JUNE 2014 – HAPPY NEW (FINANCIAL) YEAR!!!
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 At the beginning of every year we set our New Year Resolutions. Often we are on holiday, and the goals we set ourselves are quickly undermined by the frame of mind we are in. How hard is it to cut back of food/alcohol/cigarettes when you are in holiday mode? Ever try saving money whilst on holiday? We set ourselves up not to succeed. So now that you are half way through the year and you are in the routine of day to day life it is time to set some resolutions. These are not just any type of resolutions these are your Financial New Year Resolutions. Everything is aligning for the next 18 months, as the last 18 months have been, to be exceptional in the property market and for your personal finances. If you have been reading this newsletter you know that throughout Australia properties have been going up in value over that time. The type of growth we have seen is not sustainable BUT even the more stable growth predictions coming from the experts indicate prices are going to continue to rise. So now is the time to take stock. Consider your options, review your budget, get a valuation on your home and investment properties and leverage your position to set yourself up for the next year. This month I had the opportunity to hear Merrill-Lynch’s Chief Economist Saul Eslake discuss the budget and the years ahead. Surprisingly the Westpac sentiment report indicated that many people believe that their financial situation will be worse off next year because to the budget. The reality is that the ‘austerity’ measures being introduced will not hit till 2017-18. As I said we have a short time to consolidate and make things happen. Another prediction from Saul: interest rates will not go up till the end of 2015 BUT fixed rates will start moving in the next 3-6 months to reflect that future move. So now is the time to grab pen and paper, check out the budgeting tool at the end of this newsletter, review your portfolio and consider fixing rates. Check out my article in the API newsletter on fixing rates or contact the office if you would like me to assist you in your review. Let’s make it a Happy New Year!!! Jane Slack-Smith JUNE|2014
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Reports you should read Herron Todd White “June is a good time to take stock in the property market, and we’ve grasped the opportunity” Even the good people at HTW are tipping the opportunity ahead this gives a great overview on what the rest of 2014 will be like. 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. You can download the report here CLICK HERE to download.
Saul Eslake Chief Economist Merrill Lynch Presentation Here is one of those reports that most people don’t get access to. This was a presentation made to mortgage brokers at the MFAA’s (Mortgage and Finance Association of Australia) recent Economic Forum. Saul shared where the world economies are now, where interest rates are headed and a general review of the budget. Great information Check out this presentation.
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 June 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.
There is mixed reports. Is the property market still growing or not? One way to see where people are buying and where the demand is, is to look at how fast properties are selling. Here is a list of the fastest selling suburbs across the nation supplied by RPData, you make your mind up.
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Magazine Summaries and Reviews for the Month Money Magazine We all love something for nothing and this month Money shows us where we might be able to pick-up a few extra dollars that you are entitled to! The experts cover the budget and how you can take action to secure yourself ‘free money’. I also found the article on how to get the best deal from your internet supplier a good read, something we all need. Property is well and truly covered as well looking at where to buy next and what you should buy a house or a unit. Don’t miss this article.
Your Investment Property Magazine A no nonsense guide to making money in property? Sounds good doesn’t it – well it is. This is the cover story this month. For those interested in the cheaper suburbs don’t miss the article on how to identify and find your own affordable property. In actual fact they take the hard work out of it and list the suburbs in each State that you might want to add to your list to research further. If you are considering buying interstate then understanding the differences especially in cooling-off periods is important. Grab the magazine for this handy cheat sheet, it is worth it alone. Don’t miss the tax guide it is that time again and you need to be prepared.
Australian Property Investor Magazine Packed! I have no idea how these guys keep coming up with new topics and segments that have me glued to the magazine for hours! This month is no different. If you are looking for motivation as well as some step by steps on how to do it then this month features even more case studies of people who are actively building very impressive portfolios. This month they profile someone from every generation – after all it is never too later…or too early to start. Speaking of which I had my first enquiry for a loan from an 17 year old young man this week. Imagine where you could be if you started that early with that much focus? I love the “Open for inspection” section which has property experts pitted against each other in assessing one property in each State. Would they buy or walk? You find out how they come to their decisions. The section on tax bloopers is also important. We often hear what to do but not what not to do, this is a great read.
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This month you can check out my response to a reader’s question: “Should they sell their non-performing property in Gladstone?” I even offer readers to contact me to get the research I used including which include comments from my friend Terry Ryder CEO of Hotspotting to explain why. Many people have emailed me to get access to that information if you would like it too let me know.
Smart Property Investment Magazine SPI reveal their entire portfolio in this issue. Yes that’s right the team at SPI have not only been buying properties over the last three years but renovating them, adding value, accessing equity and doing it again. They are now at an impressive $700,000 equity position. Check out all their details this month. Also crammed into the magazine are excellent articles on identifying your own hotspot, how to get your valuation higher and the all important question do you have enough time to generate a $60,000pa passive income from property and two strategies to achieve it.
This month the March intake of students in The Ultimate Guide to Renovation completed all 12 modules. It has been an amazing journey and to see the renovations and property research being shared on their private Facebook page is great. In fact they all received their Trade Discount Card this month and their Masters Discount card so there was a lot of shopping going on as well. We had a first on one of our weekly webinar support calls. A student called from their brand new investment property on the day they picked up the keys. He was busy working on stabilising a few stumps under the house but took time to run some of us through his numbers and plans to get the property up to scratch and onto the rental market asap. Great work! http://ultimateguidetorenovation.com.au/ for more information and register your interest for the September intake.
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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
Start your New Year Financial Plan with a bang – after all it is the start of the financial year! These resources will lead you through how to do just that. Start with your budget, determine your goal, work out your borrowing capacity and then where you should buy. The resources below will get you well on the way and they are all free!
Budget Are you struggling with your budget and your savings account is not moving? Tune into this one of the Davidson’s Institutes free educational webinars. This might be just what you need to get set for the new financial year https://www.davidsoninstitute.edu.au/learning-centre/personal/webinars/budget-basicswebinar
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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