ARE YOU LOOKING FOR CAPITAL GROWTH?

We find that nearly all people we meet with that have investment properties are not maximising the benefits of owning an investment property.

If we can provide a simple scenario whereas a couple purchase an investment property and we ask why? generally it will be 1) to create wealth, 2) provide a solution for the next generation 3), to help pay off debt 4) reduce tax being paid

Out of the 4 points above - nothing is more important to your financial prosperity than reducing the amount of tax you are paying and arranging to receive any tax relief via a tax variation authority (TVA).

Regardless of the pro's and cons of a TVA, what you need to understand is that there is no magic silver bullet. It becomes a pretty simple equation. The first thing anyone needs to do to become financially free is pay off any debt outstanding.

To pay off mortgage debt, there is one major factor that will help you achieve this - CASH - FLOW

When investing in property we tend to focus way too much on capital growth. Sure you do not want to buy an asset that reduces in value, however relying on growth is like picking the x lotto numbers - who knows what is going to happen.

If you own that property freehold and it gives you an income that is fixed by term leases, does it really matter what the price of that property is today?

Capital Growth should be seen as the cream of your investment and should not be included in future return projections.

I have spoken to hundreds of people who have sold their investment properties as they were not seeing any growth in the value and it was costing them financially to hold the property.

A simple Tax Variation Authority aligned with a strategic offset mortgage structure would have made all the difference to these people.

Once you get your head around debt, cash flow and freehold ownership you will see rapid improvement in your finances.



Buying an investment that is going to work for you requires a lot of knowledge, skill and time.

Before rushing off and making a mistake that could cost you hundreds of thousands - find someone to help that isn't going to see you as a one off purchase. If you can find someone who is experienced in rapid debt reduction through investing that can assist, coach and mentor you any costs associated will pay for themselves 100 fold.

Where do you find these people?

Well of course I could say ring me...... 

Network and talk to successful people, don't wait until you are ready to invest start looking for that person now.

They may be your accountant, a real estate salesperson, a property manager, a mortgage broker or a financial planner. What you are looking for is someone who looks holistically at your finances, not just an expert in their field.

All the Best & Happy Debt Reducing.

PS - Self EDUCATION isn't a bad place to start

Purchasing this book from Amazon for under $30.00 wouldn't be a bad option either.

http://www.amazon.com/Rental-Property-Taxation-Australian-Investors/dp/0731408489/ref=as_sl_pc_tf_til?tag=realassesolua-20&linkCode=w00&linkId=FZAFCEXF4GQNGDA2&creativeASIN=0731408489
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Exclusive 12-Part Series: Empower Your Social Network with Virtual Organization Management

Exclusive 12-Part Series:  Empower Your Social Network with Virtual Organization Management

Daily:   Monday through Friday (except  holidays)
Time	8 am - 10 am EST (Eastern Standard Time) Click here to find the event starting time for your country   Or copy and paste this link into your browser:   http://timeanddate.com/worldclock/fixedform.html

Social Videoconference Ticket  holders will receive The Ultra Premium White Paper:How to Virtual Organize your Social Network
Presenter	Prof. Pierre Coupet Founder, CEO & Q of Virtual Organization Management Virtual Organization Management Institute

Overview

If you are not getting the sort of results you expect from your current social network strategy or you're just tired of participating in a lot of useless chatter, then it's time to learn how to Virtual Organize and make effective use of your social network.

If you are currently a member of an awesome and very vibrant social network filled with plenty of interesting personalities,  then it's time for you to learn how to leverage the tremendous power and potential of your social network to your individual and/or collective benefit.

If you are a member of Google+*, then this event is definitely a must-attend for you!  You'll be very excited to learn how to virtual organize your Google Circles in order to take full advantage of what Virtual Organize + Google Circles* has to offer to social media beginners, professionals, and gurus alike.  

Whether you are a group owner, creator, or owner of a vibrant social network looking to exponentially increase the true value of your network for lucrative corporate sponsorship purposes,   or  you are just dealing with the age-old and elusive question of "how to turn a static social network into a Dynamic, Vibrant and Highly Effective network",    or just an individual member of a social network looking to make and obtain results from Meaningful connections, YOU WILL come away with a new feeling of liberation and REAL self-empowerment. 

