The Real Deal E-Book

Brendan Kelly

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

Seitenzahl: 399

Veröffentlichungsjahr: 2010

Beschreibung

Tired of working 9 to 5 for someone else, just to make ends meet? Looking for a path to financial freedom so that you can spend your time doing what you want to do? For many savvy Australians, property investing has lead to exactly that. They have found an investing method suited to their own circumstances and turns a property dream into an income stream - and, in some cases, an early retirement! So how can you escape the daily grind and achieve the same results, even if you've never invested in property before? The Real Deal is the only real estate book that: * takes you through an array of investment methods - from negative and positive gearing to renovation, subdivision, commercial property and property development, and everything in between * shares the experiences of 14 real-life, everyday investors who have created wealth using these methods so you can see how they work in the real world * teaches you how to set goals and provides the tools to stay motivated to achieve them * helps you access the best investment approach for you in terms of time, money, level of difficulty and effort * actually gets you on the road to financial freedom - fast. You'll learn how to make deals for quick profit, deals that you can work on yourself and deals that you can pay others to look after for you. The options are limited only by your own creativity!

Leseprobe

THE REAL DEAL: PROPERTY INVEST YOUR WAY TO FINANCIAL FREEDOM

Table of Contents

Introduction

What is financial freedom?

The property investing journey

Choosing the right strategy for you

Hands on versus hands off

Lump-sum gain versus cash flow

Cost versus complexity and risk

Chapter 1: Negative gearing for long-term growth (buy and hold)

Getting started

Setting goals

Shorter term goals

SMARTIE goals

Where are you now?

Assessing your financial position

Assessing your borrowing capacity

Negative gearing for long-term growth

The limitations of negative gearing

So who is negatively geared buy and hold right for?

Tips for a successful negatively geared buy and hold deal

Property and location

Getting a better deal

Managing the investment

Achieving maximum rent

Real deal: our retirement home

Our deal

The figures

Tips for new investors

My current situation

Looking to the future

Chapter 2: Positive cash flow properties

Buy and hold positive cash flow property

Can you reach your goals with buy and hold?

Choosing your strategy

Buying property overseas

Things to consider when buying overseas

Buying property in New Zealand

Real deal: positive cash flow in New Zealand

My first property deals

My latest deal

The figures

Choosing my strategy

Investing overseas

My tips for other investors

My current situation

Looking to the future

Chapter 3: Positive cash flow properties and add value

Adding value to a deal

Multiple income streams

Choosing your strategy

Skills assessment

Real deal: adding value to positive cash flow units

My first property

My second property

The figures

My tips for other investors

My current situation

Looking to the future

Chapter 4: Flips, short-term growth and quick-turn deals

Flips

Keys to successful flipping

Risks of flipping

Buying for short-term growth

The ripple effect

New infrastructure

Considering the economy

The world economy

How the world economy affects local economies

Factors affecting money supply

Property investing and economic cycles

The investing cycles

Real deal: a quick-turn deal

The economic environment for this deal

Our strategy for this deal

Our deal

The figures

Tips for new investors

My current situation

Looking to the future

Chapter 5: Live-in cosmetic renovations

Rent it or sell it?

Buy–reno–sell

Buy–reno–rent

Real deal: my first deal

Finding the property

The reno

The figures

Marketing and staging the property

Tips for new investors

My current situation

Looking to the future

Chapter 6: Cosmetic renovations

It’s all about the numbers, not the dwelling

Quick reno deal analysis

How much money do you need to buy and renovate a property?

Using the numbers to find your property

Tying it all together

Real deal: cosmetic renovation

My strategy

My deal

The figures

Meeting the neighbours

Planning ahead

Knowing the numbers

Knowing the area and the market

Tips for improving the presentation of a property for sale

Tips for new investors

My current situation

Looking to the future

Chapter 7: Renovations

Finding a deal: the 15-minute suburb search

Reno tips

Real deal: a reno deal goes south

How to lose $100 000

A renovator’s delight!

The downward spiral …

A change in plans

Help!

Selling at a bad time

Marketing and staging the property

Well, at least we got rid of it …

The figures

Real deal: reno success

Researching

Another renovator’s delight! Are we crazy?

Adding a bedroom and ensuite

The renovations

Marketing and staging the property

Sold in 10 days!

The figures

Becoming an area expert

Tips for staging a property

Tips for new investors

My current situation

Looking to the future

Chapter 8: Subdivisions

Subdivision due diligence

Real deal: buy one, get one free (almost)

An unexpected find

A done deal

The figures

Difficult tenants

So far, so good …

Finding the ideal property for renovating and subdividing

Finding the confidence

My tips for other investors

My current situation

Looking to the future

Chapter 9: Separating and renovating a duplex

Finding your ideal property

Hitting the street

Agents’ lists

Networking

Real deal: renovating and subdividing a duplex

My strategy

My ideal property

Found one!

