--[if !supportLists]--><span style="mso-bidi-font-family: Calibri; mso-fareast-font-family: Calibri;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">3.</span><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><!--[endif]--><span style="font-family: Calibri;">You will see the valuation before you commit.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="font-family: Calibri;">Property investment can be an excellent way to build wealth
for your future but unfortunately there are people that will take advantage of
your lack of knowledge… using very clever selling tactics, like “group
mentality”, “fear of loss” and others.<o:p></o:p></span></div>
<o:p><span style="font-family: Calibri;"> </span></o:p><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="font-family: Calibri;">If you don’t deal with us make sure you do those 3 things
above.<o:p></o:p></span></div>
<o:p><span style="font-family: Calibri;"> </span></o:p><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="font-family: Calibri;">I hope this article goes some way into cleaning up the
property investment market place.<o:p></o:p></span></div>
<o:p><span style="font-family: Calibri;"> </span></o:p><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="font-family: Calibri;">Please read and forward it.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<o:p><span style="font-family: Calibri;"> </span></o:p></div>
Anonymoushttp://www.blogger.com/profile/03689831512432872798noreply@blogger.com0tag:blogger.com,1999:blog-7479266307977944833.post-24374219162994811572015-04-20T20:28:00.000-07:002015-04-20T20:28:19.484-07:00Are we in a property bubble and if not what next for investment?
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEheNBU9FGNXIcgcGFG80ntOz27KXLI19ajRzyqdjqQ-WgdhyqEGLcuYVrZuWUpuJMetyK8-aZbBrzIjbuAOu-CUN_RXnLB8Lz6wdWIX8mVO3uGGBiB0cRGNcyc2eMNrxYIqo_awkZ-bJ4gs/s1600/housing-bubble-large.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEheNBU9FGNXIcgcGFG80ntOz27KXLI19ajRzyqdjqQ-WgdhyqEGLcuYVrZuWUpuJMetyK8-aZbBrzIjbuAOu-CUN_RXnLB8Lz6wdWIX8mVO3uGGBiB0cRGNcyc2eMNrxYIqo_awkZ-bJ4gs/s1600/housing-bubble-large.jpg" height="320" width="320" /></a></div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-size: 14pt; line-height: 115%;"><span style="font-family: Calibri;"></span></span> </div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-size: 14pt; line-height: 115%;"><span style="font-family: Calibri;">In 2010 a
leading economist, Steve Keen predicted that Sydney property prices would fall
by 40% in the few years to follow. He received a lot of media time including
the respected 60 Minutes program.<o:p></o:p></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-size: 14pt; line-height: 115%;"><span style="font-family: Calibri;">Well here we
are 5 years later so how did his predictions go?<o:p></o:p></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-size: 14pt; line-height: 115%;"><span style="font-family: Calibri;">In the last
few years property prices in Sydney have risen by over 30%.<o:p></o:p></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-size: 14pt; line-height: 115%;"><span style="font-family: Calibri;">So if you
had listened to those predictions and not invested because of them or if you
had believed it when Mr Keen said on the 60 Minutes program that he was going
to sell his properties including his home to avoid the loss, then you would be
pretty upset now. <o:p></o:p></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-size: 14pt; line-height: 115%;"><span style="font-family: Calibri;">You would
have lost hundreds of thousands of dollars.<o:p></o:p></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-size: 14pt; line-height: 115%;"><span style="font-family: Calibri;">So why did
he get it so wrong and why did the media give him so much credibility and more
importantly so much free media time?<o:p></o:p></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-size: 14pt; line-height: 115%;"><span style="font-family: Calibri;">He got it
wrong because economists look in the mirror to predict the future. Imagine
trying to drive a car that way. Well that is what they do! They look at the
past, apply some fancy algorithms, some mumbo jumbo and hocus pocus you get an
answer.<o:p></o:p></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-size: 14pt; line-height: 115%;"><span style="font-family: Calibri;">Past
performance is certainly a factor, but it is not the whole story. We will talk
more about that in a minute.<o:p></o:p></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-size: 14pt; line-height: 115%;"><span style="font-family: Calibri;">So why did
the media give so much time to these predictions of doom and gloom? <o:p></o:p></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-size: 14pt; line-height: 115%;"><span style="font-family: Calibri;">Because we
buy it! We believe the doom and gloom and that sells media.<o:p></o:p></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-size: 14pt; line-height: 115%;"><span style="font-family: Calibri;">So why do I
mention this now?<o:p></o:p></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-size: 14pt; line-height: 115%;"><span style="font-family: Calibri;">Because
economists believe that a boom is always followed by a bust… and 30% is
certainly a boom. But I don’t agree…!<o:p></o:p></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-size: 14pt; line-height: 115%;"><span style="font-family: Calibri;">What usually
happens following a boom in one city, (but this won’t get any media time) is provided
that the demand remains then properties that have grown will slow down and
properties that have not will catch up.<o:p></o:p></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-size: 14pt; line-height: 115%;"><span style="font-family: Calibri;">The reason
is pretty simple:</span></span></div>
<ul>
<li>
<span style="font-size: 14pt; line-height: 115%;"><span style="font-family: Calibri;">Sydney prices rose because the demand outstripped supply. </span></span></li>
<li><span style="font-size: 14pt; line-height: 115%;"><span style="font-family: Calibri;">Hence people selling properties could ask ever increasing prices.</span></span></li>
</ul>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-size: 14pt; line-height: 115%;"><span style="font-family: Calibri;">The demand is still there outstripping supply but Sydney might be getting too expensive for some, so investors will look elsewhere. <o:p></o:p></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-size: 14pt; line-height: 115%;"><span style="font-family: Calibri;">The Reserve
Bank is talking about dropping rates again in the next few months. They would
be doing that because although Sydney has seen almost exponential growth the
other states have yet to show similar growth. So the Reserve needs to stimulate
the other States. <o:p></o:p></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-size: 14pt; line-height: 115%;"><span style="font-family: Calibri;">Melbourne
and/or Brisbane are likely to be the next targets for investors. <o:p></o:p></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-size: 14pt; line-height: 115%;"><span style="font-family: Calibri;">An
equivalent property in Melbourne will be 30-40% cheaper (about $300,000) than
Sydney so that makes it an attractive proposition. Melbourne is also the
fastest growing city in Australia so that could quickly cause a supply problem
in Melbourne which would see prices rise over the next few years similar to the
Sydney price rises.<o:p></o:p></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-size: 14pt; line-height: 115%;"><span style="font-family: Calibri;">So if you
want my prediction of where the next growth is likely to be seen then I would
suggest Melbourne followed by Brisbane.<o:p></o:p></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-size: 14pt; line-height: 115%;"><span style="font-family: Calibri;">Like always
though not all properties will see good growth. Just like some areas of Sydney
have not seen 30% growth there will be areas in Melbourne that will
under-perform and areas that will over-perform.<o:p></o:p></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-size: 14pt; line-height: 115%;"><span style="font-family: Calibri;">If you are
considering investing in the next few months then give us a call…</span></span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt; text-align: center;">
<span style="font-size: 14pt; line-height: 115%;"><span style="font-family: Calibri;">1300 131099</span></span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt; text-align: center;">
<span style="font-size: 14pt; line-height: 115%;"><span style="font-family: Calibri;">or visit <a href="http://www.investmentpropertyfinders.com.au/">www.investmentpropertyfinders.com.au</a></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-size: 14pt; line-height: 115%;"><o:p><span style="font-family: Calibri;"> </span></o:p></span></div>
Anonymoushttp://www.blogger.com/profile/03689831512432872798noreply@blogger.com0tag:blogger.com,1999:blog-7479266307977944833.post-83895463376420180272014-09-25T18:11:00.000-07:002014-09-25T18:11:58.009-07:00WHY CAFÉ CULTURE IS A KEY TO PROPERTY SUCCESS
This is an article I found on the internet by Michael Yardney, a popular property commentator.<br />
I have republished it without alteration because it is spot on. I hope you all get something out it.<br />
<br />
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<!--[if !supportLists]--><span lang="EN-US" style="color: #293e51; font-family: Symbol; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.5pt; mso-fareast-font-family: Symbol; mso-fareast-language: EN-AU; text-transform: uppercase;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><!--[endif]--><span lang="EN-US" style="color: #293e51; font-family: "Arial","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU; text-transform: uppercase;"><span style="color: #95a5a6; text-decoration: none; text-underline: none;">Michael Yardney</span><o:p></o:p></span></div>
<span lang="EN-US" style="color: #293e51; font-family: Symbol; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.5pt; mso-fareast-font-family: Symbol; mso-fareast-language: EN-AU; text-transform: uppercase;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><!--[endif]--><span lang="EN-US" style="color: #293e51; font-family: "Arial","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU; text-transform: uppercase;"><span style="color: #95a5a6; text-decoration: none; text-underline: none;">Michael Yardney's Commentary</span>,
<span style="color: #95a5a6; text-decoration: none; text-underline: none;">Property Investment</span>, <span style="color: #95a5a6; text-decoration: none; text-underline: none;">Where to buy
investment property</span><o:p></o:p></span><br />
<span lang="EN-US" style="color: #293e51; font-family: Symbol; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.5pt; mso-fareast-font-family: Symbol; mso-fareast-language: EN-AU; text-transform: uppercase;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><!--[endif]--><span lang="EN-US" style="color: #293e51; font-family: "Arial","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU; text-transform: uppercase;"><span style="color: #95a5a6; text-decoration: none; text-underline: none;">September 25,
2014 </span><o:p></o:p></span><br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="http://www.ipfinders.com.au/" target="_blank"><img alt="www.ipfinders.com.au" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhP3h6IdSsMz4luWtL-Sd0jMxhoQGS1ksvo5mGRdYiDnyIc5fJaDUYlKHuNagOZZNF1ERpQQuSwJmwy3gQWIbcLu2vHoCqnMIuutI_3CFTO9wYyw7OhhTtXX6kX3ihrE-evOUeGMS6OtNz2/s1600/tick+house.jpg" height="265" width="400" /></a></div>
<br />
<br />
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<b><span lang="EN-US" style="color: #2c3e50; font-family: "Arial","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">Everyone knows that location is critical when
selecting an investment property that will outperform.</span></b><span lang="EN-US" style="color: #2c3e50; font-family: "Arial","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;"><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<span lang="EN-US" style="color: #2c3e50; font-family: "Arial","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">But what makes a good location and why are some
locations better prospects than others?<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<span lang="EN-US" style="color: #2c3e50; font-family: "Arial","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">When I started investing around 40 years ago the
emphasis for homebuyers was largely affordability and proximity to
