The passing of Steve Jobs saddened the technology world – and those touched by the genius synonymous with Apple. So what can great investors learn from such a person?

Steve Jobs epitomised the technology era – like a Father of the faith bringing the world into a modern technological era – seeing the rise of the personal computer and more recently mobile devices such as the iPod and iPhone.

Lets have a look at what it was that captured us all about Steve Jobs. There are many lessons I feel we can translate into our property portfolio and handling the current and emerging property market.

On Innovation

Steve said that “innovation distinguishes between a leader and a follower” Property investors like yourselves need to be innovators, always looking for the next deals and focusing on growth, looking for ways to broaden, improve, mould your strategy.

The great property investors see their portfolios like a business, a place that has room for innovation. Particularly in uncertain times.

Why do you invest in property? What are you doing with your investment? Is it merely a retirement plan, or do you have a greater purpose – a plan to use your portfolio to continue to grow what you do, invest in something else or use your social conscience. Its not just your portfolio but what you do with it that will really separate you out.

Focus

Steve talked about focus and excellence as the opportunity to focus on those few things that you have chosen carefully to undertake – not say yes to every good idea that comes along.

As property investors we need to understand where we are at – what our focus is and what the end goal looks like. Only when we understand these things can we really focus on the property portfolio that is our best strategy.

Passion & Purpose

Good property investors are passionate about property. They love buildings, they get a thrill out of the deal, they understand the investment imperatives and are always looking for ways to grow or secure their portfolio.

Steve aptly said “being the richest man in the cemetery doesn’t matter to me… going to bed at night and saying we have done something wonderful… that’s what matters to me”

Resilience

On a final note, and a great word of assurance for property investors in the current market, Steve had a lot to say about resilience in developing a successful outcome.

On remembering losing his job at Apple originally Jobs said “It was awful tasting medicine, but I guess the patient needed it. Sometimes life hits you in the head with a brick. Don’t lose faith.”

Good property investors plan for the long term. They don’t panic, they don’t behave erratically and even in a flat or down market will still find those deals that work now and into the future.

What Can We Say Then?

To those looking to invest in property – now is a great time with dropping interest rates and bargains galore in the market – whilst rents are not declining. Life deals well to the calculated risk taker – what are you waiting for?

The team at Portfolios are passionate about property investment from finance to property to the long-term deal.

“Here’s to the crazy ones, the misfits, the rebels, the troublemakers, the round pegs in square holes… they push the human race forward, and while some may see them as the crazy ones, we see genius, because the ones who are crazy enough to think they can change the world, are the ones who do.”  Steve Jobs.

Click here to read McGrath Market Review Winter 2011.

As we enter into the fifth month of 2011, are you wondering whether the market is going to gain traction and build upon some early positive signs? Positive key drivers are indicating that we are now in one of the most important selling periods of some time. What are the 8 key drivers that are making 2011 a strong year in property? Read on to get McGrath’s in depth Market Review for Autumn 2011.

Read the John McGrath’s Market Review – Autumn 2011 here.

1. Supply and Demand

Currently in Australia there is a forecast shortfall in the supply of houses of 180 000 per year and rental vacancy is at an all time low. This lack of supply and huge demand is driving up real estate prices and rents.

2. Historic Capital Growth Results

The capital growth statistics over the last 30 years show that property has doubled in value every 7-10 years. This growth had been through recessions, flat markets and property booms.

3. Pay off your home loan faster

Smashing your mortgage and other personal debt sets you up in life. It is amazing that owning investment property can greatly assist this when structured and implemented correctly.

4. Reduce tax

People need a legal way to reduce the amount of tax they pay. With property investment there are numerous benefits and ways to legally reduce your tax paid through portfolio cashflows and depreciation.

5. More control and options to add value

Owning property allows you to consider renovation, refresh and/ or subdivision as ways to increase the property value and rental return. All increasing the potential return and yield. You have control over the value add.

6. Wide Price Range

Property can be purchased from within a wide price point range, so each new property can cater for you and your portfolio requirements at the time. Its all about the numbers and how they work for you.

7. Minimal Funds required

Using finance for most of the property purchase and ongoing costs assists you with minimising the funds required for purchase and ongoing ownership.

8. Real rate of return on your money invested

The real rate of return on your money invested is a key consideration and with property it can be 100’s of percent per annum. We target at least 300% per annum for our properties offered to you.

9. Funding and structure allows it all to happen

A sound property investment strategy that includes the correct funding and structure allows all the benefits of property ownership to be a reality for you. Our strategies allow for these plus personal buffers and other financial considerations to keep you and your portfolio safe and secure.

10. Live from your portfolio

A sound property portfolio and strategy allows you to use the excess funds to add to your current lifestyle and set you up for your retirement. Now that is worth working on, to create wealth through property

Click here to download the Why Property brochure.

For more information contact Portfolios.

With Summer around the corner we start to think about our properties, the wild summer storms and dry heat bringing bush fires – summer is a volatile time for property investors.

But have we considered ourselves in the equation?

What would happen to your loved ones if you were no longer around to pay the bills?

I know it sounds morbid on this fine Spring day but the reality is these things happen, and quite often it is the family that is left holding the financial ball, so to speak.

