Posts Tagged ‘create wealth’

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The Potential in your Equity

Sunday, December 6th, 2009

It’s quite common these days for Australians to use the equity in their homes to create wealth, let’s go over a few of the ways property can take you on the road to a financially secure future.

Property Investment Strategies

  • Buy a second property, then another
  • Upgrading your home every few years
  • Renovating
  • Redeveloping
  • Paying off your mortgage quickly
  • Buy commercial property
  • Joint venture property purchases

Determine what type of strategy you are more comfortable with as they all involve different amounts of commitment and investment. A combination of strategies over time could provide you with variable returns that balance out well. Your choices will of course be in relation to your circumstances and depend on whether you have more time or money available, whether you are after capital growth or cash flow.

One of the common forms of investing for many Australians is using the equity in their current home to buy a second property, then once the equity is sufficient in the second property, buying a third. Income can be obtained through rent which will also assist in paying off the mortgage as well as providing taxation benefits. It is possible to build up a substantial real estate portfolio using this method.

If buying another property seems daunting or out of reach investing in your own home could still give you financial benefits and get you started. Making any amount of extra payments on your mortgage will reduce the amount of interest you have to pay and you will pay your loan off a lot sooner. Loan products can vary quite a bit though, so check yours thoroughly and make sure you understand the terms fully.The added benefit here is that you will be creating more equity which can be a great asset to you in creating wealth. Many Australians have become financially independent through property investing and it is possible for you too.

Power Thought

I am creating wealth in my life.

Repeat this to yourself often

Have a very Happy Day

Cheers

Teresa and the Team at

AustraliaWealth.com.au

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What I Can Do Right!

Tuesday, December 1st, 2009

If you want to succeed in life, as most of us do, have a look at these tips I’ve picked up from Napolean Hill’s, Think and Grow Rich (pp 120 – 126). There are thirty one reason’s, according to Hill, why people don’t succeed here are some of them.

  1. Have a Well-Defined Life Purpose ~ Without a definite goal or reason to be motivated it is unlikely that what is required to achieve success will be done.
  2. Be Self-Disciplined ~ Self control must be mastered. Negative thoughts must be conquered. This may be the hardest task you will have to do but if you are not in control of yourself you leave room for excuses, procrastination and inactivity to creep in.
  3. Good Health ~ If you have poor health it will be difficult to focus on success, do all you can to lead a healthy life. Eat well, exercise regularly, maintain a positive outlook, breathe deeply and develop healthy peaceful relationships.
  4. Be Persistent ~ Seeing a task through to the end can be a challenge that many don’t see through. Persistence will defeat failure, don’t give up before you reach your goal. You may have to reassess the path you are taking but don’t give up on the goal.
  5. Be Willing to Take Some Risks ~ All forms of investment involve some risk but if you never take risk you will never achieve anything. Do not be careless in your judgments, get as many facts as you can and then make your decision.

Many people have claimed that reading Think and Grow Rich several times over has made a huge difference in their ability to create wealth. If you haven’t read it then now’s a good time and if you have it’ a good time to read it again. One thing I have learnt is that you must stay on top when it comes to giving yourself a daily dose of your ability to succeed. photo_7139_20090629

Power Thought

I complete all the necessary tasks.

Repeat this to yourself often

Cheers

Teresa and the Team at

AustraliaWealth.com.au

Photo

Dan:-http://www.freedigitalphotos.net/images/view_photog.php?photogid=587

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Create Wealth

Friday, November 27th, 2009

Wouldn’t it be great if when you went to school you were taught how to make money?

School is great, isn’t it? Maybe the best time of our lives. You often meet friends that last you a lifetime; you learn how to read and write and how to get… dare I say it…a JOB.

Then everything will be okay, right?…At least that’s what you were taught at school. But now that you’ve been working a while you may have come to realise that your job might not deliver.

We now know school isn’t very helpful when it comes to creating wealth or managing the money you earn. And we also know that even high paying jobs don’t necessarily mean you will be okay, often the more you earn the more you spend.

How come when you were at school you didn’t learn about credit cards, mortgages or the dreaded ‘D’ word, debt?

