Have you decided on a property investing strategy for this financial year yet? Would you like to find a free block of land or find a property that is undervalued or in need of some cosmetic beautification? Perhaps all of the above sound appealing? Then this may be your last chance to get on board [...]
26
Aug
INVESTOR ALERT: Is this the right time to buy real estate?
With question marks over which way interest rates might go, turbulent world financial markets and uncertainty over a possible second wave of GFC, is it really a good time to get into real estate?
As an investor who has gone through many previous property cycles, the fundamentals never change. Whenever there’s uncertainty, there’s always a great opportunity to pick up a bargain.
With all the fear and greed in the marketplace, where is your headspace at right now? Warren Buffet is famous for saying, “Be fearful when others are greedy, and be greedy when others are fearful.”
What I’m hearing in the property marketplace at present is fear. Fear of defaulting on mortgages, fear of not being able to sell properties for the price the owner wants, fear of not being able to buy properties due to restrictions on access to finance, etc. But as an investor, aren’t these great opportunities to help solve problems for people?
The good news is that there are always opportunities in the marketplace if you can come up with a solution and be a problem solver. The real question is, are you currently 1) cashed up, 2) cash strapped or 3) cashed out?
- If you’re cashed out, take the time to invest in your education and develop your skills on how to be a problem solver so that you get paid and are then able to invest yourself.
- If you’re cash strapped, perhaps find good deals for investors and take a finder’s fee. You may want to hook up with “cashed up” investors.
- If you’re cashed up, look for distressed sellers with a property where you can solve their problem and add value for yourself.
So with all the fear out there at present, there are many opportunities to grow your property portfolio. A great way to expand your investor mindset is to understand the psychology that drives your own decision making process.
We have a great free resource called, “Ten Reasons Why Most Investors Don’t Achieve Financial Success”. And as a valued reader, you can access this at a special rate – COMPLIMENTARY. Click here. Enjoy!
16
Jun
Tell Me What You Really Think
I really appreciate hearing from so many of you with your thoughts, comments and questions. So, I thought I’d ask you if you could spare a few minutes and send me your answers to a couple of questions?
1. What is the main achievement you are wanting to make from property investment in the next 12mths?
2. What is the single biggest thing stopping you from achieving your property goals right now?
3. What property topics are you most interested in?
Please send your replies to me at : nakedtruthteam@gmail.com
If you would like a special ‘Thank You’ gift please include a postal address so that I can mail it out to you!
26
May
Naked Truth Real Estate: Gone With The Wind
One of my favourite movies is the classic ‘Gone with the Wind’ and one of my favourite parts in the movie is when Scarlett O’Hara’s father tells her that ‘land’ is the only thing that matters. I don’t know why, but all those years ago when I first saw the movie, it struck a chord with me and now that I spend so much time playing the property development game, I know that’s definitely a true statement.
With property, it’s only land that appreciates, while the houses & buildings on the land depreciate, so it makes sense to focus very closely on the piece of land that you are hoping to develop. One of my favourite strategies is to find a free block of land, and I do this by finding an existing dwelling on a large enough block of land that I can then add another dwelling to – Voila! I’ve bought one property and then created two.
If I simply do a dual occupancy, I create a duplex and then the land is free. However, I can also subdivide the block;- admittedly there are some costs, but depending on the location of the land and the local council costs this may be as little as $200 or can run up to $25,000 on average. That’s not free, I hear you say, but it’s certainly a very cheap way to purchase land and considering you could then sell that block of land for an extremely good profit of $70-250K+, it is well worth the effort, wouldn’t you say?
In the next issue, I’ll let you know how you can take advantage of a fantastic tool to find these property land gems, so that if you want to explore this strategy a little more you’ll be able to do it quickly. In the meantime, you can talk to your council and find out what size blocks you may need to undertake a dual occupancy or subdivision of a block – usually it will be at least 800m2, but it does depend on your council. Then I suggest that you explore the opportunities in your area via the local agents or online real estate agencies. You may just find that you agree with Mr O’Hara. Happy hunting!
18
May
What Do You Want From An Investment Property?
We can probably start simply by asking ourselves “What is an investment?” I usually ask myself the following four things before investing in anything I do in property or in life – Will it return me money, experience, time or knowledge? A chair with four legs provides a solid platform to support us and we have faith in its ability to do that job for us. When I invest, I want to have faith in the investment property to do its job for me. I simply have to decide what that job is. Is it to provide me with money, time, knowledge or experience and skills? It may be 1 or all of these, so if I get clear about that first, it takes me a lot less time to decide what I’m looking for.
Usually, I want an investment property to provide all four aspects because I see these as solid foundations with which to build my investments. They also go a long way to keeping me focussed and interested in what I’m investing in. They help provide me with an answer as to ‘Why am I doing this?’ which is the most important question to ask ourselves at any point in our life but particularly when investing in property.
Recently, I was asked the question “Do I want the property or do I just want the money that the property can make me?” It is a very interesting question, don’t you think? For me, at present, I want much more than money from an investment property as I want to grow my knowledge and experience while being paid very well for doing so and by giving me lifestyle choices (time). I also want to own property for medium and long term capital gains and simply because it’s what I’m passionate about and I love playing with it. If one day I no longer enjoy the experience, then maybe I’ll just take the money, but for now I’m in the game for a lot more reasons than that. How about you? Do you want the investment property or the money?
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