Top page content

In this weeks market update and tips on property investing for 2012, Sam Saggers discusses the findings of the The BIS Residential Property Prospects to 2011-2014 Report and reveals what some of the data means for clients looking for the best spots to invest to extract the most profit from the Australian Property market in the coming years. 

BIS Shrapnel helps clients to better understand the markets in which they operate, through reliable and detailed market data, analysis of developments and drivers and thoroughly researched forecasts. Recently BIS Senior Manager and study author explained that Australia’s economic growth throughout 2011-13 will have a flow on affect through to property.

Of particular interest to us here at PRE was BIS Shrapnel’s reported outlook for median house price growth by region (suburbs which we are either investing in right now or looking at in the very close future)

• Sydney: Total price growth in Sydney over the three years to June 2014 is expected to be 18 per cent.
• Brisbane: Price growth to June 2014 is expected to be around 15 per cent.
• Newcastle and Wollongong: Migration and unaffordability will be key growth drivers to these areas with prices set to increase in Newcastle by 18 per cent by 2014, and by 16 per cent in Wollongong.
• Perth: Over the next three years to June 2014, growth is expected to be 19 per cent.
• Townsville: With the resources market predicted to strengthen in 2012-13; price growth by 2014 for Townsville is expected to be 16 per cent.

(Sources; Smart Company ‘Australian property market to avoid crash, but price growth moderate to 2014: BIS Shrapnel‘ Monday, 27 June 2011 12:19, by Patrick Stafford and API Magazine ‘Property market set to improve’, Posted on Monday, June 27 2011 at 4:22 PM)

The Next Property BOOM

 At the beginning of the year Positive Real Estate released “The Hottest Markets of 2012 Report”, where we also pinpointed most of the above areas as well as some other booming regional markets, which will offer investors the BEST OPPORTUNITY and VALUE THIS YEAR.

At our Property Investor Nights we show you these markets and the BEST ways to draw out the most capital growth! Whether it be snapping up a killer bargain and making instant equity, adding value and boosting yields through a renovation or with a granny flat…..or by drilling down and working out where people are flocking to in droves, (due to industry, infrastructure spend, government planning etc); we can show you the best strategies to employ for 2012.

The point is, we know all the insider tips to make you money in any market and we spend hours ensuring we get it RIGHT for our clients!

Make sure your at our next FREE two hour seminar and learn from our leading experts as they show you the MOST STRATEGIC WAYS TO DRAW HUGE PROFITS IN 2012!

Stop thinking and start doing!

So are you going to sit on your hands for another 5 years before finding out exactly where you should be investing or how you should be structuring your finances? Could you possibly let short-sightedness make you sell a property that could potentially be a goldmine? If you have been thinking that there has to be a better way to invest, or that you need to educate yourself on the current market, then you are probably right…….. and it’s time to find out if you can change your lifestyle for the better.

Book in for our next complimentary Property Investor Night and speak to someone about improving your current situation – or simply find out what your next step should be!

Whether your financial goals include improving cashflow, reducing debt or buying property, as Australia’s leading property investment company we can help you start moving towards both your personal and financial goals quicker and in the most secure way.

Our thousands of clients love the ability to access an umbrella of highly qualified experts; including financial planners, mortgage brokers, property coaches, mortgage planners, financial strategists, accountants, tax specialists and more. Let them help you move forward proactively…..instead of wasting years in analysis paralysis…….or making the mistake of jumping in impulsively and buying a dud!

Come along to our next Complimentary Property Investor Night
and meet our expert team – you have everything to gain.

Top page content

How Can Property Investors Profit from the Mining Boom? What to Look Out For!

See CEO Sam Saggers as he talks to Smart Property Investment Magazine about How Can Investors Profit RIGHT NOW from our HUGE Mining Boom. What signs to look out for, areas that have already boomed and why these are the areas that should be avoided and what key tips he looks for to pinpoint the next resources boom town.

