This is a truly amazing video from someone who has achieved amazing financial results using the unique property investing strategies that Tom and I teach.
If you would like some further information on how we could help you build your wealth through property, please contact us on 1300 86 84 82 or email me at karenanderson@votiva.com.au
Friday, November 6, 2009
Friday, October 30, 2009
Free Webinar: How to Turn $80,000 into $200,000 in 3 years virtually risk free
In this, one of my last webinars for 2009, I will be showing you how you can increase your personal wealth faster than you ever thought possible.
Have you ever wished you could buy your own home and have several investment properties at the same time, but thought that you would never be able to afford it?
Have you ever wished you could increase your wealth faster but there barely seems to be enough money left over just for your bills?
Well then you absolutely must attend this webinar because in 30 minutes I'll be showing you how you can increase your personal wealth faster than you ever thought possible.
In 30 minutes, I will show you:
- How to legally use other people's money (This one secret has been responsible for more wealth being created than any other strategy)
- How to use the power of compounding which Albert Einstein called the eighth wonder of the world!
(When these two strategies are combined correctly, you will be astounded at how quickly you can build your wealth! The combination of these two strategies was primarily responsible for Tom and I going from being completely broke in 1999 to having a 7 Million Dollar Property portfolio now. If this worked for us, it can definitely work for anyone!)
WHEN: Wednesday, 04 November, 2009 at 8pm Sydney Time
WHAT DOES IT COST: Nothing
Click here and Register now!
Karen Anderson
PS: At the end of the webinar, 7 lucky people will receive a personal one on one phone consultation from me worth $97. Don't miss out. Click here and Register now.
Have you ever wished you could buy your own home and have several investment properties at the same time, but thought that you would never be able to afford it?
Have you ever wished you could increase your wealth faster but there barely seems to be enough money left over just for your bills?
Well then you absolutely must attend this webinar because in 30 minutes I'll be showing you how you can increase your personal wealth faster than you ever thought possible.
In 30 minutes, I will show you:
- How to legally use other people's money (This one secret has been responsible for more wealth being created than any other strategy)
- How to use the power of compounding which Albert Einstein called the eighth wonder of the world!
(When these two strategies are combined correctly, you will be astounded at how quickly you can build your wealth! The combination of these two strategies was primarily responsible for Tom and I going from being completely broke in 1999 to having a 7 Million Dollar Property portfolio now. If this worked for us, it can definitely work for anyone!)
WHEN: Wednesday, 04 November, 2009 at 8pm Sydney Time
WHAT DOES IT COST: Nothing
Click here and Register now!
Karen Anderson
PS: At the end of the webinar, 7 lucky people will receive a personal one on one phone consultation from me worth $97. Don't miss out. Click here and Register now.
Tuesday, October 27, 2009
Phillip Izzo Talks About How He Has Benefited From Our Unique Property Investing Formula
In this interview, my fellow director Tom Anderson speaks with a client of ours Phillip Izzo. Phillip was looking to buy his own home and get into a traditional 30 year mortgage before he met us. Now Phillip owns 3 investment properties, his own house here in Sydney and is now planning for his 4th investment in the future. He is also on course to pay his own personal debt off in just a few years. Watch this video and hear his amazing story.
By the way, feel free to call Phil directly on 1300 86 84 82 to ask him more about his story.
Otherwise, you can email me at
to see how we can help you pay off your mortgage years faster than you ever thought possible and save you well over $100,000 in interest.
By the way, feel free to call Phil directly on 1300 86 84 82 to ask him more about his story.
Otherwise, you can email me at
karenanderson@votiva.com.au
to see how we can help you pay off your mortgage years faster than you ever thought possible and save you well over $100,000 in interest.
Tuesday, October 13, 2009
INVITATION to attend FREE WEBINAR
Tuesday, 13 October 2009
(7:00pm QLD / 8:00pm NSW)
(7:00pm QLD / 8:00pm NSW)
“RISING INTEREST RATES”
How to minimise the impact.