So what can you do about it?

Well there’s no point whining about what you didn’t learn at school, just do something about it instead. Wealth education is alive and kicking and it is up to you to learn and educate yourself if you want to create wealth.  You may have left school but don’t give up on learning just yet.

We have to do something different if we are to have a lifestyle and not just a life. You have to decide what it is you want from all the key areas of your life. Once you have done that obviously the next step is to work out how you are going to achieve it.

What Should I have learned?

What you didn’t learn at school but wish you had may include investing in property and share markets or maybe you like the idea of having your own business. You can find ways to learn what you need to know there is wealth to be made in Australia you just need to understand how, prepare well and educate yourself. Find people who have succeeded in all these areas and follow their lead. All it takes is a decision and some effort from you. You can create a financial safety net with the right information, you can ride the highs and lows of the economy without losing your home or your lifestyle and who knows you may even create the life you’ve always dreamed of.photo_7554_20090806

You don’t have to  become materialistic, it’s mnot about that, this is about living the life you’d love to live. It’s about having time and money to be the person you know you can be – loving, generous, and healthy. I know being rich isn’t an answer to everything and the best things in life may be free but at some point we all need money. All I’m suggesting is that you learn how to make more of it a little easier.

Power Thought

I am creating an abundant life.

Repeat this daily

Enjoy today

Teresa and the Team at

AustraliaWealth.com.au

Photo

federico stevanin:http://www.freedigitalphotos.net/images/view_photog.php?photogid=149

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Do you have a Mentor or Coach?

Tuesday, November 24th, 2009

The greatest achievers in the world have coaches or mentors, Tiger Woods one of the worlds greatest golfers has a coach that still works him hard so he stays at the top of his game. Jamie McIntyre became a self made millionaire while still in his twenties with the help of a number of personal development and financial mentors. Jamie is now a successful financial educator who has guided many Australians to realise their own financial dreams.photo_2235_20081123

In any field that requires hard work and dedication having a coach or mentor is an essential tool for guiding your success. Many people like Jamie, author of What I Didn’t Learn in School but Wish I Had, have followed the guidelines laid out by successful coaches like Anthony Robbins, Unlimited Power and Robert Kiyosaki, Rich Dad, Poor Dad and used them to build their own wealth.

Creating wealth is completely possible for anyone willing to master their thoughts and follow the lead of successful people who have walked before them. If you are struggling or unsure of how to navigate your way to wealth a coach or mentor like Jamie McIntyre, Anthony Robbins or Robert Kiyosaki have proven strategies you can use and follow.

Conquering your own personal roadblocks like limiting thought patterns, debt or a lack of financial knowledge can all be overcome with the help of a mentor or coach. When choosing a mentor or coach to follow make sure they have already achieved what you are wanting to achieve. If you can’t find one in person books, seminars, webinars, internet forums and homestudy programs are all very effective ways to get the information, knowledge and guidance you need.

Power Thought

Today I choose to experience abundance.

Repeat this to yourself several time today

Cheers

Teresa and the Team at

australiawealth.com.au

Photo

Zan: http://www.freedigitalphotos.net/images/Sunset_And_Sunrise_g108-Sunrise_at_Sea_p2235.html

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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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Climbing the Ladder of Success Part 2

Saturday, November 21st, 2009

How are you going as you climb your ladder?

Are you concentrating on your goal and taking each step you need to take to get there? photo_8730_20091014

More importantly are you staying focused?

I think this is one of the most important issues as you climb and that is having the determination to stay focused. Imagine climbing a ladder and getting distracted by a bee that keeps hovering around you, losing focus as you climb could mean disaster.

In the last post we looked at the first of the three steps to becoming successful from Og Mandino’s book, University of Success, Know What You are Doing, in this post we will look at the next two:-

  • Love What You are Doing and
  • Believe in What You are Doing

Love What You are Doing

In Mandinos’ book we are told if we don’t love what we are doing then we are being underpaid (p 296), that is not going to create wealth in your life.  Working in an area you don’t enjoy can be one of the biggest drains on your energy and optimism. Can you really perform at your peak if you don’t like what you’re doing, if there is no passion for your work?

