Los,Angeles,,Ca,-,March,14,,2015:,Singer,Justin,Bieber

Is 2023 A Good Time To Invest In Sydney Property

Sydney’s property market is booming at the moment with many sellers and developments. Currently, an investor has many choices and a good price range. Regardless of the economic times, the property market is known to be the most predictable and stable investment out there. Sydney’s property market is unpredictable when investments are geared toward new innovations or products that may be obsolete a few years later. However, property will always be an asset being essential to every human on earth. It is the oldest type of investment, and it still stands to be the most steady and lucrative.

Why invest in Sydney Property? The reasons are endless…

There are many reasons to invest in property, which is the difference that makes it a good idea to buy property.

If the property is purchased for personal use

Currently, many First Home Buyer incentives and Government Grants are available – do your research, and you could find the perfect property for you.

Invest to rent out

Through PIA’s B&R Model (Buy and Rent), many of its investment properties attract a ‘Rental Guarantee’ – this means that you can accurately predict your rental income for the next three years.

Tenants will pay down your mortgage via rental income they give to the property owner, whether they are positively or negatively geared properties.

Investors using this type of investment can sit back and enjoy seeing their investment grow.

A Hefty Tax Return on Sydney Property

Sydney Property is considered an asset, and assets depreciate over time. This basically means that your initial investment will go through wears and tears of time and usage. However, this does seem like a negative, but there is a golden thread in this disadvantage. This disadvantage is tax deductible; it can be claimed from your taxes, and you will receive a hefty return. Also, because this is a long-term investment, there will always be the chance of your property being a disposable asset in the future when you wish to resell.

It’s Trending For a Limited Time – a buyer’s market!

Now, if we narrow it down to the Australian market, there are some very interesting trends at the moment that will slowly fade away if not acted on soon. The trends include many developments at the moment in Sydney Property and many of the larger cities. Therefore, the competition for sellers is large, so buyers’ prices are ideal now. Due to this insurgent amount of developments and property, there are many opportunities where informed investors have the ability to gear the investment amount to their advantage.

This is a good time to purchase. Investing in property is a long-term investment. Therefore, any changes that occur after purchase, even if it shifts to being a seller’s market, will be to the property owner’s advantage. This is because you can sit and wait for an ideal time to sell or continuously gain from the rental of tenants at a time when the property is too expensive for people hoping to be property owners.

Source: PIA

Los,Angeles,,Ca,-,March,14,,2015:,Singer,Justin,Bieber

Is It better to buy an investment property or a home first?

Justin Wang is the embodiment of a self-made entrepreneur. From unassuming beginnings to life as a property giant – he now personifies the paradigm for financial freedom. He built PIA (Property Investors Alliance) when he realized the profitability of the Sydney residential property. His considerable charisma would spearhead a veritable empire of altruistic financial freedom. We recently caught up with Justin to ask him whether it’s better to buy an investment property or a home first; and here’s what went down:

Can you tell us a bit more about yourself? What are your hobbies when you’re not busy with PIA?

My hobbies and passions are reading, writing, and practicing Tai Chi. When I was young, I found that most of my friends with similar passions spent 100% of their time following it religiously. I was concerned for them because I felt that focussing too much on their passion and hobbies meant they couldn’t maintain their jobs, so therefore, how can they keep their lifestyles and follow their passion?

Even though I had my hobbies and passion projects, wealth building has always been my top priority – I’ve always wanted to achieve financial freedom and accumulate wealth so that I didn’t have to worry about my future. At the end of the day, it’s all about maintaining balance in your life. You need to be able to balance your hobbies and true passion while at the same time working on building your wealth. It took me 35-40 years to finally find the secret to wealth building. Eventually, I realised that investing in Sydney residential properties is the key. So from 2004-2005, I started to promote my own experiences to the Chinese community – as a result, many of our young clients began to invest in their first property, then eventually their second, third and fourth. Seven years later, this move turned them into millionaires, bringing them passive income for many years to come. Working or making money for them now is just an option. Whenever they get into their hobbies like basketball and other sports, they are relaxed and happy knowing they don’t have to worry about their future since they are receiving passive income from rent and are millionaires. External factors such as things happening in the world do not affect them financially – they are all financially secure. That’s why whenever I talk to young people, I always remind them to enjoy life but to keep in mind that time passes by quickly. They need to consider what will happen to them financially when they’re older, like in their 50s or 60s. They need to think about property investment while they’re still young before it’s too late.

Most young people don’t own property and live with their parents or rent. Most haven’t explored the possibility of investing in property. What is your advice to them? How can they get started?

The majority of people prefer taking the easy path. They find that renting is more manageable, so they don’t have to worry about a mortgage or any responsibilities. They feel that renting is better than buying. Or staying with their parents – so they can enjoy life and buy nice cars. Your life may be easier today, but remember that more challenging times will come soon enough. Once you get hit by a financial crisis, rent will eat away at your income. The people who own properties will pass it on to you and you will feel the crunch. So don’t focus on just today; think about the future. People always think, yes, I want to be rich – but how can I start? Buying property is too expensive. I can’t afford the down payment or ongoing costs of running a property. For example, if someone grew up in a house in the Bondi area, their mindset is to buy a home in Bondi as well. Of course, that will not be affordable for them because prices in that area are too high.

That’s why I started to promote the “B & R” or “buy & rent” model – to buy their first property as their first investment. For example, if my client lives in a 1-bedroom apartment in Randwick – they can buy a three-bedroom unit in the western suburbs because the prices there are a lot cheaper, and tenants can cover the majority of the mortgage. Although the client may not be familiar with the area, they know that the property’s value will increase eventually, and they’ll be able to refinance in 2 to 3 years. The “B & R” model will allow you to buy in an affordable area and treat buying property as part of wealth creation, not just a hobby.

When’s the best time to get into the property market?

There are two ways people react to the property market. One is when everyone starts to believe that the prices of the properties have gone up – most people will think that the prices continue to rise. Another situation is when people believe that property prices are going down. If the property prices are rising, people may assume that’s a problem because they’ll think that the prices are going up too fast. If the property prices are going down, the same person will feel that’s also a problem because the property prices will go down even further. The problem is “fear” – it’s the fear of taking the plunge.

Right now, everyone is concerned about the high-interest rates; it’s all over the news – the prices of the properties in the top suburbs are taking a massive hit. Most people feel it’s better to wait to buy a property because the market is bad. But let me give you a scenario; if Woolworths suddenly declare that they are slashing the prices of everything at half price, is this good or bad for you? Of course, as a consumer, this is great news! Hence if the property market is “soft”, and everything is cheaper, most people believe that it’s bad for them to get into the property market when in fact, it’s actually good for them. It’s better to buy a property in a “stressed” market because you’ll be able to buy a property at a reasonable price. If the market is good and the prices of properties are going up, that’s when people tend to purchase properties. The problem is that if you’re not fast enough to take advantage of the opportunity when news breaks out about the market, you’ll miss your chance to get into the property market. Only a tiny portion of the population will be adept enough to take advantage of the situation.

Should people buy an investment property or a home first?

Australians are lucky to live in Australia because owning homes here is reasonably achievable. One side of the population is complaining that the prices of the properties are too high – the other side, on the other hand, has no courage to jump into the property market. Owning a “dream home” is not affordable today because people feel that renting is a lot easier and stress-free. The problem with renting is that renters will miss out on future capital gains from owning their own property and be victim to constant rent increases. So what’s the solution to this dilemma? It would be best if you found a place where the mortgage is cheaper, enabling you to save up for a deposit to buy a property and rent that out. Using the “B & R” model, the tenants will pay 70 to 80% of your mortgage, and you’ll get considerable tax benefits. Once you understand the concept of the “B & R” model, you’ll be able to buy 2-3 properties which will enable you to refinance in the future, and then you can buy your dream home.