A minor problem

Sold!

The figures

Tips for new investors

My current situation

Looking to the future

Chapter 10: Renovate and subdivide (1 into 2)

Buying property

Buying a problem

Some questions to ask real estate agents

Find your most profitable exit

Contingency plans

Real deal: subdividing into two lots

Why we chose renovate and subdivide

Buying

An ordinary house with potential to improve

Anyone for a swim?

Meeting the neighbours

Time to sell

The figures

Our property team

Tips for new investors

My current situation

Looking to the future

Chapter 11: Renovate and subdivide (1 into 3)

Building your property team

Real deal: our three-block deal

Time for an adventure!

Property or shares?

We should have tried property first …

Our three-block renovate and subdivide deal

Meeting the neighbours

An expensive mistake!

Time to sell

The figures

Our property team

Tips for new investors

My current situation

Looking to the future

Chapter 12: Construction

Common mistakes

Underestimating the complexity of the process

Losing control of the project

Incorrectly estimating the end sale price

Oversupplying the market

Ignoring the target market

Failing to budget for all building costs

Failing to check access to services

Treating the council/planning authority as the enemy

Managing cash flow poorly

Specifically for large-scale developing

Real deal: a successful plan B

I was just looking …

A hasty reassessment

The figures

Budgeting money and time

My tips for other investors

My current situation

Looking to the future

Chapter 13: Developments

What type of deal?

Planning for a development

Will your development be approved?

Inspecting the site

Achieving a maximum sales price through staging

Real deal: flying high

Why I chose property

My first property

Turning to development

The figures

Contingency planning

Managing service providers

My portfolio

Location, location, location

My tips for new investors

My current situation

Looking to the future

Chapter 14: Developing a system

Being a strategy expert

Creating a property investing system

Building the foundations for your system

Research–Purchase–Manage–Sell

Start at the shallow end

Real deal: developing my system

My strategy

My deal

The figures

My investing system

My tips for other investors

My current situation

Looking to the future

Chapter 15: Passive income and financial freedom

What is passive income?

Using commercial property for passive income

Commercial versus residential

The advantages of commercial property investing

The disadvantages of commercial property investing

What are the commercial property options?

A lot more to know

You don’t have to retire …

Chapter 16: Your next step …

Did you notice?

Your next step is …

PROPERTY INVEST YOUR WAY TO FINANCIAL FREEDOM

BRENDAN KELLY & SIMON BUCKINGHAM

First published 2010 by Wrightbooks

an imprint of John Wiley & Sons Australia, Ltd

42 McDougall Street, Milton Qld 4064Office also in Melbourne

Typeset in Berkeley Oldstyle Book 11.3/14pt

© Brendan Kelly and Simon Buckingham 2010

The moral rights of the authors have been asserted

National Library of Australia Cataloguing-in-Publication data:

Author: Kelly, Brendan

Title: The real deal: property invest your way to financial freedom / Brendan Kelly and Simon Buckingham.

ISBN: 9781742469836 (pbk.), ISBN: 9781742469850 (epub), ISBN: 9781742469867 (mobi)

Notes: Includes index.

Subjects:

Real estate investment — Australia.

Real estate investment — New Zealand.

Real estate business — Australia.

Real estate business — New Zealand.

Finance, Personal — Australia.

Finance, Personal — New Zealand.

House buying — Australia.

House buying — New Zealand

Other Authors/Contributors: Buckingham, Simon.

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 inquiries should be made to the publisher at the address above.

Cover images © Vision; © Photodisc; © PhotoEssentials; © Kutlaev Dmitry, 2010. Used under licence from Shutterstock.com.

Printed in China by Printplus Limited

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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 upon the information in this publication.

Foreword

The most powerful confirmation that an investing concept works is the personal testimony of someone who has applied the technique and succeeded in creating a profitable outcome.

This is why I’m delighted to recommend The Real Deal as a refreshingly good read that combines sensible and interesting investing principles with illustrations of real-life investors who have been able to apply the points made and make decent profits.

The people featured in this book are everyday people, and most started with little or no investing background or experience. Take 23-year-old Rachel (chapter 3), for example. Rachel is probably more at home on a surfboard than inspecting properties, but her lack of starting knowledge was more than overcome by a strong desire to learn, an inquisitive mind, and the tenacity to keep asking questions until she received an answer that made sense. Now she owns a great property investment and has established a solid foundation for a strong financial future.

The 14 success stories included in The Real Deal were drawn from RESULTS participants. RESULTS is a mentoring program that teams those wanting to use real estate to achieve financial freedom with an experienced property investing mentor, while providing substantial written training materials and other forms of support.