Make a change now to obtain the results you seek.   Register now for this very convenient, affordable, and worthwhile social videoconference event.  

 

About Presenter

 

Prof. Pierre Coupet: Prof. Pierre Coupet is the Founder, CEO & Q of Virtual Organization Management at Virtual Organization Management Institute (VOMI); is also the founder of the modern virtual organization management discipline pioneered since 1997; and has over 35 years of diversified professional and executive management experience.  He is also the founder of VOMI Virtual Organization Academy, the world's leading and only virtual organization sabbatical destination for corporate executives and faculty members who seek to immerse themselves and experience life in a 100% virtual environment and virtual organization for a limited period of time.   

In addition, he currently heads Virtual Organization Recruiter, the world's leading and only virtual organization recruitment firm strictly focused on the assessment, certification and recruitment of senior and executive level professionals who are able to adapt and thrive - and Lead - in a 100% virtual or virtual organization environment.  

He is the author of numerous publications on Virtual Organization Management and social networks and is featured on most of the leading social networks.

BOOKINGS & INFORMATION

http://tinyurl.com/Oganise-your-social-networks

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3 Agents Have Been - Now which one do I Choose?

Which Agent Should I Choose?

Choosing the right real estate agent to sell your house can be an overwhelming prospect. Deciding to sell is a big step in itself, and selecting the right person to take on the challenge with you can be tough. Most consumers will meet with a few different agents before making a decision about which person to entrust the job to, but after the agents have done their ‘pitch’ and headed home, who do you choose?

They All seemed to make sense 

Each contender was probably equally friendly and professional, albeit overly extroverted and a little pushy as sales people tend to be, but no matter how ‘nice’, ultimately you know that they’re trying to sell you something - themselves! - which can make it difficult to trust your gut.

Do you pick the down-to-earth agent with the realistic price and fair, reasoned approach? Should you pick the one with the lowest commission fees, or instead choose the agent who promised to get you your asking price? Maybe you should take a leap of faith with the guy who promised to sell for more, even though he could be too good to be true.

Head or Heart

Whether the agent is pitching their years of experience, promising to get you exactly the price you’re asking for, or ‘buying the listing’ by offering more than they expect to get in the long-run, sometimes you have to ask yourself “can I trust my instincts?” especially when it comes to hiring a master salesperson.

It helps to arm yourself with as much information as possible, and there’s plenty of it out there once you know what you’re looking for, but even if you know everything you need to know about the market, it’s ultimately the agent’s experience and attitude that will play the biggest role in determining the outcome of your sale.

Most Salespeople are hard-working

There are many dedicated, hard-working, ethical and compassionate people working in the industry, that’s for sure, but there is also no doubt that real estate agents have a reputation for insincerity. In an industry motivated largely by commissions it’s easy to understand why. One particularly surprising thing about the commission structure of the industry is that although it feels like something that will work in your favour, in actual fact, that isn't always the case.

According to Steven Levitt and Stephen Lubner, authors of Freakonomics (www.freakonomics.com)  it is actually more profitable for an estate agent to sell your house sooner, for less money, than to hold out for a higher price.

It’s counter intuitive, but the math holds out; if your agent gets a 3% commission on your $300,000 home they will walk away with a $9000 cheque in their hand. 

But 3% of $310,000 is only an additional $300, so if the higher offer takes an additional 14 days to come through, that’s only an extra $21.50 each day for the agent. While holding out would work out to be an almost $10,000 benefit to the seller, the agent is actually better off selling the house for the lower bid rather than investing any more of their time.

Maybe an Independent 3rd Party

That’s just one of the reasons why savvy consumers are seeking out an objective third party who can help them make a clear headed decision about their choices. Getting an independent property appraisal from a property coach who will make no money from the transaction is the best way to guarantee yourself an honest opinion about the state of your property and what to expect over the course of the sale.

A property coach isn’t an agent, and doesn’t sell property or arrange financing, but with years of experience in all types of property transactions they know the best in the business who do, and can offer you invaluable, unbiased, independent advice about every aspect of the selling process.