What are the five steps to becoming a multi-millionaire?

1. Realise the importance of owning a property because this will affect your future and the future of your next generations. If you understand this, then everything will fall into place.

2. Owning a residential property is not just about owning a home; it’s also about wealth building and buying property as an investment.

3. You need to understand leverage – how to use the bank’s and other people’s money to make you rich.

4. Time is very important – buying a property is like raising kids; give the kids enough time, then they’ll all eventually grow up. They don’t grow up overnight! It’s the same with property investment; you don’t become rich overnight; it takes time to build wealth. It’s better to buy at an early age to earn considerable capital gains on your property. Don’t hesitate to buy a property; every time you wait, you miss out on the opportunity of becoming financially free.

5. Buy a property as soon as possible. The key to financial freedom is to buy, don’t shop around – if you keep shopping around, you’ll never start because you’ll never find the perfect property that will reach your every expectation. Just follow my advice and purchase a Sydney residential property – give it enough time, and you’ll end up the winner in life.

Los,Angeles,,Ca,-,March,14,,2015:,Singer,Justin,Bieber

Is Buying A House Still The Great Australian Dream?

In 2022 the once “Great Australian Dream” of owning your own home is looking more unrealistic than ever for many Gen Z’s and Millennials. Skyrocketing house prices and slow wage growth have led to a housing affordability crisis, with many young people struggling to save the necessary funds for a 20 percent deposit. Various governments have proposed their solutions to this crisis, for example, first home buyer grants, and the current federal government’s Help to Buy scheme or the NSW government’s Shared Equity scheme. However, while helping a few thousand people each year, these programs do not address the wider issue of housing affordability.

New research, commissioned by buyer’s agent and property investment strategists Aus Property Professionals reveals that a staggering 7 out of 10 (69%) of Australians believe that home ownership is out of reach for young adults without help from their parents to come up with a deposit. Of this group, 31 percent say that rising interest rates and high house prices are making purchasing your first home difficult. 25 percent believe the housing affordability crisis is due to rising rent prices and high cost of living, while 13 percent claim that Gen Z’s and Millennials want to live a luxury lifestyle and aren’t prepared to sacrifice and save a house deposit.

Some anecdotal comments from the survey highlighting the difficulties include:

It depends if you are purchasing the house by yourself or with a friend or partner. It is VERY difficult for single people to buy their own home unless you’re on a massive wage. Purchasing with a partner or friend is still expensive but more achievable.”

Anyone now starting work on the basic wage has no hope of home ownership unless they progress quickly to a far higher paid position. Most will find it difficult to pay rent, car payments/public transport, rising food costs to ever be able to save for a deposit let alone pay of a loan, particularly if interest rates return to the 4%-6% as was the norm for decades.”

Lloyd Edge, Founder and Managing Director of Aus Property Professionals, says “It’s a shame, but not surprising given the current circumstances, that many young adults feel this way about home ownership. I purchased my first property, a one-bedroom unit, when I was 28 on a teacher’s salary of no more than $70,000 per year. It’s even more challenging in the 2020s to save that first deposit, however, with the right strategy in place the ‘Great Australian Dream’ of home ownership is still possible, even if you need to start outside of the capital cities or ‘rentvest’ for awhile until you can buy your dream home.”

Since buying that first one-bedroom apartment at age 28, Lloyd has gone on to build a portfolio of 18 properties worth $15 million. An investment journey that he talks more about in his best-selling books Buy Now and Positively Geared.  As a buyer’s agent, he’s helped his clients purchase a combined $500 million worth of property (combined) all around Australia.

On a more positive note from the survey findings, of the 31 per cent of respondents who believe owning your own home is still achievable for the average young adult in 2022, 19 per cent say that there’s plenty of affordable housing in regional and rural areas, making the Great Australian Dream still within reach for Gen Z and Millennials willing to take the leap and purchase outside of the major capital cities.

For people interested in achieving their property goals, but don’t know where to get started, Lloyd recommends implementing at least one of these strategies:

  • Rentvesting: Rentvesting is a great way to get ahead financially and build wealth if you can’t afford to buy a home in your ideal place to live. By renting where you’d like to live and buying an investment property where you can afford to buy, for example in a regional area, you can get your foot on the first rung of the property ladder. By using equity from the investment property you can keep growing your portfolio and work your way up to buying your dream home.
  • Buying with family and friends: Buying with family and friends is another strategy that can get you ahead financially by entering the property market sooner rather than later. Teaming up with family and friends to buy property makes it easier to save for a deposit. However, with this strategy you must seek legal advice and make sure that everyone involved is fully on board with what to expect so the property doesn’t cause conflicts and relationship breakdowns down the track.
  • Living frugally: Living frugally is essential to getting started in property. Unless you’re a very high-income earner you’ll need to cut back on luxuries in order to save a decent sized deposit. Furthermore, lenders will look at you more favourably for a loan if you can demonstrate that you’re financially responsible and have a savings surplus each month. Living frugally will also set you up with some great lifelong financial habits and teach you how to manage money carefully.
  • Do your research: It is essential to do thorough research on the property markets to get an accurate understanding of the market value of the type of property you wish to buy. Look for similar properties in the same area that have sold recently, and the average days on market. Also, never purchase a property without doing your due diligence and ordering a building and pest inspection. If this all sounds overwhelming, a buyer’s agent can help you through this process with their expert knowledge of the property market and negotiation skills, and by doing all the due diligence for you.

Lloyd says “Even though getting into the property market is tougher than ever, young adults shouldn’t despair as there is still a lot of good opportunities out there if you’re financially savvy and implement the right strategy for your circumstances. My own success story is an example that with hard work, determination, and persistence it is possible to achieve financial freedom through property investing.”

This article was sourced from a media release sent by Kathlene Quere of Agent 99 PR

Los,Angeles,,Ca,-,March,14,,2015:,Singer,Justin,Bieber

Expert Reveals A Growing Number of People Are Forgoing Buying Their Own Home Due To Housing Affordability Crisis

Earlier this month, the Reserve Bank of Australia announced that interest rates would once again be rising by 0.5 percent, making the new cash rate 1.85 percent. This recent hike marks the historic fourth month in a row that the RBA has raised interest rates- increasing the pressure on homeowners already struggling under mortgage stress due to the recession and rising cost of living.

The interest rate hikes are also putting a hold on the plans of many aspiring first home buyers, who will no longer qualify for the loans they need to buy houses in the areas in which they want to live. After being priced out of the property market in major capital cities, one option which many Aussies are considering is ‘rentvesting’- the trend of renting where you want to live (to be close to work, family, and the lifestyle you like) and buying an investment property in an area where you can afford to purchase a property.

Lloyd Edge, Founder and Director of Aus Property Professionals, says that “Today if you’re making the average Australian wage of $78,000 a year and you decide to buy a $1.2 million house, that’s 15 times your salary. This shows the difference in scale between incomes and house prices in the 2020s compared to the eighties or nineties when the average house price was only four times the average yearly salary. Skyrocketing house prices and inflation have really changed things, so if you’re an average income earner and your big goal is to buy your dream home, you’re going to have work up to it through savvy investments.”

Adding, “Many of my clients come to me initially looking for their first home, however, after we have a strategy session and assess the full range of options available, often they’ll choose to keep renting and buy and investment property instead. With interest rate hikes and no foreseeable end to the housing affordability issue, rentvesting is a good choice for many people. A positively geared or cashflow positive investment property has multiple benefits, like helping you build wealth, generate income, and increase your borrowing capacity. With interest rates going up, it’s important to make sure you’re borrowing under your maximum capacity, leaving yourself a buffer for when rates rise even higher. You need to make sure you’re assessing your borrowing capacity each month, as your circumstances will change depending on what the RBA decides.”

