MARCH | 2013 DOES BUYING OFF THE PLAN LOCK AWAY YOUR MONEY?
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 resources
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MONTHLY HIGHLIGHTS Does locking your money up into an off the plan purchase make sense? I get asked this question all the time, in particularly in regards to the Melbourne inner city market. This month I attended a MFAA (Mortgage and Finance Association of Australia) event where they bought together 4 Melbourne valuers and their answer was a resounding – don’t touch it. They went on to say that whilst there are some very good developments that are holding their value on the most part those who have bought off the plan will see their investment go backwards. Buying off the plan is one strategy; there are many strategies available to those who want to invest in property. In the very first of my online courses I actually go through over 20 strategies and teach you how to evaluate the risk of each strategy and how you could minimise those risks. The key is knowing firstly what your risk tolerance is and making that fit the investment strategy you are going to use. I recently spoke to an investor who said that they bought a house and land package in Point Cook. When all the new developments went in they could not rent their property out as renters were after the latest shiny fixtures and fittings, so they had to sell up and move there themselves rather than loose what they had invested. Finally they decided to sell and start again - a costly experiment. However it got worse I asked what she was buying and she said as they had learnt their lesson buying in the outer suburbs and a house they were now committed to buying an inner city apartment off the plan. A total reversal. I explained to her the location and type of asset might have changed but she fell for the same mistake buying something where there was an oversupply and where the tenants would want the next newest apartment very soon. Understanding your strategy is the first step to building a profitable portfolio. I have been in the studios this month and on site filming the new 'how to renovation course'. Your Renovation Success. This week I was locked away with Founder of Residex John Edwards. I can’t wait to share with you his thoughts on the future of the Australian market. Till next month. Jane Slack-Smith
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Reports you should read Herron Todd White I believe this is a report that you should just 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
NAB Outlook on the economy I attended the NAB market outlook. Chief Economist Alan Oster looked at what lays ahead and as you can see here there is some concerns on unemployment rising at the end of the year and interest rates going down by 0.5-0.75%. However it seems our dollar will remain high and the cash rate will remain low.
RP Data Watch this 10 min video – for a quick recap on the market – it seems the markets are rebounding.
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Magazine Summaries and Reviews for the Month Money Magazine The cover story this month says it all. Who would not want a $2500pw passive income? I had the pleasure of being one of three experts who helped put plans in place for our 20 something single person, mid 30’s family and mid 40’s family. The good news is that not only do you get the plan of when and what to buy, but also the finance structure on how to do this so you can continue to buy and the actual suburbs where to buy. This seriously is the game plan that a typical family or single can start their portfolio and a few years be well on the track to achieving $2500pw!
Your Investment Property Magazine I grabbed this magazine to read on a plane trip recently and the hour and half just was not enough. I was buried in the 30 best rental suburbs article for that whole time. The article provided not just a great summary but excellent information on how the suburb was selected – a stand out article for me. As always excellent case studies on real life stores that can inspire us all.
Australian Property Investor Magazine So the cover story has it all. Imagine earning $1.1mill a year in cash from your investment properties. Well one of the investors in this month’s magazine does. There are three other investors who share their stories. There is an interesting article on hotspots and cold spots in the US and another bumper article on the 150 most in demand suburbs. The photo of the maggot infested oven reminded me of some of the not so pleasant (but potentially profitable) properties I have visited. I was happy to contribute to The Basics of Property Investing story. We often forget that for many just starting out that this can be a scary adventure. One that seems to promise untold riches but could potentially be the source of much stress. The reality is that there are a few things that you should get right, with these foundations any investor can be held in good stead.
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Smart Property Investor Another great magazine this month full of short sharp articles that are easy to read. I really enjoyed their latest property investment in action report where they bring us the final result of their renovation. They have some impressive results, a great renovation and a resulting 8%+pa rental yield. Check this out. As I mentioned below before getting the foundations right is paramount to any investment. This month the article on goal setting gets right to the point – this is where you should start at the beginning. Many forget this important step and this article reminds us to concentrate on what should come first. Finally don’t miss the secrets of valuer’s article – there is a great list of attributes that adds value and those that don’t something we should all remember especially the renovators.
On the 29th March the 5 Your Property Success courses will be coming of the market. As well as the 33% discount there is over $1000 worth of bonuses. This online course that you can download to your Kindle or IPad and do in the comfort of your home will possible be back at the end of the year, fully renovated and at a higher price. Those who buy now will get lifetime access to all the updates and improvements. Check out the details here.
Looking for a great gift? If you have not got a copy of my latest book yet – then this might be just the thing to make your 2013 goals a reality 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 I have said it before but I don’t want you to miss out on the great digital mini- magazine from Australian Property Investor magazine. This month they take up the discussion on how the recent flooding has affected the Brisbane development market – if you subscribe to the newsletter you get access – signup and get access. www.apimagazine.com.au/newsletters You should check out http://www.ripehouse.com.au this is a great website. Type in your suburb and check out the ripe scores for the properties that are currently listed. What I particular like is the areas that they show you in each suburb, areas of gentrification, blue chip areas and amenity areas. For someone trying to quickly evaluate any suburb and more importantly an area you don’t know.
A word from a happy customer I received this great video from Steve this month. Within months of completing the online course he has bought 2 properties, below market value and he has even done a renovation. Check out this great video with Steve and his bird Rosie. 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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