Top page content

Bank Valuation – The valuer’s job is to assess risk for the bank. This acts as a report to the bank as to what amount to lend. The higher the risk to the bank, the lower the lending limit the borrower will achieve. It is important to note the distinction between the way lenders and the borrowers view valuations.

Lenders have effectively outsourced their risk to valuers. If banks are not able to recover their costs on a bad loan, then valuers risk getting sued.

When arriving at a valuation, the valuer must take into consideration the terms of their professional indemnity insurance, which is usually valid only when the lender provides finance using a conservative loan to valuation ratio. Bank valuations are not generally based on true market value of a property, but are rather based on the level of risk to the bank.

Valuation 101. Valuers take their instructions from the bank.

Right now banks are cooling the market, with tight lending and limiting values. When you go to borrow money, the instructions will more often than not (these days) come through from at a lender that may force the Valuer to use certain indicators! For example the value of a brand new property may be valued significantly lower than expected as it may have been using only second hand sales data!

Lenders have lending guidelines. Lenders have exposure limits on what they will lend in areas and or how they will lend on dwellings. So funders don’t chase business away, they use guidelines and instruction to control the outcome.

What is LVR?

The term LVR is an acronym for “Loan to Value Ratio” and is also sometimes referred to as the LTV.

LVR is basically the amount you are borrowing, represented as a percentage of the value of the property being used as security for the loan. Lenders place a large emphasis on the LVR when assessing your loan application. The lower the LVR, the lower the risk is to the bank

How is the LVR calculated?

LVR is calculated by dividing the loan amount by the actual purchase price or valuation of the property, then multiplying it by 100.
For example:

An applicant would like to borrow a loan amount of $240,000. The property that the applicant is using as security is valued at $300,000.

The LVR of the home loan is calculated in this manner:

$240,000 loan ÷ $300,000 property value x 100 = 80% LVR

(Source: http://www.homeloanexperts.com.au/home-loan-articles/loan-to-value-ratio-lvr/)

* Would it be plausible that a funder, markets a 95% loan product to get customers yet rarely lends that amount? Absolutely.

* Would it also be plausible that the guidelines around lending and High LVR% are restricted by areas or the  property type and lenders adjust the LVR accordingly? Absolutely.

*Do you think a bank will send your business to another bank, if the initial bank can’t get you the LVR % you want i.e say, “No, we can’t do that loan, you best go to another bank, sorry we don’t do 90% lends on that particular street for that particular housing!” NO WAY NOT GOING TO HAPPEN.

In my vast experience if late banks seemingly are instructing the valuer to comment and often give valuers instruction that will reduce the value.

FUNDERS PROBABILITY OF LVR

* House 80% Lend + Lenders Mortgage Insurance ( LMI) = 90%

* Unit 80% Lend + Lenders Mortgage Insurance ( LMI) = 90%

* Commercial – 70% LVR

* Residential Vacant Land, 80% Lend + Lenders Mortgage Insurance ( LMI) = 90%

* Rural Vacant Land – 70% LVR

* Serviced Apartments – 70% LVR

* Seniors Lots – 60% LVR

* Hotel Rooms – No Lending Probably

* Student Accommodation – No Lending probably

* Size of Dwelling – Must be bigger than 45sqm

* Density of Complex – Under 32 in a unit block allows for more flexible lending

* Banks have exposure limits in areas and even complexes. In other words, if they have lent too much in a postcode, they will restrict further involvement

* Lenders Mortgage Insurers (LMI’s) have exposure limits in areas and even complexes. In other words, if they have lent too much in a postcode, they will restrict further involvement

Valuation – The Valuer’s job is to assess risk for the bank. The figure below shows the rating system that the Valuer is charged with supplying to a funder. You will note Section 2 on the following table (Risk Analyses). This acts as a report to the bank as to what amount to lend. The higher the risk to the bank, the lower the lending limit the borrower will achieve.