Lloyd is also the author of the best-selling property book Buy Now: The Ultimate Guide to Owning and Investing in Property. In the book, he lays out the strategy for utilising rentvesting to grow your property portfolio and buy your dream home. Below are some of Lloyd’s top tips for rentvesting:

  1. Target high-growth regional areas: Regional areas are great for rentvesting, as the property prices are usually cheaper than the major capital cities, and the rental yields are higher. Look for areas that have a growing population and are supported by multiple industries. Other key things to note is whether there’s any increase in government spending in that area, any major transport or infrastructure being developed, or any universities or hospitals. All these factors will add value to your investment property and ensure the likelihood of capital growth.
  1. Have an exit strategy: To secure your dream home in the 2020s, you will probably need to build an investment portfolio and set an exit strategy, which will mean selling some of your properties to pay down the debt on others. Ultimately it will be your exit strategy that helps you secure your dream home.
  1. Look for a value-add opportunities: The trifecta we look for in investment properties is equity, cashflow and growth. To achieve this, we often recommend that our clients buy a property with some value-add opportunity, like a subdivision, development, or renovation. Buying an investment property with this sort of potential will help you build up your equity and afford a better home down the track.
  1. Clarify your goals: Investing without clear goals or a strategy is pointless, as different tactics will give you different results so it’s important to specify what you’re aiming for. Think not only about the short-term, but also the long-term and where you’d like to be in 5, 10 or 20-years time. This will influence where you buy and what your strategy is. For example, if your long-term goal is financial security when you retire, it makes more sense to invest in a number of properties than to spend all your money on one property, so you don’t put all your eggs in one basket.

Lloyd concludes “Many people are being scared off buying a property right now due to the current market, however with the right strategy it can be the perfect time to get your foot onto the property ladder through rentvesting, and use that as a way to purchase your dream home sooner.”

This article was sourced from a media release sent by Kathleen Quere of Agent 99 PR

Los,Angeles,,Ca,-,March,14,,2015:,Singer,Justin,Bieber

Is 2022 The BEST Or WORST Time To Buy Property?

Justin Wang is the embodiment of a self-made entrepreneur. From unassuming beginnings to life as a property giant – he now personifies the paradigm for financial freedom. It always comes down to abundance as generated by collaboration.

Wang built PIA (Property Investors Alliance) when he realized the profitability of the Sydney residential property. His considerable charisma would spearhead a veritable empire of altruistic financial freedom.

Global Millionaire magazine recently caught up with Justin to ask him about the rising interest rates and whether now is an excellent time to get into the property market or not; here’s what went down:

How does the interest rate hike affect the housing market?

Now that the interest rate keeps increasing, there’s fear among first home buyers and potential investors because they’re not sure how this interest rate hike will affect the property market. Because of the interest rate hike, the price of properties has dramatically dropped, so if there’s a dip in the property price – should we buy now or wait?

Firstly, I believe the interest rate hike will not cause a dip in property prices – some people even predict the decrease to be as low as 20%. Keep in mind that the Reserve Bank is very cautious regarding the interest rate hike or how it can affect the property market. That’s because the property market, particularly Sydney Residential properties, involves a lot of families since many people, particularly parents, owe money to the bank.

But guess what? Despite the interest rate hike, people are still spending! So how can people keep spending even though there’s an increase in the interest rate?

Firstly, tourism is back – tourism is bringing money again to Australia. Secondly, there’s actually a low unemployment rate since people still have jobs. There’s also what I can refer to as “pandemic savings;” People still have savings because, for the past two years, people haven’t been spending that much due to the Covid restrictions. The government has given out over $200 billion in support to Australians due to the Covid situation, and this money is still sitting in people’s savings or offset accounts. This massive amount of money is definitely good enough to cope with the interest rate hike.

So for those who still believe that most people will end up selling their property for less than 20% of the actual price is wrong; they should not be worried at all due to the above reasons.

Buy or rent, which one is good for us at the moment?

Rent may be increasing at the moment, but I believe it’s still okay to get into the property market. Right now, the interest rate is going up faster than the rent is going up, so it might seem like it’s not a good idea to buy a property at this stage. For example, if you buy a $600k property, the mortgage repayments plus the ongoing costs to run the property will be much higher than what the rent can achieve – possibly 20% or even 25% or higher. Even if you use PIA’s buy and rent model, the rent might not be enough to cover mortgage repayments plus all of the ongoing costs.

So what’s the best thing to do? If you buy an off-the-plan property that will settle in 2-3 years, you’ll be able to secure today’s low price. We’re currently in the middle of a “buyer’s market,” which means that if you buy a property now that is due to settle in 2-3 years, you’ll skip over the high-interest rate period because, in 2-3 years, the interest rate will eventually decrease. You’ll be able to settle your property because your borrowing capacity should have increased by then. The rent may be able to cover your outgoing costs.

How should I act as a first home buyer in the current market?

If you’re a first home buyer, the best time to buy is now because the properties are cheaper, and due to the current interest rate climate, you’ll get special deals, rebates, and discounts from the vendors and developers. You just need to pay a 10% deposit for an off-the-plan property that’s due to be completed in 2 to 3 yrs, and this will enable you to secure today’s low price and skip over the current high-interest rate period. Your borrowability will increase when you eventually settle, and your rent may be enough to pay most of your outgoing costs.

When will the interest rate stop increasing?

I believe in 2-3 years’ time, the interest rate will stop increasing, and Inflation will also slow down – roughly around 2024.

Should we buy a property now or should we wait for a while?

If you’re smart, the best time to buy is now.

Right now, people are not buying properties because of the interest rate hike. If you buy later, when the interest rates are decreasing, you’ll struggle to secure a property because other people will also be rushing to buy properties. This demand will, of course, cause the price of the properties to be much higher. Therefore, getting into the property market now, while we’re in the middle of a “buyer’s market,” is the best way to go.

Los,Angeles,,Ca,-,March,14,,2015:,Singer,Justin,Bieber

Is It A Good Time To Buy A Property Now In Australia?

Justin Wang is the embodiment of a self-made entrepreneur. From unassuming beginnings to life as a property giant – he now personifies the paradigm for financial freedom. It always comes down to abundance as generated by collaboration.

Wang built PIA (Property Investors Alliance) when he realized the profitability of the Sydney residential property. His considerable charisma would spearhead a veritable empire of altruistic financial freedom.

Global Millionaire magazine recently caught up with Justin to ask him about the rising interest rates and whether now is an excellent time to get into the property market or not; here’s what went down:

How does the interest rate hike affect the housing market?

Now that the interest rate keeps increasing, there’s fear among first home buyers and potential investors because they’re not sure how this interest rate hike will affect the property market. Because of the interest rate hike, the price of properties has dramatically dropped, so if there’s a dip in the property price – should we buy now or wait?

Firstly, I believe the interest rate hike will not cause a dip in property prices – some people even predict the decrease to be as low as 20%. Keep in mind that the Reserve Bank is very cautious regarding the interest rate hike or how it can affect the property market. That’s because the property market, particularly Sydney Residential properties, involves a lot of families since many people, particularly parents, owe money to the bank.

But guess what? Despite the interest rate hike, people are still spending! So how can people keep spending even though there’s an increase in the interest rate?

Firstly, tourism is back – tourism is bringing money again to Australia. Secondly, there’s actually a low unemployment rate since people still have jobs. There’s also what I can refer to as “pandemic savings;” People still have savings because, for the past two years, people haven’t been spending that much due to the Covid restrictions. The government has given out over $260 billion of extra pandemic savings sitting in people’s deposit and mortgage offset accounts in support of Australians due to the Covid situation. This massive amount of money is definitely good enough to cope with the interest rate hike.

So for those who still believe that most people will end up selling their property for less than 20% of the actual price is wrong; they should not be worried at all due to the above reasons.

Buy or rent, which one is good for us at the moment?

