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Investing in Real Estate – A How To

If you are just getting started with real estate investing, there are some important things you should consider before taking the big leap. Buying a property can be a daunting idea when you More »

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Using a Mortgage Broker

Researching the type of loan you need to get to buy an investment property can be a time consuming task, especially when you don’t understand all the features and restrictions contained in More »

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How Much Property Do I Need to Retire With?

If share markets make you nervous with their volatility, then investing in property is a valid alternative for building a retirement income. And let’s face it, money in the bank experiences very little More »

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What is Rental Yield?

Before I start, I should mention my easy Rental Yield Calculator here so you can verify any investment property yield quickly. Whenever you are researching an investment property to buy, it is important More »

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3 Ways to Increase Your Rental Return on a Residential Property

While it would be nice to charge our tenants whatever we like for renting our precious investment property, in reality we can only charge what the market is willing to pay or More »

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Investing in Boom Towns

A boom town is traditionally a low demand area that has been revived by a major industry.  Examples of this are a regional town that has had a new mining operation started More »

Choosing a Lender for Your Investment Property

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When you are ready to start looking for your next investment property, you will most likely also be ready to start evaluating loan options for the purchase.

Whether you use a mortgage broker or not, it is still useful to research what possible loans will be available for your purpose.

It’s also wise to have your finance organised before making offers on a property.  If you already have a few properties with loans, you may be comfortable with sticking to your existing lender, especially if they already know your financial situation and can offer up the finance easily.

NSW to Remove Stamp Duty Discount

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The new Liberal government of NSW, led by Premier Barry O’Farrell, recently released their first budget for the state of NSW.  As part of cutting spending to help fund long promised infrastructure, the state treasurer Mike Baird has ditched stamp duty concessions for first home buyers of established properties.

Buying Investment Property in Melbourne

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 Melbourne is the capital of Victoria, Australia located in the south eastern tip of the continent on Port Phillip Bay.  It is the second largest city in Australia with a population of around 4.1 million, about half a million less than Sydney.

Melbourne consists of inner city suburbs such as Carlton, St. Kilda, Richmond, Brunswick and Collingwood.

Moving further out into the suburbs we see Sunshine, Broadmeadows, Frankston, Dandenong, Werribee and Glen Waverley.

Using a Buyer’s Agent

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In the real estate world, there seems to be a never ending list of brokers and agents that can help you out with the buying and selling of property.  It is very common to use a real estate agent to help you sell a property but what about when you are buying?

At first, it might seem a little crazy to hire someone to purchase a property for you, especially if you are paying them a fee or commission.

But can a buyer’s agent add value to your purchase?

Top Property Investing Forums

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This website is just one small resource available to the thousands of property investors out there.  However, if you get stuck or want to ask questions, then using one of the many property forums out there can help you out.

Why Join a Forum?

Well for one thing, since it is mostly anonymous, you need not feel embarrassed or hesitant at asking any question you like.

Participating in an online forum puts you on a level playing field with many experts in the industry and allows you to get quick answers for issues that you are having in your investing career.

Buying Investment Property Interstate

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It is common for the average investor to want to buy an investment property not too far from where they live.  There are many reasons for this, one being convenience and another being a sense of security of being able to drive past their investment now and then.

That’s not a bad thing and I’ve certainly done this myself.

But just because you may have more knowledge of your local market, does not mean it’s a good place to invest.  Just because you want to (or need to) live in that area that does not mean other people want to as well.

Flipping Real Estate

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In general, flipping is buying something and reselling it for a higher value.  When it comes to real estate, this is also true and normally requires a renovation to get the higher resale price.

If you don’t quite follow, let me break it down:

 

  1. You purchase a dumpy or run-down property
  2. You fix it up, renovate and improve it
  3. You put it back on the market after fixing up for a higher value (the flip).

The idea is to make a good profit in a relatively short period of time.

What are Investment Wraps?

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The term wrap refers to a property investor who buys a property, using a mortgage and then on-sells the property to someone else and then providing vendor finance to the new buyer.

Sound confusing?

It might at first, but it’s not that complex of a strategy.  You see, some people out there want to buy a property to live in but for whatever reason, cannot secure finance for themselves.  They might be a former bankrupt or just have not saved enough deposit.  The reason isn’t too important.

Using a Mortgage Broker

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Researching the type of loan you need to get to buy an investment property can be a time consuming task, especially when you don’t understand all the features and restrictions contained in the product.