Valuations Carry Risk

In the example above, the instructions from the bank are for the property not to value in ( lend ON contract price). If their interpretation was “value new property as new property and use a square metre rate cost analysis.” The above example would see the property value in (lend on contract price), as the valuer could justify the instructions.

An Example

Each funder has interpretations and a limit to what they will lend. It is very tricky. Bank A may send the same Valuer as Bank B, with different instructions. The valuations received are very different from bank to bank.

A recent example of this occurring was Bank A vs Bank B. A broker used Bank A that had a lending policy of a 90% LVR for over 50sqm units and 80% LVR lending policy for 45sqm units. This unit was 45sqm.

The Loan with Bank A was submitted at 90%. The property was devalued by exactly 10% or the LVR difference; meaning the bank would accept the loan at 80%. They used the valuer to get the result.

Cheers

Sam Saggers

Bank B then did the same process, same broker, same client, same property , same valuer. End result was they had a different lending policy meaning a very different result as bank B lent 90% on 45sqm units thus there was no issue with the valuation!

Top page content

Jason Whitton discusses with Smart Property Magazine how we are currently admist a granny flat revolution. Positive Real Estate are showing hundreds of clients how to strategically use granny flats to increase rents and turn your property into a dual income property investment whilst also forcing value and adding capital growth!

Time poor, scared of overcapitalising or simply just wish to find out how you can force further value in a strategic way?

The Positive Renovations team are a collaboration of highly sought-after experts; a first class project management team with immense experience in renovations and adding granny flats to properties.

How it Works:-

We recently sourced a three bedroom home in Hunter Region with existing 8%+ yield!

THE FACTS:-

In close proximity to Newcastle’s CBD

The house is currently pulling in an existing rental return of $500 per week
Purchase price of $314,000 ( meaning the investment is currently paying for itself and offers a good 8%+ yield)

BUT THE ABSOLUTE GOLD ABOUT THIS DEAL IS:-

The property is also suitable for a granny flat ……which would increase the rent by a further $280 per week boosting the rental yield to a massive 10%!

Additonally a $4 billion spend on mining projects in the area (including three of the world’s largest mining companies) and a $21B spend (planned or underway) in the Hunter region are extremely strong growth drivers for this particular with many experts agreeing that this area is set to to boom!

This is just one example of the deals we are sourcing for clients and seriously this new facet of the business is proving exceedingly popular – and it’s no surprise!!! What more could you want from an investment than :-

1) boosting rental returns through the roof,

2) adding value to an existing property AND

3) buying in a market tipped to see some fantastic capital growth!

CLICK HERE TO FIND OUT MORE

Top page content

One exceedingly hot topic right now is the RBA’s decision to leave interest rates unchanged…an interesting move!

Depending on your personal situation you may have been happy, indifferent (as you may have already fixed), disappointed they didn’t drop (as you’re on a variable rate)…or heck you may have been hoping they would go up! The reality is interest rates impact everyone differently. Find out more in today’s video below!

So when do you make your move? Do you wait for interest rates to go down or up? Should you fix or stay variable?

A thing you may not have noticed about interest rates is that they are often precursors as to what can happen to us as property investors. For example interest rates can impact:-

1) Growth in the values of our property and

2) Growth in the rental yields of our property

When interest rates go up, (like we saw in the GFC – when interest rates went up to 8-9%) something that followed was our rents went up – especially in larger city locations like Sydney. What happened was owners needed to keep up with the rising costs of owning their property and they increased their rental rate accordingly to support their investment. So with rising interest rates – you will often see the correspondence of rising rents!

Consequently right now we have a very interesting thing happening in key areas of the marketplace! When interest rates come down (like we have seen over the past few months) – and the rents have stayed the same (or even kept creeping up due to other influences in the market …..like supply and demand, demographics, infrastructure spend etc) – we reach a point in the market called parity!

So what is parity and how does it affect your property investing decision?

