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Great News!
The team from Renovating For Profit are speaking LIVE in upcoming events in Brisbane, Sydney, Melbourne & Perth with the fantastic team at Think And Grow Rich.
Make no mistake, the wealthiest people in the world have generally made their fortunes via property. If you’re someone who believes that property is the way to wealth, then you’ll certainly love Stuart Zadel’s Property Entrepeneur’s Conference where you’ll hear from a number of Australia’s top property experts including us.

The team from Renovating For Profit are speaking LIVE in upcoming events in Brisbane, Sydney, Melbourne & Perth with the fantastic team at Think And Grow Rich.

HEADING:
The Biggest Online Real Estate Training Ever! (Don’t Miss It)
BODY:
Hi, its Cherie from Renovating For Profit here. I’ve got some great
news to share with you. I’m involved in a brand new ONLINE event
where myself and five more of Australia’s most knowledgeable real
estate professionals are coming together for a new online
conference.
Its called the Masters of Real Estate Investment
(http://www.mastersofrealestateinvestment.com.au/rfp) and this event
is new and unlike anything I’ve seen, because it will deliver good
quality property educational content straight to your computer
from the internet, at absolutely no cost to yourself.  Topics to be
included cover developing a positive cash flow property portfolio,
renovating for profit, creative property deals – including how to buy
property with next to no money, property tax structures and smart
property development strategies.
Many of you who have seen me speak before, know I’m a big advocate
of self education. For even if you pick up only one new tip, its
that one tip that could potentially help you on your way to
financial independence.
To date, I know that 9 hours of online property content has already
been developed, all put together by professional investors and
speakers like myself. The content will be good and more
importantly, share information and strategies that you can use in
the current property market right now.
The conference series kicks off on September 16th with an overview
of the Australian property market with John Lindeman, head of
research at Residex, Australia’s oldest property research company.
John’s presentation is amazing and a must for serious property
investors!
I think you will really love this and truly hope you value the
information. To be part of the event, please CLICK HERE to register
now. Enjoy!
With the Kindest of Regards

You Haven’t Missed It!

Sign up today and watch previous sessions from your computer…

Portfolios is supporting this event with our partners Renovating For Profit. We have had a long and fruitful relationship with Renovating For Profit and believe this program will suit any one interested in investing in real estate. If you wish to ask us more questions please leave your details in the fields following Cherie’s letter below. You can also register and catch up with past seminars at any time.

Hi, its Cherie from Renovating For Profit here.

I’ve got some great news to share with you. I’m involved in a brand new ONLINE event where myself and five more of Australia’s most knowledgeable real estate professionals are coming together for a new online conference.

Its called the Masters of Real Estate Investment and this event is new and unlike anything I’ve seen, because it will deliver good quality property educational content straight to your computer from the internet, at absolutely no cost to yourself.

Topics to be included cover developing a positive cash flow property portfolio, renovating for profit, creative property deals – including how to buy property with next to no money, property tax structures and smart property development strategies.

Many of you who have seen me speak before, know I’m a big advocate of self education. Even if you pick up only one new tip, its that one tip that could potentially help you on your way to financial independence.

To date, I know that 9 hours of online property content has already been developed, all put together by professional investors and speakers like myself. The content will be good and more importantly, share information and strategies that you can use in the current property market right now.

The conference series kicks off on September 16th with an overview of the Australian property market with John Lindeman, head of research at Residex, Australia’s oldest property research company.

John’s presentation is amazing and a must for serious property investors!

I think you will really love this and truly hope you value the information. To be part of the event, please CLICK HERE to register now.

Enjoy!

