Will Brisbane and the Gold Coast, will be “the new east coast investment hotspot in 2015 ?« Australia Business & Property Classifieds

Brisbane and the Gold Coast, would be “the new east coast investment hotspot in 2015

Brisbane and the Gold Coast, will be “the new east coast investment hotspot in 2015 « Australia Business & Property Classifieds

What to Consider before Buying Investment Rental Property

What to Consider before Buying Investment Rental Property

A Rental property can be an excellent way to bring in additional income as well as invest in an asset that is actually tangible; however, investing in real estate does involve more than just purchasing a property and watching the money roll in.

Many people believe that the biggest hurdle they may face is obtaining the loan; however, this may be easier than they actually think. It is other issues which you may face along the way which should be considered before you actually take the step of purchasing an investment property

First, always make sure you take the time to know exactly what you can afford. Many people make the mistake of overlooking this step, assuming that the rent alone will cover the mortgage payments and other associated costs.

If you rely solely on rental income and there is a change in the market conditions , you could find yourself in financial trouble later on.   

In addition, you need to give some thought and consideration to the type of property that will best suit you. You can find rental properties in many different sizes as well as types. 

Each of these different types can pull in different rental rates as well as attract different types of renters. So, giving thought to the property that best suits you is really an important step which should not be overlooked.

For example, if you purchase a property that is near a college or university you are likely going to find that most, if not all, of your tenants are college students. While you may never have a vacancy, you may also find that you have a continual turnover, problems collecting rent and even possible damage to the property itself.

You should always research rental properties just as you would any investment with the large amount of money involved. If you do not have the experience, the expertise or the inclination to do this yourself talk to an expert.

Not only do you need to understand the going rates for similar properties you need to decide why you are investing and what type of property best suits your budget, risk analysis and the objectives you set out to achieve

To research yourself check the areas local newspaper for information on going rental rates as well as the internet. The internet is predominantly dominated with Real Estate Agent or Broker advertisements which may not provide a true indication of the actually going rate. A desperate private landlord will drop their price and advertise this usually well before anAgent or Real Estate Broker would do.

Another major consideration is that you will need cash flow to take into consideration expenses which may come up along the way. Ideally, you should have a reserve fund or cash buffer established to tide you over in the event you experience emergency expenses or your property is vacant for a period of time.

Before you commit to purchasing a property, make sure that you obtain some sound advice. This doesn’t mean an Uncle or a mate who knows a cousin who’s Aunty has 30 properties. It is important you take information from an experienced advisor not emotionally or financially involved in the transaction. Making a mistake and purchasing the wrong property can be catastrophic to your financial well being. Don’t allow the sake of a few hundred dollars or so stop you from obtaining independent advice.

In addition, you should make sure you understand your responsibilities as a landlord. Keep in mind that your obligations are typically regulated by the statute laws or legislation in the area which the property is located.

Some states have very little regulation while other states are highly regulated.

If you fail to follow state regulations you could find yourself in for quite a bit of financial as well as legal trouble. It is always best to educate yourself ahead of time.

Finally, make sure you consider how much insurance you will need to not only property the property in the event of damage or destruction but also to cover all liabilities as well. One liability claim can be enough to cause serious repercussions so this is not an issue where you want to take a short-cut. Remember that it is your responsibility as the landlord to provide liability insurance, not your tenant. If someone should slip and fall on your rental property then it will be you who is responsible, not the renter.

Rental investment property truly can be an excellent investment and long term wealth builder provided that you are prepared and understand what you should expect from the outset.

Do not be afraid to seek help where you need it, especially from associations and from professionals such as attorneys. This is the hallmark that can often set a successful rental property investor apart from one who fails.

For More Information on how an Expert Can Help and Where To Find The Right Type Of Expert Visit Our Blog Here

Tags: broker, get real estate advice here, property and tax, real estate rental, rent my property, rental property, tax savings

EVER WONDERED WHY SOME LAZY PEOPLE SEEM TO SUCCEED IN BUSINESS YET NICE GUY'S FINISH LAST?

Ever notice how some small businesses seem to thrive under just about any economic conditions, while others constantly struggle and miss opportunities that come their way?

 In part, in might be the type of business, the location, or financial backing. But the most successful business owners display some clear patterns and habits.

And on the flip side of that, other business owners make many of the same mistakes that are often avoidable, especially when it comes to growing a business.

Part of the problem is short-term thinking – chasing the latest shiny advertising object that happens to pass by, for example.

Or spending too much time seeking new customers and not enough taking care of the ones you have.

Solid, long-term growth starts with what I call “inside-out” thinking – doing the things inside your business that you can control, and paying less attention to the outside things you can’t control.

Here are 10 such “inside out” secrets for successful growth.

 1. Change how you think about growth 

Consider growth a constant – not something you switch on or off depending on conditions. For example, many business owners reduce offerings at the first sign of an economic storm, or overspend when the outlook seems rosy. But a steady-as-she-goes approach makes for long term success.