If you’re not doing what you love start looking for ways to change that and may I suggest in the meantime to find what you have to be grateful for. Complaining about your life is not focusing on where you want to go and it will just give you more to complain about.

Believe in What You are Doing

People are persuaded by passion and belief, one thing that is common among great achievers is the belief in what they are doing. Belief breeds dedication and dedication will keep you on track.

I like this little anecdote from University of Success, (O.Mandino p 299).

An old tramp was sitting on a park bench, he had holes in his shoes and pants he was also badly in need of a wash  and a shave. He watches as a Rolls Royce goes by driven by a chauffeur, carrying a man in a tall silk hat and says, “There except for me, go I.”

What are your beliefs, do they carry you forward or hold you back?

The world is like a mirror showing you what your thoughts, beliefs and enthusiasm have created, change them if you need or want to and you will change your world.

So there we have three great steps to examine and take as you climb the ladder to your success, follow them and you will reach the top.

Today’s Power Thought

My life is a mirror, with that knowledge I can grow and change.

Cheers

Teresa and the Team at

AustraliaWealth.com.au

Reference

University of Success (1982), Og Mandino

Photo

http://www.freedigitalphotos.net/images/view_photog.php?photogid=851

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Climbing the Ladder of Success

Friday, November 20th, 2009

Are you climbing the ladder of success?

Can you relate to the meaning behind this well known phrase?

photo_9998_20091118Climbing a ladder takes effort and you must take one step at a time, you don’t take one or two steps and then you’re there, it’s a progression to the top. Each step gives you a foundation to take the next step, miss one and you could be in trouble. If you’re going to get to your goal you have to take every step, climb all the way to the top, going halfway, in all liklihood, will take you no where. But if you have taken any step at all, if you have taken your feet off the ground then you are definately getting closer, don’t give up all you need to do is follow the steps laid out before you and you will make it.

Og Mandino’s book, University of Success (1982), Lesson 29 by Cavett Robert  teaches three rules that will help you on your climb up the ladder.

  1. Know what you are doing.
  2. Love what you are doing.
  3. Believe in what you are doing.

Today we are going to cover step 1:-

Know what you are doing.

We have to realise to be successful we need to be constantly increasing our knowledge base. You can never stop and say ‘That’s it I know enough’ or ‘I know it all’, and you should certainly never think it. The economy is constantly changing, workers in almost every field are continually needing to be retrained.

Have we not experienced, so many times, some bit of information that was right yesterday has turned out to be wrong today. It can be tiring to realise that what you have already learned no longer applies. Knowledge keeps evolving and we must keep up or be left behind we must run just to stand still (University of Success, p293). Success is an ever changing, ever evolving journey that we must be involved in by moving forward, by readjusting our destination. By being prepared to keep on learning we continue to grow, we continue to live, otherwise we have begun to die.

Learn all you can about the industry you are in and the areas where you want to succeed the most, whether it’s your job, business or your relationships be willing to learn, to grow and to change to keep moving one steady step at a time up the ladder.

Abraham Lincoln once said, “The older I get the more I realise that there is but one wealth, one security, on this earth and that is found in the ability of a person to perform a task well and first and foremost this ability must start with knowledge.”

So whatever tool you are using to create wealth learn your craft well and be prepared to keep learning.

Todays Power Thought

I am climbing the ladder of success and my income continues to exceed my expectations.

Repeat this to yourself several times today.

Cheers

Teresa and the Team at

AustraliaWealth.com.au

Reference

University of Success (1982), Og Mandino

Photo

http://www.freedigitalphotos.net/images/view_photog.php?photogid=851

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How to Talk ‘Sharemarket’

Thursday, November 19th, 2009

The sharemarket does have its own language, understanding some of the terms will help you navigate your way around making a decision on what shares to buy. As far as share returns are concerned the dividend, dividend yield and the level of any franking credits attached to the dividends are the most important factors in a share holders return.photo_9008_20091023

Now lets look at what some of the terms mean:-

DIVIDEND: What the company pays out of its profits to shareholders. A dividend will usually be expressed in terms of cents per share.

