JULY | 2013 MAGIC CRYSTAL BALL WHERE IS THE BEST PLACE TO INVEST OF THEM ALL?
IN THIS ISSUE: Monthly Highlights
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Reports you should read
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Magazine Summaries
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Magazine Summaries cont.
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Apps and websites
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MONTHLY HIGHLIGHTS WHERE TO INVEST? I am regularly asked 'where should I buy'? Its natural we want to be assured success without the risk. We want the road to success paved for us without the bumps and hard work that is really required to create success. Regardless of what anyone tells you there is no crystal ball to tell you what to do and what the future holds. It is merely a reflection of who you are and what you want to achieve. So what do you want to achieve? In this month’s cover story for Money magazine I was asked to take on the challenge of showing how much of a deposit was required to have a property pay for itself. I took it one step for further. I not only wanted a property that paid for itself but one that also would grow in value, be affordable and a low-risk investment. Many property experts would have you believe that you need to choose a property investment strategy of either capital growth or cash flow. The secret to success is to have both. I explore this in my book with the Trid3nt Strategy®. This is my low risk investing strategy. It shows three ways to make money. 1. Buy below the market 2. Good predicted capital growth and 3. Add value. This means if one goes wrong you have two back-up plans. A successful property portfolio needs cash flow to help pay for your properties AND capital growth to grow the value so that when it comes time to sell or downsize you have created money to live off. I asked Terry Ryder CEO of Hotspotting to share an area that was below $350,000, that had over a 6%pa rental yield, had a multi-industry economy and a growth over 7%pa (as predicted by Residex). I then showed in the article how with less than a 20% deposit you could have a property whose rent covered the interest and all those on-costs of a property with its rent alone. I then twisted Terry’s arm and we had over 500 people listen to our webinar on 3 other locations that also satisfied this criteria. If you want to listen to the webinar it is available to you till 23rd July 2013 (click here) after that date only my Diamond clients can access that in your member’s area. So where do you buy? It all comes down to you and what you want to achieve and your circumstances. However I am sure after the city of Detroit’s announcement of bankruptcy this week we can all see that just because something is cheap it may not make a good investment. Over 63% of the population has left that city; the fundamentals are just not there. Where to invest? It comes down to the fundamentals and what suits you. Till next month. Jane Slack-Smith PS In July I joined Australian Women’s Weekly as an expert in property and finance check it out, there will be a video series Your Home Your Gold Mine over the months ahead JULY | 2013
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Reports you should read Herron Todd White I believe this is a report that everyone should read. It is a fantastic review of what is happening in capital cities and regional areas for residential and commercial property. This should be your first port of call each month on what is happening in the market. This month they look the new look report looks at what and where you can buy property for less than $500,000. You can download the report here CLICK HERE to download.
Capital City Market Conditions at a glance A quick look around the country to see what stage the markets are in. Data from Herron Todd White
RP Data Watch this 10 min video – for a quick recap on the market – it seems the markets are rebounding. To the end of JUNE 2013, the index results revealed that capital city dwelling values have recovered 1.9% last month and a prediction of continued rising values, this is according to the RP Data and Rismark home value index.
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Magazine Summaries and Reviews for the Month Money Magazine As always Money is the best resource that covers all consumer spending tips. Everything from the best credit card, free tickets to the Property Show, which phone plan suits and the list, goes on. This month however they hit on one of those age old questions. Can you have an investment property that pays for itself? I join three other property experts to discuss how this is possible. The quick answer is: it is possible. It comes down to having the right property, and you need to know how to work out the numbers to make sure it does really pay for itself. I asked Terry Ryder of Hotspotting to give me a few areas that meet my criteria for a successful investment and as you read earlier we even explored that further in a 90min webinar. You can access here till Tue 23/7.