This is where Portfolios can help.

Portfolios Plus provides the services of insurance professionals through our network of trusted providers.

Personal Insurance

Protecting yourself and your family is a vital part of a successful property investment strategy. If you were to suffer in an accident or be unable to repay your investment loans through disability or death would your family be able to support your portfolio?

What kind of legacy will you leave?

Protecting yourself is one of the greatest gifts you can give to your loved ones if you should be unable to support them.

Portfolios through our insurance providers can offer you one or all of the following insurance products:

• Life Insurance
• Accident Insurance
• Income Protection Insurance
• Temporary Or Permanent Disability

Insuring Your Portfolio

Whilst Portfolios does not provide insurance in this area we recommend you contact your property insurer to discuss a deal with them.

There are other forms, the important thing is to make sure you are covered.

A chat with a trusted Portfolios insurance advisor will ensure you are not in the dark.

Are You Wanting To Know More?

Expressing interest in insurance is simple, contact Portfolios today by downloading and filling out Insurance Signup Form and we will pass your details onto Peter Bentley, our trusted advisor, who will contact you in the coming days to discuss your requirements on behalf of Portfolios.

Are you getting the most from your investment property?

Up to 80% of property investors are not properly depreciating their investment property asset – missing out on the potential to make thousands more.

Its a simple problem – often over looked.

Depreciation on an investment property is effectively free money.

Are you missing out on free money?

Bradley Beer from BMT Tax Depreciation says that “If you own an investment property and have not been claiming depreciation, you will be missing out on thousands of dollars. Even if you are claiming depreciation you may not be maximising your claim. Property depreciation will help an investor to increase their cash flow by reducing the tax they pay.”

Asset depreciation is nothing new to a business owner.  If you earn an income from an asset you can depreciate that asset as an expense, albeit a ‘paper’ expense. Expenses of course are tax deductible.

The difference with property investors is that the Australian Tax Office allows property owners to claim this depreciation as a deduction against their taxable income. Depreciation expenses, along with other ‘paper’ property costs can cause a property to make a loss on paper thus allowing Australian tax payers to claim this loss against their pre-tax income.

What Is Depreciable?

All aspects of a property and the property’s fixtures and fittings are depreciable as all aspects of the property age. If the building was constructer prior to 1985 you can not claim depreciation on the building, only the fixtures and fittings.

What About Older Properties?

Purchasing an investment property should always be about the deal and your personal outcome not whether it is depreciable or now. However, you should know that all properties are likely to have aspects that are depreciable.

We recommend you get a proper depreciation schedule on an older property before settlement. After all it is part of your due diligence on the property.

Are You Renovating – What About The Old Fixtures?

Renovating a property – you may be eligible for scrapping benefits.

Scrapping occurs when the items you are removing from a property, to improve that property, still have both a value and future depreciation benefits in them. You write off the potential depreciation benefit as a deduction against the property income. This also applies to the building.

If you are renovating do not throw away fittings and fixtures without understanding their depreciation potential.

Just more proof that a properly through through strategy and finance deal can get you set up to make the most from your property investment journey. Make it happen with Portfolios.

Get along to this seminar – we know it will help you with your property investment aspirations.

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 Entrepreneur’s Conference where you’ll hear from a number of Australia’s top property experts.

CLICK HERE to secure your complimentary tickets.

As Australia’s undisputed King & Queen of Renovation, Renovating For Profit certainly pride themselves on their reputation and NEVER make personal recommendations for just anyone. They personally guarantee you will walk away from this conference with a tonne of practical information you can actually implement.

SO WHAT’S THIS EVENT ALL ABOUT

WHAT CAN YOU EXPECT?

It’s a 2 day weekend event with a line up of the best property experts in the industry. Called the “”TGR Property Entrepeneurs Conference”, it will feature Australia’s elite property professionals across development, property options, creative cashflow, mindset and of course, property renovation.

Now we know you’re personally interested in property renovation which is a fantastic way of increasing your cashflow. Do you want to learn how to make lump sum cash profits by doing quick cosmetic reno’s or are you willing to take on a larger structural renovation?

There are thousands upon thousands of people all over Australia now buying old houses, getting in, renovating them and reselling for lump sum cash profits.

You can do it! The question is – do you want to learn how to do it properly?

If this thought intrigues you and you want to learn more, come along and hear us present our 8 Step renovation system where you’ll walk away with a heap of practical reno tips and a wheelbarrow of laughs!

Follow the links to get 2 Free Tickets for you to attend this event & an advance copy of Stuart Zadel’s book “Think And Grow Rich Property – 2nd Edition” which you’ll personally receive at the event.

To formally reserve your FREE tickets, please CLICK HERE to secure your seat(s) now.

Be Quick -

Stuart’s events do sell out fast so a word of advice … don’t leave it this to the last minute…..

We recommend you get along to this seminar.

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

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%

About Roma

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.

A Changing Industry Mix

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.

Great Potential

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.

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?

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.

About Low Doc Loans

“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.

History

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.

Some Banks More Exposed Than Others

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.

Criteria In 2010 – Greater Stability

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.

Managing Lender Risk

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 huge 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.

A Good Strategy For Some

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 using the form below.