A parity situation in real estate (put simply) is when it is equal or more expensive to rent than it is to buy! This is where people are going to start to think, “Why would I rent when it will cost me less to own?” And what you now will start to see is exciting – as in these areas where parity is occurring, an influx of buyers will come back into the market and start purchasing property and pushing prices up.

This will happen over the next 12-18 months and you will see some incredible capital growth in key areas, because you will see new buyers flocking back into the market.

The recipe to success is selecting the right areas and suburbs where you as a property investor can make the MOST profit and capitalise on this parity occurrence.

Come along to our next Property Investor Nights to find out exactly where you want to be investing. We will show you our property clock – outlining the markets that have hit their floor (which is where you should be investing) and how to avoid markets that have already boomed. This evening is your first proactive step towards making the most educated, secure and profitable choices.

The key areas we zone in on with interest rates going down (or even if they go up a little) are areas where rents are rising – these are the key areas to focus on to put your money in!

Another Key Point Driving Competition in the Real Estate Market to Be Aware Of!

Presently you may have noticed that the RBA and the main banks are having a bit of a standoff! In fact some major institutions, most notably ANZ came out the other day warning that they don’t care what the RBA or their competitors do, they will be deciding their interest rates independently!

So the bottom line is, even if the RBA decides to drop interest rates there is absolutely no guarantee that the banks will pass it on!

Does that mean you sit there just waiting for the next announcement; month-in-month-out, over the next year……. sitting in decision-limbo, paralysed by your own analysis or fear? Or do you start to take control of the situation now?

Book your free seat at our next two hour Property Investor Night to find out how!

The great thing about Australia is that you vote with your business! If one lender’s interest rates are too high you simply go somewhere else!

In the past, the difficulty as a property investor was if your loan was with one institution and another institution was offering a better loan and you wanted to change from one lender to another, you would be hit with something called the Deferred Establishment Fee – and many investors were slugged with thousands and thousands of dollars in fees!

We’ve had clients who had fixed their interest rates and when they wanted to change their finance structure and break their fixed interest rate – they were hit with $15K-$20K in fees…. So begrudgingly they were forced to stay with that lender on a much higher interest rate for a very long time!

THE GOOD NEWS FOR YOU NOW AS HOME OWNERS AND INVESTORS IS DEFERRED ESTABLISHMENT FEES WERE ABOLISHED FOR ALL LOANS AS OF JULY 2011 ONWARDS!

This means that competition in the marketplace will now start favouring you as an investor and investors will be able to access some sensational interest rates off competing lenders!
These are presently just two reasons why you will see buyers flocking back into the marketplace acting as significant growth drivers to key areas.

A parity between renting and owning and the abolishment of deferred establishment fees are two important factors to keep in mind that will influence the property market in 2012. Will you be left behind and miss the capital growth that occurs as a result of this?

Be sure you are at our next Property Investor Nights to stay in the loop about the current market news, where you should be investing, how to set up your finance and take that first step to get educated on what you MUST KNOW about property investing for 2012.

Cheers,
Jason Whitton

Top page content

It is all just a load of ‘Chicken Little….The Sky is Falling’ housing bubble baloney!

Do you know everyday Aussies are making huge profits RIGHT NOW! If you wish to find out exactly how they are doing it then today’s video is a MUST-SEE!

It is amazing how economic and financial experts and the media can easily influence your financial decisions so readily, which can cause analysis paralysis and prohibit you from actually making money through property investing. The media is often wrought with unjustified claims and scare-tactics designed to drive traffic to websites and newspaper sales.

One of the key differences between making a little and a LOT of money is who you let influence your investing decisions! The real truth is that no matter what the market is doing, there is always money to be made – if you do your due diligenceand take the time to get educated!

For instance, this week we show you a detailed example of a renovation a couple completed, where they made $87K in only 12 weeks, in the ACT in a flat market; simply by ignoring the negative sentiment around them and by seeking the RIGHT advice!

Watch the video then make sure you register to come to our next Complimentary Property Investor Nights to find out how you can do this to!

