Property is a Girl's Best Friend E-Book

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Sprache: Englisch

Seitenzahl: 393

Veröffentlichungsjahr: 2011

Beschreibung

Whether you're 18 or 80, whether you have $800 or $800 000, you can invest in property -- you just need the know-how. Property is a Girl's Best Friend is the essential property investing guide for Australian and New Zealand women who want financial freedom. With case studies and hot tips to inspire and guide you, let Propertywomen.com show you: * 7 property investing strategies for capital gain and cash flow -- find out which suits your personality * the 25 steps to teach you property investing * techniques to uncover great deals that one property woman used to buy 26 properties in just 28 months * 16 ways for you to eliminate costly habits that hold you back financially how one property woman made $1 million in just one year with a $1 option * 11 top tips to reduce tax legally and increase cash flow. Move over diamonds, property is now a girl's best friend! Property is a Girl's Best Friend is the essential property investing guide for Australian and New Zealand women who want financial freedom.

Leseprobe

PROPERTY IS A GIRL'S BEST FRIEND

Table of Contents

Chapter 1: Mindsets:

getting your mind over the matter

A shining example

The power of belief

Jane’s story

Getting emotional

Subpersonalities: a conversation in your head

A mindful mind

The pursuit of happiness

Investing in spite of influence—the power of you

Embrace the positive

Exercise: turning negative thoughts around

Chapter 2: Budgets:

creating a snapshot of your finances

What’s the point?

Take the driver’s seat

Getting started

Communication

Planning

Getting organised

Putting pen to paper

Organising your budget

Keep an open mind

How to budget when your income is variable

Making your money work for you

Eliminate costly habits

Go green

Transferring your budget to a cash-flow statement

Cash-flow tips for the self-employed

Extending the budget to your property investments

Chapter 3: Networking:

it’s all about who you know

Networking fundamentals

Building your property-investing ‘team’

Ask around for recommendations

Interview

Clarify your expectations

Don’t be afraid to make mistakes

Team players

Accountant

Bookkeeper

Property lawyer

Mortgage broker

Insurance broker

Real estate agent

Deal finders, buyers’ agents or bird doggers

Like-minded investors

Registered property valuer

Quantity surveyor

Pest and building inspector

Body corporate management

Handyperson

What next?

Chapter 4: Property-investment strategies:

choosing the perfect fit

Set your goals

Capital growth versus cash flow

Strategy 1: buy and hold

The milk and honey keeps flowing

Never sell?

Does this strategy fit you?

Strategy 2: trading, or property flipping

Consider the cost

Example: Robyn and Derek

Does this strategy fit you?

Strategy 3: renovating

Example: Judith

The barbs in the tail

Does this strategy fit you?

Strategy 4: subdividing

Subdividing land

Subdividing multiple properties

Does this strategy fit you?

Strategy 5: developing

Example: Trisha and Karen

More on costs—apparent and hidden

Timing and hiccups

Does this strategy fit you?

Strategy 6: home plus income

Does this strategy fit you?

Strategy 7: lease options

Walking in a landlord/vendor’s shoes

Walking in a tenant/buyer’s shoes

The potential for a ‘win-win’ situation

What’s the catch?

Does this strategy fit you?

Building your portfolio

Chapter 5: Cash flow and gearing:

making property pay its way

Vive la différence

Cash is king

Equity to cash—water to wine

Let’s talk about finance

Gearing

Cash-flow positive

Positive gearing

An overview

Chapter 6: Renovation:

creating instant equity

Check your limits

Finding the right property

Assessing the renovation potential

Comparative market analysis

Do a one-minute feasibility study

Make your offer

Time—measure it in dollars

Create a Gantt chart

Go shopping

Planning

Let the reno begin!

Renovation fundamentals

Paintwork

The kitchen

The bathroom

Floors

The exterior

The garden

Fences

Features that add appeal

Example: Beth and Eliza

Beth’s story

Eliza’s story

The comparison

Chapter 7: Subdivision and development:

high risk, high reward

Focus on location, location, location

Cosy up to the council

Ask questions

Assess the land’s development potential

Confirm your strategy

Choose a builder and get an estimated build cost

Make an offer when you’ve lined up your ducks

Wade into the paperwork

Finalise the builder’s contract

Begin the build

Communicate with your builder

Understand the different stages of the build

Complete the build

Example: Property Bloom™ four-villa development

Will you jump in the deep end?

Chapter 8: Research:

the way to capital growth and yield

Know what you are looking for

Capital growth

Yield

Finding properties on the web

Real estate websites

Auction or trading websites

Websites to use for other information

Non-web-based research ideas

Property magazines

Newspapers

Property brokers

Real estate agents

The locals

Maps

Narrowing the search

Digging deeper

Country towns for higher yield

Is there good rental demand?

Is the area a destination in itself?

Are there multiple reasons for investing in the area?

