Investment Property - Recently Updated Pages

Tip on a mistake made with Property investments

seqldproperty — Tue, 15 Sep 2009 10:40:02 CDT

Mistake #1: Jumping right in without enough of the right information
Fortunately for you, you are streets ahead of most other people here, due to the fact that you’re reading this book! It’s only a start, but information like this can literally save you millions of dollars over the next few years of your life. Information is that important.
We live in the ‘information age’, yet I’m constantly appalled at the lack of information gathering that the average property investor does before they spend hundreds of thousands, if not millions of dollars on a property.
Going off half-cocked and assuming you know everything you need to know is always a recipe for disaster. Remember, I’ve been doing this for over 26 years now, so I’ve seen them come and I’ve seen them go.
But information products like this one are absolutely invaluable. As I said though, it’s only a start. One common factor to all successful property investors is that they seek expert advice, early, and they pay for it. The modest fee for good advice is always far, far less than the price you’ll pay if you make a mistake with hundreds of thousands of dollars of somebody else’s money.
No man (or woman) is an island. Arnold Palmer, aged in his seventies, still hires a coach to help him with his golf swing, even after all these decades at the top of the game. There’s the ‘school of hard knocks’, and the school of ‘prior learning’. So, the ‘trial and error’ methods that used to be our only options are no longer needed.
Tip on a mistake made with Property investments

The benefits of Property investments are

seqldproperty — Tue, 15 Sep 2009 10:38:41 CDT

The benefits of Property investments are
1. Cash flow from property. This means the difference between your income and your expenses on that specific piece of property. Of course, this can be either negative or positive. You feel a lot better when it’s positive, but negative cash flow isn’t necessarily bad if it’s a planned part of your investment program. But be careful of the temptation to use up your whole cash flow on rapid debt reduction.
2. Appreciation in the value of a property. There are two kinds of appreciation, which we can call “external” and “internal”. “External” appreciation has nothing to do with the actual property itself but comes from economic conditions, land scarcity etc. Some people have made good deals by predicting where the next property “hotspot” will be and buying in hopes of quick appreciation – but of course, if you get it wrong, you are in trouble. “Internal” appreciation comes from improvement in the actual property itself and is easier for you to control. You can buy a piece of property in need of repair at its “as is” value, improve it and sell it on at a profit.
3. Leverage – being able to buy a piece of property by borrowing a percentage of its value.
No other type of investment offers such a high degree of leverage.
It is not unusual for investors to purchase a single family house by
obtaining 100 percent financing – i.e. “no money down” real estate investing.
This of course is very attractive if you can “flip” the property at a profit,
quickly repay the loan and pocket the difference. But of course this can also be extremely risky.
If the property doesn’t prove to be a good investment, you are in trouble. Never forget the loan is a loan and has to be repaid – somehow.

Depreciation with Investing Property

seqldproperty — Tue, 15 Sep 2009 10:37:16 CDT

Depreciation with Investing Property
A major plus with new property is the higher level of depreciation the property is likely to have. This depreciation can offset some of the holding costs in the early years while you steadily increase the rental return.
The key benefit with depreciation is that it reduces your taxable income effectively giving you more cash in your pocket to assist with funding the property.
In fact, the tax office admits that 52% of property investors don’t claim what they are legally entitled to.
Because they don’t know what they’re entitled to! (Of course now you won’t have this problem.)

Millionaire Thinking
Have you ever wondered why there are some people who seem to attract money and success throughout everything they do? And yet others seem to struggle, having small successes here and there, but never getting ahead? As you probably realize, the ‘strugglers’ often aren’t any less intelligent, any less confident, any less educated, than anyone else. So what is the key to success?

Peter Morris

Millionaire thinking with Investment Property

seqldproperty — Tue, 15 Sep 2009 10:31:36 CDT

Have you ever wondered why there are some people who seem to attract money and success
throughout everything they do? And yet others seem to struggle, having small successes
here and there, but never getting ahead? As you probably realize, the ‘strugglers’
often aren’t any less intelligent, any less confident, any less educated, than anyone else.
So what is the key to success? Millionaire thinking with Investment Property
I have the key to success in the book, for you, right now. And if you’re ready for it,
the secret to success is going to change your life, for the better, and fast.

