Tag Archives | real estate

Build a Property Portfolio and Retire Rich

Build a Property Portfolio and Retire RichWe all know that property can make a great investment. The case to retire on property is easier said than done. To do so one must be disciplined, exercise caution and develop and follow a well considered strategy.

Property has proven to perform over the long-term, in fact it has proven to be the vehicle that has created many millionaires. The secret is establishing a plan for retirement and being able to stick with the plan.

There are two distinct phases to building a property portfolio that can sustain your retirement.

Phase 1: The Acquisition Phase

The key to building a substantial portfolio is using borrowed funds. One must get used to handling large sums of monies and holding high levels of debt.

Don’t let the levels of debt phase you. Only borrow within your means and always ensure your asset value exceeds the debt levels. Always leave a “buffer” in case of the unexpected.

Research the types of properties that make great investments, tenancy advice, and taxation advice and obtain an understanding of how it all works.

Understand that purchasing just one investment property will not enable a retirement lifestyle; rather you will need to understand that a portfolio can be five properties and more in order to achieve an early, wealthy retirement income.

Phase 2: Retire Debt

In order for you to retire and obtain an income from property you eventually need to own your property unencumbered or debt free. This being the case a good strategy is to purchase (over time) a number of investment properties, sit on them as they grow in value and as retirement nears begin to sell some of your portfolio in order to repay all borrowings on those properties you wish to keep.

This will give you a smaller portfolio but a fully owned portfolio. The rental income is yours to keep.

Obtaining the right property for your needs is important to your success. Seek advice from those that have done it before, have an understanding of taxation laws and can show you how to build a retirement nest egg.

If you would like to explore your property investment options, contact us.

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Super-sleuthing beneath the Surface at Open House Inspections

Super-sleuthing beneath the Surface at Open House Inspections

“Open House Inspections”

Looking for the right home can be an adventure but it’s important not to be seduced by glossy surfaces.

Following are some valuable tips for inspecting properties:

  1. Take The Right Tools
  • Pocket-sized mag light.
  • Note pad and pen
  • Comfortable clothes (be prepared to get down and dirty).
  1. Have the Right Mindset
  • Be prepared and be inquisitive. An inspection is exactly that, you’re not a guest. Don’t be afraid to inspect anything that seems damaged or in disrepair.
  • Don’t overlook the obvious. Why is furniture positioned where it is? Is there anything being hidden?
  • Spend time in the property to really take its measure.
  1. Ask the Essentials
  • Ask for a copy of the contract
  • Why are they selling?
  • If you’re seriously interested, arrange another private viewing so that you can review anything you might have overlooked.
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Refinancing Myths and the Simple Truth

Uncertainty in the economy has home buyers wary of the conflicting types of information available to them. Apparently we are operating in a two-tiered economy: a booming economy in the mining sector and the flat economy that most of us live in.

This has left many mortgage holders wondering whether they should refinance, lock-in a fixed rate or simply stand still and watch what unfolds.

Uncertainty and confusion exists among mortgage holders. No one really knows what way rates are headed and the proposition of refinancing your mortgage could have as many pitfalls as benefits.

These are some of the refinancing myths:

Myth 1: Low Rate Is The Be All and End All

Borrowers often forget that many of the low rate loans lack other money saving features such as mortgage off-set facilities. Borrowers should also check as to whether the low rate is for the life of the loan or just an introductory period.

Myth 2: Change Lenders For A Better Deal

A common misconception is that you need to change lenders to obtain a better deal. This is a falsehood as your current lender generally will negotiate in order to maintain your business.

Myth 3: Debt Consolidation Is A Good Idea

Many people believe that by consolidating their debts when refinancing that they will be better off in the long run. This is untrue. Often a credit card or personal loan refinanced along with a mortgage will mean that the debt will be paid out over 20 – 30 years rather than 3-5 years. What is often forgotten is, so too will the interest!

If you are considering refinancing, ensure you research what loan and what features are best for you and that you shop around for all your options. Talking to a good finance broker is the easiest way to do this.

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Who Got The Biggest?

I have come across this article written by a well respected valuer which I believe is well worth reading.

Who’s got the biggest?

When it comes to land area, size matters.  Or at least it used to.  More recently, with affordability pressures from a buyer’s perspective, yield pressures from a development perspective and urban management from a policy perspective, we have seen an extended trend towards smaller blocks of land across each of the capital cities.

To read the full article please click here.

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Opportunities in our Midst, Latest statistics Released

It is no secret that the market is not running hot right now and the latest property reports confirm this. Download a free copy of the “Herron Todd White – August 2011 Month in Review and National Property Market Report” to find out where the best opportunities are available and what is happening in the real estate market in your area and across the nation.

To read the full report, click here.

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