www. PowerPagePublishing .com

So now we are all set up and have our deposit wether it be a line of credit drawn from the equity from our existing home or you have raised the deposit from other means which may include saving the deposit (this is the hard way) share trading, internet marketing, robbing a bank (just kidding) or whatever.  

There are many different factors to consider when buying your first residential investment property and it’s important that you target areas of high population and job growth as there is a much better chance of finding and keeping tenants. As well as buying in the right location the other critical factors to consider are that we buy at the right time of the property cycle in other words not when property prices have reached their peak. The third important factor is to have at least 30% land content represented as part of your purchase price. Let’s break these down one at a time. 

1.      LOCATION – when people look for a place to rent they will target places that are close to their employment, to schools for their children, close to medical facilities, sporting and recreation facilities, entertainment venues etc. You will also need to target an area with low vacancy rates preferably 3% or less. You can find this information out simply by asking real estate agents how many homes they have on their books and how many are vacant and then simply do the maths. I also like to target areas that have a high portion of owner occupiers as there is less competition and owners tend to look after their property better, stay longer, and add additions to their homes therefore adding more value.  

2.      TIMING – most Australians will remember the huge property boom in Perth that began in 2006. House and land packages were selling for 280k and within 18 months the same homes were valued at 450k. When do you think was the best time to buy? Certainly not at the peak. This is where a lot of first time investors come unstuck because they believe and follow the media frenzy instead of doing their own research and using such tools as the Australian Bureau of Statistics and many other online tools such as www.realestate.com and here’s a new one I found just the other day - www.homeguru.com.au/postcode/ .  

3.      LAND CONTENT – the number one rule with property is that land will increase in value over time and buildings will decrease in value. We have all probably seen instances when a little 2 bedroom holiday house has been bulldozed to make way for a brand new complex. They are not making any more land so as our population expands, land will become scarcer and if you buy with the right criteria in mind as listed above there is a good chance your property will increase in value quite quickly. Most first time investors will go out and buy a flat or a unit in a high rise apartment complex so when you think about it if the land is worth for example 100k and the apartment complex is worth 500k and there is 20 units in the complex, your one unit has a 1 in 20 share of the land value. So realistically, a large portion of the investment you purchased is going to devalue as there is very little land represented in your purchase price (the appreciating asset). Also in an apartment complex you will be competing against other landlords for tenants so there may be a chance your investment will be vacant for longer periods. 

 In part three we will be discussing your 3 main sources of income to fund your property. Before making decisions please seek proper financial advice from your accountant, property specialist or accountant. 

All the very best

Anthony Shaw

PS – feel free to join our Facebook group “Australian Property Investors Chat Group” here and add me as a friend.

This is a question I hear a lot when I discuss our property portfolio with friends but before we go into the details we must remember some very valuable advice that John Fitzgerald from Custodian Wealth Builders gives us.

To be a successful investor we need to be 3 things

1. Positive

2. Responsible

3. Proactive.

If you think of the opposites to all the above and if you fall into any of those categories then you may have to start asking yourself a very important question – “Do I have the right mindset and approach to be an investor? Having said that I remember when my wife and I were just getting started and at social events I would be like a rooster in the hen house who just found something wonderful to eat. Id be crowing about how wonderful property investing was and telling everyone that they should get into it but was amazed of the negativity of some people as they would tell you every reason in the world why you shouldn’t get into property. (How many of you have had that experience eh)?

To make matters worse when beginning investors start out they may go to a conference or event of some kind and get heaps of great information then come home and get advice from their family and friends who are of course experts in the field…..well offer you so much advice about why you shouldn’t get into investing you’d think they were.

So how do we get started then? The majority of people don’t take this path till later in life when they have built enough equity in their family home. So what happens if I don’t have a home with heaps of equity you ask and you just want to get started now? Well of course this will depend on your current financial position but to get started you of course have to make a deposit for your property and it doesn’t really matter what stage of our lives we are at, we could all use some extra cash and one of the ways my wife and I did that was to investigate some of the many hundreds of ways to make money that a guy called Jamie Macintyre speaks about. In fact after we ordered his free $99 DVD (click here for a copy) – (oh and ask them for the free e-book too) - and later attended a conference, we actually bought this internet business.