Your Investment Property Magazine We all want to know where to buy. The August edition of YIP magazine shares not only 77 of the highest yielding suburbs but also the best growth performers over the last 20 years. This is an edition to keep. As I discussed early you need both growth and yield so compare the lists and find out where you should be looking next. There are many other great articles you should check out, in particular how to create a purchase strategy and how to then take action not get bogged down in all the research. At the end of the day remember this: Dreams written with a DATE become a goal A goal broken into STEPS becomes a plan A plan backed by ACTION makes your dream come true
Australian Property Investor Magazine This month API also discusses where to buy. With 152 suburbs that meet their strict criteria. Including 24 areas that have never gone backwards. As you can see for anyone looking to buy now the magazines this month are doing a lot of the hard work for you. Other great articles include profiles on investors who have reached the goal of having 10 Investment properties and some recent council rezoning’s that might just be the ticket for would be developers.
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Smart Property Investment Magazine So how do you make $10k pm for life? The cover story discusses how it is about finding out what works for you and then sticking to it. I know I speak to many people each week that tell me they are after NRAS, granny flat, no money down or option deals. The same people months earlier were chasing something else. The key to success and indeed being able to generate a passive income is to work out what strategy works for you. They may be nothing wrong with many of the new investment strategies but continually jumping from one to another will rarely get you to your goals. Once again the SPI team jump into their own renovation – this time in a weekend!
Australian Women’s Weekly Magazine This month I started with AWW as their property and finance expert showing home owners the three ways they can use their home to create wealth. After all I believe that Your Home is Your Gold Mine waiting as an untapped resource to assist you achieve your goals. Who better than an ex-mining engineer (yep that’s me) to show you how to tap that resource. Make sure you download the Viewa App and watch the videos.
Call for BETA testers for The Ultimate Guide to Renovation Finally after 5 months of filming on renovation sites and in the studio, The Ultimate Guide to Renovation is ready. However I need some help in making sure I have covered everything – so I want to know what you need to know about renovation. So far the course shows how to buy properties ripe for renovation, how to assess them, how to renovate to rent, how to renovate to sell. There is even step by step cosmetic and structural renovations. However is it what you want? Next week I am calling for 20 people to test the course. Now you do need to apply and there are a few questions we need answered first, but for the chance of getting access to a course that could make your wealthy through renovation don’t miss this opportunity. Sign up now to preregister and watch your emails Click here to pre-register.
Looking for a great gift? If you have not got a copy of my latest book http://yourpropertysuccess.com.au/book/. Order now and you’ll receive free postage and a free e-book; “Renovation Tips and Tricks”.
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Websites, Apps & Subscriptions you should sign-up for (mostly free) Apps for mobile devices seem to be the latest thing – there are certainly a lot of companies investing big bucks in free apps; I think they will become the new business card of the future so watch this space. Let us know about any you’ve found helpful enquiries@yourpropertysuccess.com.au
Websites This month here are the resources for your toolbox. Thanks to Simon who sent through this website. Whilst looking for property in Queensland a policeman suggest he check out this website that tracks crime in areas. Click here to check it out Many people start their investment journey with their first home. Today’s youth have the opportunity to really skyrocket their wealth with their first home purchase. In this month’s and subsequent months in the Australian Women’s Weekly Magazine I share how you can use your home to create wealth. One advantage that home owners have when buying is the Government incentives. Property Observer recently looked at all the incentive’s State by State. If you are looking at buying a home then check this out by clicking here. If you are interested in getting your finance structured for portfolio growth and you are looking for resources, tips and tricks then check out the Investors Choice Mortgages website. This is what I do when I am wearing my other hat, I am sure you will find many resources that you will be helpful. Not just creating the finance structure to suit your needs but also the education to help you achieve your goals. NB. Diamond members you get access to Terry Ryder’s webinar and that spread sheet. www.investorschoice.com.au Check out the latest Top Suburbs as reported by RPData via the YIP Magazine click here to access Disclosure – I purchase with my own money many courses and reports and I give my personal thoughts and opinions on these products and only recommend those I feel of benefit to property investors. In some cases I am invited to be an affiliate of some of these reports, courses and related products and if you buy through my links, I am paid a commission. I believe this does not influence me, but you need to decide that for yourself. I do believe transparency is vital and hence this disclosure.
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