Posts Tagged ‘invest in property’

4 More Steps on the Road to Wealth

Saturday, February 20th, 2010

We have already looked at the first four steps on the path to wealth, in this post we will learn four more, together they make up Jamies‘ eight steps to becoming a millionaire which he learnt from his millionaire mentors.

It is necessary to understand that creating wealth is made up of several different forms of income and the goal is to create a system of wealth producing ventures that will earn money without you being there or doing anything. These steps are setting you up to begin your wealth creation system.

STEP 5 – OPM

OPM stands for Other Peoples Money, it is possible to use other people’s money to invest but it is something that has to be considered carefully by weighing up all relevant facts. For example if you were to take out a personal loan it would mean you have money to invest with straight away and the opportunity to earn income from that investment. What you would have to consider is your current situation, the cost of the loan to you, the potential risk of your investment and the potential earnings. Borrowing money to invest can get you started but it must be carefully considered before going ahead so you don’t end up worse off than before you started.

STEP 6 – USING EQUITY

If you own your home or are paying off a mortgage there’s a good chance you have or will have equity. Equity is the portion of your home that is yours above and beyond what you owe to the bank. Equity can be used to build wealth. Investing in property or secure, insured share strategies offer low risk ways of creating wealth out of your equity.

STEP 7 – PARENTS EQUITY

If you don’t have your own home it may be possible to use the equity in your parents or grandparents home. Many people have done this successfully myself included, my husband and I purchased our first property using his mothers home as security for a short period of time. Once the value in our property had increased enough to secure the mortgage we were able to release my mother-in laws property with no cost to her at all. In the majority of situations in Australia, where property is concerned, you have an appreciating asset. This means, providing you do your homework, you have managable risk that will increase in value and create wealth for you.

STEP 8 – SUPERANNUATION

Learning what you can about super is a good idea, having your own self managed super fund could work out to be more beneficial, as long as you are prepared to learn and understand the rules and regulations and how to make it work for you. If you have your own self managed super fund you can choose your investments and take an active role in funding your retirement.

So now you have eight steps that will help to get you started in creating a life of wealth and financial freedom. Everything we do in life comes with a certain amount of risk but to do nothing is even riskier, none of us are going to get out of this alive, so live as much as you can.

Have a Wonderful Day

Teresa and the Team at

AustraliaWealth.com.au

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Find your Wealth Building Niche

Wednesday, January 27th, 2010

Most internet enthusiasts will have heard of a finding niche market to ensure a successful internet business, this is also true for any wealth creation strategy.

Finding your niche for wealth creation is about working out why you do what you do, what you want to achieve, developing at strategy that works for you and sticking to it. Repeating your successful strategy over and over will lead you to wealth. It’s what gives you focus and clarity, you know what you have to do everyday and you do it.

If you haven’t figured out your niche it becomes very difficult t get a task finished, you start and before you know it something else comes along and you go off chasing that. So nothing really gets done properly or successfully.

Finding your niche, what wealth creation fits with you and works for you gives you a path to follow with a destination in sight. Let’s look at an example, take McDonald’s, their niche is the hamburger – Ray Croc discovered a successful niche within the restaurant industry and duplicated it over and over. It obviously proved to be a successful strategy which has been replicated with other products and in other industries.

First of all you need to figure out what you want to achieve – is it passive income, retirement funds, cash flow or something else. Once you decide what you want you can then start to look at the most likely methods to achieve it. Wealth Creation can come from business, property and shares – which method will best suit you, which strategy within these areas is right for you and what you want to achieve. You may choose more than one, if you do create a system that works and follow it don’t just attempt to do what’s required without making decisions about when, where and for how long you need to work on each facet of your wealth creation.

Life gets in the way of wealth creation for most of us with families and other commitments, getting specific by deciding a niche and following a strategic plan will ensure you are rewarded for all the effort you put in.

Have a Productive Day

Teresa and the Team at

AustraliaWealth.com.au

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Successful Guidelines

Sunday, December 27th, 2009

What ever you choose to focus on in 2010 I’m sure you want it to work out well. It could be a relationship or partnership, a business or studies, health or weight, sport or arts the following tips were designed for investors but apply in any endeavour you undertake. Are you focused on creating a sound financial foundation for your future maybe you’re into property, the share market, internet or business investing, these few simple guidelines will help to ensure an enjoyable and successful journey. Make your road to investing success a bit shorter by following a few tips from those that have traveled before you.

  1. Have a plan. Know what your goal is but also keep an eye on the fine details of your transactions. Having a good understanding of all the figures involved in purchasing and maintaining your properties will make the exercise more enjoyable and profitable.
  2. Have a ‘win with me’ philosophy in all your dealings. That way all parties are happy and you will sleep much better.
  3. Make sure you continue a sound savings strategy. Allocate 10% of your earnings to savings and 20% to investing capital. And remember avoid consumer debt.
  4. Remember to keep your life in balance no financial gain is worth the loss of your health or your relationships. Allocate time for each area of your life. Being devoted and focused is great, but being able to switch off, is also important for success.
  5. Believe. You can take control of your life, decide how you want to live, trust your abilities; take responsibility for your future. Life doesn’t always go to plan, keep it all in perspective.
  6. Surround yourself with people already successful in your area of interest. Follow their lead, do what they do, don’t try and reinvent the wheel until you have money to lose. Invest with your head, make sure your risk is manageable, and get your own personal financial advice.
  7. Learn as much as you can before you start, read books, attend seminars, do your homework. Following successful people is great, but don’t underestimate yourself, take responsibility for your own education. What’s right for some may not be right for you.
  8. There is a lot to learn, and lots of ways to invest don’t get carried away trying to do it all at once, it’s easy to get overwhelmed and when that happens there is a tendency to stop altogether.
  9. Life is busy, so create a timetable that can guide you through your week, utilise time in your car listening to investment or motivational CD’s, delegate some of your work, don’t try and do it all yourself.
  10. Decide what you will do with the money you make before you make it. Selling a property, for example, and making $30,000 profit, it’s easier than you think to spend quickly if you don’t have a plan for it.

Stay Positive, it’s not what happens but how you handle it that matters.
Live Life with Love and Laughter.

Have an amazing 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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Why Invest?

Monday, November 16th, 2009

Everyday I do investment research so I can pass on information that will help the readers of our blog on their path to create greater wealth. There is wealth to be made in Australia by Australian’s but only those that are willing to step a little out of the normal way most people earn a living.

Today I have been looking through Robert Kiyosaki’s book Guide to Investing, he states that those people who work hard and save will find it difficult to be wealthy because of the tax they have to pay on the money they earn. To save $1,000 would actually require earning about $1,300 or possibly even more.

There is nothing wrong with working hard and saving but if you want to do more than just earn a living then some other steps need to be taken.

Do you want to Invest?

Maybe this is a question that does not need to be asked, many Australians have taken to investing in property and the share market for a number of years now and the obvious answer to, why is of course to be more financially secure.

If we go a little deeper though most of us will find that money is not the only motivator. We also want time to be with family, we want to be able to afford to take a holiday or travel and provide ourselves and our families with the best opportunities for good health and education as possible.

Helping others is another reason to invest and create a substantial income for yourself. Even though those that work hard give the government a lot of their income limits on government funding means there are still many needy organisations that require donations to survive.

Why Invest? Is a question you need to answer for yourself and it is the first step to take if you want to be wealthy, it will be what will motivate and drive you. Answer this question as soon as you can, write it down and put it where you can read it at least three times a day.

Have an awesome day,

Cheers

Teresa and the Team at

Australia Wealth

www.australiawealth.com.au

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