CHf

How You Can Ensure Your Investment Property Stays Tenanted

Growing wealth is the ultimate long-term goal of most property investors. But in the short-term, it’s often the property’s ability to deliver a consistent, reliable income – in the form of rent – that matters far more to your day-to-day finances.

So how do you make sure your investment property remains tenanted and keeps producing income, especially at times when vacancy rates are high, properties are plentiful and renters are spoiled for choice? Let’s explore.

Why a reliable income matters so much for investment properties

Before we share specific strategies for making sure your property continues to produce income, it’s probably worth reflecting on why it is such a vital part of property investing.

The simple fact is that most early-stage property investors rely on leverage. In other words, they need to borrow money to fund their purchase – usually in the form of a mortgage or home loan. And so every week, fortnight or month, that home loan needs to be paid.

One of the great advantages of property investing is that a lot – and sometimes all – of the cost of this mortgage can be funded by the rent you receive. But if rent isn’t coming in, there can be a financial hole you need to fill.

So if you want to avoid that from happening to you, here are our 6 tips:

1. Buy a new property

In a market where renters have a lot of real estate stock to choose from, it’s often newer properties that hold the competitive advantage. That’s because they usually come with many of the features tenants’ prizes, such as open plan living, modern appliances, and tasteful fixtures and fittings. They’re also often positioned close to transport and large-scale amenities and tend to be more suited to a contemporary lifestyle, with landscaped courtyards or roof gardens, security, parking, lifts, and valued on-site amenity that may extend to gyms, swimming pools, childcare, and concierge services, plus many other features you won’t usually find in older style properties.

For this reason, new properties are also often easier to rent out, helping minimise the length of any vacancies, so that your income continues to flow.

2. Keep your property well-presented and up-to-date

Many buyers can overlook cosmetic problems in a property, confident in the knowledge they can change things they don’t like. A kitchen or bathroom can be renovated, the walls can be painted in a different colour and new carpet can be laid. Renters don’t have this luxury – they’re usually stuck with the property in its current form.

This means renters tend to approach a property search in a different way to buyers: they’re paying their money for the here and now, not the long-term. So if your property needs work or is simply out-of-date, you’ll find it harder to rent out.

Plus the old adage is true – ‘prevention is better than a cure’ – investing in preventive, regular maintenance of your property will help prevent serious problems before they occur. Maintenance is less costly than repairs.

3. Sign a longer lease

A longer lease – ie one for more than 12 months – can help reduce the amount of time a property is vacant and help guarantee income because the tenant can’t usually break it without having to pay a penalty.

Long leases can be a good strategy during a flat market when market vacancy periods for an area are high, or if you value the security of a longer-term, quality tenant. But in a strong market, long leases may leave you with less room to move, particularly in relation to rental growth.

You should always weigh up the pros and cons and assess the current market before taking this approach. Talk to your Property Manager about the best strategy for your property.

4. Use a proactive property manager

Good property managers do far more than simply collect the rent on your behalf. They act as a Property Management adviser, letting you know how much rent you should charge and when (and when not) to increase it. They’ll also help make sure your property is marketed correctly so that you attract the right tenants and host regular inspection to fill any vacancy as quickly as they can.

Then after securing tenants, a property manager can also manage the relationship once they’re in, answering their questions and requests and doing their best to ensure they’re happy and that you retain them for the long term.

5. Consider furnishing your apartment

The reality of today’s property market is that many good tenants come from interstate or overseas and one way to make sure your property stands out to these renters could be to furnish it. After all, furnished properties offer tenants the chance to move straight in, without having to worry about the expense of buying so many household goods. On top of this, they can also offer command a higher rental rate from tenants.

Just one word of warning though – because furnished apartments tend to appeal to renters from elsewhere, they can also experience higher turnover when a tenant returns home or moves on. On the other hand, they’re frequently easier to rent out when vacant.

6. Get a rental guarantee

One way to make completely sure your investment property continues to produce income is to purchase one with guaranteed rent. For instance, the PIA Fixed Weekly Rental Guarantee ensures you receive a set income for three years, regardless of whether your property is rented or not. This, in turn, means you have predictable cash flow for a set period and can plan your finances accordingly.

PIA’s Fixed Weekly Rental Guarantee comes standard with any off-the-plan purchase you make through PIA. In exchange, you’ll get peace of mind that the money will continue to come in and the bills can get paid.

