NOVEMBER 2014 –WE WON!
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 What an amazing month and I owe it all to you. Many of you know me through my property education business, Your Property Success. It was started in 2011 to facilitate the no-nonsense education I felt was missing and that I wanted my mortgage clients to have access too. Why?Because I was not just a mortgage broker who just wanted to write loans every day, I saw that the discussion about goals and strategies and buying criteria, as part of getting loans organised as a way to assist clients to builda sustainable portfolio. It is almost ten years now since I decided I wanted to show others how to build a property portfolio like I had, based on low-risk techniques. After all assessing risk was something I did everyday as an explosives engineer in the mining industry. So it made sense that I applied that same knowledge to protecting my hard earned nest egg and building a property portfolio. For my husband and I, it took just over 10 years to build that initial $45,000 to a property portfolio that day gives us the freedom of choice. Whilst my insanely talented artist husband creates his amazing paintings and enters them in competitions all over the world I get to work with the very people I planned on helping ten years ago. Giving them the tools, education, resources and loan structures to be able to create their own property portfolio. A portfolio that anticipates the down side of any property market and capitalises the upside, giving them the opportunity to also enjoy what, in my opinion, is true financial success. The freedom to choose what you want to do, with whom you want to do it and when. With that quick background in mind it is so very truly humbling to be not only nominated for the Your Investment Properties Australian Mortgage Broker of the Year but to win this category again for the second time. What is so gratifying is that after having won this award in 2010 I decided, in 2012 armed with all my knowledge, to do things differently. As I wanted my mortgage clients to have a different result to what many investors have. I looked back to see what my most successful clients had done and they had followed a simple plan. For most it replicated the principles of my Trid3nt Strategy® as found in my 2012 book published by John Wiley’s & Sons “Your Property Success with Renovation, 2 properties, 1 renovation, $1 million in the Bank”. So I decided to start a fee for service business so I could make sure that those who worked with Investors Choice Mortgages, not only got the finance they needed to achieve their goals, but the resources, support and online education through Your Property Successto do it. I definitely didn’t want to ‘sell’ property, rather I focussed on teaching others how to do it themselves with confidence. The winning of this prestigious award reflects the work of my team in being part of the success of so many of our clients. I take your recognition of the work in creating something special for my clients as validation of doing things differently after all Investors Choice Mortgages clients get different results.Till next month. Jane NOVEMBER|2014 PAGE 2
Reports you should read Herron Todd White Herron Todd White valuers around the country this month give us a look at the drivers in their markets that signal a shift. They also share where their particular driving forces sit and what might be expected as a result. 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 is sourced from Herron Todd White and RP Data. Source November 2014.
ANZ Housing Update – POSITIVE OUTLOOK CONTINUES Investors are leading the charge in the property market. According to the ANZ latest report “While ANZ remains cautiously optimistic on the outlook for the Australian economy, supported by low interest rates and improved business conditions, economic activity continues to be weighed down by an elevated household sector aversion to borrowing. In addition, uncertainty about the near-term outlook for employment (partly reflecting statistical ‘noise’ in the official ABS labour force series) has maintained job security concerns. While we maintain a positive outlook for the housing market, these factors are likely to weigh on sentiment and housing finance for some time yet strong population gains, a strong investor appetite for housing and pent-up home buyer demand will go some way to offsetting the negative impact of tentative market sentiment.
Click here for the full report.
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RP Data - Wrap Watch this 2 min video – for a quick recap on the state of the market according to the RP Data and Rismark home value index. Capital city dwelling values moved 2.2 per cent higher over the last quarter, over the last 12 months values are up by 8.9%.
RP Data Rental Review The release of the RP Data September 2014 Quarter Rental Review scorecard provides a thorough analysis of rental market activity over the period. Nationally, the annual rental rate for houses and units increased by 1.3 per cent while in the capital cities, house rents remained flat at 0% growth; rental rates for units increased by 2.4 per cent. Read the full report here http://www.rpdata.com/media-release/rp-data-national-september-quarterrental-review-2014
Residex Review The Quarterly Residex report is out and it is crammed full of information. Some specific points that attracted my attention: John Edwards has reviewed down the predicted growth rates for Australia. “They will be significantly lower than the average growth rates achieved over the last 20 years. These lower growth rates are a function of our markets becoming more unaffordable.Our Australia wide statistical prediction for growth over the next 5 years is in the order of 4 per cent for houses and 2 per cent for units.” I spoke to John last week before he jumped on a plane to the UK and he confirmed his concerns over the Sydney market and the slowing down of growth specifically in that market in the coming years. (Note this is not negative growth or a fall in prices). NOVEMBER|2014
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Magazine Summaries and Reviews for the Month Money Magazine This month my mate Bryce Holdaway co-host of Lifestyle channels Location Location Australia is profiled, check out the great article. For a great explanation of how lenders mortgage insurance works check out Effie Zahos’s article, remember it is an opportunity cost at can let you get in the market sooner. PS Don’t miss the list of great online shopping sites, I confess this is where I do most of my shopping, anything from books to my car (yep I bought it at an online auction).
