Posts Tagged ‘creating wealth’

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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What Do You Enjoy?

Friday, February 26th, 2010

I remember being at a business training session some time ago with Jamie McIntyre as the trainer and before we got started, Jamie asked everyone, ‘What do you enjoy doing?’

I couldn’t really answer. I was a wife and mother of four and of course I enjoyed being with my family but Jamie wanted more than that. He wanted to know what I enjoyed doing for me. I couldn’t understand why that was so hard to answer. It wasn’t just me though, there were others that couldn’t come up with much of a list.

We finally came to the conclusion that we had blocked out the things we enjoyed because we just didn’t have room for them in our lives. We either didn’t have enough time or money to enjoy them.

Is that how life is supposed to be?

Well everyone at that training session decided it wasn’t. If we wanted to increase our earning ability, not just a little but really increase it, we had to have a good reason. So that became our first task, to have some fun and work out what we really enjoyed doing.

Jamie explained that often when people have trouble with this it can be easier to start with all the things we don’t enjoy. So we began writing a list of all the things in our lives that caused us to feel angry, stressed, frustrated, fearful, dissatisfied or that we absolutely hated doing. As we did this we began to notice our feelings and how strongly we felt about not having those things in our life anymore.

Once we got through this list it was a lot easier to think of what our hearts really desired in our lives, what made us happy and fulfilled, what energised and motivated us and how we felt about not having them in our lives. The whole point of the excercise was to work out why these things weren’t a part of our lives and decide what we needed to do to change that.

At that training session we learnt that being motivated to create wealth in your life often offers some very important side benefits. Creating wealth is not just about earning more money it’s about having a better, more fulfilling and balanced life. Often the reason most people don’t live more financially fulfilling lives is because they have given up on, or never had, a reason why. They have forgotten what they really enjoy.

So let me ask you. ‘What do you enjoy’?

Have a Day you Enjoy

Teresa and the Team at

AustraliaWealth.com.au

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The 4 Buckets of Wealth

Tuesday, February 23rd, 2010

Jamie McIntyre has spent a lot of time studying and researching wealth creation. He has had a number of millionaire mentors that have steered and guided him in creating his own wealth, even after being broke and in debt.  Jamie uses a strategy he calls, The Baby Bucket Principle, which is designed to turn the risk factor of investing into your friend. This is done by dividing your available funds into separate wealth buckets. Starting out with a big bucket containing all your investment funds you then divide your wealth into four smaller buckets.

  • The Security Bucket, The Growth Bucket, The Momentum Bucket and the Lifestyle Bucket.

The Security Bucket is low risk investments. These include cash management trust accounts ie cash. Insurance would also be in here, eg income protection, disability and health, use a broker as they will find what suits you best.

Growth Bucket investments include renting shares, residential property and quality companies.

The Momentum Bucket would cover renting shares, commercial property and traditional business. Be careful here as traditional business can be one of the highest risk strategies if not done properly and funded from the right sources (ie. not your home).

The Lifestyle Bucket is for funding lifestyle investments such as holiday homes, a restaurant because you always wanted one or a hobby farm if that’s your dream. Hopefully these can also be growth investments but if not your  other investments should help fund your lifestyle ones. The reason for these buckets is to stop you from choosing the wrong kinds of strategies and using all your money to do it. By using the buckets you divide your wealth into different levels of risk instead of choosing to put everything into one hot tip and possibly losing most, if not all, of your investment.

The whole process that Jamie teaches is aimed at increasing your financial intelligence but in doing so you also have to have control of your emotions. The buckets help with our emotional intelligence they teach us to not be attached to outcomes, instead because the risk is spread we can take a certain amount of risk with one bucket while ensuring the security of another. Combining good financial intelligence with sound emotional intelligence will ensure you’re on the road to strong financial growth.

Have a Profitable Day

Teresa and the Team at

AustraliaWealth.com.au

Reference: What I Didn’t Learn st School But Wish I Had, Jamie McIntyre, 2002.

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He’s a millionaire, how about you?

Saturday, December 19th, 2009

Jamie McIntyre, a self made millionaire, is the author of “What I Didn’t Learn in School but Wish I Had”, a guide to succeeding in the 21st Century. He believes that if you want to excel, lead a balanced and financially secure life, you need to learn strategies that are going to work in the 21st Century.

The old way of doing things just doesn’t do it any more.
But, what is the old way of doing things? That depends on when you grew up but for fo r me, I had it drummed into my head, ‘Go to school, study hard, get good grades, get a good job and you will be successful.

’ What did that mean exactly?

 That you could buy a house, put food on the table, holiday every year, drive a good car, send your kids to good schools, spend quality stress free time with your family, enjoy your job.
For some of us I’m sure all that might be true but for most of us, it just didn’t work out that way. Even those of us that got the good jobs, would have mostly had to sacrifice family or leisure time. The repercussions of that are far reaching.

Jamie walked a road in his young life that first lead to success and then to complete and utter failure. Broke, in debt and sleeping on a friends’ couch, Jamie eventually realized he had to take a good hard look at himself and what he had been doing and make some changes.