Rent may be increasing at the moment, but I believe it’s still okay to get into the property market. Right now, the interest rate is going up faster than the rent is going up, so it might seem like it’s not a good idea to buy a property at this stage. For example, if you buy a $600k property, the mortgage repayments plus the ongoing costs to run the property will be much higher than what the rent can achieve – possibly 20% or even 25% or higher. Even if you use PIA’s buy and rent model, the rent might not be enough to cover mortgage repayments plus all of the ongoing costs.

So what’s the best thing to do? If you buy an off-the-plan property that will settle in 2-3 years, you’ll be able to secure today’s low price. We’re currently in the middle of a “buyer’s market,” which means that if you buy a property now that is due to settle in 2-3 years, you’ll skip over the high-interest rate period because, in 2-3 years, the interest rate will eventually decrease. You’ll be able to settle your property because your borrowing capacity should have increased by then. The rent may be able to cover your outgoing costs.

How should I act as a first home buyer in the current market?

If you’re a first home buyer, the best time to buy is now because the properties are cheaper, and due to the current interest rate climate, you’ll get special deals, rebates, and discounts from the vendors and developers. You just need to pay a 10% deposit for an off-the-plan property that’s due to be completed in 2 to 3 yrs, and this will enable you to secure today’s low price and skip over the current high-interest rate period. Your borrowability will increase when you eventually settle, and your rent may be enough to pay most of your outgoing costs.

When will the interest rate stop increasing?

I believe in 2-3 years’ time, the interest rate will stop increasing, and Inflation will also slow down – roughly around 2024.

Should we buy a property now or should we wait for a while?

If you’re smart, the best time to buy is now.

Right now, people are not buying properties because of the interest rate hike. If you buy later, when the interest rates are decreasing, you’ll struggle to secure a property because other people will also be rushing to buy properties. This demand will, of course, cause the price of the properties to be much higher. Therefore, getting into the property market now, while we’re in the middle of a “buyer’s market,” is the best way to go.

Los,Angeles,,Ca,-,March,14,,2015:,Singer,Justin,Bieber

Five Key Reasons To Invest In Real Estate Right NOW

Investing in real estate can have several benefits because you can leverage real estate to build wealth. You can enjoy passive income, excellent returns, and even tax advantages. If you’re thinking about investing in real estate, here are five reasons why Sydney property investment makes sense.

1. It’s a more stable investment

When you invest in property, you can expect that your return on investment will be more predictable than it would be if you invested in the share market. Sydney property investment is one of the most stable investments you could explore. People always need houses, and it’s an asset that is more likely to appreciate in value as regions experience growth over the years – just make sure you research your suburbs carefully when deciding on a location.

2. An investment for every budget

Despite the common belief that Sydney’s housing market has become saturated with demand and is increasingly unaffordable, investors would be interested to know that there is still a lot to gain from more affordable suburbs. Suburbs in Sydney that are a little further away from the CBD have a lot to offer for investors when getting your foot in the door.

3. It’s an asset you can use

An investment property is an asset that you can make practical use of. It’s a very tangible asset. If you change your mind and decide that you’d like to move into your investment property, you can. If you choose to use it as an investment again later on, you can do that too. Other investments don’t offer the same level of flexibility, but with a Sydney property investment, it’s part of the package.

4. Other people pay for your investment

Having an investment property means that you can rent it out and have that income go directly towards paying off your investment. This is a reliable, regular payment that offers the stability and frequency that you wouldn’t get with most other investments. When you rent out your investment property, you can enjoy the peace of mind that your investment is paying itself off.

5. Leverage

You can use investment property to gain access to leverage. This is an investment strategy where you use debt to bring in greater returns and ultimately pay off that debt. Using your property as security means you can borrow more money than you would with a share portfolio. Lenders will let you borrow up to 90-95% of the property’s value, but typically 50-60% of a share portfolio’s value. In addition to this, this allows you to benefit from the growth of a larger asset because you have significantly greater borrowing power.

This article was sourced from the Property Investors Alliance.

Los,Angeles,,Ca,-,March,14,,2015:,Singer,Justin,Bieber

High Rises Vs Houses: What’s Better For You?

With house prices constantly soaring and populations growing rapidly in major cities, apartment living seems to be the way of the future. Our busy, fast-paced lifestyles have meant that the dream of owning a house in the suburbs is transitioning to feature a high-rise building instead.

In addition to these factors, it helps that apartments these days offer a broad range of benefits that you don’t have in a traditional house. People are increasingly gravitating towards apartments from lobbies that rival expensive, five-star hotels to communal pools and gyms.

Here are just a few reasons why this is happening in your city.

Apartments offer a unique lifestyle and affordability options

Apartments tend to create more of a community feel than houses do since you’re in the same building with anywhere from a handful to hundreds of other residents. Most apartment complexes also come with communal outdoor areas, which are great for relaxing and socializing. Additionally, since apartment living is generally concentrated in city centers, there’s always something happening right on your doorstep. Not to mention the transport and shopping convenience that living in close proximity to a city would offer.

Most notably, apartments are usually significantly cheaper than purchasing a house, making the lifestyle more accessible to a broader cross-section of the community.

Major maintenance and amenity convenience

Apartments tend to have a lot less maintenance work attached to them than houses do. Green spaces tend to be smaller and more basic; oftentimes, professional maintenance staff are paid for using strata fees and they handle all the gardening and upkeep. No mowing and cleaning mean that you get to save a lot of time and energy.

In addition to maintenance convenience, apartment complexes often come with facilities such as pools, roof decks, entertainment rooms, and gyms. Still, some newer developments will even offer pet-sitting, laundry, childcare, and car washing services. What better way to meet neighbors and make the most out of the place you live?

Security and peace of mind

Unlike a conventional ground house, an apartment offers a lot of security. At the very least, you’ll need a key to get in through the security doors, but some newer developments offer concierge and keycards, similar to a hotel. Access to lifts and amenities is also limited to residents only, and CCTV monitors many apartment complexes. Whatever your reason for wanting that extra security, apartment living can offer you peace of mind.

If apartment living sounds like a future you’d want to be a part of, PIA can help. They offer a wide range of rental properties in Sydney, purchase and investment options – including off-the-plan projects.

This article was sourced from the Property Investors Alliance

Photo by Max Vakhtbovych from Pexels

Los,Angeles,,Ca,-,March,14,,2015:,Singer,Justin,Bieber

6 Ways To Keep Your Costs Down If You’re Isolating

Spending more time at home means you are using your utilities and appliances more than you might typically, so your costs are bound to skyrocket. This means that you’re probably using the internet more for work and at the same time keeping you entertained for longer than usual.

Here are six ways to keep your costs down if you’re currently self-isolating because of the Coronavirus or working from home.

Set a budget

Set yourself a budget and make sure your essentials are covered first. But don’t forget to do your research so that you don’t miss out on any discounts.

Only buy what’s necessary

Only buy what you need because stockpiling adds up, and try to use free local delivery services to save on costs.

Run your appliances on efficient cycles

Run your appliances on energy/water efficient cycles, and only run when it’s absolutely necessary.

Wear appropriate clothing

Popping on another layer and dropping the heating temperature down by even one degree will save you plenty of money.

Turn off non-essential lights and power points

You can keep your electricity costs down by turning off non-essential lights and power points; you’ll be amazed at the savings across the year.

Shop around for value for utilities and internet packages to get the best deal available. Consider the many ‘no lock in’ contracts available that enable you to roll back at a later date…and watch how much you are spending on subscriptions.

Don’t spend money on non-essential items

In current economic uncertain times, it’s not advisable to spend money on non-essential items, luxury bags, and expensive watches – even if they are on sale. There’ll be plenty of retail opportunities down the track.

