EPI 111 | Find your ‘why’ and joint ventures with Matt Jones

What’s news

  • Melbourne Buyer Agent Lisa Parker climbing off her sick bed to speak to Kaz! Kaz in the midst of a backup contract saga.

 

Feature – Finding your ‘why’ and Joint Ventures with Matt Jones

 

Quick tip and action

  • Take a moment to think about your why.
  • Why do you want to invest in property, what is your motivation?
  • This is a good exercise to do along with your goal setting.  Goals are good but they are often not the reason that keeps you going
  • As we heard in our interview with Matt, you can make amazing things happen in your life if you have a strong why, you set some goals and you take action.

Assessing Paid Online Property Investing Resources—Webinar with Matt Jones

 

Due diligence is one of the important stages in property investing. Before doing some leg work, preliminary assessment of potential deals is an important process that take a big chunk of any property investor’s time. Good thing, online resources abound.

But with so many resources available online, how do you determine which ones are worth your time (and money!)?

In this webinar we talk with Matt Jones from Property Resource Shop as we discuss three paid online property resources and weigh the value of subscribing to these resources: 1) Real Estate Investar, 2) RP Data, and 3) PriceFinder.

Assessing Paid Online Property Investing Resources

 

 

 

Things We Talked About

Three paid online resources

Real Estate Investar

  • 03:19 — cost of subscription
  • 04:00—searching properties using different parameters
  • 10:08—Valuer Report tool (desktop valuation of a property)

RP Data

  • 18:01—ability to customise  dashboard
  • 20:00—advertising history feature
  • 23:42—RP Map

Price Finder

  • 30:00—Features
  • 40:10—Cost
  • 44:00—Property Deal Finder offer

Cost of subscription
Value For Money

SPECIAL OFFER TO EPI COMMUNITY

Property Deal Finder Toolkit

Check Out This Exclusive Offer to Everyday Property Investing Community

prop-deal-finder_package***Get Matt’s Property Deal Finder Toolkit using the link below and you will get:

  • One-year access to PriceFinder
  • One-year access to monthly deal finder webinars
  • 6 months access to Property Resource Shop membership site
  • Audio recording: 15 Things You Need To Know Before Quitting Your Job
Check Out This Exclusive Offer to Everyday Property Investing Community

EPI 041 – Rags to Riches in Property Investing

In this episode we talk about the joys of finding a good property manager, good tenant and good team members – how do you even know who is ‘good’ anyway?  We also talk about the perception of  ‘rags to riches’ property success stories and whether many of them are about good planning, good management or simply good luck!  We talk about diversification in property investing.

Things we talk about:

  • Property Managers
  • Finding good tenants
  • Diversification in property investing

Action:

  • If you don’t have enough time to keep up with the ‘property investing’ media, then check out our Facebook page where we’ll be showing you the best articles of the week that we come across.

EPI 037 | Great Property Investing Goals for 2012 and more

Wow, another year gets started and you have to ask yourself some tough questions –

  • Am I really going to just doing the same things as I am now in another year’s time?
  • What do I really want to achieve with my investing and wealth creation strategy this year?
  • Do I even have an investing or wealth creation strategy??
Yep, it’s that time of the year that you need to set yourself some goals.

Things we talk about:

  • Property Investing
  • Evicting tenants
  • Property Development
  • Setting goals that inspire you!
  • Losing weight
  • Getting fit
  • Paying off your mortgage
  • Property investing goals

Action:

  • What are your goals?  Write them down.
  • Set up some sort of reminder system for tracking your progress
  • Head over to our EPI Facebook Page and tell us your goals

EPI 036 | The Everyday Property Investing Year in Review

Sometimes you forget about just how much you can and do achieve in a year!  In the final episode of 2011 Kaz and Den reflect on what they have acheived in property this year and share some of the big lessons they’ve learned.

Things we talk about:

  • Property Investing
  • Property Development
  • Renovation
  • Holiday houses
  • Buying your own home

Action:

  • Start thinking about and writing down your goals for the new year.
  • Head over to our EPI Facebook Page and like us!
  • Give us a rating on iTunes!

 

Our preoccupation with Interest Rates

Interest Rates

 

I’m not sure about you, but sometimes all the media talk and focus on the ups and downs of interest rates seems like such a waste of time and energy to me.

Sure, I like to know what I’m paying for borrowing money, but the reality is that I can’t change the level of our interest rates, so if I want to borrow money at any given time, well then, it is what it is.  I have to pay the market rate – mind you, the best offered market rate product that I can find – but the market rate nevertheless.