Jamie looked for ways to do things that worked in the society we live in now, he studied other successful people and the strategies they had in place that were working in the 21st Century. What he learnt has led him on a journey where he knows in order for him to be successful the best thing for him to do is help other people become successful also.

The result of Jamie’s research and studies provides information, training, seminars and home study programmes that guide and educate everyday people with skills and strategies needed to excel in today’s world. Information includes latest share market and property strategies that have so far assisted thousands of people to replace there regular time for money incomes. It teaches people the skills they need to develop profitable passive incomes from the huge potential available through internet businesses and marketing.

Jamie McIntyre is an inspiration of hope to many, up until recently he has focused on helping people get out of debt and redirecting their resources to become financially secure and productive individuals able to make positive contributions in society. Many people have joined him on his amazing journey he continues to grow and expand his academy with recent additions in the areas of goal setting, women’s seminars as well as health, spirituality and well-being.

Have a great day

Teresa and the Team at

AustraliaWealth.com.au

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What is Your Financial Personality

Monday, December 14th, 2009

We are all individuals with our own unique personality and when it comes to finance and investing the same is true. Finding out your financial personality will give you some insight and guidance in the way you handle your money and what you are more comfortable investing in. The 21st Century has seen the emergence of more investment possibilities as well as some financial difficulties that we have not encountered before. There are opportunities for creating wealth available to more people than ever before, find out where you fit in. 

The Passive Investor

The passive investor may be a beginner or someoe who has little time to follow their  investment and so chooses a professional to take care of the details. You should however never let someone else have complete control over your finances, always follow whats going on and monitor how your money is working for you. You may be comfortable using fund managers or unit trusts but you don’t have to stay a passive investor for life. Once you gain some experience or more time consider other investment possibilities if you feel comfortable but seek expert advice.

The Active Investor

If you are this type of investor you like to stay in control,  but this means you have to have some knowledge of the market and investment cycle. You must have a clear goals and objectives, are you investing for tax benefits, income or capital growth? To be an active investor you need time and cashflow as well as knowledge and you should still seek professional advice when needed. Active investors are attracted to property, shares, options, gold, futures and collectibles.

The Conservative Investor

If you are this type of investor you do not like taking risks and may feel your money is safest in the bank in fixed term deposits. However you may find this type of investment often costs more in tax and other fees. getting expert advice is one way to learn other investments strategies that are low risk and more beneficial. Property held over the long term is one low risk investment that may be suitable there are also a number of stock market strategies that can be put in place to protect your capital. Just be sure you understand what you are investing in, including costs, fees and charges and compare them with what the banks offer in the way of secure investments.

The Average Investor

Average investors often do well because they are willing to consider a wide range of investment opportunities, are prepared to take some risks, invest over the long term and understand their investment choices.

The Flamboyant Investor

You fall into this category if you are prepared to take big risks in the hope of big gains. These risks do pay off sometimes but usually only if the risk has been carefully calculated and only a portion of your investment capital has been used. If you foolishly put all of your money into get rich quick schemes it is likely they will not turn out as you hoped. Timing is often very important for this type of investor so you must really be familiar with and understand where you are putting your money, seek professional advice and have a balance of some secure investments in your portfolio.

Once you understand your investment personality learn as much as you can about the strategies you are best suited to, there are a number of educational programs and homestudy packages that can help you but once again be sure you choose a reputable company or program with a proven track record. 

Power Thought

I am always prepared for opportunity.

Think about this and you will be.

Have a beautiful day

Teresa and the Team at

AustraliaWealth.com.au

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Give Yourself a Money Makeover

Wednesday, December 2nd, 2009

Many people have given up on their dreams, they listen to the media and believe that achieving what they want is just not possible. The truth is however that a few changes to your relationship with money could have you dreaming again.

Whatever your dreams are as long as they are realistic they are possible but before you get started on your dream building its important to know where your at now, where do you want to be and what will you have to do to get there.

Give some thought to the following:-

Meaning………What meaning does money have in your life?

Ownership……Do you own(take responsibility for) your financial situation?

Now or Later..When will you start, what time frames will you use?

Excuses……….What reasons do you give for not taking action?

Yield…………..What returns do you want?

There in the midst of money lie some clear guidelines for getting it to work on your side. Do you believe you can implement some positive strategies to improve your financial situation or set yourself up for the future.? You can! But you must put a plan in place.

What do you already know about creating wealth? What do you need to learn?

What in life is important to you? Will your current financial situation give you that?

What is your financial situation currently telling you?   What, if anything, do you need to do differently?

This should help you work out where you are, what you need to change and what will take you to where you want to be.

Power Thought

I am planning for sucess.

Repeat this to yourself every day.

Cheers

Teresa and the Team at

AustraliaWealth.com.au

Photo

<p><a href=”http://www.freedigitalphotos.net”>Image: FreeDigitalPhotos.net</a></p>

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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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Increase the Value of your Investment

Thursday, November 19th, 2009

We have already established that investing in the Australian property market is a great way to create wealth for yourself and your family let’s now look at adding value effectively.Bali001

If you want to add value quickly then you will know that renovating will certainly do that but you must keep the cost low yet still achieve a significant lift in value. Australians love to renovate and do-it-yourself can be very rewarding it can also be disastrous without some guidelines to follow.