Your Investment Property Magazine We WON! This month you can see the big announcement. I am so proud to have been award Australia’s #1 Mortgage Broker and the comments from those who nominated me are amazing – thank you. You can see the whole article by clicking here. I also shared my thoughts this month on “12 high growth suburbs with cash flow potential”. As you know I believe that you need cash flow to keep your portfolio AND growth to grow and exit it. So make sure you don’t trade one for the other. The rest of the magazine is crammed with great articles and an inspiring story of how one investor built his portfolio after his divorce. Investors Choice clients you will be receiving a copy of this magazine in the mail so watch for the big orange envelope.
Australian Property Investor Magazine I was so proud this month to have one of our The Ultimate Guide to Renovation student’s Russell and Heather Berndt profiled for their amazing renovation success in the cover story Renovation Riches. These guys put all the tools to work and increased the value of their property by $61,000 in 16 days! I really am just bursting with happiness for these guys. Make sure you grab this magazine and see how they did – there is not a more likeable or deserving pair. There are other great case studies this month including some great advice from two great advisers Cate Bakos and Rosemary Johnston on how one lady can recover from a not so great purchase. For those stuck on one investment property and don’t see how you can grow your portfolio don’t miss the article on page 62. Oh and for those considering Buying in Bali you have to read the article so you are aware of all the issues. I have to admit it never crossed my mind I think buying in your family holiday spot is a recipe for financial
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disaster. Make sure you don’t confuse the high of the holiday with a rational property purchase decision. I have just returned from Port Douglas and every time I visit I confess I look in the real estate office windows – but I just look.
Smart Property Investment Magazine Those guys have done it again and bought another property – this time in Port Kembla NSW, I look forward to seeing how they will transform this ‘ugly duckling’. Like API Magazine SPI this month looks at how to jump the hurdle of having just one investment property. This month is just stacked with case studies of investors so if looking for inspiration this month grab a copy. A great article on what to expect at settlement time if you can’t settle on time.
The students from the October intake a flying through the modules and have reached the half-way point this week. The feedback on our amazing renovation calculator has been awesome and the activity in our private Facebook Group “The Renovator Network” has been amazing. Students from all intakes are sharing renovation plans, actual results, resources they are finding and generally giving great support. This week they were also introduce to their own 5 person mini mastermind group. This further supports them with like-minded people acting as their cheerleaders and, when needed, encouragement for when the path seems tough to growing their property portfolio. Great work guys I am so happy to see your results in the last few weeks. Don’t forget our next live Q&A call on the 27th November 8pm ESDT.
Join me on a Webinar Would you like to hear how to make money with renovation as your strategy? If so then join me on this free webinar. Click here to organise a time
Looking for a Christmas 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”.
“I am happy to say that your book I purchased recently was. Very informative and I could not put in down, read it in five days.” Kathy NOVEMBER|2014
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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 This month I have been exploring the great free search tools on www.homesales.com.auBeing able to set your criteria and property investing strategy before you start looking for a property on this website is a great asset. Make sure you use the tabs to check out comparable rental properties on the market and council DA applications etc as well. This is definitely a great site to go into your Toolbox
Just for fun Looking for a fun Property Game for those few spare minutes a day? Check it out here. The goal is to buy and sell properties so you can finally afford the Dream Home. Be warned it is addictive. You have to check out this awesome transformation of a 8m2 maids closet into and innercity Parisian unit complete with bathroom, ‘bedroom’ and kitchen. Seriously inspiring. Watch the short video click here
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 AND it shows you on a map all the properties currently for sale and rent in your target area. A wonderful resource, check it out if you have not already and bookmark the page.
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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