OCTOBER | 2013 IS IT TIME TO GET RID OF THE DEAD WOOD IN YOUR PORTFOLIO
IN THIS ISSUE: Monthly Highlights
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Reports you should read
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Book Reviews
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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 Now is the time! The property market has definitely moved, interest rates have dropped and now is the time to start thinking about what you are going to do about it. If you currently have a property portfolio then consider this year your opportunity to maximise your asset base. On one hand you can capitalise on the dead wood and start thinking about putting those underperforming properties on the market. Then on the other hand you can consider looking at your near time goals with respect to your long term goals. If you have built up equity in your portfolio look at accessing this (in a responsible way) whilst your borrowing capacity is higher than ever before and parking these funds as a buffer – just in case you need it. With the increase of unemployment and the off take from the mining industry and the dropping Aust $ you may need to cover yourshort term expenses if you do lose your job. This recommendation is not made lightly as the management of these funds needs to be considered and not for discretionary spending and lenders, and even more so mortgage insurers, have limitations on LVR and loan amounts for this „cash-out‟ option.If you want to discuss doing this then call me 1800 46 48 10. This brings us to lenders and the fixation the media has on them dropping their lending standards. On 1stOctober the NZ RBA put restrictions on the banks restricting their lending LVR‟s. According to the RateCity database 73% of home have an LVR of 95 % or higher, which is slightly up on last year (68 %) and significantly higher than the lows of 2010 (49%). This seems strange to me as although we have seen investors return to the market in the last 6 months, there has also been many upgrading their home and lots buying in their SMSF. Property prices are moving up as you can see from the map on the other page however as a whole most of us are sitting on a growing nest egg in our homes but not confident about our employment.The recent RPData Pain and Gain report: “…homes that were purchased prior to 1st January, 2007 (pre GFC) and were then sold during the June quarter of this particular year, only 7.2 per cent of resales made at a gross loss. However, for homes purchased on or after this date, the propensity to make a loss on the sale climbed substantially. If you look at those properties which sold at a loss over the quarter they had an average hold period of just 5.0 years,” Mr Kusher said. So this confirms what we have known; property is a long term investment. So start thinking long term and maximising your portfolio now. Till next month. Jane Slack-Smith
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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 edition should give an outline of where buyers might start the hunt for their next purchase. You can download the report here CLICK HERE to download.
Genworth Homebuyer confidence index This last survey shows confidence in home owners buying a property dropping and the main cause is concern over employment. Check it out here
Residex Regional Figures It looks like Regional Australia is also enjoying the capital growth ride. Click here to see the Regional areas throughout Australia and how they faired. When I interviewed John Edwards recently he indicated that he saw most markets move towards their 20 year long term growth so it is good to see this figure included in the data. Dubbo and Mudgee in the last year have been the standouts.
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
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RP Data Watch this 10 min video – for a quick recap on state of the market according to the RP Data and Rismark home value index. Markets are rebounding and this quick video gives you a quick insight on where the market is going.
RP Data Pain and Gain report This is a fabulous report that shows where we are in the market in respect to resales. As you can see those with the dark blue areas show where people have made over 100% profit when they sell, ie their property sells for more than twice what they bought it for. The interesting thing is in the second and third pie graph is that if you held for longer than 5 years you had over 10 times more likelihood of doubling your money – once again proving property is a long term investment.
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Magazine Summaries and Reviews for the Month Money Magazine So how can you retire on $60kpa? Well it all depends on when you start. Those in their 20’s have time on their hands but not a lot of funds to invest. If we fast forward to those in their 50’s the opposite is true. I also shared with readers some tips on how mortgage brokers can assist you. There are some lender policies to do with fixed rates, buying off the plan and reducing your mortgage insurance premiums that I am sure you will enjoy. Also check out the list of houses and suburbs, courtesy of RPData. They list the lowest median valued properties within 10km of the CBD. Finally a great article on how to sell your home, it would seem that auctions are not always in your best interest‌
Your Investment Property Magazine The cover story this month is about 29 underrated areas with big potential. All States are covered (except Tassy). If you are learning how to locate an area that has the potential to grow your wealth then check out the things to look for in this article. There are also great articles on when to sell and when to buy and how to start investing in property through your self managed super fund. Not to be missed is the article on how to conduct your own pre-purchase inspection and more importantly what the costs of fixing some of the most common issues are. There is so much more squashed into the pages this month you just need to check it out for yourself.
Australian Property Investor Magazine Just when I wonder if there is a property topic left to be covered these guys pull out the big guns. We all like a celebrity story and this month Lindy Chamberlain shares her property investing story. Plus there are so many case studies of real life stories of real life people who have multi-million dollar portfolios that it is truly inspiring. And that is just the cover story! This month the team at API have jammed into this issue an extraordinary amount of amazing information. If you are flicking through make sure you cover all the articles all the way to the back. On page 83 starts a special report with Australian property monitors on 130+ suburbs with profit potential, ie where in the one suburb the lowest and highest prices have to most potential for you to add value with renovation. This 20 page report is not only packed
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with printed information, there was just so much content it also goes into digital and 8 videos. Make sure you scan and watch the Skype chat with me on how to determine if a suburb has the potential for renovation profit PLUS I share one of the tutorials from my new course The Ultimate Guide to Renovation. For anyone who wants to know which streets in a suburb you can make a renovation profit this dot map tutorial will give you all you need to know.
Smart Property Investment Magazine We all want a bargain and this month SPI does the work for us and finds bargain buys. The key is to find something that suits you and your investment strategy, fits in with your buying criteria and also has the potential for capital growth. It is a lot to ask for but as we all know you make money when you buy so using this list of potential locations gives you the jump. These guys have now finished off their Mt Druitt renovation and are reviewing the outcome and results. This is a key step in any renovation strategy and gives you the chance to improve next time.
Australian Women’s Weekly Magazine This month I have contributed again to AWW as a 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 achieving your goals. Who better than an exmining engineer (yep that’s me) to show you how to tap that resource. Make sure you download the Viewa App and watch the videos. This month we look at how to access equity from your property.
A quick update on the Ultimate Guide to Renovation What have I done? I unleashed 20 beta testers on the new renovation course and their feedback has been so valuable we are busily adding even more content. The fact that they believe that as it was there was no other course as comprehensive as this one, just makes what will finally be released the first week of November truly The Ultimate Guide to Renovation. They even changed the logo!Those who signed up for the early registration will continue to get more sneak peaks! If have not yet you can sign up by clicking here.
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”. OCTOBER| 2013
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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 Here are this month’s resources for your toolbox. Check out the new SQM Index – this is updated weekly and may give a closer account of actual prices in this fast moving market. Click here to access 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 as a mortgage broker. I am sure you will find many resources that 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 on the Hotspots around the country where the property will pay for itself! www.investorschoice.com.au
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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