DIVIDEND YIELD: Helps us measure what sort of return we are getting on our shares. Simply the dividend as a percentage of the share price.

FRANKED DIVIDEND: Dividends that come to share holders’ hands with a credit for company tax already paid. This is the Dividend Imputation System. The credit reduces the income tax the shareholder is liable for on dividend income and makes shares a more attractive investment.

ALL ORDINARIES INDEX: The main indicator of the performance of the Australian Stock Market. This index measures movements in the major 300 stocks and makes it easier to compare the investment performance of the market over time.

BROKERAGE: The fees we pay to share brokers to buy and sell shares for us. Shares must be traded through a licensed broker. There are discount brokers but the general fee scales are: 2.5 per cent on first $5000; 2 per cent between $5000 and $15,000; 1.5 per cent $15,000 to $50,000 and 1percent above $50,000.

SCRIP: Share certificates showing the number of shares held, it is your proof of ownership of shares.

BONUS SHARES: A free issue of new shares to existing shareholders in proportion to their holding, eg a ‘one for five’ issue.

OPTIONS: The right to buy shares on particular terms within a specified time. Options themselves are traded like shares.

RIGHTS ISSUE: An invitation by the company to existing shareholders to buy new shares at a discount to the market price.

EX-DIVIDEND: Purchasing shares ‘ex-dividend’ means the holder does not receive the current dividend being paid by the company.

CUM-DIVIDEND: Purchasing shares ‘cum-dividend’ means the holder has bought in time to qualify for the current year’s dividend.

EARNINGS PER SHARE (EPS): Another ally for investors measuring a company’s profitability. Shows how much net profit is earned for each share.

PRICE EARNINGS RATIO (P.E.): A very helpful statistic for the share investor, measuring how accurate the share price reflects the value of the company. It is the ratio of the share price over the EPS. A low ratio means a company’s shares are more bargained-priced. P.E. ratios should generally be between eight and 15, i.e. a share price eight to 15 times the earnings per share.

If you want to use shares to create wealth then focus on cashflow figures when judging companies. This indicates the ability of a company to pay back its borrowings. Knowing which shares to buy and keeping an eye on your stocks to make sure they are all right can get very technical but work on understanding as much as you can if this is where you want to invest.

Have an outstanding day,

Power Thought

‘My income is constantly increasing’

Say this to yourself several times today

Teresa and the Team at

AustraliaWealth.com.au

Reference

What I Didn’t Learn in School but Wish I Had, Homestudy Program by Jamie McIntyre with Leigh Barker, CPA PNA ACIS SIA (Aff)

Photo supplied by Danilo Rizzuti @ http://www.freedigitalphotos.net/images/view_photog.php?photogid=851

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Property Investment Strategies

Tuesday, November 17th, 2009

There are three basic property strategies successful investors use to build profitable portfolios :-

  • Buy and hold
  • Buy, renovate and hold
  • Buy, renovate and sell

Buy and Hold

If you consider this a method that would suit you it is important to choose the property wisely. It has been recorded that the Australia property market doubles every seven years however  Home2making a wise choice when you purchase will ensure consistent and high growth over the long term. This is an excellent method if you are happy to create wealth over time and should form at least  part of your property portfolio.

Buy, Renovate and Hold

If you choose this method then make sure you follow some fundamental rules for renovating to add value without over spending. Adding instant value by carefully chosen improvements to a property will also increase its rental return. However it is possible to lose money with this method if you choose a buy a property that needs or you decide to do expensive time consuming renovations.

Buy, Renovate and Sell

If this method excites you I can understand why, it can be a way for you to make quick profitable returns but it also requires that you understand some basic principles. The same rules apply as above with regard to buying wisely and how you choose to renovate, also emotion must be left out of the equation. If you hold the property for less than one year the capital gains tax is more than if you hold it longer so take that into account when doing your figures.

Note: Always be aware of the tax you will be required to pay when selling an investment property.

Power Thought

‘I prosper wherever I turn’

Say this several times throughout the day to help keep you focused and positive.

Teresa and the Team at

Australia Wealth

www.australiawealth.com.au

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