infrastructure.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<span lang="EN-US" style="color: #2c3e50; font-family: "Arial","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">The outer fringes of our capital cities were
developed in the wake of freeway extensions on all sides and commuting from
vast, newly born suburbs into the CBD became commonplace.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<span lang="EN-US" style="color: #2c3e50; font-family: "Arial","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">As far as amenities went, as long as you had a
relatively easy drive to your place of employment, as well as nearby shops,
healthcare services and schools, life was pretty good.</span></div>
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<span lang="EN-US" style="color: #2c3e50; font-family: "Arial","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;"><o:p></o:p></span> </div>
<span lang="EN-US" style="color: #2c3e50; font-family: Oswald; font-size: 13.5pt; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU; text-transform: uppercase;">It’s different today<o:p></o:p></span><br />
<br />
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<span lang="EN-US" style="color: #2c3e50; font-family: "Arial","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">Nowadays the property choices Australians make are
still driven by lifestyle, but how we think and function in today’s world has
changed.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<span lang="EN-US" style="color: #2c3e50; font-family: "Arial","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">With more than half Australian households having
only one or two people in them, more of us are:<o:p></o:p></span></div>
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<!--[if !supportLists]--><span lang="EN-US" style="color: #2c3e50; font-family: Symbol; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.5pt; mso-fareast-font-family: Symbol; mso-fareast-language: EN-AU;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><!--[endif]--><span lang="EN-US" style="color: #2c3e50; font-family: "Arial","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">Choosing to
start a family later in life.<o:p></o:p></span></div>
<br />
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<!--[if !supportLists]--><span lang="EN-US" style="color: #2c3e50; font-family: Symbol; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.5pt; mso-fareast-font-family: Symbol; mso-fareast-language: EN-AU;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><!--[endif]--><span lang="EN-US" style="color: #2c3e50; font-family: "Arial","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">Enjoying the
opportunity to work flexible hours and from home offices.<o:p></o:p></span></div>
<br />
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<!--[if !supportLists]--><span lang="EN-US" style="color: #2c3e50; font-family: Symbol; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.5pt; mso-fareast-font-family: Symbol; mso-fareast-language: EN-AU;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><!--[endif]--><span lang="EN-US" style="color: #2c3e50; font-family: "Arial","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">Seeking
better work-life balance and prioritizing downtime before overtime.<o:p></o:p></span></div>
<br />
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<!--[if !supportLists]--><span lang="EN-US" style="color: #2c3e50; font-family: Symbol; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.5pt; mso-fareast-font-family: Symbol; mso-fareast-language: EN-AU;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><!--[endif]--><span lang="EN-US" style="color: #2c3e50; font-family: "Arial","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">Opting to
live within walking distance from not only infrastructure necessary for daily
living, but also cafes, restaurants and recreational facilities, as lifestyle
moves to the top of the owner-occupier and tenant wish list, alongside
affordability.<o:p></o:p></span></div>
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<!--[if !supportLists]--><span lang="EN-US" style="color: #2c3e50; font-family: Symbol; font-size: 10pt; mso-ansi-language: EN-US; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.5pt; mso-fareast-font-family: Symbol; mso-fareast-language: EN-AU;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><!--[endif]--><span lang="EN-US" style="color: #2c3e50; font-family: "Arial","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">Downsizing to
easily maintainable and cost effective apartments and townhouses, with smaller
gardens and more efficient, compact design.</span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 10pt 28.5pt; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list 36.0pt; text-indent: -18pt;">
<span lang="EN-US" style="color: #2c3e50; font-family: "Arial","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;"><o:p></o:p></span> </div>
<span lang="EN-US" style="color: #2c3e50; font-family: Oswald; font-size: 13.5pt; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU; text-transform: uppercase;">A short stroll to success<o:p></o:p></span><br />
<br />
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<span lang="EN-US" style="color: #2c3e50; font-family: "Arial","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">This means that “walkability” has become the new
buzzword on the property investment block.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<span lang="EN-US" style="color: #2c3e50; font-family: "Arial","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">Of course proximity to amenities such as shops,
parks and public transit that allows local residents to either walk or take a
short train, bus or tram ride, has long underpinned property values in inner
city neighborhoods throughout the developed world.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<span lang="EN-US" style="color: #2c3e50; font-family: "Arial","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">But now we are witnessing a similar trend across an
increasingly cosmopolitan Australia.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<span lang="EN-US" style="color: #2c3e50; font-family: "Arial","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">In fact it is common for a considerable premium to
be paid for properties that are a short walk to the beach or café strips and
long term capital growth figures show that in Sydney the city’s most “walkable”
suburbs have outperformed the averages by up to 20%.</span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<span lang="EN-US" style="color: #2c3e50; font-family: "Arial","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;"><o:p></o:p></span> </div>
<span lang="EN-US" style="color: #2c3e50; font-family: Oswald; font-size: 13.5pt; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU; text-transform: uppercase;">Where it’s “at” – the café
culture<o:p></o:p></span><br />
<br />
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<span lang="EN-US" style="color: #2c3e50; font-family: "Arial","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">It should come as no surprise that as our lives
become busier and time is in increasingly short supply, cafés have become a
kind of transition point where we meet up with friends, family and often
business associates for a “catch up”.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<span lang="EN-US" style="color: #2c3e50; font-family: "Arial","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">Many city dwellers have their favored haunts, where
they’re on a first name basis with the local barista and have a “regular”
order.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<span lang="EN-US" style="color: #2c3e50; font-family: "Arial","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">The serving and consumption of coffee has become
somewhat of a ritual and many of us fancy ourselves as coffee connoisseurs.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<span lang="EN-US" style="color: #2c3e50; font-family: "Arial","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">Given that more of us are living alone or in
smaller households, it’s not surprising that the relaxed, “home away from home”
vibe of inner city cafes is becoming an increasingly popular draw card for
those seeking a familiar social outlet.</span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<span lang="EN-US" style="color: #2c3e50; font-family: "Arial","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;"><o:p></o:p></span> </div>
<span lang="EN-US" style="color: #2c3e50; font-family: Oswald; font-size: 13.5pt; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU; text-transform: uppercase;">Lifestyle locations
dominate<o:p></o:p></span><br />
<br />
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<span lang="EN-US" style="color: #2c3e50; font-family: "Arial","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">Yes…lifestyle has undeniably become the fundamental
force in today’s residential real estate market.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<span lang="EN-US" style="color: #2c3e50; font-family: "Arial","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">Culturally, we have become a nation that enjoys
strolling to the local corner eatery to catch up with friends or just enjoy
some time out with a latte.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<span lang="EN-US" style="color: #2c3e50; font-family: "Arial","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">But it’s not only suburbs close to beach and bay
that command premium. Proximity to schools with a good reputation is a must for
many family buyers, with some purchasers prepared to pay extra to be within a
particular school catchment zone so their children can either walk, bus or
“train it” to school.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<span lang="EN-US" style="color: #2c3e50; font-family: "Arial","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">In fact in my experience, parents are more willing
to spend half an hour or more driving to work if it means their children can
safely walk to an esteemed, local school.</span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<span lang="EN-US" style="color: #2c3e50; font-family: "Arial","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;"><o:p></o:p></span> </div>
<span lang="EN-US" style="color: #2c3e50; font-family: Oswald; font-size: 13.5pt; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU; text-transform: uppercase;">Australian cities have now
been ranked by Walkscore<o:p></o:p></span><br />
<br />
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<span lang="EN-US" style="color: #2c3e50; font-family: "Arial","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">As our population grows and our major cities
increase in population by an estimated 10% over the next five years the
walkability of an area will be become an even more important consideration for
property investors seeking locations that will outperform into the future.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<span lang="EN-US" style="color: #2c3e50; font-family: "Arial","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">Well…now you can find out how “walkable” your
suburb is. Walkscore.com, which measures the number of typical consumer
destinations within walking distance of a dwelling, with scores ranging from 0
(car dependent) to 100 (most walkable) has recently ranked more than 100
Australian cities and 3,000 suburbs.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<span lang="EN-US" style="color: #2c3e50; font-family: "Arial","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">And the good news is that walkable neighborhoods
were recently recognized for their health and economic benefits afforded to
residents by the University of Melbourne, where a ten year study found good
access to local infrastructure encouraged more people to ditch the drive and
adopt “health-enhancing behaviors”.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<span lang="EN-US" style="color: #2c3e50; font-family: "Arial","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">For property punters, the cultural transition that
Australians are currently undergoing is important to note.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<span lang="EN-US" style="color: #2c3e50; font-family: "Arial","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">It signals an end to the suburban Mc. Mansion “fad”
and demonstrates just how crucial demographic waves of change can be to
