How Can You Find The Next Property Investment Hotspot?

When you invest in real estate you are no doubt hoping for strong gains in value over time. But what if you could improve your chances of making a quick gain early on – a fast improvement in value that will help propel along your wealth portfolio?

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The ideal situation would be for you to be able to invest in an area that is either already growing fast or is about to do so – a property hotspot. It is not always possible to pick these suburbs with complete accuracy and timing, because the statistics we use can be three to six months out of date by the time they are collated and we can analyze them. And a hot spot that is identified using data that old, could conceivably already have started to cool down.

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Yes, But Who Is Going To Rent This?

When we buy real estate to hold for the long term, we must factor in earning a rental income stream from the future tenant. Not only do we need that to support any borrowings we may have against the property, we also need to maximize the total return on the investment – which will include any capital gain, income from rent and any tax benefits.

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It might sound trite, but my experience is that investors don’t often think overly much about the needs of their future tenant – someone who in fact will become your de-facto financial partner in the months and years to come. They tend to think about the great deal they just got, rather than how it fits in to their portfolio or strategy or if it will be desirable to a tenant.

I spent a lot of time driving around looking at property. Over the weekend, I noticed a number of large prominent “For Lease” signs on homes that fronted busy through roads.

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FIRE – THE INVESTOR’S RED-HOT FRIEND OR DEADLY FOE?

I remember being fascinated with fire as a child. I loved scratching the red-headed match against the rough side of the box and watching it burst in to flame, producing heat and energy. I thought it was some kind of magic trick. At least until the first time I burnt my fingers. Then I knew it was real.

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As I grew up I began to understand that fire was life and fire was death. It bought life to those who were cold in winter and death to those caught in its untethered path.  I discovered fire was a source of power that could be either friend or deadly foe.

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Is $1 Million Enough To Retire On?

At the age of 19 I decided that I wanted to be rich and that meant being a millionaire. It took nine years to achieve the goals and I only discovered it by accident. I was filling out an application form for a loan and realized that my assets minus my current liabilities equaled just over one million dollars. At that point I thought I had it made. I mean being a millionaire was the peak in wealth wasn’t it? It was what everyone wanted to be?

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The very first book I wrote was called “It’s Easy to Be a Property Millionaire” and it sold in the tens of thousands, so I guess a lot of people just like me were out there all striving to become a millionaire. It was presumably because they wanted a better life and that number – a million dollars, seemed to be the magical goal, once reached, would guarantee the life of your dreams.

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HERE’S WHY APRA, THE GOVERNMENT & THE BANKS HAVE IT WRONG.

Last year, the Australian Prudential Regulatory Authority (APRA), at the behest of our Federal Government, issued instructions to our major lenders – pull back on your investor lending. APRA and the Government were rightly concerned about the growth in real estate prices over the last several years, particularly in Sydney & Melbourne.

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The Federal Government wanted to lower interest rates to support the broader economy, but they knew they could not do that without risking sparking yet another run up in property values. They decided the best way they could slow things down was to squeeze the supply of loans, yet they chose to do this only for investors, who got the blame for pushing up real estate values. If they were really serious, why didn’t they have the banks slow down all lending?

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RADIO WEALTH EPISODE 13 – REAL ESTATE CROWDFUNDING & BRICKRAISE SPECIAL

Welcome to the Radio Wealth Real Estate Crowdfunding special broadcast. Since launching the Brickraise platform and our first investment offer in Melbourne, we have been flooded with questions. So the team though that we should share these so that everyone learns more about the next generation of real estate investing.

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Let’s Learn To Love Our Banks

I understand how very easy it is to dislike our banks.

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They make multi-billions in profit each year, while increasing the fees that we pay for their services and they seem to keep hiking rates on our loans, even without increases in official interest rates. They are big, fat, easy-to-aim-at targets for derision, skepticism and anyone looking for something to blame. To some people, the banks seem to be much more interested in profits at all costs rather than helping us with our financial needs.

Just imagine for a moment, if you will – what would your life be like if there were no banks?

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Radio Wealth Episode 12 – Developer Special

Welcome to the Radio Wealth Real Estate Developing special broadcast. If you have ever wanted to know what it takes to be a developer, or to understand more about what a developer does to create homes, then this show will be enlightening for you. Some of the questions we are covering include:-

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Money & You – Are You A Saver Or A Spender?

Did you know that you have a relationship with money? And that you have probably had that relationship since you were very young. You would have learned from observing or interacting with those people closest to you in your life – like your parents, siblings, other relations, friends or even your teacher. Some of that conditioning could have been very positive and nurturing or it could have been the reverse. In any event, how you have been thinking about money your whole life will have had a remarkable impact on your financial results.

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I watched a program over the weekend called “Britain’s Spending Habits”, which offered me a look in to how the British people of all walks of life spent their money. They interviewed people on low and high incomes and those with very high net wealth levels.

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