Taking the time to talk to a property coach could save you a small fortune, not to mention help you make the best decision when it comes to choosing an agent. 

 www.mypropertycoach.com.au

Buyers looking for other finance options

Rent to own agreements have been given a bad reputation.

 A few bad landlords who got desperate people to agree to shady transactions made rent to own agreements look like dodgy real estate transactions.

 Today, however, with a shift in the lending market, and the challenging financial climate, rent to own agreements, also called lease options or lease purchase agreements, are returning as a mainstream home buying option.

Rent to own got a bad name for a variety of reasons.

Perhaps first and foremost, these agreements were only entered into by those with extremely poor credit. As a result, they generally ended poorly, with the transfer of property from one owner to another not being completed, but instead with an enormous amount of hassle for everyone involved. Today however, demographics with fair credit have looked to owner financing as a feasible alternative credit option. Both buyers and sellers have experienced significant benefits from these agreements.

The global economy and changes in lending policy in Australia, the United States, and Europe have forever altered many families' ability to get a mortgage. Those who have even small blemishes on their credit history, who have other large loans, or who are self employed may find it especially hard to acquire traditional home financing.

People are transferring from city to city searching for gainful employment, and lower cost of living. Those who wish to accrue interest in a property, who are not interested in renting, but are also not prepared to take out a mortgage with a traditional lender, are increasingly looking at homes with a rent to own option.

With housing prices near their all time high, one of the greatest struggles for those interested in home ownership is saving up a down payment. Banks require a minimum of five or ten percent, and as much as 20 percent down at the time of purchase. Saving this large a sum can limit most families' ability to buy for years.

With rent to buy options, there is no down payment required. Instead, renters agree to a rental period of one to two years, with the option to purchase the home at the agreed upon price at the end of the lease period. Then, each month, a portion of the rent is deducted from the agreed upon purchase price.

With Rent to Buy you basically agree to rent the property for an agreed period, usually 1 -2 years with an option to purchase the property for a price agreed upon today. Usually the seller will ask for an option fee that is taken off the purchase price if you proceed to purchase the property. Further a portion of the rent is usually also credited off the price of the property. These credits can then take the place of a traditional down payment when the buyer is in a position to take out a traditional mortgage on the property.

Generally, those who engage in a lease to purchase agreement get all the benefits of home ownership from the day they sign the lease, but understand that they will not truly own the property, or that the title will not transfer into their name, until they get a traditional mortgage for the purchase balance from a bank, or pay off the agreed purchase price in full.

Rent to own purchase options are a serious transaction, and should be entered into with sincerity. Talk to a lawyer when setting up a lease option to ensure that it is legally binding and written in a manner that is fair to both parties

Rates and The Election

The Effects of the Upcoming Election on Interest Rates

Prime Minister Julia Gillard caught both the financial and political community by surprise by calling for elections on 14 September 2013. 

Many analysts believe that the reason underlying her announcement is the increased criticism her minority Labor government faces about their abandonment of the pledge to deliver a budget surplus in 2013. 

When Treasurer Wayne Swan initially presented the 2013 budget in July 2012, it included a forecast of $1.5 billion. In October, he announced the surplus would only be $1 billion. 

Unfortunately, this trend has continued and the now a $10 billion deficit is forecast for 2013.


While Paul Bloxham of HBSC Australia sees this is a significant improvement over the 2012 deficit of $44 billion, those in the opposition parties have not been as generous in their assessment.

How Labor Got It Wrong

Much of the Labor budget depends upon generating revenue from taxes on the mining industry. As China's economy has begun to cool somewhat, the demand for raw materials has dropped, especially for iron ore. As a result, investors are pulling back from the mining industry, which was spurred by announcements by Rio Pinto and BHP Billiton of their plans to slow expansion and cut jobs. This slowdown in the mining industry has revealed the flaws in Labor's scheme to rely on taxes from the mining industry.

Both Parties have lost the electorates trust in the past

The Liberal Alternative

The opposition Liberal party advocates for cuts in government spending to close the budget deficit in a manner similar to the austerity schemes of the governments in Europe and the UK.
Given that the Australian economic growth has slowed to about 3 per cent and unemployment as risen to 5.5 per cent, which is the highest it has been in the past three years, the wisdom of government spending cuts has been brought into question. 