planning and executing a successful, long term property portfolio.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<span lang="EN-US" style="color: #2c3e50; font-family: "Arial","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">While affordability will always be a factor in our
property decisions, lifestyle is the fundamental key in our marketplace today.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<span lang="EN-US" style="color: #2c3e50; font-family: "Arial","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">Inner city, bayside apartments filled with
character and complemented by flowing, commonsense floor plans, with excellent
nearby lifestyle amenity have become the “new black” in residential real estate
for many buyers – young and old.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="background: white; line-height: normal; margin: 0cm 0cm 9.4pt;">
<span lang="EN-US" style="color: #2c3e50; font-family: "Arial","sans-serif"; font-size: 11.5pt; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">This is where investors would do well to focus
their property investment activity in years to come.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<o:p><span style="font-family: Calibri;"> </span></o:p></div>
Anonymoushttp://www.blogger.com/profile/03689831512432872798noreply@blogger.com0tag:blogger.com,1999:blog-7479266307977944833.post-49914831518197970462014-09-18T17:58:00.000-07:002014-09-18T17:58:48.891-07:00Why finance is the reason you invest in property<h2 align="LEFT">
Why finance is the reason you invest in properties – </h2>
<h2 align="LEFT">
property itself is merely a vehicle...</h2>
<br />
<span style="font-family: TTE11C9F90t00; font-size: small;"><span style="font-family: TTE11C9F90t00; font-size: small;"></span></span><div align="LEFT">
<span style="font-family: TTE11C9F90t00; font-size: small;"><span style="font-family: TTE11C9F90t00; font-size: small;">We all know the quickest way to create wealth is to use other people’s money, and this is exactly what finance is all about. Property happens to be one of those asset classes that can convince other people to lend you their money easily. The underlying growth of the property itself is not necessarily better than other assets such as shares, but their price stability and sustainable growth over long term have enabled us to use more of other people’s money.</span></span></div>
<span style="font-family: TTE11C9F90t00; font-size: small;"><span style="font-family: TTE11C9F90t00; font-size: small;">
<br />
<div align="LEFT">
Investing in anything ( not necessarily property) is about getting the best return with the lowest possible risk. And there is always a balance of risk and return to consider before starting our on any investment activities. </div>
</span><div align="LEFT">
<br /></div>
</span><br />
<div align="LEFT">
<span style="font-family: TTE11C9F90t00; font-size: small;"><span style="font-family: TTE11C9F90t00; font-size: small;">But it can also increase your risk and lower your return through</span></span></div>
<span style="font-family: TTE11C9F90t00; font-size: small;"><span style="font-family: TTE11C9F90t00; font-size: small;">
<br />
</span></span><div align="LEFT">
<span style="font-family: TTE11C9F90t00; font-size: small;"><span style="font-family: TTE11C9F90t00; font-size: small;">borrowing, </span></span></div>
<span style="font-family: TTE11C9F90t00; font-size: small;"><span style="font-family: TTE11C9F90t00; font-size: small;">
</span><div align="LEFT">
<br /></div>
</span><br />
<div align="LEFT">
<span style="font-family: TTE11E0A20t00; font-size: small;"><span style="font-family: TTE11E0A20t00; font-size: small;">if you don’t manage it properly</span></span><span style="font-family: TTE11C9F90t00; font-size: small;"><span style="font-family: TTE11C9F90t00; font-size: small;">.</span></span></div>
<span style="font-family: TTE11C9F90t00; font-size: small;"><span style="font-family: TTE11C9F90t00; font-size: small;">
</span></span><br />
<span style="font-family: TTE11C9F90t00; font-size: small;"><span style="font-family: TTE11C9F90t00; font-size: small;"></span></span><div align="LEFT">
<span style="font-family: TTE11C9F90t00; font-size: small;"><span style="font-family: TTE11C9F90t00; font-size: small;">Ironically, the majority of property investors spend most of their time and effort searching for the best</span></span></div>
<span style="font-family: TTE11C9F90t00; font-size: small;"><span style="font-family: TTE11C9F90t00; font-size: small;">
<br />
<div align="LEFT">
property deals. They will seek finance to match the deal they find. In fact, a lot of them fall in love</div>
<br />
<div align="LEFT">
with the deal even when there is very little finance available to make it a viable investment.</div>
</span></span><span style="font-family: TTE11E0A20t00; font-size: medium;"><span style="font-family: TTE11E0A20t00; font-size: medium;"></span></span><br />
<span style="font-family: TTE11E0A20t00; font-size: medium;"><span style="font-family: TTE11E0A20t00; font-size: medium;"></span></span><div align="LEFT">
<span style="font-family: TTE11E0A20t00; font-size: medium;"><span style="font-family: TTE11E0A20t00; font-size: medium;">The message is that you should start with finance in mind before</span></span></div>
<span style="font-family: TTE11E0A20t00; font-size: medium;"><span style="font-family: TTE11E0A20t00; font-size: medium;">
<br />
<div align="LEFT">
you look for any property deals.</div>
</span></span><span style="font-family: TTE11C9F90t00; font-size: small;"><span style="font-family: TTE11C9F90t00; font-size: small;"></span></span><br />
<span style="font-family: TTE11C9F90t00; font-size: small;"><span style="font-family: TTE11C9F90t00; font-size: small;"></span></span><div align="LEFT">
<span style="font-family: TTE11C9F90t00; font-size: small;"><span style="font-family: TTE11C9F90t00; font-size: small;">If you know what finance options are available to you before you start looking, you’re more likely to</span></span></div>
<span style="font-family: TTE11C9F90t00; font-size: small;"><span style="font-family: TTE11C9F90t00; font-size: small;">
<br />
<div align="LEFT">
stick to your investment strategy and get the return that you want. </div>
</span><div align="LEFT">
<br /></div>
</span><br />
<div align="LEFT">
<span style="font-family: TTE11E0A20t00; font-size: small;"><span style="font-family: TTE11E0A20t00; font-size: small;">Property deals are merely the</span></span></div>
<span style="font-family: TTE11E0A20t00; font-size: small;"><span style="font-family: TTE11E0A20t00; font-size: small;">
</span></span><br />
<span style="font-family: TTE11E0A20t00; font-size: small;"><span style="font-family: TTE11E0A20t00; font-size: small;"></span></span><div align="LEFT">
<span style="font-family: TTE11E0A20t00; font-size: small;"><span style="font-family: TTE11E0A20t00; font-size: small;">vehicle you choose to realise the finance strategies available to you, not the other way</span></span></div>
<span style="font-family: TTE11E0A20t00; font-size: small;"><span style="font-family: TTE11E0A20t00; font-size: small;">
<br />
<div align="LEFT">
around</div>
</span><div align="LEFT">
<br /></div>
</span><br />
<div align="LEFT">
<span style="font-family: TTE11C9F90t00; font-size: small;"><span style="font-family: TTE11C9F90t00; font-size: small;">. Unfortunately 90% of property investors do it the other way around.</span></span></div>
<span style="font-family: TTE11C9F90t00; font-size: small;"><span style="font-family: TTE11C9F90t00; font-size: small;">
</span></span><br />
<span style="font-family: TTE11C9F90t00; font-size: small;"><span style="font-family: TTE11C9F90t00; font-size: small;"></span></span><div align="LEFT">
<span style="font-family: TTE11C9F90t00; font-size: small;"><span style="font-family: TTE11C9F90t00; font-size: small;">Many property investors believe that property finance is about getting the cheapest interest rate.</span></span></div>
<span style="font-family: TTE11C9F90t00; font-size: small;"><span style="font-family: TTE11C9F90t00; font-size: small;">
</span></span><span style="font-family: TTE11C9F90t00; font-size: small;"><span style="font-family: TTE11C9F90t00; font-size: small;"></span></span><br />
<span style="font-family: TTE11C9F90t00; font-size: small;"><span style="font-family: TTE11C9F90t00; font-size: small;"></span></span><div align="LEFT">
<span style="font-family: TTE11C9F90t00; font-size: small;"><span style="font-family: TTE11C9F90t00; font-size: small;">Interest rate is definitely not unimportant</span></span></div>
<span style="font-family: TTE11C9F90t00; font-size: small;"><span style="font-family: TTE11C9F90t00; font-size: small;">
</span><div align="LEFT">
<br /></div>
</span><br />
<div align="LEFT">
<span style="font-family: TTE11C9F90t00; font-size: small;"><span style="font-family: TTE11C9F90t00; font-size: small;">, but for investors who have a set of finance strategies in</span></span></div>
<span style="font-family: TTE11C9F90t00; font-size: small;"><span style="font-family: TTE11C9F90t00; font-size: small;">
</span></span><br />
<span style="font-family: TTE11C9F90t00; font-size: small;"><span style="font-family: TTE11C9F90t00; font-size: small;"></span></span><div align="LEFT">
<span style="font-family: TTE11C9F90t00; font-size: small;"><span style="font-family: TTE11C9F90t00; font-size: small;">place, it’s normally the last thing they consider after many other components such as:</span></span></div>
<span style="font-family: TTE11C9F90t00; font-size: small;"><span style="font-family: TTE11C9F90t00; font-size: small;">
</span></span><span style="font-family: Symbol; font-size: small;"><span style="font-family: Symbol; font-size: small;"></span></span><br />
<span style="font-family: Symbol; font-size: small;"><span style="font-family: Symbol; font-size: small;"></span></span><div align="LEFT">
<span style="font-family: Symbol; font-size: small;"><span style="font-family: Symbol; font-size: small;">• </span></span></div>
<span style="font-family: Symbol; font-size: small;"><span style="font-family: Symbol; font-size: small;">
</span><div align="LEFT">
<br /></div>
</span><br />
<div align="LEFT">
<span style="font-family: TTE11C9F90t00; font-size: small;"><span style="font-family: TTE11C9F90t00; font-size: small;">gearing ratio</span></span></div>
<span style="font-family: TTE11C9F90t00; font-size: small;"><span style="font-family: TTE11C9F90t00; font-size: small;">
</span></span><span style="font-family: Symbol; font-size: small;"><span style="font-family: Symbol; font-size: small;"></span></span><br />
<span style="font-family: Symbol; font-size: small;"><span style="font-family: Symbol; font-size: small;"></span></span><div align="LEFT">
<span style="font-family: Symbol; font-size: small;"><span style="font-family: Symbol; font-size: small;">• </span></span></div>
<span style="font-family: Symbol; font-size: small;"><span style="font-family: Symbol; font-size: small;">
</span><div align="LEFT">
<br /></div>
</span><br />
<div align="LEFT">
<span style="font-family: TTE11C9F90t00; font-size: small;"><span style="font-family: TTE11C9F90t00; font-size: small;">flexibility</span></span></div>
<span style="font-family: TTE11C9F90t00; font-size: small;"><span style="font-family: TTE11C9F90t00; font-size: small;">
</span></span><span style="font-family: Symbol; font-size: small;"><span style="font-family: Symbol; font-size: small;"></span></span><br />
<span style="font-family: Symbol; font-size: small;"><span style="font-family: Symbol; font-size: small;">• </span></span><span style="font-family: TTE11C9F90t00; font-size: small;"><span style="font-family: TTE11C9F90t00; font-size: small;">terms and conditions, etc.</span></span><br />
<span style="font-family: TTE11C9F90t00; font-size: small;"><span style="font-family: TTE11C9F90t00; font-size: small;"></span></span><br />Anonymoushttp://www.blogger.com/profile/03689831512432872798noreply@blogger.com0tag:blogger.com,1999:blog-7479266307977944833.post-49642193945436555792014-09-18T17:56:00.000-07:002014-09-18T17:57:49.623-07:00House prices ALWAYS go up!<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span lang="EN-US" style="color: #666666; font-family: "Helvetica","sans-serif"; font-size: 12pt; line-height: 115%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">Some
interesting data came out of the Reserve Bank recently. They have been tracking
house prices and movement back to 1950. That is even before I was born… just.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span lang="EN-US" style="color: #666666; font-family: "Helvetica","sans-serif"; font-size: 12pt; line-height: 115%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;"><strong>It turns out
