SEPTEMBER | 2013TIME TO SPRING INTO ACTION
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 JUST DO IT! Most newslettersI have seen this month start with “Spring has sprung”, the reality is that with rates and the optimism in the market it is time to Spring into action! There are some really great buys with heaps of potential and with the SQM recent projections on growth it would seem that the market is poised for upward movement, so if it is the right time for you then look at your next purchase soon.In my mortgage broking business we are seeing buyers flock to Sydney and Brisbane and regional Queensland. So why are conditions so good? Firstly, the obvious is that interest rates are so low and over the last 7 years Australians have built up a huge amount in their savings, in their bank accounts and in the equity in their properties. The election is over and after all it is spring and for many when they think of selling their property they think spring is the thing. Then there is the lowinterest rates. If you are thinking about fixing some of your loans now might be the right time. There still may be a further drop for variable rates, especially with the recent unemployment figures released mid Sept.The new government has told us that they are looking at stimulating the economy. We all know what stimulated the property market once before, the first home owners grant. Arguably with record clearances and three capital cities that have now passed their all time median highest value, it would seem that stimulating the property market will not be the main focus for the government. In addition, lenders and mortgage insurers are tightening lending policies for investors, so getting loans is getting a bit harder. In fact we are lucky we are not in NZ, where their RBA has restricted banks to lend no more than 10% of their new loans to people with less than a 20% deposit. Let’s hope that does not happen here. So if variable rates may continue to trend down why do I suggest you look at fixing for 35 years? Currently the world wide economic confidence is improving, long term bank bill rates are pushing upward. With optimism in the future world economy the future cost of money is expected to be higher and hence why long term rate, in my opinion the rates for the3-5 year plusterms, will continue to go up. Then again it is all crystal ball so you need to work out if it suits your specific circumstances. Fixing is not for everyone. You need to know what the downsides are - check out this video and e-book to work out if this suits you by clicking here. In summary interest rates are low, so you can borrow more than you could anytime in the past, the property market is stimulated and going up in value, the long-term economy looks healthy. So it might just be time you take some action. Check out the great resources this month plus my interview with a buyer’s agent, heaps of inspiration for you! Till next month. Jane Slack-Smith SEPTEMBER| 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. 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 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.
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Book Summaries and Reviews for the Month This month many of my friends have books out! So I just had to share them with you, in fact in the coming weeks I am going to interview each of these authors so don’t miss those interviews. If you have any questions for them let me know!
Property vs Shares The Property Professor Peter Koulizos and ZacZacharia have pulled together a great book looking at a comparison of property versus shares and how to find the right mix for a profitable portfolio. Almost every investor eventually considers the question: which is the better investment, property or shares? The answer isn't as simple as one or the other, since both asset classes offer different benefits and risks. This is a really easy to read summary and the website bonus material is great!
Claim it!: A property investors guide to depreciation Many of you have read Tyron Hyde from Washington Brown’s articles in the property magazines. He is an advocate of getting access to all your entitlements as a property investor and one of these is depreciation. Written in easy to understand English, readers will learn about the basics of Depreciation as well as more complex strategies such as; how to prepare a depreciation report, what building allowances and plant and equipment deductions they can claim, how it affects residential property investments, and much, much more
Four Green Houses, and a Red Hotel Pete Wargent is a regular property commentator and a successful investor. I had a peak at his book a few months ago when he asked me to look over it. Wow! He believes successful investment often mirrors a game of Monopoly – winners keep their expenses low and continue to acquire prime investments over time. In the book he provides simple and effective strategies for acquiring wealth through property and a holistic financial plan, which includes share investment. This month some great new books from some great guys grab your copies!
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Magazine Summaries and Reviews for the Month Money Magazine This month seems to be all about property. I have to confess I couldn't put it down. As well as looking at the hot picks from some experienced investors, my good mate Prof Peter Koulioztalks about his latest book ‘Property vs Share’. Not to mention the great section on buying in super, where to buy and so much more. In fact a not to be missed is the section on Finance/budgeting apps.
Your Investment Property Magazine Often people believe you need a high income to invest in property. This could not be far from the truth. I have clients on less than $50kpa earning rental returns exceeding their PAYG income. The cover story this month profiles 3 such investors who have had inspirational results. In the past few week’s I have met a number of high profile buyer’s agents who have each reinforced the Newcastle and Toowoomba opportunities. So to see YIP compare both of these cities was fantastic, timely and right on the money. Personally I think the infrastructure and funds committed to improving Newcastle meansthat a select few suburbs in that area are ripe. If you want more information on where the experts are buying check out this interview (in a noisy cafe) with James Freudigmann from Propell Buyers Agent Click here to access that interview.
Australian Property Investor Magazine Is it just me or does this magazine just keep filling the magazine with articles that you just want to read. I quickly look through the magazines to see which articles I want to read, so I know when I have time which articles I can go back to - this month I was marking every page. So here are the highlights. Some of you may not know that Kieran Clair (ex-Herron Todd White) was a valuer for many years and is now with API Magazine. This month he shares his top 10 strategies on how to get a better valuation. So we hear it from the horse’s mouth! I was so interested in this topic alone I have twisted his arm to share more on this, more on that next month. There are also articles on areas to concentrate on whether it is due to infrastructure leading the charge or to 100 rental demand hotspots. Then there is the Property Professor, Peter Koulizos shares his story on a totally unique option deal he recently did over coffee. Recently, he gave me the
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heads up on this unusual investing technique. In the next month when hevisits Melbourne, we are going to sit down and discuss this, so watch out for that. Finally check out Julia Hartmann article on what structure to buy property in, trusts, companies or personal names. This is a great overview on buying structures.
Smart Property Investment Magazine These guys are doing it again. The staff grabbed the paint brushes and headed to their latest property and what a result! There are lots of great renovation topics in the magazine this month. I even share some of my R's of cosmetic renovation, the Refresh, the Repair, the Rejuvenate. As always there are great profiles, quick and easy articles to read, I always check out this mag for a quick overview.
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 thatYour Home isYour 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 renovate your home strategically to add value.
A quick update on the Ultimate Guide to Renovation The 20 testers are providing fabulous feedback and the improvements and bonus material we are creating will blow you away. In fact next month,the API Magazine will give you a sneak peak at one of the resources I teach. This resource shows how to locate the actual street to buy a property ripe for renovation. So don’t miss that. 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”. SEPTEMBER| 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. This month the application recommendations come from Money magazine, the best thing about these is they are all free. Check out the MoneySmart website run by ASIC. Great calculators. Also checkout Pocketbook, this apparently tracks your spending and integrates into your bank account balances just like the amazing US based Mint app. This is one I can’t wait to try! Finally just for fun try AppsGoneFree every day a few apps are free I have found some great budgeting apps here. Want more on renovating? This month I visited the offices of Property Observer.They put out a daily newsletter at 12.20pm so don’t miss signing up for that. In this interview I share some tips on renovating to create a profit. Check out the short 5 min video 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 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 SEPTEMBER| for yourself. I2013 do believe transparency is vital and hence this disclosure.
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