When you have the key to success, you will finally know just how successful
people become successful, and how everyone else can’t seem to find the way despite their best efforts.
Millionaire-thinking-with-Investment-Property

by Peter Morris

How to create wealth from investment property in Brisbane Australia

seqldproperty — Tue, 15 Sep 2009 10:24:57 CDT

How to create wealth from investment property in Brisbane Australia

More than 90 % of all millionaires in Australia are using real property to become wealthy.
The strategy to investing in residential property that produces rental income is to insure it is
properly financed so you can get the maximum tax advantages whilst you are earning an income.
As the property increases in value along with your rental income you then asses you position to
refinance your loans and purchase another Short-Term or Long-Term Investment.

Many property investors go into investing in
property with a short-term view. The main reason for this short-term investment attitude is
driven by the media so they can sell newspapers and strike fear into people to promote their
own media agenda.
The strategy behind ‘buying and keeping’ investment property for the long term can be hard
for some investors to understand. The reason for that is many believe the only way to make a
profit is to buy and sell after a period of time.
However, by keeping your investment property for the long term you can borrow against the
increased equity to purchase more property and put your profits to work.
Furthermore, unlike traditional funds such as superannuation, shares and managed funds,
the value of your investment property does not suffer due to variables such as; fuel costs,
share value, high unemployment or interest rates in the long term.
Why? Because for the past 100 years, the combined returns from rental yields and capital
growth on residential investment property has averaged more than 15% per year compound,
and with gearing this can increase dramatically.
Plus, investing in property lets you create wealth faster than traditional saving, shares or
superannuation, gives you long-term financial security with minimal risk and gives you a
strategy if you require funds to borrow against the equity of one of your investment
properties.
In summary, negotiating a bargain price, finding the best interest rate, deciding when and
where to buy and when to sell are extremely important for short-term property traders or
renovators.
However, with long-term property investment, the purchase price, interest rates and timing
are less important because of the levelling effect of time. This means that the longer you
hold an investment property the more you get out of it, therefore the best time to
purchase is today
If you desire a pension plan with financial security and returns that supersede other
investment strategies such as shares, term deposits and managed funds, property investment
is a sound and proven way to create wealth for your future for little effort and big return!
To find out more about getting started on your path to investment-property success or to
review your current investment-property strategy, please contact me using the details below,
and don’t forget to download a free e-book full of valuable information on the Basic Principles
of Property Investing For Wealth Creation at: www.seqldproperty.com.au.

Investing property for future growth in Brisbane Australia

seqldproperty — Tue, 15 Sep 2009 10:23:34 CDT

Investing-property-for-future-growth-in-Brisbane-Australia
Growth in Brisbane's property market.
Brisbane's population growth is up to 40,000 people per year, which means an estimated 6000 new homes each year.
As there are simply not enough properties available to house everyone migrating to the
Brisbane regional area, Brisbane's rental vacancy rates are likely to remain at historic
lows for the foreseeable future? As this will have an upward impact on rents and positively affect rental yields,
investor demand will return. Investing property for future growth in Brisbane Australia.

The biggest mistake most people make when starting a investmentproperty portfolio!
Most people thinking of investing in property see a financial planner, however,
financial planners are focused on steering people towards investment strategies such as
stocks, shares, superannuation and managed funds.
This means that many of them may have a hidden agenda as they are controlled and owned by bigger financial
institutions to sell their products and services. Now, to put that point into perspective,
consider this.
A report by the Research Association of Independently Owned Financial Planners
discovered that a staggering 90% of financial planning advice shared with consumers
was delivered by financial planning organisations that were owned by large institutions.

Build net worth and equity in an investment property in Brisbane Australia

seqldproperty — Tue, 15 Sep 2009 10:21:53 CDT

Our aim is to educate you to educate in order to help you make an informed decision and enjoy a
long term profitable relationship which will help you build your portfolio beyond your first investment property.
Worth and equity in an investment property , as your property increases in value, so does your wealth.
Your property then becomes worth more. This is an old fashioned principle of buy and wait.
Buy at today's prices and with time, your asset will grow in value because of local appreciation.
In addition, your equity will grow.
Worth and equity in an investment property in Brisbane Australia

The ‘average aussie’ can get rich by investing in property!
Yes, you can do it too. I know that some of you reading this book will be looking for your first ever investment property, and I bet it all sounds extremely daunting right now, but I have some more good news for the brand new investor…
Over 70% of all property investors in Australia are on
incomes of just $35,000 to $40,000 a year.
You don’t need to already be wealthy to invest in property, in fact, it’s the other way around – you invest in property, and then you get rich! This has a lot to do with my first topic…

Searching for investment property in Brisbane Australia

seqldproperty — Tue, 15 Sep 2009 10:20:43 CDT

Searching-for-investment-property-in-Brisbane-Australia

It is imperative you maintain a business outlook when considering an in vestment priority purchase.
Your new property is purely a tool or vehicle to enable you to obtain benefit from the Capital Growth
along with the rental income. Our experience for
Searching for investment property in Brisbane Australia will assist you in making an informed decision.