In October 2012, the chief economist of the International Monetary Fund (IMF), Olivier Blanchard, discussed his observation that the austerity measures enacted in the European Union have done more harm than good by choking  economic recoveries by withdrawing the lifeblood of government stimulus spending that makes up for reduced consumer demand.

RBA Interest Rate Trends

The Reserve Bank of Australia's interest reduction cycle seems to support the viewpoint that the Australian economy needs some stimulus in order to stimulate continued economic growth.
With its 0.25-point cut of interest rates to 2 per cent in December 2012, the rates have reached lows not seen since the 2008 Global Financial Crisis.

While the global economy has shown some optimistic signs of late, Westpac's Bill Evens does not think they are sufficient to support growth in demand.

Bottom Line: Interest Rates and the Elections

The forecasts from analysts for the election and interest rates are as different as the parties themselves.

Norma Martin Whetton, an interest rate strategist, thinks that a lengthy election campaign will put a damper on consumer confidence.

Normally interest rate drops favour the incumbent, but if the RBA drops interest rates as a result of the slow growth and high unemployment, the advantage goes to the opposition.

ANZ's Andrew Salter thinks that the call for early elections suggests a change in government, and this will affect the interests rates as business investment planners make their assessments of how austerity measures will affect the overall economy.

Overall, investors can expect to see broad swings in interest rates during the next several months in reaction to the developments in the election campaigns

" China's latest announcement just pricked Australia's property bubble.

News for the Australian Property Market raises concerns as China announces a new energy conserving policy that will cut demand of coal dramatically after 2015.

Speaking about the Chinese Government Energy Conservation plan Mr Jiang Kejun, as spokesperson for the Chinese Government told the media ''Coal consumption will peak below 4 billion tonnes,'' by 2015.

Over last 12 years demand for coal from china has increased 2.4 billion tonnes, or 163 per cent, the news from China makes it clear that future demand will a return to much more moderate levels.

Commenting on the news, Mr Antonio Santolo, CEO of The Property Advocacy Group of Australia and founder of the popular free advocacy website mypropertycoach.com.au states “that this news will send shock waves throughout our mining regions” indicating a lot of smaller players and start up  projects will struggle to find demand for their product at a price that will make it viable to dig the stuff out of the ground” Santolo further explains how there is already strong evidence of a more balanced property market in the regions, “the money was made in these areas over the last 5 or so years, the people that had the foresight or the luck to hold property at that time done very well, however like any Real Estate purchase the profit is in the buying, so everyone that saw the rise and jumped on the band wagon most likely brought at prices that were not fundamentally sustainable. This is going to leave a lot of people in financial stress if markets start returning to the more sustainable areas”

Santolo predicts a large decrease in demand for long term Rental accommodation with a shift to portable accommodation in regional areas over the next 2 -5 years with miners looking for a flexible workforce, Santolo explains “When guys like Gerry Harvey are getting involved in temporary mining accommodation units there is a reason why, They obviously feel the money is to be made in supplying the accommodation as a business and are not relying on the local market to dictate prices”

Santolo recommends anyone who is holding property as an investment in these areas needs to speak to an independent advisor now, “like any problem, tackling it head on will make the outcome a lot better that sticking your head in the sand”

Free Property Advice & Help

Welcome to mypropertycoach.com.au

Welcome to mypropertycoach.com.au

Part of the BVP Group Australia

mypropertycoach.com.au 

was founded to revolutionise the property industry by helping everyday Australians realise their dreams of wealth through property investment.

What makes us unique is the fact that we provide 100% unbiased professional property advice.

Every client is assured that our primary focus is on their needs and helping them find effective solutions to their property investment questions and concerns.

Visit mypropertycoach.com.au for more details on how mypropertycoach.com.au can teach you how to build Wealth through Property.