How to minimise the impact.
· How to pay off your home loan years faster than you ever thought possible
· How to easily consolidate all your debts
All participants will receive a FREE 30 minute personal consultation
(Normally Valued at $97.00)
Register at www.karendanderson.com/webinar
Monday, September 28, 2009
Get Your Free Property Investment Consultation Worth $399
Discover the Proven Strategies That Our Clients Are Using to Increase Your Wealth In The Shortest Time Possible While Paying The Least Amount Of Tax On Your Personal Earnings.
WARNING: If you have ever wanted to buy an investment property or you are thinking of expanding your existing property investment portfolio, don’t do anything until you read this.
Why? Because our team has over ten years of experience in property investing. In fact, I personally have grown my portfolio from nothing in 1999 to now over $7M. You’ll learn these same secrets that could rapidly increase your personal wealth while minimizing the tax that you pay.
Call us now on 1300 86 84 82 for your free consult and you’ll walk away knowing:
Right now, we can only give away 7 of these Property Investment Consultations worth $399 for free so hurry. Pick up the phone and call 1300 86 84 82 or email enquiries@votiva.com.au now and let us know how we can contact you to arrange your FREE consultation. You'll be glad you did.
To growing your wealth,
Karen Anderson
PS: The property market is definitely starting to show signs of turning the corner. Make sure you are correctly positioned to take advantage of the next property boom. Call my team now on 1300 86 84 82 now.
WARNING: If you have ever wanted to buy an investment property or you are thinking of expanding your existing property investment portfolio, don’t do anything until you read this.
Why? Because our team has over ten years of experience in property investing. In fact, I personally have grown my portfolio from nothing in 1999 to now over $7M. You’ll learn these same secrets that could rapidly increase your personal wealth while minimizing the tax that you pay.
Call us now on 1300 86 84 82 for your free consult and you’ll walk away knowing:
- How to minimise your mortgage repayments
- How to ensure you are only paying the minimum amount of tax that you legally must pay
- The three ways to assess whether a property is a good investment
- How to convert your personal debt into a tax deductible expense, allowing you to increase your personal cashflow.
Right now, we can only give away 7 of these Property Investment Consultations worth $399 for free so hurry. Pick up the phone and call 1300 86 84 82 or email enquiries@votiva.com.au now and let us know how we can contact you to arrange your FREE consultation. You'll be glad you did.
To growing your wealth,
Karen Anderson
PS: The property market is definitely starting to show signs of turning the corner. Make sure you are correctly positioned to take advantage of the next property boom. Call my team now on 1300 86 84 82 now.
Sunday, September 6, 2009
Interest rates predicted to increase! What does that mean for investors?
Rpdata.com national research director Tim Lawless said on Friday that it’s likely that when the RBA meet again in October, an increase in interest rates will be imminent. Mr Lawless attributes his predictions to a strong and growing property market and improving economic conditions.
While the RBA this week announced that interest rates would remain static for another month, Mr Lawless said it is now becoming more apparent that the next move in rates is almost certain to be an upwards one. And, he’s not alone with many economists also predicting an official rate rise as early as next month.
However, it is not all doom and gloom for all. Many of our clients are building wealth by using Votiva’s customised strategies which include mortgage reduction, debt conversion and wealth creation. By having our strategy in place any interest rate movement will have little, or if any, impact on their overall result. If that sounds interesting to you (and you are from Australia) then you might want to take advantage of our FREE Property Investment Consultation worth $399. Just email me at karenanderson@votiva.com.au.
The question to be asked is how can our clients achieve such success and peace of mind with their investing! If you email me, I can give you the full details but to give you a little taste, one of the key things we do to help you with your property investment is we show you how to maximise the tax benefits that flow from your investment. So if you are on a variable rate loan and rates go up, you will pay more interest, BUT you will also be able to claim more back through you tax benefits. So if interest rates are low, cashflow is great. If interest rates rise, you get more from the tax man. Either way, you win! If you would like further information, please email me at karenanderson@votiva.com.au
Remember that property investment is a long term strategy and that interest rates will rise and fall through the life of the investment. So interest rates in and of themselves should not be the sole factor in determining whether you should invest in property or not.
