JULY 2014 – PROPERTY INVESTING SHOULD NOT BE A ROLLERCOASTER RIDE
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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FREE Resources
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MONTHLY HIGHLIGHTS Property Investing should not be a roller coaster – starting with your home as the cornerstone of your portfolio you can build a low-risk ‘boring’ portfolio that can help you achieve your financial goals. This month has included the school holidays for many of us and for my family it gave us a chance to catch-up with friends and family. So off we went to Brisvegas to see some great mates and Movieworld! Whilst there I got a chance to check out their amazing homes. Each of the three friends have steadily been building up their property portfolios over the last seven years and visiting them in their homes reinforced two things to me.
1. Your home can really be the cornerstone of your wealth. I explored this in a 7 part video series “Your Home is Your Gold Mine” last year for Women's Weekly and visiting these homes reinforced that belief. Each uniquely different property would be classified as an ‘A’ class investment but currently is being used as a home and is assisting each of them in growing their wealth.
2. It also demonstrated that multiple property strategies can assist you in getting to your financial goals. The 3 properties were vastly different but each would be considered a great investment property as well. One due to acreage being rezoned and now ripe for development, the next due to the beautiful renovation and the dual occupancy, and finally a modern home in a growth suburb near infrastructure and schools perfect for a family.
There are many many property investing strategies and the one that often is missed is being strategic when you buy your home. After all I believe that your home really is an untapped gold mine just waiting for you to realise its potential! If you would like to see an extended version of my Gold Mine series check it out here. As always I hope your month is filled with property success. And to my dear friends thank you for the wonderful quick visit to Brisvegas. Remember the words of Warren Buffet: If investing is exciting you are probably doing it wrong. Jane Slack-Smith JULY|2014
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Reports you should read Herron Todd White Each financial year HTW asks their valuers in every Capital city and large Regional Hub to pick where they would spend $500,000. Not only in this issue to they pick the ‘up and comers’ they also do a check on how their predictions did last year. Another great market wrap by HTW. This should be your first port of call each month on what is happening in the market. You can download the report here CLICK HERE to download.
Mortgage Delinquency Report – opportunity or risk? This month I was asked to contribute to an article for Your Investment Property magazine regarding mortgage delinquencies. As part of the research I was given these reports into the Top 100 suburbs that have the highest reported cases of these. Before you rush out and buy though check out the article next month. Click here for Fitch report by Postcode and click here for the Whole Report.
Capital City Market Conditions at a glance A quick look around the country to see what stage the markets are in. Data is sourced from Herron Todd White. Source July 2014
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RP Data Watch this 10 min video – for a quick recap on the state of the market according to the RP Data and Rismark home value index. They report the first fall in prices in a year – interesting watching this one.
HIA Bi-annual National Scorecard The HIA Housing Scorecard report benchmarks the contemporary performance of fourteen key indicators of activity in residential building against long term averages in each state and territory. This analysis is aggregated in a scoring system to generate a league table ranking the relative strength/weakness of residential building conditions in each jurisdiction. Click here to check out the score card.
ANZ Housing Update Prices are continuing to move up across Australian with some significant growth in many cities. In annualised trend terms, Melbourne and Sydney home prices increased at 8.3% and 11.5% respectively in the past week. Click here for the full report.
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Magazine Summaries and Reviews for the Month Money Magazine Check out the cover story this month if you don’t have time to read anything else. It looks at how you can build your wealth for every age group. I am going to have to make sure I remember www.giftcardsonsale.com.au and never pay full price for iTunes cards again. A great tip. Shhh the next issue hits the shelves in a week make sure you grab it as I am in the Cover Story sharing where to buy if you want to execute a profitable buy renovate and sell strategy.
Your Investment Property Magazine Another great article on where to buy this month. I love these quick reference guides to see what is hot and what is not. Part 3 of the Beginners Investment Guide is also a great reference not to be missed. For those who have considered NRAS with the recent budget changes you need to consider many things – don’t miss this article
Australian Property Investor Magazine In my opinion a successful property investor understands that they need capital growth AND rental yield to build and be able to exit a property portfolio. This month API looks at 90 suburbs with over 6%pa rental yield. If you take into account that you can now lock in interest rates at 5.29%pa for 5 years then you are looking at a property that doesn’t cost you a lot. However remember the long term game there is no point in having a property that makes you $10pw if it is not going up in value. In ‘Ask the Expert’ this month I share my thoughts on buying houses or apartments and what I consider. Also check out the ‘Weird and Wacky Property Laws’. I added a few that I’ve come across in my years investing. I am sure some of these will shock you. It is tax time again so don’t miss Julia Hartman’s list of 15 tax time bloopers.
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Smart Property Investment Magazine So you don’t have $800,000 to invest but you want to buy in a capital city, what can you buy for $300,000? This month SPI lists 49 suburbs that are within 5km from our capital cities CBD’s. Yes they are all units but with affordability and supply issues in the inner cities more and more renters are happy to compromise and live in a unit. This month’s magazine is PACKED! Negotiation techniques, how to identify your next hotspot, how to keep emotion out of your property transaction, and what is the worst case scenarios of what can go wrong with your portfolio. Along with great case studies and an update of their own property portfolio this month is not to be missed. Grab your copy quick before the next packed mag hits the shelves.
This month, the March intake of students in The Ultimate Guide to Renovation have been super active on the Private Facebook page. We have also had some great success stories. Everything from before and afters for a new bathroom renovation, a step by step run through on how to paint your kitchen bench, how to get someone else to do your renovation (and get your property on TV), we have had numerous purchases where the students have used the Dot Map techniques and Suburb Due Diligence exercises in Module 2 and 3 to not only find a property ripe for renovation but also one in a hotspot. We are frantically getting busy creating more content for those who will join us for the October intake and for those who have lifetime access to the online course. http://ultimateguidetorenovation.com.au/ for more information and register your interest for the October intake. Enrolments are open for 4 DAYS ONLY so don’t miss it. Many missed out in March so make sure you are not left disappointed. We start our weekly Q&A calls the week after enrolments close.
Your Investment Property Magazine Readers Choice Award In the past I have been fortunate to have won the Mortgage Broker of the Year Title. In fact last year I was not even aware I was nominated until they contacted me for a photo for the Runner-Up award. If you believe I add value to your property investing experience then please endorse my nomination. Vote for People’s Choice Award by clicking here JULY|2014
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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
Thinking of staging your property for sale or rent but can’t afford it? Check out this great service. Just send them your photos of the unfurnished room and they add the furniture in the photos and you have some great images to promote your property. Great work Renosave Click here to see more.
Want to join me for a day of renovation and property investing? There are still some seats left for my Sydney Community College 1 day hour course this Sat 26th July 2014.http://www.sydneycommunitycollege.com.au/course/B.Renovat
Borrowing Capacity and Where to Buy Calculator Check out the Investors Choice Mortgages website. Thank you for those who sent me emails on how much you loved the Property Plus calculator. It’s a borrowing capacity calculator that tells you where you can afford to buy. A wonderful resource, check it out if you have not already and bookmark the page. Remember open it in Chrome or Safari.
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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