With the Kindest of Regards

Cherie RFP signature

This Property Pays You – Roma Qld Property of the Month
We’ve scoured the Australian investment property market and found it, an investment property that will pay you from day one.
Roma in South Western Queensland is a small town offering big opportunities with high rental yield and good capital growth potential.
++++++++++++++++++++++++++++++++
Now with a positively geared property to add to your portfolio you could build on your strategy to pay off your mortgage sooner. Roma offers the benefits of long term growth and high rental yields. A well connected town, the urban centre is also a regional hub boasting schools, retail and other essential community services. Roma also has a relatively low unemployment rate of around 3% with property occupancy rates below 1%
With a population around 7,000 people, Roma is also located in the Suarat Basin in the western Darling Downs area of Queensland approximately 480kms WNW from Brisbane. It is situated at the junction of the Warrego and Carnarvon highways and is the centre of a rich pastoral and wheat-growing district.
The local agriculture industry is worth approximately $620 million annually, 64.3% being generated from crops. 58.7% of businesses in the Maranoa are in the agriculture, forestry and fishing sector, which employs 32.7% of the region’s workforce.
But the industry mix is changing.  The “mining boom” is creating towns that are producing exceptional
rent and capital growth. The Queensland Resource Council estimates more than 18,000 new jobs will be created in coal seam, gas and LNG industries and another 23,000 in the minerals sector.
Since 1906 natural gas from the local area was used for lighting in Roma. The industry is now expanding exponentially, particularly with coal seam gas.
Origin Energy’s Spring Gully Coal Seam Gas Development is located about 80 km north of Roma and its projects include an 87 km gas pipeline to Roma’s neighbour town of Wallumbilla, Queensland to connect with the 434 km Roma-to-Brisbane gas pipeline hub there.
The Proposed Spring Gully Power Station is an $870 Million, 1000MW power station will provide electricity to South-East Queensland.
If you prefer positively geared property to balance out your portfolio, contact us quickly as there are a limited number of these properties available. In the fields below leave your name and phone number – this will be sent to our private server and we will be in contact.
Add Roma to your portfolio today.

This Property Pays You – Roma Qld Property of the Month

We’ve scoured the Australian investment property market and found it, an investment property that will pay you from day one.

Roma in South Western Queensland is a small town offering big opportunities with high rental yield and good capital growth potential.

The sub prime market in America caused all sorts of problems for the lending marker world wide, raising the cost of lending for lenders and of course increasing interest rates for the average borrower.
But the low doc market in Australia did not cause the same issues locally as the sub prime market did in the US. Why?
++++++++
In short the Australian Reserve Bank knew about the American sub prime market and long prior to banks being able to offer low doc loans was able to put a watch on the market and keep it under control.
“The term ‘Low Doc’ came about because borrowers need fewer documents to apply for a loan. Rather than provide payslips or tax returns, a borrower can simply state what their income is, a process called “self-verification”. Low-doc loans are primarily for self-employed people with limited records of their income.”
One of the controls over the low doc market has been the Australian Taxation Office. Unlike the IRS in America, the ATO has been watching the low doc market for people who understate the income on tax records for tax purposes and then ’self determine’ their income to be higher for the lender. With this stand over tactic the low doc market has not had the same free reign.
Back around 2005-7 when the low doc market was booming the Reserve Bank was more concerned about borrowers who used low-doc loans to overstate their income and get their hands on more money.
“In its biannual Financial Stability Review, early 2005, the Reserve put low-doc lending on its watch list, citing it then as a potential threat to the banking system.” This action perhaps protected many Australian property investors and home owners from the credit crunch that took hold from late 2008.
The rural / regional banks in Australia, perhaps desperate to increase their market share, were the major protagonists of low doc lending. Banks such as the Adelaide Bank was at one stage lending over 30% on low doc with Suncorp around 10% with the majors staying somewhat in single digits.
Today, in Australia, to be able to apply for a low doc loan you must be able to secure 20% of the equity yourself. Banks will no longer lend above this amount on a low doc loan giving the borrower and the lender a healthy buffer against loss. If you look on the Portfolios Property site you will see in each of our property deals we supply both low doc and full doc scenarios with lenders requiring 20% or more equity for low doc.
The lenders also manage the risk by requiring mortgagees to take out lenders insurance. Mortgage insurance protects the lender from default and can cost over $10,000 on an average loan.
The financial difficulty and bankruptcy clauses in the US has allowed them to become a nation of entrpreneurs, but has also made it too easy to default. The ‘get out’ clauses in Australia are much tougher than in the US. While lenders here went on a spending spree in similar proportions to America, the regulatory constraints of getting out of your debt in Australia is much tougher than overseas. In America lenders in many instances were simply walking away from the properties leaving the keys in the door and sometimes within months were back in another mortgage again.
Having a glut of properties worth nothing, with hge mortgages over them, and no one to buy them stung the American, and world financial system hard. This situation hasnt been and is unlikely to be repeated in Australia with tighter controls.
We recommend you review your loan types with Portfolios – low doc loans are still available and in the right conditions can be very profitable.
Contact Portfolios for more information.