Will the media and bad wealth psychology stop you making money?

After dedicating a career and life to travelling and sharing information about Australia’s property market, it is an inevitable topic that is raised time and time again by our inquisitive investors who wish to know if Australia is facing a housing bubble.

A property bust has been ever-predicted by economic doomsayers including the likes of media headliner Professor of Economics and Finance Steve Keen; whose famed lost wager against Macquarie Economist Rory Robertson claiming that Australian housing prices would fall significantly by the end of 2009, saw him having to trek from Parliament House to the top of Mount Kosciuszko wearing a t-shirt printed with, ”I was hopelessly wrong on house prices – ask me how?” Keen was so sure of himself that he apparently sold this Surry Hills apartment in 2008 because he feared the global financial crisis would drop property values by 40%! (It would be interesting to see what the value of his Surry Hills apartment would be today!)

In 2010, two heavyweights of the financial spectrum went head-to-head in the raging debate and much loved media headliner….. “Is Australia facing a housing bubble?” In fact, it has been widely reported that Christopher Joye, Managing Director of the Australian based funds manager, Rismark International claimed he would pool together $100M if Wall Street prophet Jeremy Grantham’s predictions that house prices will go backwards in Australia in the next three years, came to fruition. Joye is so sure that the Australian property market is not facing a bubble and has challenged Grantham’s claims, goading him to “put his money where his mouth is.” WOW did this challenge cause a media tsunami – what a story!

Bets are on; economists, financial experts and Wall Street prophets are going head-to-head and all the while the media are embellishing and fuelling the fire in the hope of eye-catching headlines and stories. The media headlines have such a huge influence and implication on market sentiment; after all…..forcing fear and panic into the marketplace sells papers, drives traffic to websites and makes more money.

Our number one rule at Positive Real Estate is be careful who you listen to and let influence you.

We at Positive Real Estate certainly don’t think we’ll see the doom and gloom a number of experts have been predicting; we know that the property cycle will always have peaks and troughs. We have recently seen headlines with prices dropping in certain parts of Australia….however there are also markets in Australia making huge profits….so is it all bad news? NO! This is just another phase in the property cycle?

Historically, property cycles in Australia have lasted around seven years to ten years, from peak to slowing down to a flat period……then back to a peak. The late 80′s for instance, saw a major boom in values in Sydney, where prices literally doubled over a two and a half year period followed by a slump in 1990-1991. The next period was uncharacteristically long; culminating in a peak around 2003 in Sydney. Yet when taking a closer glance at historical figures, we can see that the market has never really ‘crashed’ and that house values have consistently risen by about 10 per cent per annum over the past forty years.

We know that no matter what your situation and whatever the market is doing, there are different strategies to employ at different times in the market to make money and capital growth.

Take the recent example in the ACT shown on today’s video. Now we don’t classify the ACT as one of our chosen HOTSPOTS for 2012 (as Canberra reached a market high in 2009); however in saying that it is a very constant market. The Government controls supply and demand well and the household income is very high, making it a secure area to invest in with an-average capital growth rate of approximately 9% per year.

In today’s video Head Coach of the ACT Naomi Beaumont, discusses two of her clients Jodie and Greg, who joined Positive Real Estate recently.

Jodie and Greg are holding onto this property and as the land size is so large at 943sqm, they are looking add further value with a house or granny flat in the future.

To find out more about these kinds of property opportunities and how you too can force value on your property, change your situation for the better, find exceptional deals that will make you money in any market or do things differently to keep your investment journey moving forward, make sure you are registered to attend our next Complimentary Property Investor Night.

Don’t let the media dictate your future – take action and educate yourself!

Top page content

Market Winners and Losers – Don’t Kick Yourself in Two Years! The time is NOW…….the key is pinpointing where!

This video outlines the real estate hotspots, zeroing in on particular market growth drivers and where I believe will make you the biggest profits for 2012. Listen to my market update video detailing my National market insights, including where to invest and where to avoid.