While the RBA this week announced that interest rates would remain static for another month, Mr Lawless said it is now becoming more apparent that the next move in rates is almost certain to be an upwards one. And, he’s not alone with many economists also predicting an official rate rise as early as next month.
However, it is not all doom and gloom for all. Many of our clients are building wealth by using Votiva’s customised strategies which include mortgage reduction, debt conversion and wealth creation. By having our strategy in place any interest rate movement will have little, or if any, impact on their overall result. If that sounds interesting to you (and you are from Australia) then you might want to take advantage of our FREE Property Investment Consultation worth $399. Just email me at karenanderson@votiva.com.au.
The question to be asked is how can our clients achieve such success and peace of mind with their investing! If you email me, I can give you the full details but to give you a little taste, one of the key things we do to help you with your property investment is we show you how to maximise the tax benefits that flow from your investment. So if you are on a variable rate loan and rates go up, you will pay more interest, BUT you will also be able to claim more back through you tax benefits. So if interest rates are low, cashflow is great. If interest rates rise, you get more from the tax man. Either way, you win! If you would like further information, please email me at karenanderson@votiva.com.au
Remember that property investment is a long term strategy and that interest rates will rise and fall through the life of the investment. So interest rates in and of themselves should not be the sole factor in determining whether you should invest in property or not.
Tuesday, August 25, 2009
RBA Governor Predicts Interest Rate Rise - Should People Be Staying Away From Investing In Property?
We have seen a substantial change in the market since the beginning of July. Properties are selling much faster and are achieving better prices than before.
Being able to borrow money is still much more difficult than it has been in previous years. Although rates have dropped and most lenders are selling standard variable rate products between 5.1% - 5.7% the qualifying rate most lenders are using is around 8% - 8.3%. The loan repayments are then set at the lower selling rate however if rates increase the borrower should still be able to afford the loan repayments based on the test done at the higher qualifying rate.
Don’t assume though as a borrower that if the lender approves your loan that you can afford it. Do a proper budget to establish whether you have the cash flow to fund all the expenses as the lenders do not run a cash flow test – remember they are not asking you for a detailed budget.
Rates going up and down don’t affect property investors as much as they do home owners. A property investor has a rental income and then a loan to service however they also get to claim all their expenses and offset any shortfall against the tax they pay on their personal income. As interest rates go up their tax rebates increase and when rates come down their tax rebates decrease so from a cash flow perspective it doesn’t make a huge difference unless they have no taxable income.
Traditionally when property prices are on the increase rents tend to plateau and when prices plateau rents tend to be increasing. Higher interest rates and rent increases tend to be in the same cycle which assists with the increased loan payments. Lower interest rates and capital growth tend to be in the same cycle.
We have just been through a slow capital growth high rental growth period. Rents appear to have peaked and are now consolidating and prices appear to be moving so it appears as though history is repeating itself despite the so called “global financial crisis” which now seems to have bypassed Australia.
For home owners I believe it’s a very good time to buy because rates are low – pay as much extra as you can into your mortgage so that when rates go up you have buffered yourself against the rise. Also ensure you can afford a loan repayment at 7.5% because this is possibly where rates will settle over a few years.
For investors leverage as much as you can – however do detailed cash flow projections to ensure you can fund all property related expenses and still have a life even when interest rates go back up.
Over the past 11 years, my company Votiva has assisted hundreds of families build their wealth through investment property. We require our clients to do a thorough budget and we assist with cash flow projections prior to purchases to ensure they are not going to get into financial difficulty if the market changes.