that house prices have gone up since 1950… what!<o:p></o:p></strong></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span lang="EN-US" style="color: #666666; font-family: "Helvetica","sans-serif"; font-size: 12pt; line-height: 115%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">They pay
people lots of money to come up with that sort of revelation.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span lang="EN-US" style="color: #666666; font-family: "Helvetica","sans-serif"; font-size: 12pt; line-height: 115%; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">But actually
the research has been more useful than just that because what they have done to
give it more relevance is to strip out inflation.</span><span style="font-family: Calibri;"><span lang="EN-US"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="line-height: normal; margin: 0cm 0cm 19.5pt;">
<span lang="EN-US" style="color: #666666; font-family: "Helvetica","sans-serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">So when it says that the median house price was
about $100,000 in 1950, that wasn’t what the market price was back then, it was
a lot less. That is in 2014 dollars, given what money buys you today. It is an
interesting way of looking at it.</span></div>
<span lang="EN-US" style="color: #666666; font-family: "Helvetica","sans-serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;"></span><br />
<div class="MsoNormal" style="line-height: normal; margin: 0cm 0cm 19.5pt;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi2vdFRciULAUnDDcGa_2flyP5v1vBgIEtaYG46_cJgfXiJpBVnIHW2w23oljXMHjmFJAPMiW0lxChA5rqVPYWO0LjU2dUxVGr7ABUtdn6pds0eEpRhmZN7hLWwgExyCpc7BMoXQWqcTNpc/s1600/House+Prices+always+rise.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi2vdFRciULAUnDDcGa_2flyP5v1vBgIEtaYG46_cJgfXiJpBVnIHW2w23oljXMHjmFJAPMiW0lxChA5rqVPYWO0LjU2dUxVGr7ABUtdn6pds0eEpRhmZN7hLWwgExyCpc7BMoXQWqcTNpc/s1600/House+Prices+always+rise.png" height="275" width="400" /></a><span lang="EN-US" style="color: #666666; font-family: "Helvetica","sans-serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;"></span></div>
<div class="MsoNormal" style="line-height: normal; margin: 0cm 0cm 19.5pt;">
<span lang="EN-US" style="color: #666666; font-family: "Helvetica","sans-serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">So when you look at the graph above you will notice
that it was fairly flat through the late 70s and early 80s spiked in the early
90s to catch up to where it should be if you drew an average line through the
graph and then flattened again later in the 90s. That was when inflation was
high. So for example, if inflation was 17% as it was during the 80s and the
graph is flat that means that property was keeping pace with inflation, hence
17 – 19% growth. Those of us that invested then will know that was the case. I
bought quite a few apartments in those days and they doubled in value in just
over 3 years.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="line-height: normal; margin: 0cm 0cm 19.5pt;">
<span lang="EN-US" style="color: #666666; font-family: "Helvetica","sans-serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">So what does all this mean for the average
investor?<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="line-height: normal; margin: 0cm 0cm 19.5pt;">
<span lang="EN-US" style="color: #666666; font-family: "Helvetica","sans-serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">It means that house prices go up consistently even
during periods of high inflation.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="line-height: normal; margin: 0cm 0cm 19.5pt;">
<span lang="EN-US" style="color: #666666; font-family: "Helvetica","sans-serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">It means that property is a good investment even in
bad times so long as you hang on through the tough times.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="line-height: normal; margin: 0cm 0cm 19.5pt;">
<span lang="EN-US" style="color: #666666; font-family: "Helvetica","sans-serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">It also means that anyone investing for anything
less than about 7 years is gambling with the possibility that that might have
hit one of the flat periods.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="line-height: normal; margin: 0cm 0cm 19.5pt;">
<span lang="EN-US" style="color: #666666; font-family: "Helvetica","sans-serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">We have just gone through one of those flat periods
similar to the early 90s so it would be reasonable to suggest that we might see
a few years of catch up growth.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="line-height: normal; margin: 0cm 0cm 19.5pt;">
<span lang="EN-US" style="color: #666666; font-family: "Helvetica","sans-serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">But it is important to realize that these figures
represent the average… and there will be properties that underperform the
average and there will be some that will out preform the average. That is where
Investment Property Finders can help!<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="line-height: normal; margin: 0cm 0cm 19.5pt;">
<span lang="EN-US" style="color: #666666; font-family: "Helvetica","sans-serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU;">Give us a call on 1300 131099 if you are
considering property investment in the next 12 months.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="line-height: normal; margin: 0cm 0cm 19.5pt;">
<o:p><span style="font-family: Calibri;"> </span></o:p></div>
Anonymoushttp://www.blogger.com/profile/03689831512432872798noreply@blogger.com0tag:blogger.com,1999:blog-7479266307977944833.post-13816625041296263042014-09-03T21:31:00.001-07:002014-09-03T21:31:25.416-07:00Who influences your property investment decisions?<span style="font-size: large;"></span><br />
<span style="font-size: large;">Who influences your property investment decisions?</span><br />
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="color: #262626; font-family: "Arial","sans-serif"; mso-fareast-font-family: "Times New Roman";">Family, friends, the media, your next door
neighbour or your hairdresser… <o:p></o:p></span></div>
<span style="color: #262626; font-family: "Arial","sans-serif"; mso-fareast-font-family: "Times New Roman";">Everyone has an opinion about property
investing. A lot of our clients that come through our doors seem to be making property
investment decisions without accurate information.<o:p></o:p></span><br />
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="color: #262626; font-family: "Arial","sans-serif"; mso-fareast-font-family: "Times New Roman";">There is also a lot of misinformation out
there.<br />
<br />
Take one of our clients for example. He had some general questions about
positive cash-flow property. It quickly became apparent that he had been sold
on a story that doesn’t address his needs and goals, but was a good and
compelling story none the less.<o:p></o:p></span></div>
<span style="color: #262626; font-family: "Arial","sans-serif"; mso-fareast-font-family: "Times New Roman";">If he went ahead he might have a property that
was going to put a few dollars in his pocket each week but if it did not grow
in value (or even went down in value) over the long term what had he really
achieved other than to tie up his borrowing potential and expose himself and his family to risk of a change in circumstances?<o:p></o:p></span><br />
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="color: #262626; font-family: "Arial","sans-serif"; mso-fareast-font-family: "Times New Roman";"><strong>THE PROBLEM:</strong></span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="color: #262626; font-family: "Arial","sans-serif"; mso-fareast-font-family: "Times New Roman";">And then I realised that therein lies the
problem, a lot of the misinformation about property investment is based around
what are quite compelling stories. But those stories leave out crucial pieces
of information or don’t address the real needs of the client. </span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="color: #262626; font-family: "Arial","sans-serif"; mso-fareast-font-family: "Times New Roman";">It is the
compelling nature of the story that gets people hooked. And then it is hard for
them to see the truth without being embarrassed.<o:p></o:p></span></div>
<span style="color: #262626; font-family: "Arial","sans-serif"; mso-fareast-font-family: "Times New Roman";">I guess that “spin” has found its way from
Government and Politics and into property investment, and that is a real shame. (Safety Cameras... Ha! they are just Cameras the rest is "spin")</span><br />
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="color: #262626; font-family: "Arial","sans-serif"; mso-fareast-font-family: "Times New Roman";">Take NRAS for example; thankfully it is gone
now, but when it was being promoted the marketing material said that these
properties were aimed at providing affordable rental accommodation to service
industry worker like Teachers, Police Officers and Ambos etc.<o:p></o:p></span></div>
<span style="color: #262626; font-family: "Arial","sans-serif"; mso-fareast-font-family: "Times New Roman";">But the bit they glossed over was that the
maximum income an NRAS tenant could earn was less than about $50,000 per annum
for a single person and a bit more for married and families. The only Teachers
etc. that would earn less than that income would be working very part-time. So
who was it really aimed at?<o:p></o:p></span><br />
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="color: #262626; font-family: "Arial","sans-serif"; mso-fareast-font-family: "Times New Roman";">What NRAS really was, is social housing. The
Government wanted to get out of providing housing to those that can’t afford
it. The cost to them in unpaid rent and damaged properties was overwhelming
their budget. So to pay $10,000 pa to get someone else to take on the problem
was a bargain. </span></div>
<span style="color: #262626; font-family: "Arial","sans-serif"; mso-fareast-font-family: "Times New Roman";">I am not saying that every NRAS property was a
disaster. There are some very nice people renting NRAS properties but we have
been told by some of the Property Managers that there is a higher than average number
of NRAS properties that are significantly in arrears with their (discounted)
rent and similarly large number that have been badly damaged. These were brand
new houses, and unfortunately a lot were in areas that will not experience much
growth over the long term. Particularly given the high numbers of NRASs that were built in some suburbs. So they could be hard to sell in the future and by the time you repair the damage will be over capitalised if they are not already.<o:p></o:p></span><br />
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="color: #262626; font-family: "Arial","sans-serif"; mso-fareast-font-family: "Times New Roman";">But on the other side of these transactions
were very high commissions paid to the sales agents in a lot of cases as
encouragement to “sell the story”. It is a bit like I heard that Malaysian Airlines
were paying Travel Agents double commission if they could get people to fly
with them. Is that the right way to sell a product or to fix a problem?<o:p></o:p></span></div>
<span style="color: #262626; font-family: "Arial","sans-serif"; mso-fareast-font-family: "Times New Roman";">This is just a couple of example of the
misinformation that is guiding people into making poor investment decisions.<o:p></o:p></span><br />
<strong></strong><br />
<strong>WE ARE DIFFERENT:</strong><br />
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="color: #262626; font-family: "Arial","sans-serif"; mso-fareast-font-family: "Times New Roman";">What we do is look at your circumstances and
your needs and goals. </span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="color: #262626; font-family: "Arial","sans-serif"; mso-fareast-font-family: "Times New Roman";">Then we establish a budget of what you should spend on a
property in both total price and a net cost per week. </span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="color: #262626; font-family: "Arial","sans-serif"; mso-fareast-font-family: "Times New Roman";">We then locate properties
that fit into that total price budget and do some extrapolations as to what
growth should be achievable from that property given the history of the area
and what upcoming economic factors we know about that might affect the future.