Information from this article has been sourced from the Property Investors Alliance

CHf

If You Want To Be Wealthy, You Should Avoid These 5 Mistakes

Becoming a millionaire seems like the perfect dream for most people. In order to make this dream come true, though, it takes a lot of determination and hard work. Although many of the people dreaming of becoming millionaires will end up settling for less, this does not have to be the case with you. If you are driven by the thirst to succeed, you need to build on solid ground and start making life changes.

However, there are a lot of misinterpretations that can get you off the right course towards success. Some things just are not necessary and in fact can be proven extremely damaging to your goals. How to be rich does not depend on any of the following misconceptions. Read the following points below carefully and find out what you do not need to do:

• Work on conventional niches

This is a safe way towards failure. In other words, you do not want to engage in niches that have been regarded as a traditional money-making business. You cannot expect to get rich any time soon by practicing law or medicine or architecture. These professions require a lot of time, and you slowly build your income, up to a point.

• Assume that just by studying hard will bring in the cash

There is no guarantee that your studies will pay off in the future when it comes to your professional career and money boost. On the contrary, most of the times you will be expected to choose a different professional path, which has nothing to do with what you have studied.

• Depend on luck

Luck is definitely not the main factor that determines if you get rich or not. You should focus on taking advantage of any opportunity coming your way, rather than wait for luck to knock on your door.

• Indulge in scams

Nothing good has ever come long term from scams. Even if you are lured by short-term winnings, you will most likely learn the hard way that such money does not last. So it is not worth risking your career for something with dubious results.

• Maintain a rich social life

Unfortunately, when you set your mind on how to be a millionaire, there is no time to waste. This means that you must be considerate and schedule all your social plans according to your optimal benefits professionally.

Of course, these are just few of the things you ought to avoid on your path to success. You need to set realistic goals and do not let go till you reach them.

CHf

How to Develop a Millionaire Mindset in 5 Simple Steps

To become a millionaire – this is what many people want to be in their life. It may seem to be too ambitious, but there is nothing wrong about having such a dream. However, as we all know, it is easier said than done. We can all dream of it, but not everyone can achieve it. Your journey towards financial success will not be easy, but if you know how to do it, such will be possible. With this, keep on reading and learn from the insights that we will be sharing on how to be rich. You need to develop a mindset that will help to fuel the realization of your goal.

Visualize and Claim It

If you want to be a millionaire, the first thing that you have to do is to claim it. You need to be focused on your goal and visualize it. I can do it, and I will do it – this should be your way of thinking. You should always stay positive. Emphasize the things that will happen once you have accumulated millions of money. Where should I go? What should I buy? What business should I establish? Thinking about these things will help for you to not lose track of your goal.

Surround Yourself with the Right People

Your external environment will also have a huge role to play. With this, if you are thinking of how to be a millionaire, choose your friends wisely. Be cautious about the people around you. Stay away from those who will drag you down. Be friends with people who will encourage you. Look for an inspiration. By being surrounded with millionaires, you will be more motivated, and you will gain insights that will help you achieve your dream.

Invest Your Money

This is one thing that may seem to be basic, yet ignored by many. To be a millionaire, you must know how to grow your finances. Do not just spend it on anything. You need to carefully choose where to put your financial resources. You need to brave enough to take risks, but make sure that every move is carefully calculated.

Never Stop Learning

Invest in yourself. Read books. Enroll in online courses. Attend seminars. These will provide you with insights on how to be rich, including financial strategies that can prove to be effective. Learn everything that you need to know about market and economic fundamentals.

Rise Up From your Failure

If you fail, this should not be a reason for you to give up. If you want to be a millionaire, you should consider failures as opportunities for learning. Ask yourself about what went wrong, and more importantly, what can be done to prevent failures in the future.

CHf

The 3 Surprisingly Simple Ways To Become A Millionaire

There are quite a few things that are going to make you happy in life and let’s be honest, money is amongst the most important ones of them. From a psychological standpoint, it is funny how something so materialistic can mean so much to us. But, whether we like it or not – it is what it is and I’d rather cry in a Rolls-Royce than on the street.

So now the big question is, how do you become rich? Is it even possible in this restricted and challenging society that we live in? Of course, it is possible. Becoming a millionaire might not be easy but it’s certainly not impossible.

Start Small

The first thing that you need to understand is that you are not going to become a millionaire overnight. There are no magic formulas or get-rich-overnight strategies. The sooner you get this out of your head, the quicker you are going to achieve your goal. Start small, but start smart. If you don’t have money to invest, there are plenty of things available online which are going to allow you to build your fortune from scratch.