Impact of Global Crisis now being felt in Australian Property

Impact of Global Crisis now being felt in Australian Property

Australia has weathered the recent global financial crisis better than most countries. Thanks to a more stringent set of banking laws, it did not experience the same sub-prime issues that other nations did. As a result it had one of the strongest economies in the world after the crisis began. However, the average Australian has seen relatively little benefit from this, due to a quickly rising cost of living. In a relatively short period of time, Australia has become more expensive to live in than almost any other country. Living in Australian cities is now less affordable than even New York, London, or Singapore are. This is having a significant negative impact on many first time home buyers.

The Rising Cost of Living in Australia

Sydney is now the sixth most expensive city to live in out of all the countries in the world. Even though the Australian dollar has nearly doubled in value relative to the US dollar between 2002 and 2011, the purchasing power of the average Australian has not increased at all. The price of imported goods has not been significantly reduced as a result. Over this same period, the Consumer Price Index rose by a whopping 28 percent. The average Australian home owner spends 45 percent of his or her income after taxes just in paying off debts. One in five first time Australian home owners spends more than half of his or her income paying off debt. This is a significantly higher level of debt than that carried by citizens of most other developed countries. The citizens of the United States, the United Kingdom, Canada, Ireland, India, and Mexico had an average of 38 percent of their income spent on debt.

 

The Rising Cost of Housing in Australia

In the 1980, an average house cost three times the median family income, which is considered to be an affordable level. Today, the average house costs nine times the median family income, which is not very affordable. Interest rates have been rising as well, making mortgage payments higher and more difficult to meet. Mortgage payments now account for over 27 percent of the total household income. As of 2010, more than 40 percent of all first time home buyers were having some degree of difficulty paying their mortgages. In other words, housing costs are skyrocketing at the same time that it is becoming more difficult for Australians to purchase food, fuel, and all of the other necessities of living. This is counterintuitive, as Australia's abundance of land should mean that housing prices are amongst the lowest in the world. Nor is the government able to do much to ameliorate this situation. There is very little public housing available, the government only provides 1.4 percent of Australia's total housing property, and is loath to build large amounts of additional housing for fear of negatively impacting existing house prices and causing economic instability.

 

The Effect on First Time Home Buyers

This has radically changed the home buying landscape in Australia. In the 1970s, the average age of a first time home buyer was 25. Today, it is 31. Many young people are now finding home ownership to be entirely out of reach, and are having to settle for either renting, or continuing to live with their parents. In a recent survey of members of the youngest generation, Generation Y, one out of three respondents replied that they did not believe that they would ever be able to afford a home of their own when asked. Generation Y may be shaping up to become the first "homeless generation." This kind of radical change in living patterns would have repercussions across almost every facet of Australian life.

 

Home Ownership and Dynastic Wealth

This pessimistic housing outlook may spur some "Mum and Dad investors" into thinking that they should play it safe, and wait to see how the global financial crisis plays out before making a move. This kind of fear can be the wrong reaction, though. Many of the biggest fortunes were made during recessions and even during depressions, and the perennial wisdom that "there is security in land" is as true as ever. Now is the time for Mum and Dad investors to buy a home because no matter what happens with the economy, that home offers significant long term profit of one kind or another. With prices and interest rates going up, it is better to buy a home sooner rather than later. If the economy rebounds after the recession in the same way that it has tended to historically, then this home will have been a good investment financially. Even if the economy does not rebound, then parental investors will still have gained in another important way. They'll have created dynastic wealth, something that will be passed on to their children and their childrens children

 Mum and Dad investors putting their money into buying a home are helping subsequent generations to have a better standard of living, a substantial investment in the family's future. As with many economic downturns in the past, the present situation presents an opportunity for those who look toward the long term when assessing their investment opportunities.

From The Author

Many clients tell us that My Property Coach .com.au made them feel comfortable and put their mind at ease enough to decide to start the path to create dynastic wealth for themselves and future generations.

Knowledge is power and having the experience and expertise of Australia’s leading property  professionals is essential to have your investments and your families future on solid foundations, it is never too early to start, however it will too late one day....

You will be pleasantly surprised how little it costs to engage a Property Coach and start living your life to the fullest. Imagine the security knowing you have things covered and are maximising every opportunity to build wealth all without risking all of your hard earned assets.


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“We listen to what you want, understand your needs, make you feel at ease and help create wealth through smart property investing......”                                     Antonio Sawlwin Santolo