Interest rates are dropping, and as the Macquarie Bank saying goes, “When interest rates are at parity to that of a rental return, the masses buy real estate.”. However do you know which areas and suburbs this is actually taking place? Find out in

Top page content

How is Your Retirement Plan Looking?

Do you know all their is to know about investing in property with your self-managed super fund (SMSF)?

Recently I touched on superannuation funds – and how hundreds of Australians have lost thousands upon thousands of dollars over the past few months by just having their super in a traditional industry or retail super fund – thinking their money was safer there! However this is NOT the case!

Retirement can be scary without the right plan

Whether your retirement is two or ten years away, there are some excellent benefits associated with investing in property in your SMSF, however the most important thing you really need to keep in mind, is that choosing the right type of property for your super is also crucial to your success.

What you need to keep in mind is there is not a blanket solution and each individual situation requires a different investment property.

Did you know that recently, Andrew Robertson from The Finance Quarter on ABC posed an interesting question, “How much money do I actually need to put away so we can have that comfortable retirement?”

In this segment it was reported that according to the Association of Super Fund Research for a comfortable lifestyle during retirement for a single person you will need around $40K per year saved and for a couple it’s around $55K p.a. This means you will need approximately $500K if you are entitled to the full retirement pension and if you are self-funded you will need around a whopping $1 million dollars in your super fund to generate this kind of money!

Sound scary? Absolutely. Especially if retirement is only a few years away. Many of you may be thinking right now, “There is absolutely no hope of me saving this kind of money in my super by retirement!”

Don’t worry just yet. Below we have outlined how you can fast track your retirement plan by joining our Lifetime Mentoring Program NOW – and start investing in property with your SMSF so you can work towards a comfortable retirement!

3 Compelling Tax Benefits Related to Property in Your Super or SMSF

This end of year offer is our best ever offer yet where you can join Australia’s leading group – to offer you  professional property advice as well as being able to immediately access a SMSF set-up and $1200 financial plan – so you can start diversifying you portfolio and working quickly towards your retirement NOW!!!

What are the benefits of investing in property with your SMSF
1.   Increase your retirement savings by buying property
2.    No Capital Gains Tax after 55 years of age.
3.   Rental Income is taxed at 15% compared to 37% when held outside super.
4.   Pay off your property in half the time.
5.  Pay down your property with SG Contributions and Salary-sacrificed money taxed at 15% – instead of 37%
6.  You can use cash in your SMSF to fund your property Deposit and stamp duty
7.   SMSF structures provide excellent Asset Protection if implemented correctly.
8. Buy a property in your super fund without any out of pocket funding required!

Do you need any more reasons why it might be worth a look at investing in property with your super?
Currently if you join our Lifetime Mentoring Program we are offering a free set up of your SMSF worth $1500!!!

I AM SUPER excited I can offer this forward-thinking service to you and your family, and I truly believe this is one of the smartest and most tax-effective methods to invest in Australian Property for the medium to long-term.

If you’re open to learning about Asset Protection, Property Investment, Retirement Planning, Tax Reduction, or just diversifying your Portfolio – then I recommend taking action now – before this offer expires!!

Take back the reigns and start investing in property NOW and take control of your future! It’s time to stop letting others make your decisions and to start taking strong action now and getting educated on the best ways to generate wealth for your retirement!

Top page content

Meet John & Amy Pidgeon – Two Personal Trainers who swear by coaching for real property investing success!

John (33) & Amy (28) Pidgeon joined Positive Real Estate’s Lifetime Mentoring Program at the end of 2008. Since then they have bought two properties and have attained over $100K in equity in approximately two years. Both John and Amy have Physical Education Degrees and own fitness franchise Step Into Life. With their lives both obviously so dedicated to health and fitness industry – stepping into a world of property investing was certainly stepping “outside the square” for two health professionals. John says that he did a lot of reading whilst he was at University in regards to wealth creation and quickly realised that property was where he wanted to create real passive wealth and held a strong interest. Amy says that she loves walking into a house and mapping out what she can do to enhance its look to create a positive outcome.