Speaking of Online

If people in the 20th century became millionaires by establishing physical enterprises, production lines, manufacturing industries, and whatnot, we live in the era of the services. Placing your service on the market is a lot easier and risk-free than actually selling a product. Sure, it might yield smaller returns, but your possibilities are endless and not limited by physical faculties. With this in mind, that’s something that you might want to think about.

Now, as we said above, there are plenty of opportunities on the Internet. And that’s a fact. The Internet is a global networking tool which could let you reach out to hundreds of thousands and even hundreds of millions of people from all across the world. So, if you are having a hard time figuring out where to start this might be a good idea.

A Million Dollars is Not A Lot of Money

By definition, you are a millionaire as long as you have one million dollars, or any other currency, based on your location, in assets. This is not the goal you should pursue. Being a millionaire is about not thinking of money – it’s about thinking of achievements, power, growth and prominence. If you want to know how to be a millionaire you should start by getting your mind clear and identifying the goals you want to achieve and forging the path of least resistance towards it.

CHf

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.

CHf

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.

CHf

Five Habits For Developing A Millionaire Mindset

To become a millionaire – this is what many people want to be in their life. It may seem to be too ambitious, but there is nothing wrong about having such a dream. However, as we all know, it is easier said than done. We can all dream of it, but not everyone can achieve it. Your journey towards financial success will not be easy, but if you know how to do it, such will be possible. With this, keep on reading and learn from the insights that we will be sharing on how to be rich. You need to develop a mindset that will help to fuel the realization of your goal.

Visualize and Claim It

If you want to be a millionaire, the first thing that you have to do is to claim it. You need to be focused on your goal and visualize it. I can do it, and I will do it – this should be your way of thinking. You should always stay positive. Emphasize the things that will happen once you have accumulated millions of money. Where should I go? What should I buy? What business should I establish? Thinking about these things will help you to not lose track of your goal.

Surround Yourself with the Right People

Your external environment will also have a huge role to play. With this, if you are thinking of how to be a millionaire, choose your friends wisely. Be cautious about the people around you. Stay away from those who will drag you down. Be friends with people who will encourage you. Look for inspiration. By being surrounded with millionaires, you will be more motivated, and you will gain insights that will help you achieve your dream.

Invest Your Money

This is one thing that may seem to be basic, yet ignored by many. To be a millionaire, you must know how to grow your finances. Do not just spend it on anything. You need to carefully choose where to put your financial resources. You need to brave enough to take risks, but make sure that every move is carefully calculated.

Never Stop Learning

Invest in yourself. Read books. Enroll in online courses. Attend seminars. These will provide you with insights on how to be rich, including financial strategies that can prove to be effective. Learn everything that you need to know about the market and economic fundamentals.

Rise Up From your Failure

If you fail, this should not be a reason for you to give up. If you want to be a millionaire, you should consider failures as opportunities for learning. Ask yourself about what went wrong, and more importantly, what can be done to prevent failures in the future.

CHf

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

CHf

You Deserve To Be Rich! You Can Follow These 3 Simple Tips To Help You Eventually Get There

df

Image via Shutterstock / Syda Productions

There are plenty of ways to accumulate wealth. However, the first thing that you need to know is that winning a huge lottery does not make you a millionaire – it makes you the same regular person with a lot of money. The difference is sky-high. Being a self-made millionaire is something which is going to give you confidence, power, respect, reputation, influence and a sense of accomplishment. You don’t get that by accidentally winning a large pile of cash just because you scratched a few lucky numbers. If you truly want to know how to be rich one day, here are a few helpful tips.

Get Rid of the Misconceptions

Clear your mind. That’s the first thing you need to do. There are no such things as getting rich overnight. Every dollar that you earn comes with sweat on your forehead and loads of effort carried on your back. It comes with a lot of work and dedication. Being a millionaire is not just a state of economic wealth – it’s a state of mind. If you keep finding for that magic trick that’s going to make you millions in a day, you are just wasting your time, and you would never become an actual millionaire.

Set Achievable Goals

Baby steps – that’s the way to do it if you don’t have tremendous amounts of support, of course. Sure, it’s hard, but it definitely isn’t impossible. However, you need to identify your goal and reach for it. In order to do so, you need to make sure that you set achievable goals, not easy ones – achievable ones. There is a huge difference. Learning how to be a millionaire will show you that you need motivation – lots of it. And, there is nothing more motivating than accomplishing a goal.

