The Australian Property Book Sample PDF
The Australian Property Book Sample PDF
The Australian Property Book Sample PDF
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"I will tell you how to become rich. Close the doors. Be fearful when others
are greedy. Be greedy when others are fearful."
- Warren Buffett
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"It's not how much money you make, but how much money you keep, how
hard it works for you, and how many generations you keep it for."
- Robert Kiyosaki
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Garth Davis
Adrianna Huester
Craig Merrett
Linh Whyatt
Darina Snell
Zaki Ameer
Geoff Boyd
Stephanie Brennan
Joylene Hay
John Carney
Scott Pendlebury
Andrew Crossley
Julie Crockett
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Kizzi Nkwocha made his mark in the UK as a publicist, journalist and social
media pioneer.
As a widely respected and successful media consultant Nkwocha has
represented a diverse range of clients including the King of Uganda,
mistresses of President Clinton, Amnesty International, Pakistani cricket
captain Wasim Akram, campaign group Jubilee 2000, Dragons Den
businessman, Levi Roots and world record teenage sailor, Michael Perham.
Nkwocha has also become a well-known personality on both radio and
television. He has been the focus of a Channel 4 documentary on publicity
and has hosted his own talk show, London Line, on Sky TV.
He also co-presented a weekly current affairs program in Spain on Radio
Onda Cero International and both radio and TV shows in Cyprus.
His books have included the fiction novel, Heavens Fire, the business guide
books: Business, Business, Business!, Mind Your Own Business, Insiders
Know-How: Public Relations and the international bestseller SocMed: Social
Media For Business. His second fiction book, The Prophecy Of The Popes,
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is due out in December 2015. In 2011 his team won the SIPA award for social
media. Nkwocha now runs a successful consultancy training people on how
to use social media for business.
His consultancy is at www.socialbiztraining.com
Follow Kizzi on Twitter: https://twitter.com/kizzinkwocha
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property as soon as you can, as young as you can, but also only when you
can afford to.
2). Ownership Structure
Before you purchase a property, you need to know what you plan to do with
it. What is the main reason for buying the property, and when do you plan
to sell it? This is going to help you understand what ownership structure you
need to purchase it in. For example if you are going to buy and hold long
term, it may be best to purchase the property in your personal name, or in
both personal names, if you are purchasing with a partner. If so, what is the
best ownership type, joint tenants, or tenants in common? Tenants in
common allows different ownership percentages which might be a big
advantages for making the most out of tax deductions for example.
If you are planning to buy and sell property as a strategy, then you might
decide that buying the property in a company name may be the best for you.
If you are looking to protect your assets from any potential legal claims, then
it may be best to purchase your properties using a trust structure, but trusts
come with some challenges, especially when trying to finance the property.
When you are deciding on what structure to purchase in, it is vital that you
get expert advice from your accountant.
3). Finance
Once you have worked out what your strategy is going to be, and in what
structure, your next important step is understanding your finance abilities,
and capabilities, and how much the banks are prepared to lend you. You
must understand interest rates, and also whether interest only loans, or
principal and interest loans, are going to help with your particular strategy.
My suggestion is to definitely use a good Finance Broker, and one who you
know, like, and trust.
What about cross collateralised loans versus stand-alone loans? Try and not
have your loans cross collateralised by your banks, as the banks do like to do
this, to get security across your entire property portfolio. At certain times in
your property journey this might be a good option to do, or your only option
to do, but in my opinion in most cases it is a trap. Get stand-alone loans. Also
work closely with your Finance Broker to understand the pros and cons of
fixing your investment loans, versus having variable interest rates.
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do not think that is a good idea, and I think it is risky. You need to find a
quality Property Manager to manage your property, and manage your
tenant. The cost of a Property Manager is a tax deduction, so why would you
not use one? The different current Tenancy Acts around the country are a
minefield for the unqualified. I definitely recommend using a good Property
Manager.
13). Time - BE PATIENT
What is the biggest mistake property investors make? They get impatient
and sell too soon!
Get involved in your property portfolio. Know what is going on with your
properties, and what is going on in the different property markets. Do not
be a passive investor. Keep asking questions, so you can keep learning, and
you can then make educated decisions.
14). Do Not Sell Too Soon
Yes, the biggest mistake property investors make is that they sell too soon.
Property values work in cycles. Values can go up, and even down sometimes,
and no one can accurately predict when that will happen. Price growth is
driven by many factors, including how much demand there is, how much
supply there is, interest rates, investor confidence, employment rates,
government grants etc.
Property values do go up, and property values will double over time.
Have a look at this graph below where the data is courtesy of RP Data. It is
their Pain and Gain report for the quarter ending June 2014. It shows that of
properties bought and later resold, the best capital growth profits were for
those purchasers who held their properties for 15 or more years. Some 95%
of those purchasers doubled their money or more in that time period. Hold
on to your properties for the long term, and do not sell them too soon.
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15). Once You Have Got Some Property Investing Knowledge TAKE
ACTION.
A trap for certain individuals is that they become paralysed with
information overload. They go looking for too much information on certain
properties and in the end they cannot make a decision on what to do. It is
important for property investors to do their research before they purchase
a property, but then take action. Successful people are those who take
action.
