Welcome to your August edition of the Zadel Property Education Newsletter.
This month, I’ve taken some notes on Cherie Barber’s due diligence process following her recent ‘Renovating Run Down Real Estate’ Tour, and put together some helpful questions that you should consider asking council before investing.
I’ve also raised a Facebook discussion on an interesting topic below, and to cap this month off, I’ve gone back to basics by sharing some of the regular pitfalls that investors can make. It’s so important to become a master of the basics! So let’s get into it...
#1 - Seven Handy Questions To Ask Your Council Before Investing
Too often people rush into buying a property only to find out that it isn’t the right one for their plans, or requires more work than what they budgeted for.
With Cherie Barber’s Renovation Tour just passed and Dominique’s Distressed Property Tour kicking off TODAY, I wanted to share some handy questions to ask your council that may help you pick the right investment property for you. Here they are...
These simple questions typically only take between 5 and 10 minutes over the phone or at your local council office, and can really be a useful step towards weeding out the lemons. To watch Cherie’s video for this month, check it out here.
#2 - What Are Your Thoughts On This One?
I have read some reports lately regarding the push for legislation that would allow first home buyers to access superannuation funds to make their deposits on real estate (fairly similar to the scheme that has previously been introduced in Canada).
The proposed legislation is aimed at making it easier for Australians to enter the property market. With first home buyers nearing a record low of around 12-13% of the overall buyers market, this appears to be a fairly interesting idea by the sounds of it, right?
Although... with interest rates already low, and negative gearing still in play, is it possible that this proposed plan may saturate the market with buyers who don’t have the affordability to service their ongoing loans? Or will prices continue to rise and expand this so-called bubble? And better yet... have we happened to check out how Canada's scheme has worked for them?
I’ve said it before, but I do not think you need money to make money. I still believe that the power of education serves a far greater purpose than anything else, including access to money. Money can come and go, but what you learn can never be taken away from you.
What do you think? Read more and join the discussion on my Facebook page!
#3 – Three Of The Biggest Pitfalls When Investing In Property
If you’ve been to one of my events, you will notice a common thread among all speakers - they focus on diligent and thorough research. By listening to them, learning from my own experiences and always staying up-to-date with my reading, I wanted to share with you 3 of the biggest pitfalls that can cost when investing in property. Read carefully and you could save a fortune on your next (or first) investment!
1. Overcapitalising and under-budgeting – You may do one of these, or you may double-edge sword yourself and do both. Overcapitalising your investment is not a recipe for success, nor is under-budgeting.
It is important to research the location of your investment to ensure you aren’t wasting money on aspects of a renovation that aren’t necessary. Additionally, if you’re going to nail your budget, you need to calculate the expenses as close to perfect as possible before you sign on the dotted line. Miscalculation of costs or reckless spending can drastically minimise profits, or worse, create a loss.
2. Emotional Attachment or Detachment – This can mean buying in an area that you like, despite it not being as profitable or vice versa. It could mean making a house look so nice that you become hesitant to let it go, because you’ve installed or built the way you would envision your own home - rather than creating what the market demands... I believe that to profit in property, you should leave emotion out of it.
3. Ignoring the Risks – Like almost anything in life, if you want to be successful you have to be aware of (and manage) the potential risks involved. Property investment is certainly no exception. This is why I often refer to faster ways to turn profits in property, because more than anything, this leaves you less exposed to massive market fluctuations such as that experienced in 2008. Of course, there are many other risks to consider and address, which should ideally be dealt with during the planning and due diligence process.
That’s all from me! I hope you find something of value from this month’s edition. Remember to check out our recipe of the month, educational videos and of course claim your free gift below!
Get educated now,
P.S. You may also want to forward your August newsletter to a friend.
This month I feel it is appropriate to share with you a message that was posted to me late last month as our July newsletter was being released. The message that Alyson sent to me was simply beautiful and inspiring. It's amazing how we're given the things, at the times that we need them. Check it out here.
Since the dawn of humanity, a privileged few have lived in stark contrast to the hardscrabble majority. Conventional wisdom says this gap cannot be closed. But it is closing - fast. The authors document how four forces - exponential technologies, the DIY innovator, the Technophilanthropist, and the Rising Billion - are conspiring to solve our biggest problems. Abundance establishes hard targets for change and lays out a strategic roadmap for governments, industry and entrepreneurs, giving us plenty of reason for optimism.
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