Ah, the satisfaction

Chapter 9: Analysing a deal:

how do the numbers stack up?

Arm yourself with information

Things to consider when analysing a property

Crunching the numbers

Rental yield

Number crunching for different strategies

Claiming against tax

Traps to watch out for

Get to know the cycles

Chapter 10: Negotiation:

how to get what you want

Tips for the buyer

How much should you pay?

Let the negotiations begin

Never be afraid to walk away

Tips for the vendor

Know how much your property is worth

Interview real estate agents

Prepare your contract accurately before you list

Think about an auction carefully

Concentrate on what matters

Multiple vendors

Don’t give false representations

Don’t get emotional and don’t rush

A final word

Chapter 11: A legal perspective:

buying and selling property

Preparing the contract

The role of your solicitor

Preventing the vendor from stalling

A cooling-off period

Pest and building inspections

Existing tenancies

Early settlement

Look carefully at your contract if you want to subdivide

The state of a property on settlement

Financial matters

The deposit—how much is reasonable?

Always consider the loan terms and conditions

Insurance and risk

Chapter 12: Joint ventures:

when time poor met cash poor

What is a joint venture?

Example: a small joint venture

A family affair

How do I set up a joint venture?

Completing the paperwork

Where to find joint venture partners

How long does a joint venture last?

Spreading the risk

When do you inject your money into the venture?

Chapter 13: Finding finance:

the key to property wealth

Understand your financial position

Assessing your net worth

Establish a healthy financial picture

Credit cards

Personal loans

Home and investment loans

Bills

Investment income and expenses

Your credit file

The finishing touches

Salaried or self-employed—does it matter?

Self-employed applicants

Salaried applicants

What happens when you apply for a loan?

The application process

Loan products and structures

Home loan with an offset account

Line of credit

Professional packages

Variable versus fixed

Principal-and-interest versus interest-only loans

Holding multiple properties

Chapter 14: Taxation:

make the most of your investment

Tax matters

State taxes

Stamp duty

Land tax

Federal taxes

Income tax

Capital gains tax

Goods and services tax

Tax deductions—clawing your cash back

What’s claimable immediately?

What’s claimable over time?

What’s claimable on the sale of a property?

What’s never claimable?

Depreciation: when tax is kind

Example: Jane

Example: Anne

Capital improvements or repairs?

Maximise your deductions

You can’t do it alone

The good news

Record keeping

The annual file

The permanent file

Tax tips

Chapter 15: Holding title:

legal and tax ramifications of ownership structures

Who can hold property?

Sole ownership

Joint tenants and tenants in common

Holding property in an entity

Partnerships and companies

Trusts

Self managed superannuation funds

Summing up

Chapter 16: Options:

buying time

Option, not obligation

Call options

Put options

A combination of the two

What’s the attraction?

A four-step options process

Consideration is important

Extending or assigning an option

The paperwork

A lawyer on your side

What does an option cost?

Option price

Purchase price

An option in action

Example: May

The benefits and drawbacks

Are options for you?

Chapter 17: Property management:

looking after your asset

The letter of the law

Do-it-yourself property management

Dealing with tenants

Documentation and communication

Maintenance

Hiring a property manager

The benefits of delegating

Residential tenancy checks

Your expectations

Costs

Selecting a property manager

My advice

First impressions count

Get it squeaky clean

Welcome new tenants

Keep quality tenants

Sit back and relax

Chapter 18: Step-by-step property investing:

1 Commit and take action

2 Determine your property-investment strategy

3 Build your property-investing team

4 Consider the ownership structure

5 Determine your borrowing potential

6 Start searching

7 Analyse and research good deals

8 Think creatively—can you improve the deal?

9 Negotiate for a great deal

10 Make an offer and sign a contract

11 Insure the property

12 Do more due diligence

13 Apply for finance

14 Organise your funds ready for settlement

15 If it’s all okay

16 If it’s not okay

17 Organise renovation/development and the property’s management

18 Three to five days before settlement

19 Settlement day!

20 Keep the settlement statement for your accountant

21 Keep loan documents for your accountant

22 Keep records of income and expenses for tax purposes

23 Head back to step 1

24 Review your portfolio regularly

25 Keep yourself motivated

Glossary

Further resources

A Little Pink Book of referred trades and services

Associations for property investors

Bargain renovation materials

Builder information

Finance

Free reports

Government websites

Mortgages

Networking

Property sales and listings

Real estate institutes

Related sites

Research

Taxation

First published 2009 by Wrightbooks

an imprint of John Wiley & Sons Australia, Ltd

42 McDougall Street, Milton Qld 4064

Office also in Melbourne

Typeset in Charlotte Book Plain 11/13.5pt

© Propertywomen.com 2009

The moral rights of the authors have been asserted

National Library of Australia Cataloguing-in-Publication entry:

Title: Property is a girl’s best friend.