2. Check your ego; seek out sound advice  

You know your business inside and out, but that doesn’t make you an expert at running every part of it. Smart business owners know what they don’t know. Don’t be afraid to ask for advice and then take it.

3. Remember your first fans  

Many entrepreneurs seem to forget who helped them get started. If you have investors, keep them apprised of what’s going on. Good communication is critical.  A good investor group can provide mentoring and other resources, so keep them involved.

4. Share your knowledge 
In today’s social media driven world, success and influence are in the hands of those who share ideas and information. So when you’ve found a great tool or solution, or gained insight, tweet it, blog about it, author an article, post it to Facebook.

5. Hire help to watch your money
Lack of strong accounting and finance can be the only thing keeping you from reaching your financial goals. Find well qualified people who share your vision and then step back and take their advice.

6. Know when to persevere 
Stick to your mission. Many would-be success stories end prematurely because they give up when challenges mount. Don’t let hurdles stop you. Arm yourself with market knowledge and an expert team and push through.

7. But recognize when to change direction 
Still, there are times you may need to change direction or call it day, and having the courage to do so can be liberating. You may end up with a clearer picture of what will or won’t work.

8. Keep cash on hand

One of the biggest mistakes growing businesses make is to run out of cash. While the sun is still shining on your business or before your financial picture has a chance to turn sour, meet with lenders and/or landlords proactively to see if there are opportunities to restructure debt, payment terms, etc. Having cash on hand is critical for staying afloat and continuing to grow.

9. Get more when you have more
Don’t wait until cash balances get low to secure more funding. The best time to get more is when you don’t need it. Securing a line of credit while you still have money in the bank gives you the ability to negotiate a larger line and better terms. It also gives you the ability to make payroll during slow times and to have access to cash as needed. In addition, it gives you an opportunity to develop a business relationship with a bank.

10. Sell when you get the chance
Many business owners miss, or worse – pass up – incredible chances to sell their company because they are not prepared to adequately evaluate the opportunity. Know where you stand in the marketplace at all times. That includes what your potential is, and what it will take to reach your potential.  That way, when opportunity knocks, you’ll know

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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

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

Coaching - Australia's Second Fastest Growing Industry

Australia's Latest Growth Industry: Personal Service Coaching

As life becomes increasingly complicated in a world with tough economic conditions most people experience an increased amount of stress in some form.

People who want to perform better at their jobs and improve their quality of life are employing personal lifestyle and business coaches.

 Personal service coaches establish a dynamic and highly interactive relationship with their clients to work toward solving the broad range of life and work-related issues that might impede the client's success.

Recession Proof

When coaching first gained a foothold in the early 2000s, analysts questioned whether the concept would remain viable in the long-term, or if it was just a vanity service that people would view as expendable in periods of economic contraction.

This question was answered during the 2008 Global Economic Crisis when people and businesses not only chose to continuing working with their coaches, but business leaders and other individuals who had not previously used coaches also opted to try this service to improve their productivity and competitive edge in both life and business. As a result, personal service coaching not only remained stable during the economic downturn, but also grew as an industry as more forward thinking individuals and businesses used these services to gain a competitive edge.

Coaching Today

Today, personal service coaching in Australia is the second fasted growing industry after the Information Technology sector.

Lifestyle and business coaching generate roughly $ 2 billion in revenue on an annual basis.

The outlook for this high growth industry remains strong, as both individuals and business find that they receive as much as a 50:1 return on their investment. (ie. $50 return for every $1 spent on coaches / mentors)

Individuals find they are able to find new career opportunities more quickly than they were able to before they worked with a coach. Additionally, they find that they are happier, less stressed, make better decisions, and have more fulfilling personal and business relationships than they did before they hired a personal service coach.

Business leaders, entrepreneurs, and small business owners find that they are able to recruit better talent, have less employee turnover, and are able to develop and execute more effective and innovative strategic plans when they work with a business coach.

Lifestyle and Business Coaching 

According to the International Coaching Federation, professional lifestyle and business coaches offer a unique service that focuses on working with a client to establish goals, creating desired outcomes, and implementing strategies to manage and enhance the personal change the person has achieved.

According to the Worldwide Association of Business Coaches, the process of lifestyle and business coaching entails the following steps:

1. Initial Meetings

During this first meeting, the coach will meet with the client to determine the client's goals, to determine what obstacles prevent the client from achieving these aspuirations, to define the roles of the coach and client, andto make clear the responsibilities of each person in this dynamic relationship. During these first two initial meetings, the coach works to establish trust and an atmosphere of safety and both coach and client make a mutual commitment to honesty. These sessions also involve the coach offering support as well as high value feedback. Additionally, the coach might start to challenge the client about negative habits and patterns of thinking that can impede the client's progress toward desired goals.

At the end of this step, a formal contract is presented to the client that defines the coaching process, the role of the coach and the client, and the responsibilities of each party. Additionally, the client and coach will also sign a separate confidentiality agreement.