There are many, many different ways to make money once you start educating yourself about how to do it. So wether you make money from your job, supplement your income and speed up the process using some of the different strategies mentioned in the free DVD or e-book or you already have a heap of equity in your current home to start out, you are going to need a deposit. Before the global financial crisis money was very easy to get hold of but things may have been tightened up a little bit since then but don’t despair, you just need to keep looking until you find the right lender.

So let’s say you want to go out and buy your first investment property for about $300,000 so you will need between 10-20% deposit – 30k to 60k. The next question I get asked is “what about all that debt and how can you afford it”? Well to start with its good debt or an asset….not a liability. In other words you are buying something that you know will go up in value over time provided you buy wisely and do your research and of course educate yourself about property investing. Don’t just go and buy the first thing you see or buy it because its close you where you live and you can drive past and admire it every day. Also don’t think that you will be a millionaire overnight because you will need to be committed to buying and holding your properties for as long as you can. You must buy in the right location, with the right amount of land content and at the right time of the building cycle (more about this later).

The main thing to remember is that you will not be paying your investment loan off completely out of your own pocket. You have three sources of income when buying investment properties in Australia (and other countries) and they are;

1. Rent

2. Tax deductions

3. Depreciation

We will start to break these down into more detail in future posts but remember before you start, it’s important that you seek proper financial advice from those who specialise in this area as everyone will have different circumstances. I am not a financial advisor and certainly don’t profess to know everything about property investing but I would love to share my knowledge, my experiences, my mistakes and journey with anyone who wants to learn and take or continue this journey for themselves……to be continued.

All the very best Anthony Shaw

PS – feel free to join our Facebook group here and add me as a friend.

Looks like Sydney may be about to take off – here is part of a recent article I read. "A modern, globalised city, Sydney is the capital of Australia's leading business state, New South Wales and is regarded as the financial hub of the Asia-Pacific. Sydney has a diverse population of 4.3 million and attracts half of all international visitors to Australia and more than two-thirds of international business travellers. Sydney’s well-educated, multilingual workforce underpins its international reputation for innovation and enterprise.The popularity of this city is demonstrated by its dense population and limited property supply. These market characteristics are why many commentators recognise the Sydney property market as the ultimate investment opportunity. ‘Primed for growth after years of flat prices and with the largest dwelling shortage in Australia, Sydney offers the best location for property investors this year,’ Residex CEO, John Edwards, said after the release of the March 2009 quarter residential property statistics. ‘It will be further into the correction phrase and has the largest potential housing shortage,’ Mr Edwards said. Residex statistician, Matthew Hodge, says that the historically high capital growth in Sydney is partly due to its dominance as the first major capital city of Australia. ‘It has had a longer time to establish itself as a place to live and a place to do business in,’ Mr Hodge said. ‘These qualities are, to a certain extent, self-perpetuating. Most businesses tend to locate themselves in major business areas and most people looking to move to a city tend to move to the largest city. ‘It is difficult to see it being displaced as Australia’s major city in the short to mid-term future,’ he said. Property market commentators agree that Sydney’s large population and small useable geographical area will continue to drive prices higher. Mr Hodge explains how capital growth makes Sydney an attractive opportunity for property investors. Sydney houses Residex’s predictive model suggests that Sydney houses are one of the best prospects for growth of all capital city markets in the medium term. The median house value grew by $4,000 in the March quarter to reach $564,500, which was the greatest increase in dollar terms of any state capital city. Sydney’s median house value is the highest in Australia.Sydney retains the highest median house rent of all capital cities ($495 per week). Rents have risen by 7.6% overall during the past 12 months. This increase was the most of all capital cities. The gross house rental yield is 4.6% and is likely to reach 5% by the end of the year. . Sources ‘Sydney is the world’s favourite city brand again’, Anhold City Brands Index. ‘Designing for diversity: the multicultural city’, Department of Immigration and Citizenship. ‘Sydney: a global city for the world of business’, NSW Government. ‘Residential property return report’ March 2009 Quarter, Residex NSW. ‘Sydney best for housing investment’, Your Investment Property, May 2009. ‘Investing in Sydney property’, Residex. ‘Sydney and Brisbane – a tale of two cities’, Residex. ‘Welcome to Sydney’, Defence Community Organisation

PS - Also Folks I found this great online property shop, its got everything, check it out - Property and Housing Products Information Store
 

“As a general rule in Australia, houses don’t get half their value wiped out overnight”.

However, everything must be done in moderation. Shares can be an excellent income supplement to help you service your loans if managed correctly. The trick is to diversify your investment portfolio and not put all your eggs in the one basket.  At the end of the day however, my opinion is that houses win hands down. Let explain why.