ISBN 9781742169347

Notes: Includes index.

Subjects: Real estate investment — Australia.

Women — Australia — Finance, Personal.

Dewey Number: 332.63240994

All rights reserved. Except as permitted under the Australian Copyright Act 1968 (for example, a fair dealing for the purposes of study, research, criticism or review), no part of this book may be reproduced, stored in a retrieval system, communicated or transmitted in any form or by any means without prior written permission. All enquiries should be made to the publisher at the address above.

Cover design by Xou Creative

Printed in Australia by McPherson’s Printing Group

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Disclaimer

The material in this publication is of the nature of general comment only, and does not represent professional advice. It is not intended to provide specific guidance for particular circumstances and it should not be relied on as the basis for any decision to take action or not take action on any matter which it covers. Readers should obtain professional advice where appropriate, before making any such decision. To the maximum extent permitted by law, the authors and publisher disclaim all responsibility and liability to any person, arising directly or indirectly from any person taking or not taking action based on the information in this publication.

Foreword

I was surprised and excited when Property Women invited me to write this book’s foreword. When I thought about what to write, I realised that investors may be male and female, but ultimately they are people; people with human fears and doubts, people with conceptions — and misconceptions — about all aspects of investment. Some are young and inexperienced and may think it’s all too hard or maybe naively think it seems easy. Some are people who have failed in the past and are fighting back; others are crawling slowly forward financially, scarred from bad experiences with other investment strategies; others may feel they just have to do something, maybe upon reaching a mid-life crisis or mid-career crisis, as I did. Whatever the reason that you are reading these words, the truth is that you have come to the right place to move on — the people who have written this book have ‘been there, done that’.

From Jenny Storey’s research strategies to Rachel Barnes’s amazing investment history to a tax professional like Pat Fleming, who is an investor and an accountant — what a blend of skills and experience from which to learn.

Where do we get our financial mindsets? We are all initially subjected to the programming and influence of our parents and friends. My parents told me to ‘get educated, get a qualification, get a job, get a home’. That was supposed to be enough for the first 40 years, and then you retired on the pension. But this didn’t seem right to me.

For decades, I tried to figure out the mystery of what makes people rich. Is it about being smart? That question was answered when I saw people who had earned PhDs working after hours for under $20 per hour. It is not how smart you are academically; it’s how smart you are in your relationship with money and investment. One thing I do know is that it’s not how much you earn that makes you rich, it is what you do with what you earn. I have met people who earn masses of money, but are one pay period away from going broke.

Simple but enormously powerful strategies to take control of your finances are covered in this book. Some of them, such as saving 10 per cent of everything you earn to put into investments, such as property, that produce income, I have applied myself and they changed my life. It is all about making money work for you, not you working for money.

I personally know some of the women who have written chapters in this book. Rachel Barnes (networking, property-investment strategies, cash flow and gearing, negotiation), Judith Taylor (renovation), Jenny Storey (research), Lidia Sherwin (finance), Pat Fleming (holding title and tax) and Melanie MacDonald (options) are passionate about property. Writers of other essential subjects are Annie Stoker (mindsets), Jo Chivers (subdivisions and developments), Robyn Marsters (analysis) and Carolyn Wright (property management). Let’s not forget investor and solicitor Rob Balanda (legals and joint ventures). With practical, road-tested information from these high achievers in property investment, you are in good hands.

I wish I had had a valuable book like this when I started buying and renovating property. I made heaps of mistakes, which hurt me financially and kept me working years longer than I should have. A book like this could have saved me all those mistakes (sorry — I should call them ‘learning experiences’). One mistake will cost you many, many times more than the cost of this book; that is the difference between cost and value.

The other valuable aspect of this book is gaining inspiration from others’ perspiration; ordinary people such as you and me can choose and use these strategies to get similar results. It’s like the writers have climbed Mount Everest before you and have given you their tools and the map they used to make your climb all the more easy. Now you can climb it, too.

I recommend this book to all investors, especially property women who are embarking on, or continuing, their property ascent.

As the title says, property is indeed a girl’s best friend … and it’s fun, too!

Geoff Doidge

The Reno Kings

Brisbane, August 2009

Geoff is co-author of the best-selling book Real Property, Real People, Unreal Profits. The Reno Kings are nationally known property investors and educators. Geoff has been investing for 33 years and has a property portfolio of more than $25 million and rental income approaching $1 million per year.

About the authors

About Property Women

www.propertywomen.com

Property Women was created in 2006 as a result of an initiative by the Reno Kings, Geoff Doidge, Paul Eslick and Steve Blaby (their business manager). They noticed a growing number of women attending their workshops, and the trial ‘Property Women’ workshop they set up was a resounding success. Judith Taylor, who had renovated numerous properties herself using the education she had received at previous workshops, was a natural choice to manage the enterprise.