Hello, and welcome to Basic Principles Of Property Investing For Wealth Creation. My name is Peter Morris, and I’d like to thank you for taking the time to educate yourself in investing for a better future.
If you’re relatively new to investing, no doubt you’ve heard plenty of stories about people becoming financially free through property, the lifestyle, the income, the net worth, and all the perks that come with the territory.
Well, all that can be true for you, as long as you go by some simple rules and you educate yourself on some basic techniques.
It’s a lot simpler than you may think!
We all know that property investing is good, but why is it so good in our current economic climate?
Well, more than 90% of all millionaires in Australia actually use real estate to become a millionaire. What this means is that you can start out small, borrowing only a few hundred thousand dollars, and your investment property, if it’s chosen by following the instructions in this book carefully and exactly, can grow so much it makes you a millionaire without you having to go out and physically earn the money! That’s the beauty of property investing; you can literally get rich without the risks of many other methods.
But who am I and how am I qualified to tell you how to get rich with investment properties?
I’m the owner and operator of South East Queensland Investment Property, with more than 26 years of extensive experience in:
1 Investment property sales including house and land, townhouses and units.
2 Residential property sales
3 Commercial property sales
4 Commercial property leasing

Secure your financial future with investment properties in Brisbane

seqldproperty — Tue, 15 Sep 2009 10:19:07 CDT

We are always hearing about the great financial benefits of owning an
investment property, but how do you go about getting a piece of the action?
Can you improve and secure your financial future with investment properties in Brisbane
Real estate expert Peter Morris has some suggestions:
Now get ready and do it now. The Real estate market is climbing up and up.
Be sure to buy at mid range price for the area. This will be the most
saleable when you are going to sell later on.
We recommend purchasing new properties for the following reasons:
1. Tenants prefer new properties to rent
2. Zero maintenance in the early stages
3. Tax benefits
secure your financial future with investment properties in Brisbane

Find out about investment properties in Brisbane

seqldproperty — Tue, 15 Sep 2009 10:15:14 CDT

Learn From the Property Investment Expert Peter Morris and save time in making a selection.
"Making a selection is important as it means a higher yield in the long-term",
Setting your long-term goals too high can be a problem, each step must be properly analysed. Find out about investment properties in Brisbane with us and we can show you how to properly plan each step. Find out what rent you should be getting
in return for your investment. There are benefits of having investment properties in Brisbane.
A keen investor will analyse all avenues before making a decision, at seqld property.
We provide Substantial information to help you make an informed decision.

90% Of Australian Millionaires Used Real Estate To Create Their Wealth.
Here Is The Strategy Behind ‘Buying & Keeping’ Investment-Property
That They Used!
With more than 90% of all millionaires in Australia using real estate to become millionaires,
the strategy to buying residential investment property that produces income is to make sure it
is financed correctly so you can maximise tax benefits while you are employed.
After a period of time your property value and cash flow will have risen. At that time, you’ll be
able to refinance your borrowings which will then enable you purchase another property.
This strategy gives you the option of retiring earlier with an income producing portfolio behind
you and if you need to reduce your borrowings upon retirement you can always sell a
property or two in your portfolio.

When can I find out about investment properties in Brisbane

seqldproperty — Tue, 15 Sep 2009 10:13:48 CDT

The answer is simply Now, there is no need to rush, but it always good to the correct information at your fingertips.
Your financial goals are very important to your well being, having a positive return from a Brisbane
investment property is what we are about.When can I find out about investment properties in Brisbane
The right Investment Property in Australia can be hard to find if you do not know where to look,
by taking the guess work out we provide simple instruction.When-can-I-find-out-about-investment-properties-in-Brisbane
Remember property investment is a long term strategy. The idea is to accumulate property during your
working life without affecting your lifestyle. When can I find out about investment properties in Brisbane
We offer easy investment strategies and offer unique advice to our clients. Invest in Brisbane with
confidence with knowing we are with your each step of the way.