</span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="color: #262626; font-family: "Arial","sans-serif"; mso-fareast-font-family: "Times New Roman";">We then compare that to the net cost to determine whether it is a worthwhile
investment. Sounds simple when you put it like that!<o:p></o:p></span></div>
<span style="color: #262626; font-family: "Arial","sans-serif"; mso-fareast-font-family: "Times New Roman";">What we wish for is that all property investors were able
to get more accurate and reliable information before making a property
decision? </span><br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="color: #262626; font-family: "Arial","sans-serif"; mso-fareast-font-family: "Times New Roman";"></span> </div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="color: #262626; font-family: "Arial","sans-serif"; mso-fareast-font-family: "Times New Roman";">So email me your questions and I will do my best to get back to
everyone.</span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="color: #262626; font-family: "Arial","sans-serif"; mso-fareast-font-family: "Times New Roman";">All the very best to you...<o:p></o:p></span></div>
<span style="color: black;"></span><br />
<span style="color: black;"></span><br />
<span style="color: black;">Graeme Clark</span><br />
<span style="color: black;">e: g</span><a href="mailto:Gclark@investmentpropertyfinders.com.au"><span style="color: black;">clark</span></a><a href="https://www.blogger.com/null"><span style="color: black;">@investmentpropertyfinders.com.au</span></a><br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="color: #262626; font-family: "Arial","sans-serif"; mso-fareast-font-family: "Times New Roman";"><br style="mso-special-character: line-break;" />
<!--[if !supportLineBreakNewLine]--><br style="mso-special-character: line-break;" />
<!--[endif]--></span><o:p></o:p></div>
Anonymoushttp://www.blogger.com/profile/03689831512432872798noreply@blogger.com0tag:blogger.com,1999:blog-7479266307977944833.post-5562513758575986282014-08-06T19:51:00.000-07:002014-08-06T21:37:15.912-07:00Leverage makes a huge difference to the Growth of a Super Fund…<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: Calibri;">I am often asked, “What are the advantages of buying
property in Super?”<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: Calibri;">We are all different and while there are actually many
reason and I have listed some of the more common ones at the end of this
document <span style="font-size: large;">for me I think that the most significant is</span>…<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: Calibri;"><span style="font-size: large;"><strong>Leverage.<o:p></o:p></strong></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: Calibri;">Let me give you an example of the significant difference
leverage makes to a super fund growth.<o:p></o:p></span></div>
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjBF33RGVa4G7kRWTyV40biBm7LU_K6pKhVywrMG7ObAvk0TN6pMjFu_m02VvYTbgPjK5JxD8XWUO7V0tlff0euwp3NhgEWuWiP9I61mMYLOertnXvrtNvMouhXkh0jd9mGraLM8VcMK5On/s1600/SMSF-house.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjBF33RGVa4G7kRWTyV40biBm7LU_K6pKhVywrMG7ObAvk0TN6pMjFu_m02VvYTbgPjK5JxD8XWUO7V0tlff0euwp3NhgEWuWiP9I61mMYLOertnXvrtNvMouhXkh0jd9mGraLM8VcMK5On/s1600/SMSF-house.jpg" height="180" width="320" /></a></div>
<br />
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: Calibri;">Let’s assume your Super Fund has $120,000 in it, and it
earns 8% each year after expenses. </span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: Calibri;">(NOTE: That is hard to do nowadays…)<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: Calibri;">Ignoring fees, MERs and other expenses it will grow at
$9,600p.a. plus yours and your employer’s contributions.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: Calibri;">Alternative: <o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: Calibri;">You use that $120,000 to buy a property for $400,000, borrowing
$300,000. You would use $100,000 from the fund as deposit and the $20,000 to
cover Stamp duty and other costs (approx. only).<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: Calibri;">That property only has to increase in value by 2.4% pa to
get the same $9,600.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: Calibri;">Which do you think is more likely 8% every year from your
existing investment or 2.4% from a well located property?<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: Calibri;">History has shown that properties average above 7% in growth
over the long term so if that continues then your fund would have an average
growth of at least $28,000. Some well-located properties will exceed this (over
the long term).<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: Calibri;">But there is more…<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: Calibri;">The property would be cash-flow positive from day one:<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt 36pt;">
<span style="font-family: Calibri;">Mortgage on $300k @ 5% = $15,000 <span style="font-size: 8pt; line-height: 115%;">(may increase in the future but
unlikely for a couple of years)<o:p></o:p></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt 36pt;">
<span style="font-family: Calibri;">Rent on $400k @ 4.5% = $18,000 <span style="font-size: 8pt; line-height: 115%;">(rent will increase over time)</span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt 36pt;">
<span style="font-family: Calibri;">So growth of $28,000 + (18,000
–15,000) + Tax Deductions for depreciation = over $31,000 per annum + your and
your employers contributions.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: Calibri;">Your Super Fund growth would be in excess of $31,000 per
year (on average) compared to $9,600 under the existing scheme.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: Calibri;">The excess of funds can be used to reduce the principle of
the loan so you should be able to pay off the loan in about 12-15 years or
less. Then the rent and growth are positive cash-flow into the fund.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: Calibri;">Then after retirement the growth and rent from the property
are CGT and Tax free.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: Calibri;">Because property is a less volatile asset this strategy is a
“set and forget” strategy.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: Calibri;">Other reasons are:<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt 72pt; mso-list: l0 level2 lfo1; tab-stops: list 72.0pt; text-indent: -18pt;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"><span style="mso-list: Ignore;">•<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-family: Calibri;"><span lang="EN-US" style="mso-ansi-language: EN-US;">You might want a more stable asset
in your Super</span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt 72pt; mso-list: l0 level2 lfo1; tab-stops: list 72.0pt; text-indent: -18pt;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"><span style="mso-list: Ignore;">•<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-family: Calibri;"><span lang="EN-US" style="mso-ansi-language: EN-US;">You might not have enough equity for
the deposit the Bank requires as an ordinary investment (10% for most lenders).</span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt 72pt; mso-list: l0 level2 lfo1; tab-stops: list 72.0pt; text-indent: -18pt;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"><span style="mso-list: Ignore;">•<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-family: Calibri;"><span lang="EN-US" style="mso-ansi-language: EN-US;">You might have existing properties
already and the Bank won’t lend you anymore money.</span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt 72pt; mso-list: l0 level2 lfo1; tab-stops: list 72.0pt; text-indent: -18pt;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"><span style="mso-list: Ignore;">•<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-family: Calibri;"><span lang="EN-US" style="mso-ansi-language: EN-US;">You might want to minimise CGT on
the growth of the property.</span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt 72pt; mso-list: l0 level2 lfo1; tab-stops: list 72.0pt; text-indent: -18pt;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"><span style="mso-list: Ignore;">•<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-family: Calibri;"><span lang="EN-US" style="mso-ansi-language: EN-US;">You might not want to have any more
properties affecting your personal cash-flow.</span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt 72pt; mso-list: l0 level2 lfo1; tab-stops: list 72.0pt; text-indent: -18pt;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"><span style="mso-list: Ignore;">•<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><!--[endif]--><span style="font-family: Calibri;"><span lang="EN-US" style="mso-ansi-language: EN-US;">And there is another very big
reason… Property continues to grow in value even after you have retired and
ceased contributions. It may even be possible that the growth alone exceeds
your income requirements in retirement.</span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt 18pt;">
<span style="font-family: Calibri;">For more information about
Property investment within Super consult your Accountant, Financial Planner or
give us a call 1300 13 10 99<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<o:p><span style="font-family: Calibri;"> </span></o:p></div>
Anonymoushttp://www.blogger.com/profile/03689831512432872798noreply@blogger.com0tag:blogger.com,1999:blog-7479266307977944833.post-81886511968204507222014-07-08T20:07:00.001-07:002014-07-08T20:15:21.295-07:00Is Property Investment like Monopoly or Snakes and Ladders nowadays?<span style="font-family: Calibri;"><span style="font-size: large;">I remember when property investment was easy…<o:p></o:p></span></span><br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiVJQtStEX0R79l29QDpOaWZefXMKZEVdM3MdPGfH6xSRSh9MGBo09PfeNSa2FJLH6q38iVe748HMevqUWekJotz9P_yv9GenjeLjiwdCblS7BnAl-1DeDfaga2RQpSxH44piem0Bx5SpK7/s1600/either+or.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiVJQtStEX0R79l29QDpOaWZefXMKZEVdM3MdPGfH6xSRSh9MGBo09PfeNSa2FJLH6q38iVe748HMevqUWekJotz9P_yv9GenjeLjiwdCblS7BnAl-1DeDfaga2RQpSxH44piem0Bx5SpK7/s1600/either+or.jpg" height="281" width="400" /></a></div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="font-family: Calibri;">Buy a house in the street you live in and put a tenant in to
help pay the mortgage.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="font-family: Calibri;">Then sometime in the next few years the rent would have
increased to the point where it was paying the mortgage so the property was
paying for itself.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="font-family: Calibri;">Over time the property increased in value so you were
creating wealth without it costing you any money.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="font-family: Calibri;">Simple!<o:p></o:p></span></div>
<o:p><span style="font-family: Calibri;"> </span></o:p><br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="font-family: Calibri;">That was called negative gearing and it worked.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="font-family: Calibri;">But now we have Property Marketers and it seems that they
are all Australia’s #1 property educator, and it has all got a little bit more
complicated.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="font-family: Calibri;">The big thing nowadays is Positive Cash-flow, whether that
be through NRAS or buying “Smart” or buying in an area where rents have gone
through the roof due to lack of supply eg. mining areas.<o:p></o:p></span></div>
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiKRVusD7Vs-PW-quM9LMFnoLrXlk9YuVmQt05lmi_z1JIi10z4RGm3aNjhYLBLOOJ77GJgjQ-ziuTnCIwUfT04HvdXXl_24yycSr-tuDBf1JfIGEXYU3b10fu-rdywboev64HPekDObltz/s1600/positive-cashflow.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiKRVusD7Vs-PW-quM9LMFnoLrXlk9YuVmQt05lmi_z1JIi10z4RGm3aNjhYLBLOOJ77GJgjQ-ziuTnCIwUfT04HvdXXl_24yycSr-tuDBf1JfIGEXYU3b10fu-rdywboev64HPekDObltz/s1600/positive-cashflow.png" height="225" width="400" /></a></div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="font-family: Calibri;">So does all this new complication actually work? Do we have
better investment opportunities today?<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="font-family: Calibri;">The truth is, with interest rate where they are at present
it is not too hard for a property to be positive cash-flow but where will that
property be in 10 years in value and what will be the current interest rates then?<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="font-family: Calibri;">Well, I was having lunch the other day with a couple of
clients that have each bought a number of properties with my help over the last
10 years.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="font-family: Calibri;">One of them said that he had met a person that was a
Property Manager for NRAS properties. She manages about 200 properties for her employer.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="font-family: Calibri;">For those that don’t know NRAS stands for National Rental
Affordability Scheme so it stands to reason that the tenants are getting lower
(more affordable) rent. Well that is the intention of NRAS.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="font-family: Calibri;">You would think that those tenants would appreciate the
benefit they are getting but according to this Property Manager the tenants
don’t appreciate it at all and many are significantly in arrears with their
rent and many of the properties have been substantially damaged… some have been
trashed. These were brand new properties in the last few years.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="font-family: Calibri;">About 3 or 4 years ago I had told both of these clients that
I didn’t think NRAS properties would turn out to be good investments, so you
can imagine how my credibility rose after those comments from the Property
Manager. </span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="font-family: Calibri;"></span> </div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="font-family: Calibri;"><span style="font-size: large;">But it goes further than that…</span> </span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="font-family: Calibri;"></span> </div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="font-family: Calibri;">A couple of years ago an Accountant that I was
working with at the time had suggested to me that according to his research, mining towns
were a great investment with house prices rising quickly and rent going through
the roof. These were properties that were substantially Positively Geared.
