Posts Tagged ‘Buying Property’

Property 2010

Tuesday, March 9th, 2010

Interest rates are on the rise again, I just got my notice in the mail. Since just before Chistmas my monthly repayment has increased by around $300. It would make anyone wonder whether investing in property is currently worthwhile. The economy has certainly taken a lot of us for a wild ride but investment is still a necessary part of your future financial security. Learning as much as you can about investing and creating your own wealth will be of benefit to you and your family, we can no longer rely on government resources as we have in the past.

Is property still a valuable source of financial security? Does it still offer the same rewards as it has in the past? Is it a viable way to create wealth in our current economy?

Yes, property is still looking good. Australia is still struggling to keep up with it’s population growth, there are still not enough properties to go around, this is a plus for property investors. Tighter lending criteria in the banking industry is another plus if you are considering using property investment for wealth creation.

The housing market runs on a 7-10 year cycle with many properties doubling in value during this time, so be prepared to wait, using a buy and hold strategy. Taking advantage of increasing equity over that time (by buying more properties) can assist you in building a healthy property portfolio that will help fund your retirement. Learn as much as you can about the property market and the area you wish to invest in, study the various strategies open to you and find the one that suits you best. Read books, attend seminars or look into various homestudy programs any or all of these will assist you in making the most out of your chosen investment strategy.

Some questions to consider and answer when thinking about property investment in 2010…

  • Is negative or positive gearing better for you?
  • What are the benefits of an interest only loan?
  • What is the best way to purchase the property, in your name, in a trust or in your spouse’s name?
  • What are the investors important checklist criteria when choosing a property?
  • What do renters want?

These are just some of the points to consider, the answers may vary depending on your situation and your goals. Getting expert advice is always a good idea. Property is still a worthwhile investment in 2010 providing you do your research, know what to look for and are making an educated informed decision.

Have an Impressive Day

Teresa and the Team at

AustraliaWealth.com.au

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More Time, More Money

Saturday, December 12th, 2009

Who thinks this year has just flown past? I know from talking to family and friends that I’m not the only one that seems overwhelmed at how quickly the days go by. One thing we can be sure of in life is that things change and the things that we take for granted today may not be there tomorrow. Maybe it’s time to  consider making some changes to the way we spend our time and how much of it we spend on work and surviving rather than living. It’s time to value life with the people we love a bit more often. Time to look for ways to make money that don’t involve so much time. Let’s re-evaluate what we’re doing, prioritise a little more and spend our time in the places that are important to us. Let families be families again, not ships in the night that pass by on their way in or out.

I know we can’t walk out on our jobs, even if we don’t really like them, we have family and financial obligations but learning ways to improve our circumstances can still be considered. I know there are other people like me who want the time and the money to do the things they love and be with the people they love, all they need are opportunities they can trust and a variety of ways to go about achieving it. People like me who whether young, old or somewhere in between are prepared to step out of their daily routines and do what it takes, because if you want it you can have it, as long as you don’t give up.

Wealth Seminars are a great way to learn new methods that will increase your income and decease the time you need to make it. Sound to good to be true? Well in some cases it is, there are plenty of scams going around, I know because I’ve fallen for a few of them. You don’t have to let that stop you though, it need only warn you to be careful, it is worth  going out and looking for successful people willing to share honest and valuable skills and techniques to get you headed towards a better lifestyle, Seminars can help you develop your mental, physical and emotional self, so that you can live life to your full potential. Strategies for property deals, share market methods, internet and business growth. Let’s face it, we all want a life that doesn’t revolve solely around working for someone else, getting paid less than your worth and finding you are continually chasing rising prices and interest rates. Deciding to get an education that will give you methods for a sound financial future might be just what you need to achieve some freedom and security in you life.

So next time your feeling unhappy about your job or not having enough time or money consider doing some research and look for an honest and genuine wealth coach or mentor. Coaches and mentors may come in the form of books, homestudy programs or seminars and cover areas like personal development, buying property, building a business or investing in the share market. Just don’t feel discouraged or trapped in your current situation if your not completely happy, there are methods and strategies that can make a positive difference to your life.

Power Thought

I dream, I believe. I take positive action

Remember this thought daily.

Have an awesome day

Teresa and the team at

AustraliaWealth.com.au

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Property Selection Criteria

Tuesday, December 1st, 2009

Successful property selection lies in choosing good properties – ones that will rise in value significantly and rent out easily as well. How do you choose a “good” property? The most basic thing to remember is that you are buying an investment property – not a family home. This means you must meet the needs of those likely to rent in that area, features that appeal to tenants may not appeal to you. Aim to buy for the potential tenant not for yourself. These people are your target market, identify the target market meet their needs and you will never be short of tenants.

