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Catherines Chat

Wholistic Financial Solutions provides a lot of essential information and updates regarding the property investment industry. Check this page for the updates.

Unlock your wealth - free workshop

Friday, November 16, 2012
Tomorrow a group of us financial 'so called' gurus are running an all day wealth workshop.  Tickets were $249, now reduced to $39 and I can get 50 people in for free.  Link is To Learn more click here
http://www.unlockyourwealth.com.au/?repxa=cOml5wFoG0+W1WtC5DDIiA==
If any of you want to come - please contact me directly rather than book on the site. Or turn up to Ainsle Football club 8.45am tomorrow.
Really beneficial day if you are free tomorrow.

Mining Boom to continue in 2014

Wednesday, November 14, 2012

By Larry Schlesinger
Monday, 12 November 2012

Australia's mining-led construction boom will peak in 2014 with the value of planned projects already starting to contract, according to the Deloitte Access Economics September quarter Investment Monitor.

Deloitte Access Economics expects investment levels to continue to rise in the short term and then peak in 2014 as fewer projects move through planning to the construction phase.

It notes that investment in mining projects has been the “major driver of economic growth” but says that “all good things must come to an end”.

Mining investment projects currently account for nearly half (46%) of all major construction projects  either under construction or mooted, with transport and storage infrastructure projects (many tied to mining projects) making up nearly a third (31%).

The report finds that the value of planned projects has fallen back slightly over the past three months by $10.6 billion to $465 billion due to a lack of new resources projects, and some project cancellations, including BHP Billiton’s $20 billion Olympic Dam mine expansion project near Roxby Downs, as well as the delaying of the Port Hedland outer-harbour port expansion project in the Pilbara region in WA.

“While the bulk of other resources projects in planning are still on the agenda, there are question marks over the scale of some potential projects, such as Fortescue’s $6.2 billion Solomon mine expansion and [Gina Rinehart’s] Hancock Prospecting’s $9.5 billion Roy Hill project," says Deloite Access Economics.

Question marks also hang over Xstrata’s possible $6 billion Wandoan coal mine in Queensland, which has been placed on hold until market conditions improve, while BHP Billiton’s plans for a $3 billion expansion of the Peak Downs coking coal prospect have been shelved.

The Investment Monitor, which tallies all private and public engineering construction, non-residential building and equipment investment projects in all Australian industries, found the value of projects increased by $6.2 billion, or 0.7% from the June quarter, and has increased by 3.7% over the past year.

As the chart below shows, the mining boom accelerated from March 2011, but has slow-down since the start of the year.

Value of definite projects by status ($billion)

Click to enlarge

Property Investment Articles

Monday, March 07, 2011

This article describes the ninth strategy of nine property investment strategies.


Download the full report at www.wfscanberra.com.au

Strategy 9 – Guaranteed Leasebacks

Pros

A genuine guaranteed leaseback is a rare thing. If you can find one it can be an outstanding way of ensuring your ‘sleep-at-night’ factor. The biggest fears in property investing are; “What if I can’t find a tenant?” and “What if my tenant doesn’t pay their rent?”

A genuine guaranteed leaseback can take both of these fears away as the guarantor pays you your rent regardless of whether the property is tenanted or whether the tenant is paying the rent.

You can therefore rest easy knowing that your rent will be coming in to cover your mortgage, each and every month.

Cons

Well… don’t get me started on this one or I will go on for pages! In a nutshell:

There have been many fly-by-night companies predominantly based in Queensland who flew around the country hosting free property information sessions and drawing innocent investors in through mass telemarketing and promises of free holidays for their attendance. Then the holiday turned out to be a property tour, free of course, as long as they viewed the properties whilst they were there. The organizers then convinced the innocent investors to purchase the properties through ‘rental guarantees’ that sounded too good to be true.

And yes, they were too good to be true.

In some cases, the company went into liquidation straight after completing the final sales. Of course, this meant that the guarantee wasn’t worth the paper it was written on. Alternatively, the cost of the guarantee to the company was simply embedded in an inflated price for the property. At the expiration of the guarantee the investor found that they

could not rent their property for anywhere near as much as was predicted. Further, there was never any real tenant in their property. The company had simply used the inflated profits to pay the rent to the investor for the promised period.

Worse still, there were now hundreds of vacant properties in the area all on the market for rent at the same time. And to add insult to injury, investors who couldn’t afford to keep the property now that the rent was substantially less than predicted, tried to sell their property only to find that it was worth considerably less than what they had paid in the first place.

Solution
             
Once again, do your due diligence:
•       Ensure the properties are not over-inflated to compensate for the rental guarantee.  For example, are you able to buy the property on the open market, or from the developer for the same price without the rental guarantee?