Rents for example in Moranbah Qld had recently risen to $2000 per week.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="font-family: Calibri;">My advice to him and to our mutual clients was that the situation was both
unsustainable and likely to attract too much attention from Builders wanting to
cash in. </span><span style="font-family: Calibri;">That attention would create an over-supply of properties and
hence cause a catastrophe of price collapse.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="font-family: Calibri;">Well I saw the other day that rents in Moranbah were down to
about $300 per week for a house that depending when in the boom you bought it,
you might have paid between $500,000 and $1m to buy.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="font-family: Calibri;">The going price for such a house today is under $400,000 if
you can find a buyer.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="font-family: Calibri;">So what does all this tell us?<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="font-family: Calibri;">And more importantly what lessons can we learn from this
experience?<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="font-family: Calibri;">Property investment can be easy but just as easily it can be
quite complicated. We all feel we know property because we have all grown up
with it. We have all played Monopoly and we think it is that simple. Throw the
dice, land on a property, buy it and collect the rent.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="font-family: Calibri;">I would say that from my experience property investment
today is more like Snakes and Ladders. </span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="font-family: Calibri;"></span> </div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="font-family: Calibri;">Property is a great investment vehicle with many advantages over other investments but wherever there is a great opportunity there are even greater opportunists.</span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="font-family: Calibri;"></span> </div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="font-family: Calibri;">There are some good property investments out
there that will help you grow your wealth but there are also some Snakes that
if you land on one will take you back to start all over again.</span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="font-family: Calibri;"></span> </div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="font-family: Calibri;">My final word on this subject is "Be careful what you buy and who you get advice from..."</span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="font-family: Calibri;"></span> </div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="font-family: Calibri;">Graeme Clark</span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="font-family: Calibri;"><a href="http://www.ipfinders.com.au/">www.ipfinders.com.au</a></span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="font-family: Calibri;">1300 131099</span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 0pt;">
<span style="font-family: Calibri;"></span> </div>
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</div>
<br />
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<o:p><span style="font-family: Calibri;"> </span></o:p></div>
<br />
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<o:p><span style="font-family: Calibri;"> </span></o:p></div>
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<o:p><span style="font-family: Calibri;"> </span></o:p></div>
Anonymoushttp://www.blogger.com/profile/03689831512432872798noreply@blogger.com0tag:blogger.com,1999:blog-7479266307977944833.post-81581561894488360822014-04-21T19:14:00.000-07:002014-04-21T19:14:00.877-07:00
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhteQnQCg2bgKv6c_8CPr5n1BhTssNdjRnPv51BmIeuOglXCgxD03KaxiEOA1OL2IKgxrlxILzwrwHgawrdo7enxbEPJo0KopJPl5nl0Cg17nJDDqj4Ch8DIQlThyOQyipxTo6VABTDaRTn/s1600/3d-printed-ear_jpg__800x600_q85_crop.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhteQnQCg2bgKv6c_8CPr5n1BhTssNdjRnPv51BmIeuOglXCgxD03KaxiEOA1OL2IKgxrlxILzwrwHgawrdo7enxbEPJo0KopJPl5nl0Cg17nJDDqj4Ch8DIQlThyOQyipxTo6VABTDaRTn/s1600/3d-printed-ear_jpg__800x600_q85_crop.jpg" height="178" width="320" /></a></div>
<span style="color: #1f497d; font-size: 14pt;"></span><br />
<span style="color: #1f497d; font-size: 14pt;"></span><br />
<span style="color: #1f497d; font-size: 14pt;">Life expectancy is one of my
pet subjects</span><span style="color: #1f497d;"> </span>and I read an
interesting article the other day about medical advances to watch in 2014.<o:p></o:p><br />
<br />
They include making body parts in a 3D printer and in the fight against
cancer, <span lang="EN" style="mso-ansi-language: EN;">cancer immunotherapy, </span><span lang="EN" style="color: #1f497d; font-size: 14pt; mso-ansi-language: EN;">where our
body</span><span lang="EN" style="color: #1f497d; font-size: 14pt; mso-ansi-language: EN; mso-themecolor: dark2;">’s immune system</span><span lang="EN" style="color: #1f497d; font-size: 14pt; mso-ansi-language: EN;"> is taught to fight
</span><span lang="EN" style="color: #1f497d; font-size: 14pt; mso-ansi-language: EN; mso-themecolor: dark2;">the </span><span lang="EN" style="color: #1f497d; font-size: 14pt; mso-ansi-language: EN;">cancer without chemotherapy</span>. Read
the full article here, it’s very interesting…<a href="http://www.smithsonianmag.com/innovation/7-medical-advances-to-watch-in-2014-180948286/?no-ist"><span style="color: blue;">read
more</span></a> <o:p></o:p><br />
<br />
I am fascinated not only by how dramatically our life expectancy is
changing, but <span style="color: #1f497d; font-size: 14pt;">how far behind our
collective thinking is</span><span style="color: #1f497d;"> </span>to this. We
are going to live a lot longer than any other generation. <o:p></o:p><br />
<br />
Every generation lives longer than the previous but in the past that has
been by just a few years. <span style="color: #1f497d; font-size: 14pt;">But now
we are looking at medical advances that will have us living 20 -30 years
longer.</span><o:p></o:p><br />
<br />
It is one thing to live longer but that brings in a huge problem that
everyone seems to be ignoring… <span style="color: #1f497d; font-size: 14pt;">Our
money needs to last longer, too! </span>Or we will simply run out of money and
the current pension scheme won’t be able to handle it.<o:p></o:p><br />
<br />
<span style="color: #1f497d; font-size: 14pt;">Many of us will live into our
90s and some well beyond that</span>. So how can we build up enough reserves
for these decades in retirement? <o:p></o:p><br />
<br />
<span style="color: #1f497d; font-size: 14pt;">If Joe Hockey gets his way and
we retire at 70</span><span style="color: #1f497d;"> </span>and we live beyond 90
with a modest income of $50,000 that means <span style="color: #1f497d; font-size: 14pt;">we need to have more than $1,000,000 in savings or super</span>.
Make that retire at 65 and live to 95 and it becomes $1.5M… and if you would
like more than $50,000 a year to live on, well it becomes a very big number
indeed.<o:p></o:p><br />
<br />
<span style="color: #1f497d; font-size: 14pt;">How can we make the money last
that long?<o:p></o:p></span><br />
<br />
The importance and significance of these questions is amplified when you
consider that our entire retirement system is built on a <span style="color: #1f497d; font-size: 14pt;">superannuation system that pretty much
stops growing in value</span> the day we retire and start drawing on it. <o:p></o:p><br />
<br />
Even more interesting is the fact that high profile researchers openly talk
about <span style="color: #1f497d; font-size: 14pt;">the possibility of a 20 year
bear share market</span><span style="color: #1f497d;"> </span>where our life
savings would not grow at all for that time.<o:p></o:p><br />
<br />
<span style="color: #1f497d; font-family: "Calibri","sans-serif"; font-size: 14pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin; mso-themecolor: dark2;">It’s not all
bad news though… If you plan to LIVE more than 10 years then it’s not too late.
We can still do something about it!<o:p></o:p></span><br />
<br />
Some of our clients were over 60 when they started.<o:p></o:p><br />
<br />
We all need to consider <span style="color: #1f497d; font-size: 20pt;">“Future
Proofing”</span><span style="color: #1f497d;"> </span>our retirement plan and to
do that we need to take more control over it.<o:p></o:p><br />
<br />
<strong>Our next few seminars will be about just that: </strong><o:p></o:p><br />
<br />
<h3 style="margin: 1em 0cm;">
<span style="mso-fareast-font-family: "Times New Roman";"><span style="font-size: medium;">How to Future Proof
your financial future?<o:p></o:p></span></span></h3>
<br />
<strong>What you will learn: </strong><o:p></o:p><br />
<br />
<ol start="1" type="1">
<li class="MsoNormal" style="margin: 0cm 0cm 0pt; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list 36.0pt;"><span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">How much money do you need?<o:p></o:p></span></span></li>
<li class="MsoNormal" style="margin: 0cm 0cm 0pt; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list 36.0pt;"><span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">Why is property totally different to shares when it
comes to your retirement income?<o:p></o:p></span></span></li>
<li class="MsoNormal" style="margin: 0cm 0cm 0pt; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list 36.0pt;"><span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">Investing in property inside and outside of Super.<o:p></o:p></span></span></li>
<li class="MsoNormal" style="margin: 0cm 0cm 0pt; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list 36.0pt;"><span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">What is the difference between a normal super account
and SMSF?<o:p></o:p></span></span></li>
<li class="MsoNormal" style="margin: 0cm 0cm 0pt; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list 36.0pt;"><span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">Who should consider an SMSF?<o:p></o:p></span></span></li>
<li class="MsoNormal" style="margin: 0cm 0cm 0pt; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list 36.0pt;"><span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">How to set up your own SMSF?<o:p></o:p></span></span></li>
<li class="MsoNormal" style="margin: 0cm 0cm 0pt; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list 36.0pt;"><span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">What are your responsibilities?<o:p></o:p></span></span></li>
<li class="MsoNormal" style="margin: 0cm 0cm 0pt; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list 36.0pt;"><span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">What are the risks?<o:p></o:p></span></span></li>
<li class="MsoNormal" style="margin: 0cm 0cm 0pt; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list 36.0pt;"><span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">Why invest in property in a SMSF?<o:p></o:p></span></span></li>
<li class="MsoNormal" style="margin: 0cm 0cm 0pt; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list 36.0pt;"><span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: Calibri;">Case Studies<o:p></o:p></span></span></li>
</ol>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<span style="font-family: Calibri;">There
will be a FREE Information Bulletin (hand out) available at the end of the seminar “Why
use your SUPERANNUATION to buy and INVESTMENT PROPETY”. <o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<span style="font-family: Calibri;">This
seminar should give you the knowledge you need to decide whether a property in
a SMSF is right for you.<o:p></o:p></span></div>
<br />
These seminars are 1hour 45 minutes (incl Q&A) and based in our Adelaide office boardroom.<br />
<br />
Call 1300 131099 if you would like to attend.<br />
<br />
<div style="text-align: center;">
For more information about property investment go to:</div>
<div style="text-align: center;">
<a href="http://www.investmentpropertyfinders.com.au/">www.investmentpropertyfinders.com.au</a></div>
<div style="text-align: center;">
</div>
Anonymoushttp://www.blogger.com/profile/03689831512432872798noreply@blogger.com0tag:blogger.com,1999:blog-7479266307977944833.post-75659108005045707452013-09-10T17:58:00.001-07:002013-09-10T17:58:49.727-07:00THE ABOLITION OF THE MINING TAX AND WHAT THAT MIGHT DO FOR PROPERTY INVESTMENT...