The thing I find perplexing is when I hear people saying that they want to invest in property, but they’ve heard that interest rates are going to go up.  Technically, they are correct.  Interest rates will go up.  If you have a mortgage over a period of time, you will no doubt find that interest rates will go up….and they’ll go down….and they’ll go up….and they’ll go down….you get the idea, right?  Interest rates are cyclical.

What affects interest rates?

The Federal Reserve Bank of Australia (RBA) are charged with monitoring and maintaining the stability of our overall economy and they do this by responding to the ups and downs of the countries economy with adjustments in interest rates.  It’s a bit of a balancing act as they try to prevent rapid growth leading to rising inflation and price growth and on the flip side, they try to ‘speed up’ the economy when it’s slow to ensure reasonable employment rates and keep people buying.  So in very general terms, balancing interest rates is about inflation and employment.

If we think of the economy as a see-saw with inflation at one end and recession at the other end, the RBA are the little bloke in the middle who is edging a bit toward one end then back toward the other to keep the see-saw balanced!

It’s about supply and demand.  An increasing demand for credit will see inflation start to go up and interest rates will be raised, whilst a decrease in the demand for credit will see the economy slow and interest rates will be lowered to get it going again!

Global economic conditions can also have an impact on our own economy, as we have seen of recent times with the ‘Global Financial Crisis’ (GFC), or the ‘KFC’ as I like to affectionately refer to it!  I’d much rather think of fried chicken than the fried economy!

Governments don’t directly decide on interest rates.  The way they handle monetary decisions can impact upon the economy of the nation, however, which can influence interest rate decisions.  This is why you will hear people talk about how interest rates went up under a [insert Liberal or Labor] government – you’ll particularly hear that around election times!

 So what can I do about interest rates?

You can know what they are and factor these into your purchase decisions.  

I would always recommend when you are ‘running the numbers’ on a property deal that you use interest rates that are at least 1-2% higher than the current rate.  This will mean you know when interest rates rise, and they probably will at some point, that you are comfortable with your repayments.

You can shop around for the best deal when you are looking to buy a property.

Remember that you are in charge of the mortgage that you get.  Assess the options, compare rates at different banks/lenders, negotiate a better deal.  Don’t worry about ‘bank loyalty’ – trust me, banks don’t worry that much about yours, even if you’ve banked with one bank all of your life, this should not be a factor in your mortgage decision.

You can approach your existing bank for a better deal, or move banks for a better deal.

Here’s a great tip.  Pick up the phone and speak with your bank about what sort of a great deal they can offer you on your current loans.  Tell them you really want to make sure you are getting the best deal so you are doing some assessment of your current loans and interest rates.

Recent legislation meant that banks had to remove their exorbitant exit fees, making it easier for you to move your existing loans.  Do make sure though that you fully assess all fees and charges associated with exiting one loan (if your loan was setup before the recent no exit fee legislation then it may still have fees) and all of the fees associated with setting up a new loan.

Don’t worry about ‘what they say’!

Educating yourself is the key to not having to worry about ‘what they say’.  When I hear people talking about how they’re not going to invest because interest rates are going up, mostly, I just smile and nod.  I am comfortable enough with my investing knowledge that I don’t need to be preoccupied with minor interest rate fluctuations and the opinions of other people (who mostly, don’t even have property investments).

EPI 034 | Shares and Property: The right mix for successful investor Justine Pollard – Part I

Thought about diversifying your investment vehicle?

Today’s interview may make you think about doing just that!  We talk to accomplished author, expert share trader, keen property investor and soon to be property developer, Justine Pollard from Smart Trading.

Justine is inspiring with her story of investing, so inspiring in fact that I even purchased here Share Trading book (available on her website) after doing this interview!

Things we talk about:

  • Rich Dad, Poor Dad (Again!  This seems to be a catalyst for many a successful investor’s beginnings!)
  • Share Trading
  • Property Investing – in Australia and the US
  • Smart Trading – Justine’s share trading education site
  • Mastering Investments – the investing course that Justine put together with a bunch of share and property experts.  We have a massive listener discount special available on this course, a whole $300 of the regular price – check out the Mastering Investments Christmas special (until Dec 25 only!).

Action:


EPI 033 | How to turn your property investing into a great lifestyle forever

So you’re all geared up for property investing.

You’ve got a plan to grow your massive property empire?

Fantastic – but what’s your overall plan? What’s your exit strategy?  How much do you actually need to retire comfortably?

Well, listen in as we talk through ‘the big picture’ on how to turn your property investing into a lifestyle and how to plan for your retirement.