The sub prime market in America caused all sorts of problems for the lending marker world wide, raising the cost of lending for lenders and of course increasing interest rates for the average borrower. We examined this in our last article on the sub prime market.

But the low doc market in Australia did not cause the same issues locally as the sub prime market did in the US.

Why?

Sitting in America drinking terrible American coffee I look around and the feel in the air seems to suggest all is not well in America.
Rising unemployment, business confidence (although up is still down) crumbling infrastructure and services and of course lowering house prices.
Why hasnt or wont Australia follwo suit? Or will it?
==========================
In this article we are looking at the rise and fall of sub prime market in the US in particular. Bear in mind it is just an overview with more detail than the internet has room to fill.
Lenders have been able to offer loans to people who could not prove their credit worthiness since the nineties in the US. These loans, called sub prime loans, are also more expensive to manage by both the lender and the borrower and typically draw in people who can not manage their finances well.
They say when America sneezes the rest of the world catches a cold. The housing crisis in the US has seen house prices drop sometimes by up to 50% or more. And even now the housing market appears to be on a long road to recovery with a continuing over supply and easy conditions to walk away from uncontrollable debts.
I even got to go into an American house that reached a valuation of over USD $2m, only to have the owner explain the house was in possession by the bank and now worth less than $1.2m.
The sub prime market (similar to the Australian low doc market) in America has, according to some, been a major contributor to the global financial crisis and the glut in housing leading to a severe drop in house prices and people simply walking away from their homes unable to pay the mortgage.
Names like Fannie Mae and Freddie Mac have become pinacles of over lend under capitalise leading to the demise of many American banks. The rippled effect globally is the increased cost of funds.
Talking with Americans they now realise that perhaps the lax lending criteria, coupled with the ease of being able to default and leave a debt, combined to create one of the largest financial collapses of our time. Interestingly in late 2007 only 7% of loans were sub prime but they accounted for 43% of the defaults on mortgages.
The sub prime crisis had far-reaching consequences around the globe. Tranches of sub-prime debts were repackaged by banks and trading houses into attractive-looking investment vehicles and securities that were snapped up by banks, traders and hedge funds on the US, European and Asian markets. Thus when the crisis hit the subprime mortgage industry, those who bought into the market suddenly found their investments near-valueless. (source wikkipedia)
The sub prime issue was a result of a number of factors including:
* Softening house prices
* High cost of the loans
* People unable to cope with rising interest rates
* Lack of effective government oversight
* Over inflated home appraisals
to name a few.
As banks began to face widespread defualts – many of the down line borrowers, including some Australian lenders, faced rising costs – fuelling a local raise in interest rates outside of the Australian Reserve.
Could the same happen in Australia? We dont think so – Australia picked up on the low doc lending phenomenon much later in the piece – but we will examine the low doc market in the next article.
We look at the Australian low doc lending market and why we feel Australia is more immune to the lending crsis that has and continues to affect the global housing market.
(source Wikkipedia)

Sitting in America drinking terrible American coffee I look around and the feel in the air seems to suggest all is not well in America.

Rising unemployment, business confidence (although up, is still down) crumbling infrastructure and services and of course lower house prices.

Why hasn’t or wont Australia follow suit? Or will it?