Mortgage brokers solve this issue by becoming experts on the product offerings from all of the major lenders and then recommending the appropriate product for you.

How to Choose a Good Location for Your Investment Property

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Most of us have heard the old adage “location, location, location” when it comes to buying a good property that will grow well over time…but it’s a bit vague to base your investment strategy around this saying.

They are right in saying that the location is probably the most important factor, although you do have to buy the right type of property for that location and also the right property for your own portfolio.

But for now, let’s concentrate on why location is so important.

How Much Property Do I Need to Retire With?

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If share markets make you nervous with their volatility, then investing in property is a valid alternative for building a retirement income.

And let’s face it, money in the bank experiences very little growth after you take into account inflation and income taxes.

But what are we aiming for when building a property portfolio?

It is important to set goals when investing in property and then choose a proven strategy that will help us achieve those goals.

Using a Home Equity Loan for Investment

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A home equity loan, or line-of-credit loan (LOC), is a facility set up so that you can draw down as much money as you need up to a certain limit that’s been agreed with your loan provider.  You need to make interest only payments on the balance of the equity loan, but you do not need to pay off the principal amount.

Investing in Apartments

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It’s a common dilemma for investors as to what type of property performs best in the long term.  Houses, apartments, offices?

Alot of people believe that houses always grow better than apartments because they have a greater land value.

It is true that a house generally has a larger land component and that it is the value of the land that increases over the years, whilst the physical property itself depreciates (loses value).

What is Rental Yield?

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Before I start, I should mention my easy Rental Yield Calculator here so you can verify any investment property yield quickly.

Whenever you are researching an investment property to buy, it is important to determine the rental yield (sometimes known as rental return) of the property.  The rental yield will be a big factor in how much cash-flow you receive (or lose) whilst owning the property.

So what is rental yield and how to calculate rental yield?  Rental yield is simply a ratio that shows the amount of rental income received in a year relative to the purchase price of the property.  For example, if your property would rent for $1000 per month, you would times that by 12 to get the annual income figure of $12,000.

3 Ways to Increase Your Rental Return on a Residential Property

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While it would be nice to charge our tenants whatever we like for renting our precious investment property, in reality we can only charge what the market is willing to pay or risk getting nothing at all.  Since we are professional investors, getting nothing at all is not really an option.

Of course, when you first start looking for an investment property it is wise to find one that has a good rental return as well as good prospects for capital growth.  However, once you’ve purchased that property, you will be at the mercy of the market as to how much rent you will get.

Buying Investment Property in New York City

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Once, one of the most expensive cities in the world to buy property, New York has come down in price since the GFC much like the rest of the United States.  This could represent a good opportunity for property investors to get into this high-end market while prices are at a more affordable level.

Located in the state of New York, New York City lies in the north-east corner of the United States.  It is often described as having 5 “boroughs” which are distinct locales that divide the city, these are: Manhattan (the main CBD with Wall St and Central Park), Queens, Brooklyn, Staten Island and The Bronx.

How to Obtain Quality Tenants

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If you self-manage your investment property, then it is up to you to advertise for new tenants before your property becomes vacant.

Even if you do use a property manager, you may have some say in the tenants that are allowed to rent your property.

A lot of people fear owning an investment property and getting bad tenants.

They are out there and a bad tenant can fall behind on rent, cause damage or just be generally uncooperative with the landlord or property manager.

Review of “Massive Passive Income from Property Investing”

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This is an ebook, written by Keith Mason that teaches how to use wraps and vendor finance to purchase investment properties to generate significant positive cash flow.

Although I’ve heard of this strategy before, I’ve never implemented it myself, but it definitely is a very legitimate way of getting more income from your investment.

What is Loan to Value Ratio?

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Loan to Value Ratio, often abbreviated to LVR is quite self-explanatory but might take you a little while to get your head around if you haven’t thought about it before.

Put simply, if you are buying a property worth $1,000,000 and the bank will lend you a maximum of 90% Loan to Value Ratio, then this means they will lend you $900,000 and you will have to put in the remaining $100,000.

Building an Investment Property Portfolio

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The whole idea around investing in property is to build long term wealth for yourself and your family, but what does this really involve?

Buying just one investment property and holding onto it until retirement won’t make you rich.  If it performs well, it will definitely be a nice asset to have with substantial equity and a small income stream to help out, but if it does not perform well you are left with an underperforming asset.