Prior to joining Positive Real Estate John owned a 3 bedroom home and a block of land in Adelaide and Amy co-owned a 2 bedroom home on the Central Coast of NSW. Since starting with Positive Real Estate in November of 20008 they have purchased two additional properties.

“Our first by doing our own due diligence based on Positive Real Estate’s recommendation of where to invest and the second was a deal that Positive Real Estate presented to us through their National Buyer’s Agency.” John explains.

“The strategy for both purchases have been buy at a good discount, add some value through renovation and take advantage of the capital growth due to the market in those particular areas at the time - strategies we simply would not have been inclined to conquer without having a team like Positive Real Estate behind us.”

“Positive Real Estate taught us the three pronged approach, where if one doesn’t work for you, the other two will still create a great capital gain.”

John and Amy explain that they are always looking to create a neutral or positively geared property each time they buy and they never like to use negative gearing as a strategy.  If they are slightly negative at the time of purchase, they look to add-value to increase the rental yield or top it up with some gains from the previous sale so that they do not impact on their lifestyle and cashflow situation. They ensure they crunch the numbers and do some serious research and due diligence.

 A RUN DOWN OF THEIR INVESTMENT PROPERTIES THROUGH POSITIVE REAL ESTATE

 Property 1 - Purchased a 3 bedroom house in Melton, Vic in June 2009 for $195,000, at a discount of $15,000 off valuation.  So far they have spent only $500 on it. It’s current valuation is $255,000++. They now have the option to sell in the next few months to get their money out  or add value first, increase rental yields, hold for a while and then sell.  It is currently rented out at $225pw.

Property 2 – Purchased a 4bdrm house on 600sqm in Tregear, NSW in September 2009 for $245,000 – A discount of $10,000 off valuation.  Currently valued at $275,000 and as its sits in the growth corridor of Western Sydney, they are expecting some excellent capital gain in 2011. Currently this property is rented out at $295pw.  The beauty about this property (and many others presented by the Positive Real Estate buyers agency) is that it offers you flexibility, as an investor. This property offers plenty of room to increase value through renovation which John and Amy are hoping to complete prior to selling later this year; and by forcing value in a property HOTSPOT you can be assured they will both see some excellent capital gain.

“We always borrow 90% if possible, and our aim is to get our deposit back out of the deal in the first 12-18mths to use for the next deal. In 2011 we aim to buy 2 and sell 1 property and without being a part of the Positive Real Estate’s Mentoring Program – we certainly would never had either the courage of knowledge to do this.”

” We would have made so many mistakes before we got it right without Positive Real Estate. We would have read over 50 property and investing books before PRE and not one of them would have given us the knowledge or confidence to make the decisions we have made.”

“Financially, we have the ability to create an additional passive income stream that is the most attractive superannuation scheme that we have seen.  We do not want to rely on government handouts in 30 yrs time. Our ultimate goal is to invest in property full time with Amy focusing on managing each project and myself searching for new deals – and this is the passion and personal goals behind why we started our property investment journey”.

Top page content

St Leonards, NSW – September 6, 2011  – Positive Real Estate is very pleased to share the results that one of our Mentoring Program clients achieved after 12 short months of membership. Peter MacGill is a successful pilot for one of Australia’s major airlines. As a pilot, his attention to detail and due diligence keeps himself and his passengers safe. That same attention to detail as well as good, timely advice from the seasoned professionals at Positive Real Estate, helped Peter make a fantastic investment which cash flowed from day one!

