Your Property Success with Renovation E-Book

Jane Slack-Smith

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

Seitenzahl: 360

Veröffentlichungsjahr: 2012

Beschreibung

The ultimate guide to investing in property...and making a million!

Everyone's looking to get rich, and a lot of those people are looking at investing in property as the way to get there. But watch out—making money in real estate isn't always as easy as it might look. At least, not without Your Property Success with Renovation in hand, that is. Written by Jane Slack-Smith, a true investment guru who's put together her own multi-million dollar property portfolio, this is the ultimate guide to making the housing market work for you.

Loaded with no-nonsense advice to help you avoid the traps that so many would-be real estate investors fall into, Your Property Success with Renovation introduces a unique three-pronged, low-risk investing strategy. Rather than focusing on fast money, the book encourages a low-risk plan—find an area with above average capital growth, buy below market value, and build value through renovation—that will help you build a strong, profitable real estate portfolio.

• Introduces "The Trident," a new way of approaching investing in real estate that focuses on low-risks and high rewards, not fast money
• Written by real estate portfolio expert Jane Slack-Smith, who transformed an initial investment of $45k into a multi-million dollar fortune using the techniques outlined in this book
• Shows you how to get the most out of the real estate market by emphasizing the value of property renovation

With just two investment properties and one renovation the average Australian can put a million dollars in the bank within fifteen years, and mortgage broker Jane Slack-Smith is here to show you how.

Leseprobe

Your Property Success With Renovation

Table of Contents

Foreword

About the author

Acknowledgements

My story

Introduction

Part I: The foundations

Chapter 1: Knowing what you want

Understanding the asset

The great Australian crime

The time frame

The magic rule of 72

Capital growth and cash flow

Chapter 2: Establishing your goals

Setting your goals

Defining your goals

Knowing your exit strategy

Courses for horses

Chapter 3: Assessing your finances

Needs and wants: knowing the difference

Assets and liabilities

Good debt versus bad debt

Getting a handle on your finances

Know your spending

Know your cash flow

Work in a buffer

Decrease your spending

Reassess your credit card limits

Look at ways to increase your income

Chapter 4: Understanding your risk profile

Risk tolerance

Dealing with uncertainty

The economic clock

Minimising your risk

Chapter 5: Developing your property investing strategy

Selecting your strategy

Renovation

Flipping

Defining your strategy

Yield versus capital growth

House or unit?

Choices, choices, choices

Other things to consider

Is renovation for you?

Chapter 6: The Trident Strategy: minimising risk

What are the risks?

Personal risk

Economic risk

Asset risk

Rental risk

Minimising your risk

Devising an emergency exit plan

Location, location, location

Using rent to mitigate risk

Borrowing with a buffer

Chapter 7: Setting your buying criteria

Demographics

Understanding the criteria

Property investing strategy criteria

Market criteria

Personal criteria

Buying criteria for units

Part II: The purchasing process

Chapter 8: Funding your purchase

What can you afford?

How lenders assess you

Serviceability

Determining how much you can borrow

Rental income

Living costs

Affordability and gearing

Borrowing capacity calculator

Savings history

‘Opportunity’ costs

Chapter 9: Getting your loan approved

The equity model

Tapping into your equity

Understanding property finance

Types of loans

Principal and interest or interest only?

Interest rates

Comparison rates

Offset accounts

Fixed-rate loans

Lender’s mortgage insurance (LMI)

Professional packages

Lender exposure

Professional help

Chapter 10: Locating a property

Performance factors

Capital growth

Rental yield

Scarcity

Deciding where to buy

Finding hot spots

Refining your list

Narrowing your areas

Culling your list

Getting to know suburbs

Selecting suburbs

Chapter 11: Knowing your demographics

Chapter 12: Hitting the streets

Your property inspection checklist

The inspection

Check your list

The good, the bad and the ugly

Chapter 13: Finding a renovator’s dream

Choosing properties

Renovation strategies

Flipping

Buy, renovate and hold

Comparing the two strategies

Assessing potential renovation properties

Concentrate on the negative, recognise the positive

Plan where you spend your money

Chapter 14: Purchasing your property

Questions to ask the agent

Buying below the market

How much should you offer?