Most of our clients have multiple investment properties and have never been at risk of defaulting on their loans because we thoroughly tested our client’s cash flow position prior to them borrowing. By doing this our clients have total peace of mind with their cash flow and a solid plan to follow. In our opinion it’s the only way people should be borrowing money. The last thing you want is for property investing to be stressful. It is also important to build in buffers so that if you were to lose your job you have time to find another without defaulting on your loans.
So with the Governor talking predicting home loans to rise, what should we do? Well, I believe we should be buying property right now and there are a number of great opportunities in the market. However, as I mention, please make sure you do your cashflow projections and have built in buffers. If you invest strategically starting now, you could easily set yourself up for a great future.
If you would like to invest in property and want to find out more about how to do so with your current financial status, please contact me at enquiries@votiva.com.au for a free consultation.
Being able to borrow money is still much more difficult than it has been in previous years. Although rates have dropped and most lenders are selling standard variable rate products between 5.1% - 5.7% the qualifying rate most lenders are using is around 8% - 8.3%. The loan repayments are then set at the lower selling rate however if rates increase the borrower should still be able to afford the loan repayments based on the test done at the higher qualifying rate.
Don’t assume though as a borrower that if the lender approves your loan that you can afford it. Do a proper budget to establish whether you have the cash flow to fund all the expenses as the lenders do not run a cash flow test – remember they are not asking you for a detailed budget.
Rates going up and down don’t affect property investors as much as they do home owners. A property investor has a rental income and then a loan to service however they also get to claim all their expenses and offset any shortfall against the tax they pay on their personal income. As interest rates go up their tax rebates increase and when rates come down their tax rebates decrease so from a cash flow perspective it doesn’t make a huge difference unless they have no taxable income.
Traditionally when property prices are on the increase rents tend to plateau and when prices plateau rents tend to be increasing. Higher interest rates and rent increases tend to be in the same cycle which assists with the increased loan payments. Lower interest rates and capital growth tend to be in the same cycle.
We have just been through a slow capital growth high rental growth period. Rents appear to have peaked and are now consolidating and prices appear to be moving so it appears as though history is repeating itself despite the so called “global financial crisis” which now seems to have bypassed Australia.
For home owners I believe it’s a very good time to buy because rates are low – pay as much extra as you can into your mortgage so that when rates go up you have buffered yourself against the rise. Also ensure you can afford a loan repayment at 7.5% because this is possibly where rates will settle over a few years.
For investors leverage as much as you can – however do detailed cash flow projections to ensure you can fund all property related expenses and still have a life even when interest rates go back up.
Over the past 11 years, my company Votiva has assisted hundreds of families build their wealth through investment property. We require our clients to do a thorough budget and we assist with cash flow projections prior to purchases to ensure they are not going to get into financial difficulty if the market changes.
Most of our clients have multiple investment properties and have never been at risk of defaulting on their loans because we thoroughly tested our client’s cash flow position prior to them borrowing. By doing this our clients have total peace of mind with their cash flow and a solid plan to follow. In our opinion it’s the only way people should be borrowing money. The last thing you want is for property investing to be stressful. It is also important to build in buffers so that if you were to lose your job you have time to find another without defaulting on your loans.
So with the Governor talking predicting home loans to rise, what should we do? Well, I believe we should be buying property right now and there are a number of great opportunities in the market. However, as I mention, please make sure you do your cashflow projections and have built in buffers. If you invest strategically starting now, you could easily set yourself up for a great future.
If you would like to invest in property and want to find out more about how to do so with your current financial status, please contact me at enquiries@votiva.com.au for a free consultation.
Wednesday, August 19, 2009
Has the Property Market Reached a Bottom?
Interest rates are currently at a 49 year low and real estate agents are reporting higher and higher levels of enquiry. Buying activity has also been reported to be on the increase so the question to be asked is, “Is this the right time to be re-entering the property market?”
Well, with First Home Buyer activity starting to slow due to the government’s additional First Home Owner Grant about to expire, I think now is the time for investors to re-enter the market. Yes, we will need to be cautious as there is still some economic uncertainty but the worst is definitely behind us, as can be seen in the renewed strengths of the global and local share markets.