Investment Property Home

seqldproperty — Tue, 15 Sep 2009 10:12:19 CDT

Why invest in Property investments

seqldproperty — Mon, 08 Jun 2009 01:00:12 CDT

I said earlier in this book that more than 90% of millionaires in Australia became millionaires through owning and investing in real estate. Well, that’s reason enough for most people!
Why not get a higher paying job?
The problem with employment is that you are trading your hours directly for a wage or a salary. And your time, however much we have, is limited. Even if we could somehow work 24 hours a day, that still limits you to a certain level of income. And your time is probably worth a lot more than any employer is willing to pay you. You can always keep your job and be a successful property investor if you want to keep your paycheck, this will eliminate the need for you to feel pressured into working longer hours, or even worry about job security at all. And it’s my job to see that you don’t need to keep your job just for the money. You’ve going to be a more successful investor than that.
Why not shares?
As I write this, the US economy has just taken more hits, sunk lower still, and of course our market follows suit the very next day. I know people who have been down tens of thousands of dollars on their share portfolios for a year or more, it’s been a tough 3 years. But the real estate market has gone from strength to strength; it’s been difficult to find areas where values are going down. Property is seriously the best investment in Australia at the moment, and I can’t see that changing in the short term.
Why invest in Property investments
Why not start a business?
The facts are there for us to see, 80% of all businesses fail within their first 5 years, and of the remaining 20%, 80% of those businesses will go broke in the next 5 years. Besides, property investing is all about lifestyle, you can easily have passive income as well as capital gains. But most people who go out and buy a franchise, or start a business with their idea, just end up buying themselves an expensive job.
Here’s something to think about if you’re still not quite sure whether you should invest in property…of the successful business owners and share traders I do know, guess what they do with their profits? Yep, they invest in property! They do their thing, and they end up right where you are now, investing in one of the most secure investments in the world. Wouldn’t you rather get a head start on them?
I bet you hear reasons not to get into real estate all the time. ‘The market’s flat’, ‘it’s too late’, ‘it’s too hard/expensive/complicated’, and of course these are just excuses made by people afraid to try investing.

Why invest in Property investments

Advice on why the house you live in is not an asset with Property investments

seqldproperty — Mon, 08 Jun 2009 00:58:52 CDT

Why the house you live in is NOT an asset
Many people like to talk about your home as being the biggest asset most people ever buy. But it’s not actually an asset at all.
In finance, there are assets and liabilities. An asset is defined as something that brings money in, while a liability is something that costs you money. Basic wealth creation says that if you can have assets which produce more money coming in than money which goes out via your liabilities, then you’re increasing your wealth.
Most people buy liabilities, such as cars and other ‘toys’, which is why 95% of the population ends up without enough money to comfortably retire on. Here’s why your house is a liability, rather than an asset:
You cannot rent out the home you live in; you can only rent out a flat or a room on the property. You have expenses for your home, bills, maintenance, and so on. To work out whether your home is an asset or a liability simply add up any income from tenants who also live on your property, and take away the total of your bills and other expenses. If you end up with a negative number, that is, your bills and expenses exceed the income you make from your home, then it’s a liability. Advice on why the house you live in is not an asset with Property investments
But what about capital gains, you ask? Won’t my home be worth a lot more when I sell it? (Assuming your property does rise in value, most do). Let’s do a quick example – you buy your family home for $50,000 in 1990. You sell it for $200,000 in 2000. That’s $150,000 you’ve made over 10 years, right?
What were your expenses on the house over those ten years? Does $20,000 per year seem about right? This includes, bills, insurance, maintenance, renovations, council rates, interest on your mortgage, etc, etc, etc, it’s starting to add up, right? That makes for a total of $200,000 you’ve paid over the ten years, vs. the $150,000 in capital gains. So, unless you can make up the missing $50,000 by renting out a room, you have a liability, not an asset.

Advice on why the house you live in is not an asset with Property investments

Leverage with Property investments

seqldproperty — Mon, 08 Jun 2009 00:57:55 CDT

Leverage, and using other people’s money
Our grandparents used to have a row of jars on the shelf, one for the car, one for a holiday,
and every spare note or coin they had went into one of the jars, and when it was full, they took
it and bought whatever they’d been saving up for. Our parents started using consumer credit a bit
more, but still had the attitudes of their parents, so we have been taught and conditioned that all debt is bad.
I’d like to take a new angle on debt, using our previous conversation on assets and liabilities.
There is ‘good debt’ and ‘bad debt’. Quite simply, if the debt you have is producing income,
then it is good debt. If the debt you have is costing you money, such as a car loan or a credit
card, then it is bad debt. Leverage with Property investments
But without debt, how are you ever going to invest in property? I mean, even if I saved up for
years to get to the position where I could literally bring a briefcase full of cash to an open
inspection, I wouldn’t even consider using my own money. Leverage with Property investments

Why?
Because borrowing money from the bank is leverage. Leverage is defined as doing more with less.
The ancient scientist Archimedes said “Give me a lever long enough, and a strong place to put it,
and I will move the world”. And he meant it literally. Just as a crowbar can open a stuck door,
other people’s money enables you to create wealth without using your own money. You can now stash your money away safely.