Lets say that I go out and buy a property and my mate Roy buys shares. Now lets asume that at the time we both have $40,000 cash (as a deposit) to invest..er I wish :) For a property, banks will loan up to 90% (sometimes 100%) and for shares they will generally loan up to 60%. With my deposit of 40k I can borrow 360 k (90%) therefore 400k in total to invest in property. Roy with his 40k can borrow 60k (60%) therefore 100k to invest in shares. 

Now here is the big difference. Over the last 100 years in Australia, residential house prices on average, every year, have gone up by 10%. Some times they will go up much more than that (Perth in 2007/2008 rose 36% in some places) and sometimes less but on average 10%. Now if at the end of my first year I get 10% growth on my 400k investment that will be 40k ROI. My mate Roy on the other hand …er well lets be generous and say he gets a return of 12.6% growth on his shares, that will mean he has made $12,600 ROI. 

Now lets think back to how much of my money I actually invested in the first place. It was 40k and I made 40k in equity growth therefore in reality thats a 100% ROI. Now of course thats not going to be clear profit as you are going to have costs involved with managing and maintaining your property but there are many ways to reduce costs and minimise tax (but more on this later). Imagine if you had 10 propertys working for you like this. 

Some people use many different strategies from renovating to adding value or developing properties etc. If you can afford to hold your property it is going to benefit you in the long term because this is how to get compond growth (growth on growth).  

Most people will never invest and will always procrastinate or ridicule those who do however it doesnt matter what you do with your life but do something. In future blogs, we will talk about ways minimise the costs of holding an investment property.

Todays words of wisdom -   “DO IT NOW – JUST DO IT. Make a start, just a small start…anything but if you “do what you’ve always done you’ll get what you’ve always got”.

NEWSFLASH.  VICTORIAN BUSHFIRE APPEAL www.powerpagepublishing.com WE ARE A SMALL FAMILY BUSINESS AND HAVE COMMITTED THAT FROM THIS POINT FORWARD UNTIL THE 1ST OF MARCH 2009, OUR SOLEMN PROMISE IS THAT WE WILL DONATE 100% OF ALL SALES TO THE VICTORIAN BUSHFIRE APPEAL.ALL books sales, ALL audio, ALL software that is sold on this site until the first of March 2009 will be 100% donated to our Victorian friends who have lost everything – please help us to help those who have lost family, loved ones and their possessions. THIS IS A GENUINE PROMISE AND COMMITMENT TO HELPING OUR FELLOW AUSTRALIANS - WE WILL BE HAPPY TO PROVIDE ANYONE WITH A COPY OF OUR BUSINESS TRANSACTIONS THROUGH PAYPAL AS PROOF AND ALSO COPYS OF RECIEPTS FROM THE AUSTRALIAN RED CROSS BUSHFIRE APPEAL AFTER THE 1^ST OF MARCH TO PROVE THAT WE ARE COMMITTED AND GENUINE.We started doing this by emailing our friends and asking them to forward the email on but now are going from website to online chats, blogs and any other way we can get the message out there. Please help us to help our Victorian friends.

Sincerely

 Anthony & Allana

12/02/2009

Well folks, the number of hits on our site has reached 200 people in 3 days but not many sales just yet for our bushfire appeal. A Big thanks to Bernadette who has taught me how to spell solemn J and whose sister has been a bushfire victim and brother a CFA fire fighter…great to hear from you Bernadette and we hope your family is safe and well.  

I was talking to a friend in Canberra today and he tells me that he is travelling down to VIC this weekend and will hand over the car keys to his VT Commodore to the Red Cross on the condition it goes to a needy family and preferably someone who didn’t have their car insured…..now doesn’t that just make you proud to be an Aussie !!! We would love to hear any great stories like this one if you have any – just scroll down and click on the blue"Add Your Comments" tab to post a message.

Kind regards

Anthony

www.powerpagepublishing

Hi Folks

Its time to learn all about Boxer Dogs. Tonight we launch our seccond ebook and it is the ultimate guide to making your Boxer happy , healthy and obedient. Discover the secrets about the Boxer dog breed and all about some great boxer dog training techniques that will benefit both you, the owner and of course your favorite pal. http://www.powerpagepublishing.com/pet-care/boxerdogs/

There are 10 chapters of great boxer dog information that will help you understand the boxer dog breed so that you can have a happy and long lasting relationship for many years and truly gain the benefits of understanding your dogs behaviour. The important thing is, this book is written by Boxer Dog owners not so called dog experts.