NSW has seen one of the longest property price stagnations in history so there are definitely some bargains to be had, although investing in property is a long term strategy. In South East Queensland, the strong population growth will eventually give rise to a shortage of supply as available properties are snapped up. As we know, anywhere where there is a shortage of supply and excess of demand, prices must rise.
Yes, there is currently an oversupply of rentals but if you are looking at the long term and current property trends, it is quite likely that this oversupply will be filled very quickly. So now could be the time to snap some great bargains with the mindset of investing for the future.
My belief is that there has never been a better time to invest in property – the four factors of the strengthening economy, massive government infrastructure spending, record low interest rates and improving market confidence I believe will form a perfect storm and we will see property prices start to rise once again. I am looking forward to scouting some great bargains right now and you might want to consider the same. Remember, as always, when investing in property, make sure you get some good advice and buy the right property for you – the one that makes sense for your current financial position and your long term goals.
Well, with First Home Buyer activity starting to slow due to the government’s additional First Home Owner Grant about to expire, I think now is the time for investors to re-enter the market. Yes, we will need to be cautious as there is still some economic uncertainty but the worst is definitely behind us, as can be seen in the renewed strengths of the global and local share markets.
NSW has seen one of the longest property price stagnations in history so there are definitely some bargains to be had, although investing in property is a long term strategy. In South East Queensland, the strong population growth will eventually give rise to a shortage of supply as available properties are snapped up. As we know, anywhere where there is a shortage of supply and excess of demand, prices must rise.
Yes, there is currently an oversupply of rentals but if you are looking at the long term and current property trends, it is quite likely that this oversupply will be filled very quickly. So now could be the time to snap some great bargains with the mindset of investing for the future.
My belief is that there has never been a better time to invest in property – the four factors of the strengthening economy, massive government infrastructure spending, record low interest rates and improving market confidence I believe will form a perfect storm and we will see property prices start to rise once again. I am looking forward to scouting some great bargains right now and you might want to consider the same. Remember, as always, when investing in property, make sure you get some good advice and buy the right property for you – the one that makes sense for your current financial position and your long term goals.
Friday, July 31, 2009
Why Putting More Into Your Superannuation is A Poor Choice If You Want To Retire In Style!
The changes to superannuation contributions have caused a bit of a stir amongst Baby Boomers who realise they need to do something quite substantial now to ensure they have sufficient wealth to support their lifestyle in retirement. This segment of the population enjoys buying toys and having great holidays on a regular basis. After having done all sorts of calculations for a number of our clients who have made enquiries regarding additional superannuation contributions, it has become very obvious that this is not the best approach for most people.
The biggest negatives against putting money into superannuation are:
1. You cannot access the funds if you choose to take an early retirement
2. You are not able to leverage off these funds.
As I'm sure you have heard, the secret to creating a substantial amount of wealth is LEVERAGE – using someone else’s money to create more for you. In my experience over the past 10 years as a Financial Adviser, I've seen too many recommendations made to clients from a tax minimisation perspective rather than from a wealth creation perspective. Many clients purchase investments that are hurting them because they were advised to buy in order to minimize their taxes. Ultimately any investment strategy should be to increase your wealth - after all, isn't that why you are investing in the first place? Tax minimisation should only be a secondary motivation.
In my opinion property is still, and probably always will be, the safest place to invest your money. It would also have to be one of the most tax effective investments in Australia. Many of my clients are paying less than 15% tax on their entire income, while increasing their wealth.
Property is definitely the tool that provides the most leveragability as in many cases you can borrow 100% of the purchase price plus all the costs depending on your financial circumstances. Our personal strategy for retirement was to acquire a number of properties over a period of time, pay off as much of the debt as possible and then retire off the capital growth.
Many people still believe they would need to sell the property to access their wealth in retirement, which is absolutely not the case. If you structure your finances correctly and acquire properties that suit your financial profile and then give them time to grow, you will be able to take an early retirement and draw a tax free income each year from your property portfolio for the rest of your life.