Don’t forget to check what’s coming out of your account as an automatic subscription. While each may be small – they can add up to a considerable amount. You can pause or unsubscribe from entertainment and gaming app subscriptions and pause any charity donations that will be difficult to maintain.

This article was sourced from the Property Investors Alliance

Los,Angeles,,Ca,-,March,14,,2015:,Singer,Justin,Bieber

5 Surefire Tips For Finding The Right Lender For You

According to Smartline Personal Mortgage Advisers, while selecting a loan and lender can seem daunting, with a few ‘smart tips’ finding one to suit your individual needs can be easy.

“While it’s possible to generalise about borrowers’ requirements, ultimately no two people are exactly alike – and it’s a mistake to think that ‘one size fits all’ when it comes to finance,” said Chris Acret, Smartline’s managing director.

Smartline offers these top five tips for choosing a lender.

1. Know your goals and develop a checklist so that you can assess lenders’ flexibility

“It’s a good idea to develop a checklist of things you’re looking for, but it’s equally as important that your checklist be flexible and that you’re open to potentially changing your priorities,” said Acret.

“For example, the lender you currently have your transaction accounts with may not have the best loan product to suit your needs or, simply, if one of your priorities is to have an offset account attached to your loan, you may not be able to access it via an ATM.

“Things that may seem unimportant now, could prove very inconvenient down the track.”

2. The interest rate is only one of many factors in your decision

Acret said that while interest rates are an important aspect of your evaluation, it should not be the sole reason for making your decision.

“Generally speaking, mortgages are held over a long period of time and this means that the cost of interacting with the bank, over what is usually many years, needs to be taken into account,” he said.

“A honeymoon rate might look attractive now, but it’s not likely to save you money when and if you decide to use the lender’s other services – such as repayment holidays, a redraw facility, a loan top-up or accessing your lender’s and other lenders’ ATM facilities.

“It’s important to consider the whole cost of the loan which means taking everything into consideration – from product features to product fees, which may incorporate application fees, annual fees and exit fees.

“At the start of the mortgage you may not think there is a possibility that you might repay or re-finance your loan within four years, but your situation may change meaning exit fees will become an issue.”

Exit fees are often referred to as ‘early termination fees’, which is the cost of closing the loan. Different banks use different terminology and early termination fees can also be known as deferred administration fees, deferred establishment fees, or early repayment fees.

3. Consider lenders’ overall services and offerings

Lenders present a range of services and offerings that might not seem appropriate now but could be in the near future.

“Typically, our lives are changed by events that can make a difference to the way we view our mortgage,” he said.

“These life events might include taking an extended holiday, getting married, having a family, being promoted, changing jobs, being made redundant or starting your own business, and each of these has an impact that may mean we need different things from our home loan to suit these new circumstances.

“So, when considering lenders investigate all loan offerings – like whether or not you have the ability to switch from a variable to a fixed rate, substitute security or access redraw – and their services, such as access to ATMs, and internet and phone banking.”

4. Ensure your lender can work with you to get your loan structure right

Acret said that loan structuring, which covers the type of loan you use, how you fund the required deposit, what securities are provided and what type of payments you make, is important for any property purchase, but even more so for an investment property because of the associated taxation issues.

“As such, it’s important to make sure the lender you choose can structure your loan – or loans – in a way that suits your individual needs.”

5. Shop around

Australian lenders operate under regulatory guidelines designed to encourage responsible lending. One of the most successful aspects of these guidelines has been the Ability to Repay Test, which is commonly referred to as serviceability or borrowing capacity.

“Lenders must demonstrate they’re satisfied that borrowers can afford to repay their debt, but each of them interpret the Ability to Repay Test in different ways, therefore the loan amounts lenders deem to be responsible also differ greatly,” he said.

“Also, some bank use different income sources in different ways, so a customer on a given income level may be able to borrow more or less with different banks.

“The borrowing capacity can vary so much from lender to lender that just going with the lender you currently bank with could limit your home purchase price – so it pays to shop around.”

Since the global financial crisis (GFC), lenders have developed a range of policy innovations and made significant changes to their lending criteria.

“Credit policies have always varied from lender to lender, but there is now much closer scrutiny being paid to loan applications and borrowers’ credit histories – including, for example, the number of credit applications you make,” said Acret.

This article was sourced from a media release sent by Smartline. For more info, go to www.smartline.com.au

Courtesy of: The Australian Filipina

Los,Angeles,,Ca,-,March,14,,2015:,Singer,Justin,Bieber

3 Useful Tips For Paying Off Your Home Loan Sooner

By Michelle Baltazar

You’ve seen all the SALE signs plastered on shop windows to herald the EOFY (end of financial year), but before you open your wallet to buy yet another sale item, you could be better off setting your money aside for your mortgage.

Sure it won’t give you the same high that you get from getting your retail fix but, according to mortgage broker Mortgage Choice, you can save as much as $10,000 in interest if you put a lump sum of $2,000 into a 7% 30-year $300,000 home loan.

So before you start planning how you’re going to blow your tax refund this year, think about how good it would feel to have thousands of dollars saved on your home loan (most of the SALE items you buy will go out of style but being a property owner won’t).

Tips to help reduce your mortgage debt:

1. Repay your mortgage more often. For example, making fortnightly repayments equal to half your minimum monthly repayment means you pay one extra monthly repayment each year.

2. Contribute lump sums when possible. This reduces interest owed and the loan term. If you put your tax return, say, $1,000 into a $300,000 loan (at 7% over 30 years) at year one in, it reduces the term by one month and the interest owed by just over $2,360. Think about doing so annually.

3. Build a financial buffer. Home loans with offset accounts enable you to link a savings account to your loan and ‘offset’ (use) that amount to reduce the interest owed. If you kept $5,000 in an offset account, then on the above-mentioned loan the term would be reduced by almost two years and you would save over $33,000. Note there could be an ongoing account keeping fee.

Tips to avoid piling up any debt:

1. Resist the temptation. Always set a budget and make a shopping list, whether you are shopping for groceries, furniture, travel, property, etc. Avoiding overpriced or impromptu purchases will keep your budget in line and help with credit card debt as often unplanned purchases end up there.

2. Don’t be late on repayments. Dodge accruing interest by scheduling automatic home loan and other debt repayments. Funds transfer on the date selected by you (ie. your payday or the day after). The only thing left to action is increasing your repayment if the interest rate increases.

3. Create emergency savings. Repay your loan as though its rate is at least 2% higher, putting this straight into your loan or its offset account. This buffer will help with emergencies, rate rises or unexpected bills, so these costs won’t end up on your credit card or gather late payment costs. If your loan doesn’t allow extra repayments, put the extra funds into a high-interest savings account. 

Source: The Australian Filipina

Photo by Kindel Media from Pexels

Los,Angeles,,Ca,-,March,14,,2015:,Singer,Justin,Bieber

How You Too Can Achieve Financial Freedom with Property Investment

 

Achieving financial freedom through property investing is within most people’s reach, including yours.

But the earlier you start investing, the greater your chances of building a property portfolio that will generate an income that’s capable of letting you live the life you want.

The good news is that it has rarely been easier to take the first step on your property investment journey than in today’s property market. That’s because reduced prices and record low-interest rates make entering the Sydney property market a more affordable proposition than it has been for some time.

After you’ve taken your first step and, over time, both the value of your property (capital) and your rental income (yield) should grow. As your property grows in value, the equity in your investment property will grow too. You can then leverage this equity to invest in a new property and grow your portfolio.

While most property investors start their journey using negative gearing – ie the rent they receive doesn’t quite cover the mortgage repayments – this changes over time. Once they start paying down their loan and the market rises, their equity grows and the income they receive increases to the point where it outstrips repayments.

When that happens to your investment, you’ll start earning passive income which can supplement your other earnings and eventually, when you retire, even replace your income altogether.