Consider the following four points when choosing property:-

  1. Price ~ The best investment properties are not always the most expensive. The best properties tend to be in the lower end of the market it is much more stable and it has the most demand for both buying and renting. There are always buyers and renters in this price range, so find the median price in the area (the price in the middle – half sell above, half sell below) and buy in the lower half.
  2. Age ~ Whether you buy an old or new property can depend on your needs as an investor both can be good investments. There are a few areas to consider before you decide – depreciation for tax benefits, maintenance is usually less in newer properties, location is vital to ensure escalating rental returns and property values and visually appealing to tenants.
  3. Position ~ The location of a property is one of the key elements of successful property investing. You want an area that has a good reputation you may choose either end of the market but an area with growth potential, new developments and suitable amenities is important.
  4. Management ~ Once you have chosen a property you need to decide how you are going to manage the investment. There are two choices: manage the property yourself or employ the services of a professional property manager. There are pros and cons in both choices, if you do it yourself you save the 6% to 10% management fee but you must deal with the tenants yourself and any problems that arise.  Professional management cost you a little but they will also take care of any issues that arise. It is often a good idea to have some distance between owners and tenants.

Keep these points in mind when looking for property, continue to learn as much as you can to maximise your investment potential and you are on track for creating wealth.

Power Thought

My future is determined by the choices I make – I choose wisely

Repeat this to yourself several times today

Cheers

Teresa and the Team at

AustraliaWealth.com.au

Reference

Jamie McIntyre What I Didn’t Learn in School but Wish I Had, Homestudy Program

Photo

Julie A. Wenskosk’ s portfolio is:

http://www.freedigitalphotos.net/images/view_photog.php?photogid=73

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What You Should Know Before You Buy Property

Sunday, November 22nd, 2009

photo_5299_20090314One of the most important rules to follow when buying property is to make your profit when you buy.

It’s a good idea to establish some criteria to follow so you know exactly what to look for.

Following are a few tips from Jamie McIntyre’s homestudy course that will get you headed in the right direction.

1. Get to know your local real estate agents

Getting to know the agents in the area you want to buy, if you can, will give you an idea about how they operate. Different agents use different strategies so find one that understands what you are doing and what your criteria is. If you want them to take you seriously don’t waste their time, let them know what you want and only make serious offers. If they understand you mean business, and they know what you are looking for the right agent will work with you to achieve what you want.

2. After an auction

One of the best times to buy property is after it has been passed in at auction.

If a property is passed in at auction buyers will realise they must, unfortunately, lower their expectations. It is often the right time to get a property at the price you want to pay.

3. Timing

There are seasonal times in the year when the property market is more active. Buying in the off season is when you are more likely to get a bargain. The off seasons tend to typically be around:

  • November, December, January
  • July
  • Holidays – Easter and Christmas

4. Work in progress

Roadworks or other major constructions can often put a lot of buyers off buying in that area. If you can see past the noise and dust to what the finished work will be you may see it adding value to the property down the track.

5. Before listing

If you can find a property owner ready to sell, but before they list with an agent, you will have cut out the agents commission and possibly lowered the price considerably. You have to be proactive to find this type of opportunity but if you keep your eyes and ears open the opportunities are out there.

6. Special Levies

This applies to units where the body corporate is raising levies. Some owners may not be able to afford the increase and may be keen to sell. Keep your eye open for units that are having work done on them the work will often create a need for this increase and you may be able to negotiate a good deal for yourself and an owner.

These six tips from Jamie will give you an idea of a few ways to think about and approach buying property. Of course they are not exhaustive and we encourage you to continue to increase your knowledge base in this area if you want to succeed, beyond your wildest dreams, and create wealth through property.

Power Thought

I am destined for success

Repeat this to yourself several times today

Cheers

Teresa and the Team at

AustraliaWealth.com.au

Photo

Tom Curtis: http://www.freedigitalphotos.net/images/Yorkshire_g136-Conisbrough_p5299.html

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Buying Property – Interest Rates – Home Loans

Thursday, November 12th, 2009

Property is an investment whether it’s your principal place of residence or not so we all want to know as much as we can, right? There are many things to consider and one of the main ones is, of course, what the interest rates are doing. It wasn’t that long ago that many Australians thought fixing their interest rate was the best thing to do as rates where getting higher and higher only to then fall to record low levels. It’s a tough place to be when you’re locked in and paying thousands more than the current market.

Well rates were down and now they are heading up again and no one knows how high they’ll climb this time. So the question of whether to fix, split or not fix is back on the table. Answering this question has a lot to do with personal circumstances but consider whether you:-

Are a first home buyer? If so you may want to fix your rate and know exactly what you will be paying for the first few years.

or

Are you investing or wanting to make extra repayments? A variable or split rate might suit better as they come with the options of interest only payments as well as extra repayments so you can pay the loan off quicker.

I’ve recently heard about a new loan that’s hit the market and it’s one to look out for, as not all banks are doing it. It’s a capped rate home loan. It works like a variable loan when interest rates are going down but is capped at a fixed rate when interest rates are on the rise. Now the capped rate is for a fixed term and is of course fixed at a higher rate than the current standard variable but it’s an option worth considering.

Now I’m not here to promote any one product or bank but to deliver as up to date information as I can, so just on the quiet, according to my sources (Australian Property Investor Magazine), this capped rate home loan is currently only being offered by Bankwest and the capped period ends on the 10/11/2012.

This new home loan product seems like it could be an acceptable alternative to what has been in the market to date let’s hope the other banks catch on and it stays around a bit longer the more competition out there the better.

http://australiawealth.com.au/

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