So when this sounds so exciting, what stops people from taking this approach? Very simply it's fear, which comes from a lack of understanding. Once people understand how to structure their finances correctly and acquire properties that suit their financial profile, they do it as long as they have the courage to make a decision.
Besides fear, the next biggest hurdle is complacency – a disease that is crippling Australians and will have at least half the population living in extreme poverty in retirement.
So I hope I have jolted you enough to have a look at your finances, especially if you are a baby boomer. You may find your options for your future limited if your sole wealth creation strategy is to make additional contributions to superannuation. Instead, why not look at property investment as a strategy and get some real estate investing information - you might be pleasantly surprised at how a simple restructure of your finances could result in a far more significant wealth for yourself, perhaps even now and then for your future.
If you liked this article or have any questions, please leave me a comment below. I'd love to hear what you thought and also what your strategies for wealth creation are. Also, please share this article on Twitter, Digg, Delicious and Stumbleupon - I'd really appreciate it :-)
The biggest negatives against putting money into superannuation are:
1. You cannot access the funds if you choose to take an early retirement
2. You are not able to leverage off these funds.
As I'm sure you have heard, the secret to creating a substantial amount of wealth is LEVERAGE – using someone else’s money to create more for you. In my experience over the past 10 years as a Financial Adviser, I've seen too many recommendations made to clients from a tax minimisation perspective rather than from a wealth creation perspective. Many clients purchase investments that are hurting them because they were advised to buy in order to minimize their taxes. Ultimately any investment strategy should be to increase your wealth - after all, isn't that why you are investing in the first place? Tax minimisation should only be a secondary motivation.
In my opinion property is still, and probably always will be, the safest place to invest your money. It would also have to be one of the most tax effective investments in Australia. Many of my clients are paying less than 15% tax on their entire income, while increasing their wealth.
Property is definitely the tool that provides the most leveragability as in many cases you can borrow 100% of the purchase price plus all the costs depending on your financial circumstances. Our personal strategy for retirement was to acquire a number of properties over a period of time, pay off as much of the debt as possible and then retire off the capital growth.
Many people still believe they would need to sell the property to access their wealth in retirement, which is absolutely not the case. If you structure your finances correctly and acquire properties that suit your financial profile and then give them time to grow, you will be able to take an early retirement and draw a tax free income each year from your property portfolio for the rest of your life.
So when this sounds so exciting, what stops people from taking this approach? Very simply it's fear, which comes from a lack of understanding. Once people understand how to structure their finances correctly and acquire properties that suit their financial profile, they do it as long as they have the courage to make a decision.
Besides fear, the next biggest hurdle is complacency – a disease that is crippling Australians and will have at least half the population living in extreme poverty in retirement.
So I hope I have jolted you enough to have a look at your finances, especially if you are a baby boomer. You may find your options for your future limited if your sole wealth creation strategy is to make additional contributions to superannuation. Instead, why not look at property investment as a strategy and get some real estate investing information - you might be pleasantly surprised at how a simple restructure of your finances could result in a far more significant wealth for yourself, perhaps even now and then for your future.
If you liked this article or have any questions, please leave me a comment below. I'd love to hear what you thought and also what your strategies for wealth creation are. Also, please share this article on Twitter, Digg, Delicious and Stumbleupon - I'd really appreciate it :-)
Monday, June 22, 2009
Is Now The Time To Invest In Property?
It seems that stories of massive layoffs, stimulus packages and massive triple digit daily sharemarket losses could be behind us. Job security seems to be firming up yet interest rates continue to remain lower than they have been in years, property prices are still soft and rental returns are solid. So is now the time to get back into the property market?
I certainly believe so. Thanks to the combination of low interest rates and high rental yields, property investment may now deliver cash flow neutral or even cash flow positive returns - and that could mean that your property could now pay for itself. Moreover, there may be significant tax breaks to boot. By the way, when I say the property could be cashflow neutral or cashflow positive, I'm not talking about a property in a small country town. No, I'm talking about quality property in and around prime locations.