For this reason, your wealth as a property investor usually depends on:

How soon you purchase
The market conditions you purchase in
How many properties you own, and
How long you hold onto your properties for.

That said, there’s no set number of properties to which you need to aspire. You should always base the size of your property portfolio on your own circumstances and financial goals. You should also be prepared to be flexible. There may be times you’ll want to sell a property and rationalise your portfolio, especially if you’re changing your investment strategy or you need the capital in your property to meet other goals.

Information for this article has been sourced from The Property Investors Alliance.

Los,Angeles,,Ca,-,March,14,,2015:,Singer,Justin,Bieber

5 Simple Reasons “Rentvesting” Will Help You Reach Financial Freedom

According to Realestate.com.au’s renter research, more than 1/3 of Australians rent in more than 2.5M properties in Australia. Kurtis Pirotta, Rent Specialist from REA, has identified that 8% of tenants currently renting own an investment property. With interest rates historically low, an increasing number of renters are becoming buyers – with 50% of tenants looking to buy in the next 5 years.

Here are 5 good reasons why more and more people are actually “rentvesting” (purchasing a property with the idea of renting it out):

You could qualify for generous tax breaks

Property investors often qualify for tax breaks such as negative gearing. This lets you offset the interest you pay on a home loan against your income so that you pay less tax. You may also be able to claim the depreciation on your property asset, especially if you buy a new property.

It can be very cost-effective

Because someone else is paying off your mortgage and you’re receiving potential tax breaks, you could purchase an investment property for less than you think. For instance, our analysis shows you could buy a property worth $650,000 for just $76 a week (out of pocket) if your income is $70,000 a year.

A new revenue stream

Eventually, as the rent on your property grows, you’re likely to start earning more than you pay your rent every month, meaning, you’ll have a new income stream – passive income.

You could start building a property portfolio

Over time, as you pay down your loan and the market rises, you’ll build equity in your investment property. You can then use this as a deposit on your next property, giving yourself the chance to grow an entire portfolio.

You can keep your current lifestyle

Because you’re not living in the property, you can buy in an area you can afford and stay in your current location so that your lifestyle stays exactly the same.

And if you’re a tenant looking to own your own home, the Federal Government’s First Home Loan Deposit Scheme can support eligible first home buyers purchase a home sooner providing a guarantee that will allow eligible first home buyers on low and middle incomes to purchase a home with a deposit of as little as 5 percent (lender’s criteria apply).

Information for this article has been sourced from The Property Investors Alliance.

Los,Angeles,,Ca,-,March,14,,2015:,Singer,Justin,Bieber

Why Buying ‘Off-The-Plan’ Can Be Your Ticket To Financial Freedom

 

Buying ‘off-the-plan’ entails entering into a legally binding contract to purchase a property before it reaches the stage of final development and occupancy approval.

Buying off-the-plan can represent significant financial gains for a buyer. In Australia, buyers can enjoy tax depreciation benefits, can access Government grants and incentives and can enjoy owning a ‘new’ property without paying the market premium. First-home buyers around Australia can enjoy exemptions and concessions of stamp duty for properties purchased off-the-plan.

Benefits of buying off the plan:

Secure a high-value asset for a low initial capital outlay – After an initial deposit is made (usually 10%), the entire payment doesn’t need to be paid until the property has been built, giving you time to organize your finances or sell your existing property.

Lock in a price at today’s value – a big advantage of buying off the plan is that you will pay the current market price for a property, even though it will be completed in the future.

Increase in property value – If the market experiences growth, the property you purchase off the plan today may increase in value when you settle up to two years later.

Tax advantages – If purchasing for investment purposes, you may be able to claim depreciation on your tax for items like fixtures and fittings.

Government Grants and incentives – In NSW, off the plan buyers may be eligible for:

New Home Grant Scheme^ – a $5,000 grant (provided that the value of the new home does not exceed $650,000 and the value of vacant land does not exceed $450,000).

First Home Owner Grant Scheme – For eligible transactions made on or after 1 January 2016, the grant amount is $10,000

Stamp duty savings in some states – State governments (in certain states) offer bonuses and reductions in stamp duty for buying off the plan which can save you thousands of dollars.

Seven-year builders guarantee – Newly built properties in Australia come with a seven-year builders guarantee which means structural or interior building faults must be repaired by the builder.

*It is essential to consult your Accountant to find out if you are eligible. Refer to the NSW office of state revenue for further information about grants http://www.osr.nsw. gov.au/grants. ^A new home is a home that has not been previously occupied or sold as a place of residence and includes a house that has been substantially renovated and a home built to replace demolished premises.

The Risks

There are always potential risks when undertaking any major purchase or investment. We recommend that you seek independent legal and financial advice before making any property purchase.

Be well informed; you need to ensure that you do your research and seek further information.

Contract terms – It is essential to have a comprehensive contract that sets out exactly what you are buying – from the features, fixtures, and fittings to the insurance, voting rights (if it’s a strata property), timeframes and dispute-resolution processes.

The rise and fall of the property market – the risk that you may pay too much for a property if the market falls between the exchange of contracts and building completion. Do your research on prospective property locations.

Expectations – generally you will not see the property until construction has completed. Ask plenty of questions, review the quality of fixtures and fittings, make informed decisions.

Interest rates – while currently low, Interest rates could in fact increase before you settle on the property, particularly if you wanted to fix the term of the loan at the current interest rate.

Bankruptcy – Many buyers fear the developer could go into liquidation before the project is completed. Do your research. We recommend that you do your research and ensure that you get independent legal and financial advice on any property purchase or investment. Don’t forget to ask key questions up front and have your Solicitor or Conveyancer to check the terms of the agreement to ensure you are protected, and you achieve peace of mind. NSW Fair Trading advises that buyers can also benefit from asking the right questions. Please see the below link.

Things to consider when buying off the plan

Buying an off-the-plan investment property can be an exciting and beneficial venture in your journey to financial freedom.

*Please note that information from this article was sourced from The Property Investors Alliance

Los,Angeles,,Ca,-,March,14,,2015:,Singer,Justin,Bieber

The 2 Questions That Could Determine Whether You’ll Be A Successful Investor Or Not

There are many uncertainties when considering property investment: where to buy, how many properties do I need, do I buy established vs off-plan, what type of investor am I, the list goes on.

But if you start with the end goal in mind and invest strategically, you’ll not only work out what kind of investor you are but also how far you can go. First, you need to ask yourself, what are your needs – both now and into the future – what is it you’d like to achieve? This assists in determining the type of investor you are and what it will take for you to achieve your goals. Then you need to create a property investment strategy based on these needs and the type of investor you are (or want to become).

To help you decide what type of investor you are, you should start with two questions:

How comfortable am I with investment risk?

How involved in my investment strategy do I want to be?

The first points to your understanding of risk versus reward (return). When considering your preferred level of risk and return, timeframe plays an important role. The second determines how active, or hands-on, you are in your property investment journey. Generally, life stage plays a strong role here.

We’ve identified three types of investors that we typically see on the property investment spectrum:

You’re new to investing. You’re a wage/salary earner. Your life up to this point has been about establishing yourself or your family; consumption-oriented strategies; saving for holidays. You may be living from paycheck to paycheck. Your company contributes to superannuation for you. If you own a home, it is your primary residence. If you’re thinking of buying a home – it’s to live in.

You haven’t yet started to think about investing as a long-term strategy, but you are starting to realize that you are responsible for your financial future…and you have yet to work out what that looks like.

How can I avoid living paycheck to paycheck?

What would it be like to have another source of income to make you more comfortable?

What could my savings and investment plan look like in 10 years?

Could I invest rationally, versus emotionally?

How can I become financially independent?

Passive Investor

As you grow and mature you begin to take on more responsibility. You’re working hard to make money and save money. You’ve done your numbers. You research the property industry and follow the media. You believe that you could take the next step…but you simply don’t have the time, out of your day job or life, to focus on this 100% or manage this yourself.