When you are dealing with an investment property especially profitable, effective renovations are not always easy to achieve. Be very careful before you purchase a property in need of repairs that you know exactly what you are dealing with, budgets can easily be blown away in this area.

Here are some general rules to follow to help you decide if a renovation project is going to be worth your while. Please remember when renovating an investment property that you must not become emotionally attached, this is not your home, it’s business and you’re in it for profit.

Rule No.1…The best returns are obtained when you improve the cosmetic appearance of the property for the least expense.

Rule No.2…Gaining value in property renovation is most likely to occur in a rising property market. So you have to be careful you don’t become trapped at the end of the property cycle.

Rule No.3…If you are planning to sell your renovated properties, make sure you have an understanding of property prices. This ensures you don’t spend needlessly on unnecessary improvements, while at the same time you can maximise your profit potential.

Rule No.4…Take advantage that many people don’t have the time or inclination to renovate. These are your target market because these people want to live in or rent a property that is in good condition – one that they don’t have to do anything to. Having said this, most renovated properties are sold to busy couples or investors.

Rule No.5…Bear in mind that many people do not have the skill to renovate with style on a budget. Improving your skill in this area will increase the amount of value you can add to a property at the least expense. Experience makes this task less arduous and risky.

Rule No.6…If you are planing to renovate, ensure you have a flexible loan set up that allows you to access money as you need it. A revolving line of credit is one of the best ways of accessing your money through a loan facility.

Rule No.7…Before beginning the whole process make sure you have a budget for the renovations and a plan of what you intend to do. Once settlement has occurred you do not want to waste time or money trying to orgasnise quotes and tradesmen when this could have been organised prior to settlement date.

Never enter a property agreement unless you are sure the transaction is going to be profitable. This means you need to be very confident you know all the cost involved in buying, selling and renovating the property.

References

Seven Rules of Renovation  part of What I Didn’t Learn in School But Wish I Had, Homestudy Program by Jamie McIntyre with Leigh Barker, CPA PNA ACIS SIA(Aff)

Today’s Power Thought

‘I am open and receptive to new avenues of income’.

Repeat this several times today.

Have an awesome day

Teresa and the Team at

Australia Wealth

www.australiawealth.com.au

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Key Skills for the 21st Century

Tuesday, November 17th, 2009

Be Willing to make Mistakes

Being willing to make mistakes and learn from them is one of the most important lessons in life. If you are afraid of making a mistake it is most likely you will never do much of anything and that’s no life. We are taught in school to always strive to be right and that’s okay, but not at the expense of not trying, unfortunately that is what many of us took away from school. Robert Kiyosaki said in Kirra2his book Guide to Investing there is an art to making mistakes which involves asking yourself, ‘What can I learn from this mistake’. By taking responsibility and not blaming or denying you will grow and learn in every area of your life.

Jamie McIntyre has mentioned four other key skills in his book What I Didn’t Learn at School but Wish I Had that he feels are essential to creating wealth in the 21st Century.

Be a Creative Thinking

Being a creative thinker will have you looking for solutions when it appears there are none. Most of us don’t use nearly as much brain power as we could, exercise this muscle as you would any other, one way to do this is to be continuously learning something new. My husband liked to learn a new word every day (there are so many in the dictionary) and apply it in his conversation that day. So no excuses about not having enough time it need only take a few minutes a day. Resist asking for help with a problem until after you have come up with a few possible solutions yourself. Soon you will have your creative thinking skills working strong.

Negotiating

Learning to negotiate effectively is a very important skill, turning an objection into an approval will help you achieve the results you are after. The first thing you must do when you find the need to negotiate is hear what the other person is saying. No matter what situation you find yourself in if you can acknowledge that you have really listened to and heard the other person you are off to a good start. If you’re prepared to listen then understand yet calmly state your position and work towards a win win solution you will find yourself achieving your goals more often.

Communication

This is a skill we all know is important in all areas of life but one many have trouble doing effectively. Part of this skill fits nicely with negotiation by hearing what others are trying to say you make it a lot easier for yourself to be heard. Also learning to hear another persons needs puts you in a better position to supply that need. One of the secrets to success is to find a need and fill it.

Marketing

Succeeding in the 21st Century has a lot to do with  how good your marketing skills are. There is so much competition and so many ways to deliver messages or advertise understanding this skill will ensure the previous skills don’t go to waste. I have found it is easy to get bogged down in this area, especially if you are considering internet marketing, the solution is to find one person that does this well, in the area you are in, because they are getting results and model them. Don’t waste time searching or examining lots of different ways if one way is working for one person it will work for you. Once you have mastered it and are seeing the rewards then you can research other methods if you choose.

May I suggest a positive thought for today say it to yourself, as often as you can, with feeling.

‘Everything I touch is a success’

Have an awesome day

Teresa and the Team At

Australia Wealth

www.australiawealth.com.au

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