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjPNvYEeblzmsQmxk5nWlwWw6pc7Vs77WPSYwoj_xsM0tO1eMpwbJTruAfh4clxaWMt34PMrWYTnpexpf93nsTZFOqUv5P3DM_1xtolf0cQcUylKS8c3za-1KwiJRo_BUt2ubOmF1-VqR7g/s1600/warrenbuffett1.png" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjPNvYEeblzmsQmxk5nWlwWw6pc7Vs77WPSYwoj_xsM0tO1eMpwbJTruAfh4clxaWMt34PMrWYTnpexpf93nsTZFOqUv5P3DM_1xtolf0cQcUylKS8c3za-1KwiJRo_BUt2ubOmF1-VqR7g/s1600/warrenbuffett1.png" /></a><span style="font-family: Calibri;">If you look at the successful investors of our time, the
Warren Buffets, Donald Trumps and others you will notice a number of common
attributes. The most obvious of which is that they are able to find investments
that are under-priced.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: Calibri;">Some people describe that as the “Contrarian Principle” of
investment. That is that they invest in what the popular opinion says is not a
good investment. <o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: Calibri;">But if you think that through you will come to the
conclusion that that is not a good strategy for making money because there are
plenty of investments that are not good investments today and will still not be
good investments in the future. Just as there are investment that we could have
made 10 years ago that are still not good investments today.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: Calibri;">I don’t think that what successful investors do is “contrarian”
at all. What they have is the ability to recognise change before it happens and
have the self confidence in their ability to back themselves and to make a move
before others and before the situation starts to improve.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: Calibri;">That ability to recognise change comes from keeping
themselves informed and thinking through what is a likely outcome from the
information they are receiving.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: Calibri;">One thing I find interesting about the investments that successful
investors make is that if you look at their decisions objectively and with the
benefit of hindsight, they seem quite obvious.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: Calibri;">On that basis what do you think is the likely outcome of
this information?</span></div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhrmThrwOb6pypCNACrvBjZYFqSc3unUfszr8knQVabaQBBwqk7L6y1nyYyIjJqt0F1q49ZfNXhb9JqQTHvtsflbfxMRR3gWh_gTun_Pz1ObKLo0TNwgZFYX63JsFCxrHo7RaN7RJNLs-U3/s1600/Mining+Tax+Abolition.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhrmThrwOb6pypCNACrvBjZYFqSc3unUfszr8knQVabaQBBwqk7L6y1nyYyIjJqt0F1q49ZfNXhb9JqQTHvtsflbfxMRR3gWh_gTun_Pz1ObKLo0TNwgZFYX63JsFCxrHo7RaN7RJNLs-U3/s1600/Mining+Tax+Abolition.jpg" /></a></div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: Calibri;"><o:p><span style="font-family: Times New Roman;">
</span></o:p></span><span style="font-family: Calibri;">What that says to me is that the mining boom is likely to be
“on again” sometime in the next few years. The follow on from that is likely to
be that property prices in towns that are benefiting from any such mining boom
might increase and perhaps substantially.<o:p></o:p></span></div>
<span style="font-family: Calibri;"><div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: Times New Roman;">
</span>But then mining towns are high risk because they are too
dependent on one industry for their long term viability. If the mine closes
then the town dies. However there are towns that are benefiting from substantial
infrastructure spending to allow for the processing and export of the various
resources that are being mined. <o:p></o:p></div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: Times New Roman;">
</span>These towns are likely to survive the ups and downs of a “Boom
or bust” industry because the infrastructure that has been put in place like
hospitals, schools, shopping centres, roads and housing subdivisions will
remain. Other businesses will grow and thrive within the town because of the
infrastructure that has been provided.<o:p></o:p></div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: Times New Roman;">
</span>Food for thought…<o:p></o:p></div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="font-family: Times New Roman;">
</span>Give us a call if you are considering investing in property
sometime in the next 12 months.</div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
1300 131099</div>
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
or email <a href="http://www.investmentpropertyfinders.com.au/enq.html" target="_blank"><span style="color: blue;"><Click Here></span></a></div>
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<o:p> </o:p></div>
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Anonymoushttp://www.blogger.com/profile/03689831512432872798noreply@blogger.com1tag:blogger.com,1999:blog-7479266307977944833.post-73672216078555503422013-07-18T00:01:00.000-07:002013-07-18T00:01:23.633-07:00The most common mistakes people make when considering property investment!<br />
One of the most common mistake people make when considering an investment
property is:<br />
<br />
<span style="font-size: large;">They think that all property is the same</span> or at the very least they
don't adequately consider the differences between one property and another and what effect that will have on their ability to create wealth.<o:p></o:p><br />
<br />
<span style="font-size: large;">They think that all they have to do is to invest in property and they will
make money...</span> <o:p></o:p><br />
<br />
And to some extent that is true... all property will eventually double in
value, so they will make money. We all look at our family home and remember
what we paid for it all those years ago and think that every property will do that.<o:p></o:p><br />
<br />
Property experts will tell you that property doubles every 10 years...<o:p></o:p><br />
<br />
But that is the average of all properties, so it stands to reason that some
will do better than that and some will do worse. The fact is that some will do
much worse.<o:p></o:p><br />
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The real trick to successful property investment is finding those properties
that will double in less than 10 years. <br />
<br />
If your investment was to take 20 years to
double, then it is not necessarily a great investment and it won’t make you
rich... in fact at that rate of growth it won't even keep pace with inflation. <span style="font-size: x-small;">(We can show properties where that has been the case)</span><br />
<br />
<o:p> <strong>EXAMPLES:</strong></o:p><br />
<o:p><strong></strong></o:p><br />
<div style="margin-left: 36pt;">
<strong>Eg. <u>Worse than average (ie. in poor locations)</u>:<o:p></o:p></strong></div>
<br />
<div style="margin-left: 36pt;">
With a portfolio of 6 properties at $300,000ea.
(equals $1.8m in loans)</div>
<br />
<div style="margin-left: 36pt;">
If that portfolio double in value in 20 years
(ie worse than average)<o:p></o:p></div>
<br />
<div style="margin-left: 36pt;">
Then in 10 years you have made $900,000 profit. (not bad but...)<o:p></o:p></div>
<br />
<div style="margin-left: 36pt;">
<strong>Eg. <u>Better than average (ie in good locations)</u>:<o:p></o:p></strong></div>
<br />
<div style="margin-left: 36pt;">
With a portfolio of only 4 properties at $450,000ea.
(still equals $1.8 in loans)</div>
<br />
<div style="margin-left: 36pt;">
If that portfolio doubled in value in 7 years
(ie better than average)<o:p></o:p></div>
<br />
<div style="margin-left: 36pt;">
Then in 10 years you would have made $2,570,000
profit.<o:p></o:p></div>
<br />
<div style="margin-left: 36pt;">
*Nearly 3 times as
much for the same outlay.</div>
<div style="margin-left: 36pt;">
<span style="font-size: 9pt;"></span> </div>
<div style="margin-left: 36pt;">
<span style="font-size: xx-small;">Note: These examples are just used to show the relative difference and are not intended as guarantees that any property will perform as predicted.</span></div>
<o:p> </o:p><br />
<br />
<span style="font-size: large;">A lot of people also believe that Property Marketers all tell the truth...</span> <span style="font-size: large;">all the time.<o:p></o:p></span><br />
<br />
Think about it… they want to sell you a property because that is how they
get paid.<o:p></o:p><br />
<br />
Are they likely to say to you that the property they have is not suitable to
you or that it might not capitally appreciate as quickly as you would like?<o:p></o:p><br />
<o:p> </o:p><br />
What I have found is that most don’t actually lie...<br />
They tell a very good
story or present compelling information by leaving out crucial facts.<o:p></o:p><br />
<br />
What is common is for them to distract you from the real purpose of investing
in real estate which is making money over the long term. They do that by focusing your attention on what I call “Hot Buttons”. <br />
<br />
Typical
“Hot Buttons” would be things like:<o:p></o:p><br />
<br />
<div style="margin-left: 36pt; mso-list: l1 level1 lfo1; text-indent: -18pt;">
<span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span>High rental yields or Rental Guarantees<o:p></o:p></div>
<br />
<div style="margin-left: 36pt; mso-list: l1 level1 lfo1; text-indent: -18pt;">
<span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span>National Rental Affordability Scheme (NRAS)<o:p></o:p></div>
<br />
<div style="margin-left: 36pt; mso-list: l1 level1 lfo1; text-indent: -18pt;">
<span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span>Government Grants<o:p></o:p></div>
<br />
<div style="margin-left: 36pt; mso-list: l1 level1 lfo1; text-indent: -18pt;">
<span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span>And pretty much anything called a scheme.<o:p></o:p></div>
<br />
*Note: All of those can be very helpful, but they should not distract you from the
real purpose.<o:p></o:p><br />
<br />
The first question you should ask yourself should <strong><u>always</u></strong> be:<o:p></o:p><br />
<br />
<span style="font-size: large;">Would I buy that property, in that location and at that price if it did not
have (whatever the offer is)?</span><br />
<span style="font-size: large;"></span><br />
In other words; Is it a good investment without the offer?<o:p></o:p><br />
<br />
Then and only then, should you consider what other benefits or “schemes” can
make it easier or more attractive to buy or to hold on to for the length of time that you need for
it to increase in value to achieve your goals.<o:p></o:p><br />
<br />
If you allow yourself to get distracted by the “Hot Buttons” then you risk overlooking key
factors that might mean that you:<o:p></o:p><br />
<br />
<div style="margin-left: 36pt; mso-list: l0 level1 lfo2; text-indent: -18pt;">
<span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span>Pay too much<o:p></o:p></div>
<br />
<div style="margin-left: 36pt; mso-list: l0 level1 lfo2; text-indent: -18pt;">
<span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span>Buy in the wrong location<o:p></o:p></div>
<br />
<div style="margin-left: 36pt; mso-list: l0 level1 lfo2; text-indent: -18pt;">
<span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span>Or have a higher chance of getting the tenant
from hell<o:p></o:p></div>
<br />
Most importantly your investment in property might not grow in value quickly
enough to achieve your goals and aspirations. And by the time you realise that you have made a mistake, it is likely too late to change or correct your financial position.<o:p></o:p><br />
<br />
Absolutely I think property is a great investment vehicle. It has shown to be one of the safest
investment classes particularly through the GFC (see graph above) but always “keep
your eye on the prize”, ie the long term creation of wealth through the capital
growth of your property portfolio.<br />
<br />
But as I have said many times before:<br />
"Where ever there is a great opportunity these is an even greater opportunist"<br />
So be wary...<br />
<br />
Call us if we can help… we have been creating wealth through property investment for our clients for nearly 15 years.<br />
<div style="text-align: center;">
<span style="font-size: large;"></span> </div>
<div style="text-align: center;">
<span style="font-size: large;">1300 131099<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<o:p> </o:p></div>
Anonymoushttp://www.blogger.com/profile/03689831512432872798noreply@blogger.com1tag:blogger.com,1999:blog-7479266307977944833.post-79819982805591008192013-06-06T21:48:00.001-07:002013-06-06T21:48:26.113-07:00Apartments or houses: which is the better investment?