The passive investment strategy is good for people with busy lives, families, jobs, outside interests, or entrepreneurs building businesses. Let’s face it: most people’s lives are already full leaving little time for developing investment skills. It is difficult to make investing a top priority despite its financial importance.

A common result of this time limitation is passive investors often delegate the responsibility and authority for their investment decisions to “experts” such as financial planners, brokers, property consultants. Rather than become their own expert on investing, passive investors typically rely on other people’s expertise for their investment strategy. Their defining characteristic is the need for simplicity.

Active Investor

You’re a seasoned investor. You’ve built upon your passive investor skills and are now transitioning to a new investment strategy, whereby your wealth and your future is your own business.

You are now fully in control of your portfolio; you make daily decisions based on your learned skill set. You follow the market, and you manage your cash flow accordingly.

Active investors work hard at making their money work for them as they understand the end goal is all about return on investment. Small differences in growth rates over the long term can make large differences in wealth accumulation.

So you know what’s involved and what to expect. You expect results, and you’re open to advise… after all, you have an investment plan in place.

Active investors require a different level of service and support. Less time spent on why to invest, and more time spent on how and where.

This article has been sourced from The Property Investors Alliance

Los,Angeles,,Ca,-,March,14,,2015:,Singer,Justin,Bieber

The Big Reason Why Sydney’s Hills District Is The Next “Gold Mine”

Not so long ago Sydney’s Hills district was land of the McMansions, for those who wanted bigger houses with bigger land size.

Today the hills district is considered one of Sydney’s fastest-growing suburbs, providing new homes for over 90,000 people over the next decade.

Nestled in the hills shire region is Kellyville a new hot spot for developers and homeowners.

Kellyville has proven to be one of the countries’ most sought-after property markets. In 2016 Kellyville was the national top five highest gross values of sales of the year in Core Logic’s Best of the Best.

The market is on fire and set still continue growing with new infrastructure including schools, open spaces, roads, public transport, and shopping will make the hills district an increasingly popular place to live.

Kellyville has seen 7 years of a positive apartment/unit growth with a 9.68% averaged over the past 4 years – above that, even for the hills LGA region in the past year – demonstrating top performance. The median house price increased by 84.0% in just 5 years.

Apartments will become part of the future at Kellyville, with sleek fit-outs, high-quality fixtures, low maintenance and no lawns to mow! Plus, they include great amenities including landscaped communal gardens and even rooftop pools are now available in a community-friendly place you can call home… at a more affordable price tag.

Dyldam is an award-winning property development and construction group that specializes in residential developments in metropolitan growth corridors. Look out for their new apartments in Kellyville.

Savant offers a unique lifestyle in the new hot spot that shows a promising return on investment, just 35 minutes from the Sydney CBD. Set in the midst of country style living, surrounded by parks, shopping, and a stunning golf course.

*Please note the information from this article sourced was from The Property Investors Alliance

Los,Angeles,,Ca,-,March,14,,2015:,Singer,Justin,Bieber

5 Rock-Solid Reasons Why NOW Is The Best Time To Buy Property In Australia

Justin Wang, founder, and CEO of The Property Investors Alliance (PIA) mentioned in a recent seminar: “it’s been a tough 18 months for investors. Not only have they faced increasing challenges with restrictions on lending, LVR’s lowered and stamp duty increases – but they face a constant barrage of media negativity around the NSW growth engine – Property – undermining confidence. To see such a large turnout today signifies 2 things to me: Savvy investors understand market cycles and confidence is being restored.”

Savvy investors understand that property is a mid-long term investment and how to leverage property and market cycles to their advantage. Those new to investment on Saturday night were there to learn how to become a savvy investor. So what did they learn?

NOW is the time to buy.

1. Buying now means entering the market, not just timing the market

Predicting the timing, absolute depth, and duration, of any market cycle is near impossible…unless you have a crystal ball. We all want to buy low and sit back and count our equity. However, regardless of when you buy in the cycle, you’ve achieved the first key goal – at minimum you’ve entered the market.

At PIA, they share their investment philosophy with their clients ‘Buy as early as possible, as many as possible, and hold onto your property for as long as possible’ – because the Sydney residential market only trends up over time.

Property prices are 18% higher than 5 years ago. If you bought 5 years ago, you’re in a stronger equity position today. Buying now will see you in a stronger position over the next 5 years than if you wait to try and ‘time the market’.

2. Prices have adjusted

Whilst we haven’t seen anywhere near the scaremongering 40% drop from media predictions, we have seen housing values adjusted. But let’s put it into perspective – from the peak of the market in October 2017 to February 2019, we’ve seen a decline of just -6.8%

Some areas have adjusted further than others, and there’s possibly some further adjustment to come, but don’t forget, this is Sydney. The market fundamentals here are strong and there is a strong history of growth.

Savvy investors are taking advantage of the price adjustments and are picking up some great value-for-money properties in NSW growth corridors with strong amenity and infrastructure investment as a result.

3. The perfect storm… a coup for buyers

APRA policies and the Banking Royal Commission have seen an overall tightening in lending and LVR’s….fewer buyers in the market and negative media coverage affected sentiment…stronger supply in certain areas….overall housing prices adjust…have all served to impact buyer behaviour over the past 18 months.

However, fewer buyers, but with a strong equity position, and lower purchase prices means less competition, less reliance on bank finance (and LVR’s) and a stronger buying position.

4. Sydney is ALWAYS in demand

Continually topping the most desirable places to live, Sydney has proven itself, year after year, that it has long term sustainable benefits that support property investment and the economy – Infrastructure and Government investment, amenity, employment, world-class attractions, and immigration, and so on.

But most compelling is its history of delivering, with property values doubling every 7-10 years.

5. The proof is in the pudding

If we look at some key suburb areas that PIA has historically sold across, you can see that in just 4 years median sales prices have all increased:

Mascot +68%
Botany +76%
Parramatta +107% (doubled)
Baulkham Hills +69%
Epping +60%
Lane Cove +85%
Granville +51%

The time period above, 2014-2018, was prior to market peak and aftermarket decline, demonstrating that Sydney property continues to trend upwards over time. You can’t argue with that!

*Please note information from this article was sourced from The Property Investors Alliance

Los,Angeles,,Ca,-,March,14,,2015:,Singer,Justin,Bieber

How to Live The Australian Dream (Millionaire Next Door Style)

Australians love real estate. Whether its visiting display homes, reading the property section of the paper or online, talking with friends, or dreaming of your future home…we simply love property. The great Australian dream still exists, however, it’s changing shape. More and more people are coming to understand a new way of thinking – not just buying a home to live in, but using property to get ahead in life. The typical first home owner will now consider buying an investment home instead of a home to live in, rent it out and then either move in (when weekly expenses are less than rent), leverage to eventually buy their own home, or rent in their desired area.

That’s right, invest in property to achieve your future financial goals! Buy in strategic locations. Leverage bank finance. Rental income pays down your mortgage. Then you’re left with an asset(s) that delivers passive income stream to sustain you well into the future.

With every investment there are inherent risks and rewards, particularly when borrowing funds, or off-plan purchases. It’s important to do your homework and consult independent legal and financial advice before making any property purchase or investment.

When it comes to the rewards, there’s certainly plenty! The PIA B&R model (Buy and Rent) has been tried and tested amongst our investors for well over a decade, so we’re sharing the secrets of our clients’ success.

We’ve compiled the top 5 reasons why you’d invest in off-plan property, particularly in the Sydney market.

1. It’s actually easier than you think

You’ve done your suburb research, you know your budget, and you understand the negative gearing benefits…what’s stopping you?