The offer

Building and pest inspections

Chapter 15: The buying process

Conveyancing

Exchange of contracts

Strata title property

Obtaining a strata report

Your offer is accepted

Settlement

Part III: Renovating

Chapter 16: Renovating for prosperity

Creating value

Reno-nation

Chapter 17: Costing your renovation

Involve the professionals

Renovate for profit

Work your numbers down

Chapter 18: My tips, mistakes and recommendations

Before you begin

Bang for your buck

First impressions

Floor plans

Painting

Skylights

Bathrooms and kitchens

Fittings and fixtures

Post-renovation

Valuing the renovation

Property managers and tenants

‘Wow’ expenses

Worth considering

Unseen and unprofitable

Surprise costs

Value destroyers

Chapter 19: Organising the renovation

Getting started

Economise on materials

Go for quality where it shows

Get several quotes

Planning a renovation

Scheduling

Summary

The renovation safety net

Chapter 20: Review, repair, repent and replicate

The final step

Review the renovation

Repair

Repent

Replicate

It’s all about the valuer

Getting value where it’s due

First impressions count

The valuer’s role

Controlling the valuation

Getting the valuation you want

Chapter 21: My renovation examples

Saved by the building inspection

Saved by the neighbours

Saved by the strata inspection

First purchase, first success

In summary

The $14 000, 10-day renovation

In summary

Beachside pad tidy-up

In summary

Renovating with a structural twist

In summary

Growth without capital growth

In summary

Renovation rewards

It’s your turn

Chapter 22: Bringing it all together

The property cycle

Revisiting the economic clock

Monitoring your property and your cash

Putting on the work boots

The time and money conundrum

Mindset: it’s your perspective that counts

Expanding your thinking

Conclusion

There are those among us who have unusual abilities. Jane is one such person. Her ability to inspire and educate us all to take the next step in developing a portfolio to provide for the future in easily understood language is unique. This book is based on her personal investment knowledge and extensive research. There is something each and every one of us can take from it.

John Edwards — Founder and Chief Executive, Residex Pty Ltd

There are many books on real estate but few I’d recommend. This is one investors should read — sensible strategies from someone who offers knowledge, performance and integrity.

Terry Ryder — Director of www.hotspotting.com.au

Jane Slack-Smith is one of the true property success stories and property professionals in Australia. She combines an astute knowledge of the industry as well as of demographics to achieve the best possible outcome. Her style is easy to read and to the point; worthy in every sense of the word. And Jane is a nice person. What more do you need to buy this book!

Bernard Salt — Social commentator, author, columnist

JANE SLACK-SMITH

First published in 2012 by Wrightbooks an imprint of John Wiley & Sons Australia, Ltd 42 McDougall St, Milton Qld 4064

Office also in Melbourne

Typeset in 12.5/13.5 Perpetua Regular

© Jane Slack-Smith 2012

The moral rights of the author have been asserted

National Library of Australia Cataloguing-in-Publication data:

Author: Slack-Smith, Jane.

Title: Your Property Success with Renovation/Jane Slack-Smith.

ISBN: 9781118319277 (pbk.)

Notes: Includes index.

Subjects: Real estate investment. Finance, Personal.

Dewey Number: 332.6324

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 image © istock photo/Amanda Rohde

Author photograph: Daniel Maran Photography

Printed in China by Printplus Limited

10 9 8 7 6 5 4 3 2 1

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 author 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.

About the author

Jane Slack-Smith started her career as a mining engineer. She was one of the first women to enter the male domain of underground coal mining in NSW, and went on to become an explosives expert. In 1997 the ABC’s Australian Story ran an episode on Jane’s experiences.

So how did Jane go from dealing with explosives to riding the roller-coaster of the property market? She made the decision to start investing her money rather than letting it sit in her bank account, and found that she had a knack for buying and renovating properties. Jane and her husband Todd now own eight investment properties, and have just completed their seventh renovation.

In 2005 Jane established her own mortgage broking company, Investors Choice Mortgages, and in 2010 she was awarded the title of ‘Mortgage Broker of the Year’.

Jane is passionate about helping Australians achieve financial freedom through investment in property. She shares her experience and of low-risk property investing through education sessions and workshops. Visit Jane’s website www.yourpropertysuccessnow.com.au for more information.

Acknowledgements

To my parents, Glennis and David Slack-Smith, thank you for giving my sister and I the gift of self-belief, access to education to achieve our goals, and for encouraging our questioning, curious minds. There can be no greater riches.