Did you know for example that boxer dogs are great with children and infact most boxers will prefer children to adults. The boxer has a gentle nature and loves to romp and play. "If you have a boxer, make sure you have kids" said one owner.

This fantastic book will tell you all about the history of the boxer and one of the most commonly asked questions - "how can I train my boxer to be obedient" ? 

Anyhow, we hope you enjoy our book and get to spend many happy and enjoyable years with your boxer dog.

Kind regards

Anthony and Allana

www.powerpagepublishing.com

Dear Friends

Today we launch our very first amazing ebook from our "Wellness" category - The Magic of Honey and Its Many Uses http://www.powerpagepublishing.com/wellness/honey/. This incredible ebook actually took me by surprise as I have grown up around honey bees as my grand father was a beekeeper for 35 years. After my grandfather read the ebook, he too was just amazed to discover all the different uses of honey.

For example,

• for those of you who may suffer from dried lips, did you know that you can make a very effect lip balm by mixing vasoline and honey together.
• Did you know that honey does not go off and in fact they have found edible honey in Egyptian tombs. Honey just goes candy and you can bring it back to its original composition by gently heating it - thats right, dont throw it away as there is absolutely nothing wrong with it
• Did you know that honey has medicinal and medical uses? You can actually apply honey to wounds because it has amazing properties.
• plus many other ways on how to use honey that you would never even have thought of. The following is a small extract from our book -

Honey is a great treatment for abrasions, as well as burns. Honey is a bet for dealing with your scratches and scrapes for a few distinct reasons. First it reduces swelling by drawing excess moisture from the tissues when applied to the skin. Although honey is a liquid, it is a thick and "thirsty" liquid that actually soaks up moisture on contact. Secondly, honey contains an antibacterial substance known as inhibine. Inhibine helps starve off infection. Although the level of inhibine in honey is not nearly as powerfull as a prescription antibiotic, it can help tremendously in fighting infection when applied to scrapes and other abraisions.

So who would have thought that honey could have such amazing properties not to mention the mouth watering honey recipies included in this ebook AND heaps more information on how you can start to replace sugar with this healthy natural product. The book also explains the benefits of honey and cinnamon and who doesnt love a nice warm glass of milk and honey with a yummy chock chip cookie!!!

If you want to save money and lead a healthier life, then this great value for money ebook is for you - PLUS you get a free ebook titled "Vinegar For Your Health" that also sells on our site for $9.95 - PLUS we throw in a free audio version of the honey book in downloadable MP3 format - On top of all that… if you are not happy with your purchase - you get a 100% money back garantee.

Our vision is to have one of the most successfull ebook websites on the internet today and we greatly value our customers and treat them with the respect they deserve. You alone are the judge of good value - if your not happy then neither are we and we do not want nor expect to keep your money. 

So you have nothing to loose, hurry and order you copy now while this generous offer lasts.

Kind Regards

Anthony and Allana

www.powerpagepublishing.com

OR - Please give us a call if you would like any information about our products

Dear Friends - Welcome to Power Page Publishing you online ebook and software download store. We offer quality books on many various topics with more being added all the time. Our family takes pride in sourcing the highest quality ebook information products and software programs from all corners of the globe.

Why wait weeks for a book to be delivered when you can down load one in seconds PLUS if you're not happy, we're not happy either. So if you're not happy with our products we do not expect … or want to keep your money therefore we offer our customers a 100% satisfaction money back guarantee.

We became involved in this business through meeting some wonderful people at a wealth building seminar in Melbourne Australia in March 2008 - check it out http://www.21stcenturyacademy.com.au/cmd.php?af=752668 and it has helped change our lives.

My wife and I have committed to donating 10% of all sales to Camp Quality and Make a Wish Foundation, two excellent organisations that help children with terminal illnesses. Please suport us so we can suport these kids.

Kind Regards

Anthony & Allana

www.powerpagepublishing.com

Please give us a call if you would like any information about our products

PH:  61261004401 (02 61004401 Aust)

Click here for our Full Range of Digital eBooks, Audios and Software Programs at www.powerpagepublishing.com

OR - Please give us a call if you would like any information about our products

PH:  61261004401 (02 61004401 Aust)