Getting your finances sorted is the key step, so you know your borrowing capacity. Now you just need to find the right property. Once your finance is in order, you’ll need to do your due diligence (arrange bank valuation and undertake your property inspections), so there’s very little risk that you’d find yourself with a property that you’ve overpaid for or doesn’t meet your expectations.

2. You use ‘other people’s’ money to pay off your off-plan investment

This is where the B&R model really pays off. Despite the initial deposit (ie you leverage current home equity or savings), you borrow funds from a financial institution. Interest rates are currently the lowest we’ve seen in over 50 years, meaning lower repayments, so now is definitely the right time to take advantage.

Tenants pay down your mortgage through weekly rent. For positively geared properties, rental income exceeds your borrowings. For negatively geared properties, your rental income will be slightly less than borrowings. All whilst you sit back and watch your investment grow. You can then use the equity in this property, from capital growth, to fund your next investment.

Which leads me to the next great reason for investing in property. The ATO will allow you to claim a range of tax-deductible expenses through your investment property, including depreciation. The newer a property, the greater the depreciation levels. This serves to reduce your tax bill and improve your cash flow. Talk to your financial advisor or tax accountant about how you can reduce your tax bill through a property.

3. Property can offer greater predictability and certainty as an investment

Your investment choices are endless, and you should always discuss your circumstances and future financial goals with a financial advisor.

Bricks and mortar (houses) are generally long term investments and no matter what happens, you’ll still have a disposable asset at the end. Property is more predictable than other investment options, and the market cycles follow a fairly consistent trajectory – particularly in high demand Eastern states such as Sydney where property growth has been steadily growing over the past 50+ years.

Given the current levels of demand for housing and rental accommodation, property with strong cash flow can weather you through uncertain times because it meets the basic need for housing. Rising population and drops in average household size mean that people will always need a place to live, even during difficult times.

4. Property can lead you to greater financial security and wealth

Will you have enough super to retire on? How stable are my super investments? Will your current employer contributions be enough to live out the retirement you’ve planned? Will there be an aged pension when you retire? What can I do to retire comfortably? All questions to ask yourself in considering your future financial goals.

A balanced approach to your retirement and investment is a solid strategy. Property can lead to great wealth – we’re forever reading about property moguls and how simple it is to get started and make millions. Where property is concerned, capital growth can lead to great asset value, and rental income leads to a passive income stream once your investment is paid down.

5. You control the destiny of your portfolio

You control where you buy, how many properties you buy and when to sell. And to a certain degree, how much you can achieve for rental return.

Unlike other investment types, property affords you many options in terms of growing the value, size, and income for your property. Whilst market forces and economic conditions play a role in influencing property values and demand for properties, you are still the captain of your own ship – steering your portfolio in the direction of your future financial goals and life circumstances.

Security and peace of mind

Unlike a conventional ground house, an apartment offers a lot of security. At the very least, you’ll need a key to get in through the security doors, but some newer developments offer concierge and keycards, similar to a hotel. Access to lifts and amenities is also limited to residents only, and many apartment complexes are monitored by CCTV. Whatever your reason for wanting that extra security, apartment living can offer you that peace of mind.

Los,Angeles,,Ca,-,March,14,,2015:,Singer,Justin,Bieber

The Simple Steps This Man Took To Become An Australian Multi-Millionaire

By Justin Wang

The lure of investing in property is strong and wide. There are more self-made millionaires through property than any other asset class. We live in a time of impetuousness and instant gratification – in many areas of our life we want to see quick results and change. This is becoming more prevalent with the advent of digital and social media. We’ve become a fast consumption society – we consume everything at a rapid rate – information, news, consumables, and food.

However, the path to success is not always achieved with the quickest route, just ask Justin Wang (Founder and CEO of PIA) “In the early 1990’s as a new migrant from China, to make ends meet I worked incredibly hard in a variety of different roles – from a restaurant waiter to a Chinese language teacher to a door-to-door salesperson…After ten years of hard work, I could not seem to get ahead….you work extremely hard, but just end up making ends meet. I needed to secure a better future for myself and my family. I found that this was not uncommon – people are continually concerned about their futures, struggling to navigate a path forward.”

Justin’s success came from valuable lessons learned when choosing the right pathway, a pathway that deviated from what the local market and competitors were doing. Justin’s personal experience led him to research the property industry as an investment strategy. 20 years ago the great Australian dream was to own your own home, work hard in the same job, raise your family, pay off your mortgage, retire and leave something for the children. 30 years later, the house was paid off, and you finally owned your house free-hold….and your pension and some superannuation would hopefully sustain you. Or would it?

20 years ago, Justin’s philosophy was slightly different – use your home as a powerful tool in your future plans and become self-determining and self-reliant. Use your largest asset and equity in your family home as a way to increase your personal wealth and derive a passive income that will sustain you and supplement your superannuation income well into the future, “I started looking at my own future and the strong record of property in Sydney market. I started to invest in properties (units) across Sydney, starting out small and begun to accumulate a small property portfolio of my own. Today, PIA turnover is between $1.2-1,6 billion in property each year”.

What’s the secret to success? Long-term investment

Start with your personal goals in mind. PIA’s business was founded on the principle of assisting people with modest income achieve a comfortable retirement through investing in property over the medium and long-term. As you build equity in your portfolio, you continue to invest to achieve your income and capital growth goals. To be a short-term speculator, for instant profit, you must have intimate knowledge and experience in the property market, investment strategies, and market cycles – plus have a strong asset backing or cash flow. Markets rise and fall, and short-term strategies to ‘make a quick profit’ are often short-sighted and risky. Not everyone can achieve this. Instead, we encourage you to focus, not on how much you’ll earn over the next 12-24 months, but how much wealth you can create over the next 10-20 years to achieve your retirement goals.

Los,Angeles,,Ca,-,March,14,,2015:,Singer,Justin,Bieber

Six Reasons Why Aussies Are Buying Sydney Apartments For Rent To Achieve Financial Freedom

Choosing between buying a house or an apartment depends on your financial situation, your lifestyle as well as your overall goals. While some people prefer the bigger space of living in a house, others prefer the practicality of inner-city living. From price to space and maintenance requirements, here are six good reasons the majority of Aussies prefer owning an apartment complex high up in the sky as opposed to owning a house and a piece of land.

1. Easier entry into the property market

Renting is widely recognized as being cheaper than purchasing a home, as you do not need to pay for the ongoing maintenance of the property, council rates, and strata fees or interest rates on a mortgage. Apartment living, in particular, is even cheaper than renting a house. If you’d like easier entry into the Sydney property market, looking at apartments for rent in Sydney would be a great start.

2. Convenience and community

Apartments for rent are typically located closer to city centers and offer the convenience of urban living and efficient transport. In addition, you’d be in a building shared by other residents, so there will be more of a community feel than what you’d get by renting a house. Many apartments for rent also come with shared outdoor spaces which are great for relaxing and socializing.

3. Security

Apartments for rent offer a lot of security compared to the average house. From CCTV cameras security doors and parking to keycards and concierge in newer developments, apartment living offers a lot of security and peace of mind. Importantly, if there’s ever an emergency, you’d be glad to know that help is only a door away.

4. Amenities and facilities

Apartments for rent will typically offer communal facilities and amenities such as communal gardens or rooftop terraces, pools, entertainment rooms and gyms. Some newer buildings also offer laundry, childcare, and car washing services.

5. No maintenance hassles

When it comes to maintenance, apartments for rent typically have little to no maintenance costs or expectations involved. Apartment complexes generally have smaller, simpler green areas that are usually looked after by professional gardeners and tradespeople.

6. High-rise views

Unlike a house at street level, apartments for rent offer high-rise living and the views associated with living in a taller building. Whether it be a district, city, parkland or water views, there’s plenty of choices. If you love balconies, rooftop terraces, and seeing a wider frame of the horizon, apartment living can give you just that.

*Please note information from this article was sourced from The Property Investors Alliance