2. Compiling Information and Debriefing

People live in a variety of complex systems. Together, the coach and client will work to assess and define each system in which the client operates on a regular basis. For lifestyle coaches, this might entail exploring the client's relationships with a significant other, family, friends, and colleagues, as well as how the client handles his or her career and personal finances. For business coaches, this might entail reviewing the structure, vision, and mission of the business in which the client is involved, the client's personnel file, as well as other documentation that can provide insight into the person's business environment and the manner in which the client functions in this climate.

With the permission of the client, the coach might gather information from people with whom the client interacts. The coach will directly observe the client in a variety of contexts. This will provide the coach with insight into the manner in which the client handles a number of situations so that the coach can develop strategies.

Additionally, the coach might employ a variety of assessment tools to provide further insight into the person's thoughts and behaviours that affect their daily performance.

3. Feedback

The coach will provide their client with the coach's impressions about the way in which the client performed in each situation the coach observed.

4. Planning and Coaching

Based upon the client's baseline level of functioning, the coach and client can develop goals and benchmarks along with strategies to help the client can use to overcome the challenges they face in achieving these goals. The interventions and strategies are experiential actions that take place in real world situations.

5. Reassessment

At a time specified in the coaching agreement, the client and coach will revisit the initial assessment to evaluate the progress that has been made during the months of active coaching. Based upon this assessment, the client and coach can determine what goals the client has achieved, the need for additional goals and benchmarks, and means to reinforce the positive changes that the client has made.

6. Final Assessment

At the end of the coaching services, the coach and client will meet to evaluate the progress that has been made by the client. The coach will point of how the behavioural change the client has made has improved his quality of life or his or her performance in the business world. Prior to this meeting, with the permission of the client, the coach might re-interview the people whom he or she initially interviewed to determine the impressions of significant others in the client life about the changes the client has made. The coach and client will develop a plan that the client can use for continued change and growth.

Since personal service coaching is involves intensive individualised investment of a considerable amount of time, it is easy to how both individuals and businesses can spend thousands of dollars on personal service coaching. Fortunately, this coaching service is tax deductible so that those who invest in coaching haveanother source of investment deduction.

Demographics

Those who opt to use lifestyle and business coaches tend to be people who have already achieved a certain degree of success in their life and business ventures and who want to achieve the next level of achievement. They tend to be self-motivated professionals in their 30s to 50s who are in the upper middle class to upper class socio-economic groups. Some examples of people who opt for lifestyle and business personal serving coaching include Chief Executive Officers and directors of major corporations, entrepreneurs, and those who achieved a high level of success in their business life who want to find the same level of fulfillment in other areas of their lives. According to the Chartered Institute for Personnel and Development, large corporations have started to employ business coaches for their front line employees in order to increase productivity and decrease turnover.

The Benefits of Lifestyle and Business Coaching

Some of the benefits of lifestyle and business include the following
* Help establish and implement strategies to overcome barriers in both personal and business situation
* Rejuvenate both personal and business growth
* Build interpersonal confidence and competencies
* Learn new skills and refine old ones

The Future of Lifestyle and Business Coaching 

Just as personal athletic trainers started as independent contractors who then found that in order to meet demand, they needed to join forces and open gyms that later turned into franchises, the future of personal service coaching appears to be moving in the same direction. Think of how Gold' Gym in the United States that started as a small neighbourhood gym for weight builders transformed into a national franchise of gyms that cater to the fitness needs of casual fitness enthusiasts as well as those who are training for competition.

Rationalisation

Currently, the lifestyle and fitness coaching industry is highly fragmented as most coaches offer their services as independent contractors. In order to meet demand, personal lifestyle coaches will start to join forces and those who are most effective will begin to start franchises. As these initial start-ups gain a foothold, the industry is forecasted to evolve into multi-service franchise organisations offering personal service coaching services under a single corporation. As corporations become established and the lifestyle franchises gain brand recognition with the public, it will be much more difficult for independent lifestyle coaches and small groups of coaches to remain viable or to transform their business into a franchise. The reason for this difficulty is it will be much more difficult for new franchises to gain the brand recognition and clientele, as they will be competing against a known established brand.

For venture capitalists and investors, lifestyle coaching franchises offer the opportunity to get in on the ground floor of a new industry with solid long-term growth potential

Meet The Aurthor

Antonio Santolo is the founder and CEO of My Property Coach, a professional real estate coaching company that provides honest and reliable property investment advice. He has more than 20 years of experience in all areas of the real estate market, and provides expert property coaching advice to clients interested in property investment. Santolo specializes in both residential and commercial property, and helps his clients invest properly in real estate to maximize their investment potential. His years of experience in both investment strategies and real estate have provided him with the leadership skills and knowledge necessary to coach others on how to realize their own financial freedom through strategic property investments. Santolo also shares his real estate expertise as a freelance property author, and has experience in property case conflict, arbitration and resolution

Contact info@mypropertycoach.com.au