Of course, successful property investment does require homework and a little prudence. But don't be put off - it is by no means too complex for the average Australian. So whether you're a seasoned investor or a would-be first timer, now may just be the ideal time to make it happen.
A word of caution:
I believe anyone can become wealthy through property but make sure you know your capacity and also put in some fat into your budget in case of future interest rates rise. Interest rates will definitely have to rise again - it is only a matter of when. We've all heard about the subprime mortgage crisis and one of the major causes of that was property owners maximising their budgets at low interest rates. So the moment interest started to rise even a little, they were unable to pay their loans. You don't want that to happen to you.
Therefore, before you decide what to buy you need to establish your budget. With a clear idea of what you can afford to borrow you'll be in a strong position to determine what type of property to focus on and in which price bracket so you can take advantage of the current low interest rates.
If you would like some assistance in determining how much you can borrow for your next property, then feel free to get in touch with my team at Votiva. Not only can we quickly give you an indication of your borrowing capacity we can even help you secure a pre-approved loan.
Once you know your buying power you can think about what type of property to purchase. Most investors favour residential property, typically a house or a unit. Each comes with its pros and cons and there's no right or wrong decision - it really depends on your preference.
As I'm sure you have heard, regardless of the property type, the location can make the difference between a good investment and a lemon. While there can be exceptions, you're generally looking for a property that is close to public transport, has easy access to shops, parks, schools and restaurants and is serviced by a good road infrastructure.
With a clear idea of the right location you can set about researching the market.
Remember, for the greatest success, property investment should not be considered as a short-term game. Rental values will always increase over time with a well located property and so too will your returns.
f you liked this article, please share it on del.icio.us, StumbleUpon, Digg or Twitter. I’d appreciate it. :)
I certainly believe so. Thanks to the combination of low interest rates and high rental yields, property investment may now deliver cash flow neutral or even cash flow positive returns - and that could mean that your property could now pay for itself. Moreover, there may be significant tax breaks to boot. By the way, when I say the property could be cashflow neutral or cashflow positive, I'm not talking about a property in a small country town. No, I'm talking about quality property in and around prime locations.
Of course, successful property investment does require homework and a little prudence. But don't be put off - it is by no means too complex for the average Australian. So whether you're a seasoned investor or a would-be first timer, now may just be the ideal time to make it happen.
A word of caution:
I believe anyone can become wealthy through property but make sure you know your capacity and also put in some fat into your budget in case of future interest rates rise. Interest rates will definitely have to rise again - it is only a matter of when. We've all heard about the subprime mortgage crisis and one of the major causes of that was property owners maximising their budgets at low interest rates. So the moment interest started to rise even a little, they were unable to pay their loans. You don't want that to happen to you.
Therefore, before you decide what to buy you need to establish your budget. With a clear idea of what you can afford to borrow you'll be in a strong position to determine what type of property to focus on and in which price bracket so you can take advantage of the current low interest rates.
If you would like some assistance in determining how much you can borrow for your next property, then feel free to get in touch with my team at Votiva. Not only can we quickly give you an indication of your borrowing capacity we can even help you secure a pre-approved loan.
Once you know your buying power you can think about what type of property to purchase. Most investors favour residential property, typically a house or a unit. Each comes with its pros and cons and there's no right or wrong decision - it really depends on your preference.
As I'm sure you have heard, regardless of the property type, the location can make the difference between a good investment and a lemon. While there can be exceptions, you're generally looking for a property that is close to public transport, has easy access to shops, parks, schools and restaurants and is serviced by a good road infrastructure.
With a clear idea of the right location you can set about researching the market.
Remember, for the greatest success, property investment should not be considered as a short-term game. Rental values will always increase over time with a well located property and so too will your returns.
f you liked this article, please share it on del.icio.us, StumbleUpon, Digg or Twitter. I’d appreciate it. :)
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