Things we talk about:

  • The slap – and how your perception creates your reality (oooo…esoteric!)
  • The cost of raising kids!
  • Property investing and your lifestyle
  • How to calculate how much money you need for a comfortable retirement
  • Exit strategies for property investing

Action:

  • Work out how much you need for your retirement
  • Determine if you are on track toward this goal and what you need to do to make sure you are!

Today’s Property Market – Buy, Sell or Hold?

Property market direction

 

Today’s property market seems increasingly confusing and difficult to read. Certainly I feel that I am being bombarded with all sorts of stories in the news and in financial papers; a market bubble, a housing shortage, mortgage crises and so on.

With this in mind, I thought I’d reflect on whether today’s market is a good place to buy, sell or hold. There are, and there always will be, some important factors to consider.

1. Interest rates:

Interest rates determine the ease which we can afford to borrow for our purchases. Right now there seems to be talk that interest rates are headed down again. It seems, however, that this could change at any tick of the clock. Personally, I think that for any calculations made regarding property affordability, interest rates should be estimated at at least 9-10%. After all, you hold property for a lot longer than the short term. Best make decisions keeping in mind a conservative, long-term interest rate for your calculations. And if, as the pundits suggest, interest rates do drop then you’re at an advantage and can pay off your loans faster!

2. The many Australian property markets:

There isn’t just one property market in Australia – there are many. Even in the same location you might find that there are a few markets; the unit market, the first home buyers market, the established family market, the retirement market and so on. This is the reason why some statistical tables can be misleading – one location may have four or more different markets working at the same time and a median figure doesn’t take this into account. Rather than ask if now is a good time to buy property, look at where the opportunities might be. There are so many mini-markets in Australia right now that there will be good buys somewhere. All you have to do is find them!

3. Timing in the market isn’t as important as time in the market:

There’s an old real-estate investor’s saying that the most important thing is the time you’re in the market. Long-term investors sail through the tough times and enjoy the good times because, in the long run, property is a great investment. If you’re looking for a quick profit then property might not be for you (unless you are either very lucky or you have specific skills that can bring about quick profits in any market – and I don’t think these are ever without risk!). If you’re here for the long haul then perhaps the timing isn’t as important as some people suggest.

4. Do what everyone else isn’t doing:

Several experts (including American share billionaire Warren Buffet) say that the real money is to be made in bucking the herd, not following it. If common feeling is that property should be sold then possibly it’s a good time to look around for a purchase or two. In times when lots of people are selling there have to be some cheekily good buys around! Don’t be afraid to buck the trend – you never know, you might just end up as the next property millionaire!

5. Nobody knows:

Reality is that nobody really knows precisely when the market has bottomed while it’s happening. And nobody knows when it peaks either. Hindsight tells us these things. The best you can do is to complete all your research, get to know an area, understand the driving forces in that area, do your due diligence and make educated guesses. If we look for signs that perhaps things are strengthening then maybe we’ll be right. Maybe.

These are just five points to consider, and there are many more. Opinion will always be divided when it comes to buying and selling real estate (and any other asset for that matter). Ultimately the decision is yours and you can never be sure. As long as you do everything in your power to make sure you buy (and sell) well, that’s all you can do.

And good luck with your investing!

Where to buy property now – Den’s tips!

Where to buy property

 

I believe that there are some good buys in the Melbourne market and here’s where.

1. South Eastern suburbs – Springvale South, Keysborough, Noble Park

These suburbs are near the growing centre of Dandenong, have a diverse range of industries and a heavily funded secondary school (Keysborough College – so it’s not a bad idea to be near one of the campuses).

There’s also a major shopping centre nearby, good public transport (and these three ‘burbs are on the city side of Eastlink). You can get to Melbourne on the train in half an hour or so from one of the nearby train stations. Houses are around the $400k mark, units a little cheaper.

It’s good value right now.

2: Inner Western suburbs – Sunshine / West Footscray

These western suburbs are traditionally a bit down-trodden but there is a gentrification process which has already taken in places like Yarraville and Seddon and, if it keeps moving, these are next.

Good services; shopping centres, public transport etc. These ‘burbs are as close to the city as you can get without having to pay a big price tag. They’re also well serviced by freeways and enable you to be heading into/out of town very quickly.

Look around and you could find some decent value.

3: North Western suburbs – Broadmeadows and surrounds

There is heaps of money pouring into this area to continue its gentrification from what was, frankly, not the best of reputations. This could be a bit of a long-term prospect but I reckon it’s worth having a look around. Good services, good public transport, lots going on…

The bottom line is that smart investors can spot winners in any market. Know your strategy and know your market!

And good luck with your investing.