Don’t Quit

Don’t quite on anything or on anyone unless there is absolutely no other way or you see that it brings in more harm than potential good. When you set your mind to something, just do it. Don’t look for excuses. Every failure is your fault, regardless of what happens. If an earthquake hits and destroys your building – you should have built it better. Of course, there are things that you can’t prevent, but you shouldn’t use them as an excuse. Instead, try to seek out motivation in every single thing. Isolate actionable consequences and make sure to act upon them – thrive, change, fail and try again – this is the only way to get where you truly want to be.

As we approach the end of 2016, I would like to send my thanks to all of our readers and staff for what has been another great year for us. I am aware of the amazing work that is being done across all areas of our company so I’m very proud of what we have accomplished and delivered as a team this year. The end of this year also marks StarCentral Magazine’s 10 year anniversary and I would like to thank God for keeping us alive throughout the years. My best wishes to all of you for the holiday season and I hope you all have an enjoyable time with your family and friends. God bless.

CHf

Want To Become A Multi-Millionaire?? Follow These 3 Steps

Building wealth is probably the most spoken about topic across the world and will be for years to come. How to make money is the 24th most Googled question in the world that’s 246,000 individuals per month hoping to find answers.

You can earn more and save for your future easily, but many people get caught up in the old saying “You have to have money to make money.” If you have this mindset, you have already set yourself up for failure. The truth is you have to be driven, be willing to work hard now and invest so you see a return on capital.

Property won’t make you wealthy overnight, but it is a great first step to financial freedom – a great form of income for you and your family in the future. The Sydney residential property market alone has increased by 74% since 2012[1]. Sydney offers promising returns for investors and the long-term outlook for this market is positive.

Follow our three simple steps to wealth and find out just how easy it can be to build your wealth.

1. Using the family home to build a property portfolio

If you have equity in your own home, do you know that you’ve already taken the important first step in your property journey? That’s because the family home can be more than a great place to raise your children. It can be a powerful tool for growing your wealth and setting up your financial future.

After all, a lender may let you use the equity you already have in your home to fund the purchase of an investment property. That means you may not need any further deposit. Meanwhile, the rent your tenant pays should help you meet the cost of taking out your new loan.

2. Renting and buying simultaneously

Think you can’t afford to buy where you want to live but still want to get a foot on the property ladder? Try the ‘Buy and Rent’, model. Under this strategy, which PIA pioneered back in 2005, you can rent where you’d prefer to be based on your lifestyle, study or work. If you earn $70,000 annually, you could buy an investment property worth $650,000 for as little as $42 a week, out of pocket.

3. Helping the children

Worried your children will never be able to afford to buy a property? By using the equity in your own home, you may be able to get into a property without the need to save a deposit. If they’re not ready to leave home just yet, you can secure and manage a tenant who’ll help pay off your loan until they do.

It’s never to later or early to start thinking about the future and making a plan, invest in property to secure a comfortable, stress-free future for you and your family, build your property portfolio and build your wealth.

CHf

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

CHf

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

CHf

Multimillionaires Have 4 Habits That Help Them Build Wealth

1q1

Do you want to know how to be a multimillionaire? One thing that you need to know is that multimillionaires don’t follow the same path towards their success. However, it is easy to decipher their financial success because there are several habits that they have in common. Below are some of the habits of financially successful individuals that you should emulate.

Optimizer

One of the traits that multimillionaires have in common is that they employ an efficient financial system. They put their bills on auto-payment to make sure that they are paid on time. They do this to avoid paying late fees.

They also invest money on a regular basis by deducting the amount from their paycheck, or from their checking account. Automating their investments each month is one step on how to be rich.

Pay Attention to Details

A multimillionaire pays close attention to all the details. One knows the amount of cash that’s sitting idle in a savings account and will invest them for a higher rate of return such as the right property. One will also notice when the phone bill or utility bill is higher than usual. One will find out why the bills are higher, especially if the consumption or level of service is the same. Another thing that a multimillionaire does is look at the terms and conditions before signing any contract. This will ensure that they get what they expect, and will not get any surprise expense in the future.

Continuous Learner

More often than not, successful people get a good education. They have a degree in a field that provides a high chance of earning big. Doctors, attorneys, and engineers earn more compared to teachers.

One can easily see the benefits of education are in the workplace. Engineers with four-year degrees often make more money compared to drafters and technicians who only have an associate’s degree or a high school diploma.

However, it should be noted that education is not always about making more money. Learning new skills can also save you money in the long run. Some skills that can be helpful include troubleshooting a computer, fixing stuff at home, and managing one’s investments, just to name a few.