<br />
<h1 style="margin: 0.67em 0cm;">
<span style="font-size: 16pt;"><span style="font-family: Georgia;">Apartments or houses: which is the better
investment? <o:p></o:p></span></span></h1>
<br />
<div class="MsoNormal" style="margin: 0cm 0cm 10pt;">
<span style="color: #8c8c8c;"><span style="font-family: Arial;"><span class="articledate1"><span style="font-size: 8.5pt; line-height: 115%;">By Nila Sweeney - 7<sup>th</sup> June 2013</span></span><span style="color: black; font-family: "Arial","sans-serif"; font-size: 9pt; line-height: 115%;"><o:p></o:p></span></span></span></div>
<br />
<div class="MsoNormal" style="line-height: 14.25pt; margin: 0cm 0cm 10pt;">
<span style="color: black; font-family: "Arial","sans-serif"; font-size: 10pt;"><span style="color: #eeeeee;">Ask anyone who invests in
property – and even those who don’t – and they’ll likely have an opinion on the
old “houses versus apartments” debate. If this is a question in your mind then read on...</span></span></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgHxbiPHIJ63bQKExhPO4G6PRLV_D0RUxpfsl-fzhWWj_dUYySkMH7ozwlOjUgHH6PrmU8sXqNX1YkXytjVTJa8akoHqUoRIFEwJewyL78KuXuUwMCG4Av53yh0Y1o-DsZAGFSvU-WxiC0A/s1600/Apartments-1.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="240" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgHxbiPHIJ63bQKExhPO4G6PRLV_D0RUxpfsl-fzhWWj_dUYySkMH7ozwlOjUgHH6PrmU8sXqNX1YkXytjVTJa8akoHqUoRIFEwJewyL78KuXuUwMCG4Av53yh0Y1o-DsZAGFSvU-WxiC0A/s320/Apartments-1.jpg" width="320" /></a></div>
<div class="MsoNormal" style="line-height: 14.25pt; margin: 0cm 0cm 10pt;">
<span style="color: black; font-family: "Arial","sans-serif"; font-size: 10pt;"><span style="color: #eeeeee;"><o:p></o:p></span></span> </div>
<span style="color: #eeeeee;">
</span><br />
<div class="MsoNormal" style="line-height: 14.25pt; margin: 0cm 0cm 10pt;">
<span style="color: black; font-family: "Arial","sans-serif"; font-size: 10pt;"><span style="color: #eeeeee;">When the topic of conversation
drifts towards investing in apartments or houses, it usually generates some
debate amongst landlords!<o:p></o:p></span></span></div>
<span style="color: #eeeeee;">
</span><br />
<div class="MsoNormal" style="line-height: 14.25pt; margin: 0cm 0cm 10pt;">
<span style="color: black; font-family: "Arial","sans-serif"; font-size: 10pt;"><span style="color: #eeeeee;">It’s often a firmly divided camp,
with those who believe that a property’s value is in the land on one side. On
the other side, you’ll find those who believe that a property’s individual
characteristics – such as location and number of bedrooms – are far more
important than simply the dwelling type.<o:p></o:p></span></span></div>
<span style="color: #eeeeee;">
</span><br />
<div class="MsoNormal" style="line-height: 14.25pt; margin: 0cm 0cm 10pt;">
<span style="color: black; font-family: "Arial","sans-serif"; font-size: 10pt;"><span style="color: #eeeeee;">“Many first-time investors assume
that houses are always better as investments as they have more accommodation
and land,” says <em><span style="font-family: "Arial","sans-serif";">Monique
Sasson Wakelin, director of Wakelin Property Advisory</span></em>.<o:p></o:p></span></span></div>
<span style="color: #eeeeee;">
</span><br />
<div class="MsoNormal" style="line-height: 14.25pt; margin: 0cm 0cm 10pt;">
<span style="color: black; font-family: "Arial","sans-serif"; font-size: 10pt;"><span style="color: #eeeeee;">“This may have been true once,
but as a growing number of Australians have come to prefer living closer to the
centre of town, the patterns of growth in property values has changed.”<o:p></o:p></span></span></div>
<span style="color: #eeeeee;">
</span><br />
<div class="MsoNormal" style="line-height: 14.25pt; margin: 0cm 0cm 10pt;">
<span style="color: black; font-family: "Arial","sans-serif"; font-size: 10pt;"><span style="color: #eeeeee;">She believes that investors who
are stuck on this question are often focusing on the wrong thing, as the
question you need to be asking is not, “Should I invest in a unit or a house?”
but rather, “What type of property will deliver a bigger return on investment
in the long term?”<o:p></o:p></span></span></div>
<span style="color: #eeeeee;">
</span><br />
<div class="MsoNormal" style="line-height: 14.25pt; margin: 0cm 0cm 10pt;">
<span style="color: black; font-family: "Arial","sans-serif"; font-size: 10pt;"><span style="color: #eeeeee;">According to the Real Estate
Institute of Australia (REIA), there’s not much of a difference in price growth
between each dwelling type. Over the past ten years, median house prices have
increased by 81 percent, while median apartment prices increased by 72 percent.<o:p></o:p></span></span></div>
<span style="color: #eeeeee;">
</span><br />
<div class="MsoNormal" style="line-height: 14.25pt; margin: 0cm 0cm 10pt;">
<span style="color: black; font-family: "Arial","sans-serif"; font-size: 10pt;"><span style="color: #eeeeee;">"Historically, over a longer
time frame, price rises for houses are greater than that for units, [but] this
is not always the case over a shorter to medium time frame," a REIA
spokesperson says.<o:p></o:p></span></span></div>
<span style="color: #eeeeee;">
</span><br />
<div class="MsoNormal" style="line-height: 14.25pt; margin: 0cm 0cm 10pt;">
<span style="color: black; font-family: "Arial","sans-serif"; font-size: 10pt;"><span style="color: #eeeeee;">"Houses generally, however,
require more attention in terms of ongoing maintenance than units do and thus
do not always suit all investors. Units have much of the maintenance and care
of the building and surrounds undertaken through the body corporate."<o:p></o:p></span></span></div>
<span style="color: #eeeeee;">
</span><br />
<div class="MsoNormal" style="line-height: 14.25pt; margin: 0cm 0cm 10pt;">
<span style="color: black; font-family: "Arial","sans-serif"; font-size: 10pt;"><span style="color: #eeeeee;">Ultimately, there are pro’s and
con’s attached to any dwelling type, and the right investment for you will
depend on your risk profile, investment strategy and financial position.<o:p></o:p></span></span></div>
<span style="color: #eeeeee;">
</span><br />
<div class="MsoNormal" style="line-height: 14.25pt; margin: 0cm 0cm 10pt;">
<span style="color: black; font-family: "Arial","sans-serif"; font-size: 10pt;"><span style="color: #eeeeee;">It’s also vital that you pay
attention to lifestyle trends, adds <em><span style="font-family: "Arial","sans-serif";">Wakelin,
so you can tailor your investment to suit the area you’re looking to buy in.</span></em><o:p></o:p></span></span></div>
<span style="color: #eeeeee;">
</span><br />
<div class="MsoNormal" style="line-height: 14.25pt; margin: 0cm 0cm 10pt;">
<span style="color: black; font-family: "Arial","sans-serif"; font-size: 10pt;"><span style="color: #eeeeee;">“As more people choose to live in
inner precincts, closer to work and the attractions of urban life, the land
that inner urban properties sit on has become increasingly valuable,” she says.<o:p></o:p></span></span></div>
<span style="color: #eeeeee;">
</span><br />
<div class="MsoNormal" style="line-height: 14.25pt; margin: 0cm 0cm 10pt;">
<span style="color: black; font-family: "Arial","sans-serif"; font-size: 10pt;"><span style="color: #eeeeee;">“Apartments are most likely to be
built in the inner urban areas, as they take up a higher share of the land
there than anywhere else, and owners of apartments are sharing in the rising
value of the land that their buildings stand on… Apartment investors therefore
benefit from the appreciating land values, even though they don’t have a direct
landholding.”</span></span><b><span style="color: black; font-family: "Georgia","serif"; font-size: 20.5pt; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-AU; mso-font-kerning: 18.0pt;"><o:p></o:p></span></b></div>
Anonymoushttp://www.blogger.com/profile/03689831512432872798noreply@blogger.com1