Summary of the Deal:-

Peter and his wife purchased a fabulous 3 bedroom, 2 bath unit in the North Western Suburb of Kellyville Ridge, Sydney- a deal sourced by the Positive Real Estate buyer’s agency for $413K upon his VIC Head Coach Tabitha Bright’s advice. They obtained a bank valuation prior to settlement at an amazing $450K (giving him instant equity gain of around $37K!) The apartment is renting at $460pw and to their surprise they had a tenant signed-up on a 12 month lease 3 hours after settlement – so this deal came with no vacancy period. Peter then submitted his PAYG variation with his accountant and as got his tax down to 27% and with the extra cash back in his paypacket his property is now positive cashflow $250 per fortnight. Peter and his wife are so inspired by the results he has attained from Positive Real Estate and having a set strategy and plan in place from their mentor and Head Coach Tabitha Bright, they are now ready to review their strategy and move onto to the next deal.

More about the investment and why it’s a winner:-

The unit is part of a as new 34 unit complex consisting of two buildings, each with three levels.  The  apartment is spacious, with an open floor plan and lovely neutral tones that suit any décor. Situated in a prime location near schools, hospitals, commercial districts, shops and entertainment hotspots, this apartment is highly unlikely to experience problems with vacancies; especially since it was tenanted just three hours after settlement on a 12 month lease – a true indication of the demand for rentals in this area at present.

During a recent interview, Peter answers some questions about his amazing success:

1) How long have you been involved in property investment?

“I have been involved in property investing for 12 months as of May 2011, which is when I joined the Mentoring Program. This purchase is my first investment property.”

2) What specifically did you do to make sure the numbers on this deal stacked up?

“I am very big on due diligence. I used a wide variety of information to assist me in choosing this deal. I started by using the property analyser software to determine if the numbers added up and based on that I put in an EOI. This gave me 7 days to do more thorough research in which time I looked at public transport, proximity to shopping, schools, infrastructure development, access to major arterials, etc. In addition, I spoke to no less than a half dozen different real estate agents and property managers for their perspective on the local market such as supply and demand and rental return. All of the information that I received came back in support of the numbers on the analyser, which is important to me as I do not favour relying on too many assumptions for a good deal.”

3) How did you find a tenant so quickly?

“As a part of the due diligence, in speaking to property managers I asked about supply and demand. In Kellyville there is a large population of families in owner occupied houses but only a small pocket of apartment style rentals with a large demand. By keeping regular pre-settlement contact with the property manager I was going to use, we were able to time the release of the advertising very well, but the enquiries were there before all of this. In effect, we knew people were keen before it was available and when it became available the property manager had a list of people searching, one of these people viewed the property and applied and was accepted on the same day as settlement. A good result.”

4) How did you get such a great bank valuation on this property?

“As far as the favourable valuation, there is nothing like timing! The supply and demand equation was driving local prices higher even prior to this deal, but given the undersupply as well as lack of future development of this type of accommodation in the local area, the market factors ensured a good result.”

Wondering if you can achieve the same results? You won’t know unless you take action. Call Positive Real Estate today to schedule a complimentary consultation with a real estate pro who will meet with you to determine where you’re at and help you get to where you want to be.

Company Info:

Positive Real Estate is one of Australia’s leading property investment and educational companies – which also has a National Buyer’s Agency arm, which negotiated $250M plus in property in the last financial year alone. Positive Real Estate was originally established to provide services for the thousands of Australian investors that lacked either the time or the expertise to locate, negotiate and purchase residential investment property. In recent years the service has been extended to include educational seminars and programs that empower and teach clients to be successful property investors in their own right. CLICK HERE to find out more.

Positive Real Estate has worked hard to earn its excellent reputation within the Australian real estate market and is renowned for sourcing properties that offer high rental or capital yields at a low entry point. Our aim is to allow clients to maximise the growth of their property portfolio without reducing their serviceability.

Contact:

For media queries about this success story please contact:-

Jodie Woods
Marketing Coordinator
P: 1300 365 886 or email investors@positiverealestate.com.au.

If you wish to learn how to access some of Australia’s most profitable property deals like this, or meet the team and a Head Property Coach in your region – book in for one of the Positive Real Estate Property Investor Nights – held all over Australia.