What can I do to protect my Investment Properties

seqldproperty — Mon, 08 Jun 2009 00:56:38 CDT

What can I do to protect my Investment Properties
Insurance is available so that in the event of a loss (by an insured event) you will be protected and covered.
In order to reduce the chances of a loss you can however take certain steps to help. These include:
1. Make your property more secure by installing deadlocks on doors and locks on the windows.
2. Install an alarm system. Many insurers will offer a lower premium because you have lowered
the risk of loss through theft. For certain postal areas a minimum level of security will be required.
3. Remove potential fire hazards from around the outside of the house as well as inside, particularly around the kitchen.
4. Make sure you have working smoke detectors and a suitable fire extinguisher.
What can I do to protect my Investment Properties

Taxed at the company rate with Investing Property

seqldproperty — Mon, 08 Jun 2009 00:56:05 CDT

Investing through a company provides a separate legal and taxable entity,
but still allows individuals to have control of the company’s assets, such as properties.
All income and expenses are allocated to the company, and any profits
the company makes will be taxed at the company rate, of the company
can distribute profits to the shareholders of the company via dividends.
This provides a level of asset protection, as well as some tax benefits.
Taxed at the company rate with Investing Property
People can acquire ownership in the company by buying shares.
Often the shareholders are also directors of the company. You will need advice from your accountant!
Advice with Investing Property
Taxed at the company rate with Investing Property

Some of the common reasons people fail to invest in property!
There are no magic bullets when it comes to investing in property, only to say you need a
experienced investment-property professional to support you, a goal and strategy that’s
consistent and proven to work.
Based on my 26 years of property-investing experiences, the common reasons most people
don’t take action to invest in property are;
• they think it’s all too hard to put together
• they let ‘fear’ of losing everything hold them back,
• and a lot of people think they don’t have the money or equity… which in most cases turns
out to be incorrect, once they speak to their investment-property professional.

Maintenance with Investing Property

seqldproperty — Mon, 08 Jun 2009 00:55:28 CDT

A new property is also likely to involve less maintenance in the early years. As a property gets older it will experience wear and tear and things will need replacing or fixing. If the property is constructed from timber then painting will become an issue at some point.
Maintenance with Investing Property
Even little things like leaky taps, or loose door hinges can add up over a year eating into your rental return.
Transfer Stamp duty
Transfer stamp duty is a government duty that is charged based on the value of the property being transferred which is specified in the purchase contract. Duty varies from state to state but I will only be referring to Queensland for section.
Maintenance with Investing Property

Choosing a suitable location with Investing Property

seqldproperty — Mon, 08 Jun 2009 00:54:06 CDT

Choosing a suitable location with Investing Property
Location, location, location
Whether you are purchasing new or existing this really has to be your primary focus. Once you buy a property you can always change its look but you can’t its location.
There would be little point purchasing a new property because it had great depreciation if it was in a lousy location with limited growth prospects.
There are varying views on what makes a good location but in general I believe the area should have a number of things going for it that will provide long term sustainability. Such as:
Having a number of different industries that will provide employment rather than just one. For example not being solely reliant on tourism.
Existing or planned infrastructure such as school, shops, transport, urban development. If there is nothing on the horizon then there is not much to drive growth
That the market is not already over-supplied. If there is a glut of stock on the market then that will delay any upward growth
That the market has a good level of owner occupants
If the area just doesn’t stack up then you move onto the next. Once you have decided that an area is worth further exploration then you can start narrowing down to individual properties.
Choosing a suitable location with Investing Property

How to choose Investment Property for your plans and finances

seqldproperty — Mon, 08 Jun 2009 00:53:32 CDT

How to choose the right property
New versus Existing property…
Just as there are many choices about where to invest in property. Another question becomes whether to
invest in existing stock or to seek out new projects.
Today I’m going to share my thoughts on the things I would be considering in relation to property
selection and some of the pluses and minuses to consider for new versus established property.
Hunting for the right property is not only time consuming it requires extensive knowledge and understanding of the market.
How to choose Investment Property for your plans and finances
Say No to Greed
Many landlords overprice properties and try to hold out for months to find a tenant willing to pay.
If your rent is unrealistic you will not rent the property no matter how long you wait.
Price just below the market as waiting around losing prospective rent for months before realising you need
to drop the rent will mean a sever loss of income.

How to choose Investment Property for your plans and finances