Take Risks

If you ask a multimillionaire how to be rich, one will tell you to take calculated risks. Whether it is the stock market or real estate, there are some risks involved, but that didn’t stop them from investing. A lot of people fail to become rich because they fear the possibility of losing money. While becoming a multimillionaire is never a guarantee, exposing oneself to more opportunities can improve the chances of financial success.

These are some of the tips on how to be a multimillionaire. You can try to become rich by following what the multimillionaires do.

CHf

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

CHf

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.

CHf

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.

CHf

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

CHf

How To Acquire Your First Property Investment To Secure Your Future

An investment property can be a solid financial move for your future. Whether it’s to boost your retirement plan, retire early or set your family up, an investment property can be a step in the right direction.

You’re not just investing in property, you’re investing in a financial plan. Investing in real estate is a long term plan so take the time to talk to your partner and your finance broker about your plan. By setting clear goals and timelines, you’ll have a better chance of achieving them. Your journey to financial freedom begins here.

Step 1: Finance and Pre-approvals

It is important to consider your short and long term goals and review your finances. Check your credit rating – Start budgeting to ensure you are able to balance your income and expenses in order to plan for greater upcoming expenses. You should also consider reducing your credit card limit and minimizing your debt. Find out if you qualify for a bank loan – Discover your potential borrowing power by speaking to your bank, credit union, broker or financial adviser. Pre-approval comes from your mortgage broker or directly through your lender.

Step 2: Select and Reserve your Property

Explore and research the properties available, then compare and choose the one that suits you.

Step 3: Review the Contract

Your solicitor or conveyancer will review the contract for sale independently and make sure you understand what you’re signing up to. They will also negotiate with the seller’s legal representative on contract conditions, making the process of documentation and settling easier.

Step 4: Sign the Contract for Sale

If you want to go ahead with the purchase, you’ll need to return the signed contract.

Step 5: The Contract Exchange

Once you’ve exchanged signed contracts with the seller, you’ve secured the property.

Maximizing your Investment

After settlement, it’s time to take ownership and move in, or sign up your first tenant. For off-plan purchases, settled properties come with a 90-day warranty maintenance period. For any defect issues identified within the first 90-days after handover, these are submitted by the purchaser to the Builder on a warranty claim form.

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

CHf

The Simple Steps This Man Took To Reach Multi-Millionaire Status

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.

CHf

How To Start Your Journey To Becoming A “Multi-Millionaire”

Young Australians are moving away from the great Australian dream, as the path for 2018 is not as simple as working to save for a deposit on a house, starting your new life in it and paying off a mortgage. This method is simply outdated.

Adopting the direction of past generations is a harder path to follow as a first home buyer, with affordability currently a large consideration, so Australians are now leveraging property differently to benefit their futures. Smart investors reside in a Sydney rental property in areas they want to live and buy Sydney property in places they can afford and rent out.

The ‘Buy and Rent’ model was first conceived of by PIA (The Property Investors Alliance) in 2005 for Australians who want to leverage investment property for future financial goals, allowing buyers to maintain their current urban-city lifestyle, without sacrificing their financial goals. More than half of PIA’s clients say that their personal motivation for investing in property is to attain financial freedom. Buying a home to live in will not deliver financial freedom or additional income.

Saving a 10% deposit, plus the typical 5% costs of purchasing a million dollar property in their preferred location (in addition to the cost of lifestyle), first home buyers would be left waiting years until they can finally get their foot in the door of securing a property.

This is where the ‘Buy and Rent’ model (sometimes known as rentvesting) can provide a better solution – allowing investors to enter the property market sooner rather than later. Purchasing in a more affordable area – at half the cost – and renting out the property to pay it off, while continuing to live in a Sydney rental property in a great location, means making no changes to your current living situation, seems a much more affordable and practical path to financial gain and success.

According to a 2017 white paper from Ipsos, the rentvestor is becoming increasingly popular as 61% of ‘Generation Y’ are jumping on the trend, 41% of whom are single, and 81% who are choosing to live and rent in inner-city areas.

Two million Australians are property investors, but they’re not just investing in a property, they’re investing in a financial plan. The number of landlords in Australia is about 8% of the population, utilizing property to grow their wealth, while tenants pay down their debt.

Based on historical market performance, we have seen big profits from those buying Sydney residential assets.

Following the ‘great Australian dream’ model of working, buying and paying off a home, first home buyers now include Australians in their 30’s and 40’s. So we’re flipping it around and investing before purchasing a first home. It may, at first glance, seem a backward way of entering the Sydney property market, but it’s fast becoming the smartest and most appropriate way to take advantage of the current economic climate….and own a property.

*Information from this article was sourced from The Property Investors Alliance