•       Ask the guarantor, “What’s the catch?” There must be something in it for the guarantor or they wouldn’t do it. Ask them, “How do you make your money?”
•       Check www.allhomes.com.au or www.realestate.com.au  and ensure the predicted rental is in line with the current market rental.
•       Check that the company offering the guarantee has been in business for a considerable length of time.
•       Check the company has a sound reputation. ‘Google’ the company name and you will reveal any ‘dirt’ or dissatisfied customers.
•       Ensure the rental management fee is in line with industry norms – around 7–8% depending on the state.
•       Ensure you can withdraw from the leaseback any time you want to in case your circumstances change and you want to sell the property or move into it.
•       Most of all Get professional advice

Download the full report at www.wfscanberra.com.au

Property Investment Articles

Monday, March 07, 2011

This article describes the eight strategy of nine property investment strategies.


Download the full report at www.wfscanberra.com.au

Strategy 8 – House and land packages

Pros 

Delayed settlement gives you time to get your finances in order and even buy more property than you could afford to in your current situation.

Stamp duty savings as you pay stamp duty on the land component only.
In a moving market, an investor can make a gain on the investment simply by holding it in the period between agreeing to purchase and when construction is complete.

Some investors use this opportunity to buy several ‘off the plan’ developments with a view to selling off some before settlement to pay for the remainder.

Cons

Units are subject to the possibility of oversupply in the period between agreeing to purchase and when construction is completed. (avoid this con by sticking to house and land packages, townhouses or unit developments with lower number of units)

You have no control over another 10 apartments blocks going up around yours.

Can become a nightmare if the developer goes into administration before the project is complete.  (avoid this con by ensuring the developer is fully insured).

Low valuations of the final development may lead to additional funds being necessary to complete.  (Avoid this con by obtaining professional advice as to your financial position if this occurred)

Solution

“The good news is that a lot of the cons can be extinguished by undertaking the due diligence and research. You need to ensure that the developer has a sound track record of choosing houses in the right location, choosing builders that have stable and profitable track records, and choosing house and land packages instead of units. Land is much more governed by the rules of demand and supply because it is scarce. The closer to a CBD the scarcer it is.”

You also need a really good mortgage broker. House and land contracts and the process itself is fraught with complications and technicalities. You need a broker who is experienced in financing for such developments. See later – how to select a mortgage broker.

Download the full report at www.wfscanberra.com.au

Property Investment Articles

Monday, March 07, 2011

Dear Investor,

Would you like to invest in property but are unsure of the right strategy for your needs? Are you confused by the overwhelming amount of investment information, financial products and advice available?  Do you worry that the wrong advice could seriously affect your property investing success?

If you have answered “yes” to any of these questions then you need to read this FREE report –

 “How to Build a Property Portfolio the Right Way –

 Right from the Start”

Free Download at www.wfscanberra.com.au

This FREE report will reveal to you the 7 basic elements you need to have in place to ensure your success in property investment. You’ll find out how to avoid the simple but crucial mistake many property investors make, one that could end up costing you thousands of dollars. You’ll discover the best ways to maximise your tax deductions (the ATO will wish you didn’t know this), the best methods to finance your investment and the most effective strategy for your unique situation.

If you want to learn the secrets that the most successful investors know and try to keep to themselves then report each chapter of this report.

Yours Sincerely, Catherine Smith

Free Download at www.wfscanberra.com.au

“Discover how to build a property portfolio the right way, right from the start”


“This FREE report will reveal the 7 elements to building a successful property portfolio so that you can reach your financial goals sooner”


“Stop Wondering what is the Right Investment Strategy for You and Discover How to Build a Property Portfolio the Right Way – Right from the Start”

Free Download at www.wfscanberra.com.au

“This FREE report will reveal the 7 elements to building a successful property portfolio so that you can reach your financial goals sooner”

“This report will reveal the 7 Elements to Building a Property Portfolio so that You can Reach Your Financial Goals Sooner”


Free Download at www.wfscanberra.com.au

Property Investment Articles

Monday, March 07, 2011
Free Download at www.wfscanberra.com.au

This FREE Report Will Reveal To You….

1.The Right Investment Strategy – “Discover the most critical step to property investment before you start to invest –  if you DON’T define this step you will never have success with property investment”

2. The Right Finance – “How to be confident that you have found the right loan and structure so that you can meet long-term financial goals and avoid     serious costs – potentially saving 1000’s of dollars in long-term exit fees and interest rates”

3. The Right Tax Advice  – “How to build your property portfolio using the tax man’s money”

4. The Right Property – “How to buy the right property at the right time in the right location in less than 5-minutes

5. The Right Management – “How to have a remote control property portfolio which means no rental headaches for the  lifetime of the ownership of the property”

6. The Right Coach – “Discover why most property investors fail – and what to do about it”

7 .The Right First Steps – “Discover the first steps to putting you on track to build a property portfolio that will meet all your life goals

Free Download at www.wfscanberra.com.au

Wealth Creation & Protection

Wednesday, March 02, 2011
One of the biggest issues many people face is the creation of wealth but many people fail to consider the flip side - the protection of wealth. Both issues are as critical as each other. You don't want to work hard at a job or in a business, to accumulate wealth, only to lose it because you failed to protect it. Wealth protection can be simnple such as insurance or advanced such as complex business structuring. If you need any assistance on welath creation or protection feel free to send me a comment or question.

Discover How to Build A Property Portfolio The Right Way Right From The Start

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