16). Stay Involved In Your Properties
Know what is happening in the market regarding rents, and property values.
Do not be too passive as an investor, you need to stay involved and
informed. If your properties are strata / body corporate properties, get onto
their committees, to find out what is going on in the development.
In conclusion, investors must develop knowledge, build a good team around
them, take action and purchase, then purchase multiple properties as and
when they can afford to.
They must continually monitor their property portfolio, keeping up to date
with changes in the finance market, tax markets, etc. BE PATIENT, do not sell
too soon and have a long term view in investing. Manage your risk. I am
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passionate about property, and passionate about helping people. I hope you
have a fantastic journey with property, please be patient, and take a long
term view for your properties.
Garth Davis
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Property Types
Getting to know the real estate market is the first step to investing. Having
deep knowledge of the property types and the current state of the local
estate market can aid both homeowners and real estate investors on their
journey to acquiring their goals.
Residential Property Types
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Valuation and appraisal are two terms which are often being mistaken as
interchangeable. Yet, behind their meaning hide a series of factors which can
indirectly affect a housing deal.
Appraisals are property price estimates, usually conducted by a real estate
agent. The appraisal is based on knowledge and experience of the local real
estate. Appraisals are done free of charge and have no legal standing. When
requested by potential vendors, appraisals tend to be overstated. Home
appraisals can also be done with the help of free, online tools6 which can
help a homeowner get familiar with the local property prices and therefore,
put an orienting price on his house accordingly.
Valuation is a formal, systematic process which determines the actual value
the property from an independent point of view. It is a complex combination
of research and real estate knowledge and in most Australian states,
valuations have to be conducted only by a qualified valuer. Property
valuation may have a legal standing and be used when obtaining a loan for
property purchase, drawdown or refinancing.
Property valuations are affected by a number of factors regarding the overall
state of the property, its location and features:
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Physical location
Local Council Zoning
Accessibility ( by vehicles, pedestrians or nearby off-street parking )
Building Layout
Structure, condition and possible faults
Planning restrictions
Encumbrances or caveats
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Differences between appraisal and valuation are explained in the section Selling
Techniques & Information
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Sights & Views: Most high-end properties on the real estate market feature
a number of amenities which add to its overall value. The proximity of the
residence to nature sights along with impressive balcony views of both
natural and urban landscapes can raise the end price significantly. This factor
counts mainly for the residential market and attracts customers willing to
top the original price in order to, say, wake up by the flickering sun rays
refracted in the ocean. The prices of such properties are usually higher than
others, yet they present a great investment option for future resell with high
profitability, due to increased interest of connoisseurs and foreigners. There
is a number of nature landscapes and sights which could add to your
propertys sell price according to the buyer's taste.
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Beaches
Parks
Lakes
Camp sites
Picnic spots
Playgrounds
Cafes
Restaurants
Venues
Night Clubs
Bars / Pubs
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PD - Police Department
Australian Institute of Criminology - http://www.aic.gov.au/
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Indoor Indicators
Pests: Youve spotted a wonderful property with new furniture, pretty garden
and freshly-painted walls, and whats more - its way below the normal price
for the locality its in?
Experience tells us there are rarely Australian townhouses which feature low
cost, convenience and beauty. Due to the overpriced urban dwellings and
high demand, property owners sometimes choose to lower the estimate of
their property in order to make a quick sell. Yet, in most cases, the
discounted price speaks of a hidden problem, such as pest infestation. Pests
are sometimes the result of badly maintained buildings, but they can also
depend on the locality the property is built in.
Before purchasing a property, the investor needs to make a complete check
for the most common housing pests. The check can be done either by the
buyer or by a certified pest removal agency.
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Structural Issues: While your real estate agent wont be able to say much
about the buildings foundation, ceiling and siding quality, it is a good
practice to turn to a structural engineer. Truth is, most sellers dont even
suspect there is a problem with their homes structure and therefore
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Renting on AirBnb
What AirBnB has made possible over the years is an excellent opportunity
for open-minded travel lovers and homeowners to rent their housing out to
tourists. The trend which brings most profit to renters is offering a culturallyauthentic or uniquely designed residential space, preferably in proximity to
local sights and monuments.
Renting on AirBnB is a process which closely resembles hotel ownership.
Homes which get the most reviews on the website are usually the ones
which offer the benefits of locality, hospitality and housing comfort.
Despite the possible income uncertainty, this strategy holds many
advantages and opportunities for high profit for a small financial investment.
Adrianna Huester
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Adrianna Huester is a real estate whiz and marketing strategist who works
in the house removal sector. She works with companies in Australia,
helping them bound with their customers and provide quality services
tailored by their clients needs. She is eager to share her knowledge of the
great opportunities the Australian real estate market offers for property
investors and homeowners.
She currently works with Fantastic Removals Melbourne, a Victoria-based
company which delivers removal and cleaning services to homeowners,
tenants and property investors in the residential and commercial sector.
Website: http://www.fantasticremovalsmelbourne.com.au/
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