Investor Kit Resources
Contents of this page
- QBE BIS Shrapnel Property Outlook 2011-2013
- Super resource for renovators
- Making a written offer
- Property Portfolio Manager Spreadsheet
- QBE BIS Shrapnel October 2009 Property Report
- Bernard Salt recommended reads
- Bernard Salt, KPMG Baby Boomers and Beyond Oct 08»
- Accessing Equity Presentation
- Why Investors Choose Interest Only loans
- A comical explanation of the Credit Crunch
- Property vs Shares
- Renovation Survival Guide
- Essential qualities of multi-millionaire property investors
- Checklist for preparing your home for sale
- Tax spreadsheet for Investment Properties
- Improving your borrowing capacity
QBE BIS Shrapnel Property Outlook 2011-2013
Here is another resource to add to your toolbox. These predictions allow you to check your assumptions on where to invest and hear from these market commentators on the outlook for the Australian Property Market.
Making a written offer
Remember the more terms and conditions you add the more uneasy you may make the vendor so keep conditions to the minimum. This is provided as an example only please note that you should develop your own offer document and have your solicitor look over it to make sure it complies to all the necessary requirements.
Some examples of inclusions:
- Deposit $x or % payable after (-) days of exchange of contract with balance at settlement (the most common is 10% deposit in contracts but most negotiate to 5%)
- Subject to my satisfactory Building Inspection within (-) days
- Subject to my satisfactory Pesticide Inspection within (-) days
- Subject to my finance that is acceptable to me within (-) days (note try to negotiate 10 working days to allow for valuer delays etc)
- Subject to independent valuation within (-) days
- Settlement weeks after all conditions have been met
- Subject to my satisfactory survey report within (-) days
- Subject to my due diligence with local council within (-) days
- Subject to my property manager to have access to the property prior to settlement for inspection purposes and showing prospective tenants through. (if taking vacant possession, ie no tenants).
- Subject to reasonable access for the purpose of quotes for tradespeople to complete renovations after settlement
- Subject to vacant possession
- Subject to the chattels, fixtures and fittings as seen on the date of inspection (nothing worse than seeing items missing as they were not listed in the contract)
- Subject to all electrical and plumbing items to be in good working order prior to settlement (take a comprehensive checklist for your pre-settlement/final inspection and push-pull-turn on what you can)
- Subject to all council and regulatory approvals on all building and renovations (that pergola or garden shed just may not be legit)
- Subject to builder’s warranty insurance (for new houses or any recent renovations such as pool or pergola)
- If buying a unit – make the offer subject to a satisfactory search of the body corporate records
This is merely an example of terms you may consider including this is not exhaustive – and remember if you are going to auction then any changes or inclusions to the standard contract must be agreed between the solicitors prior to the auction for eg the 5% deposit or the light fittings being included etc
Property Portfolio Manager Spreadsheet
Many of you know that without clear direction you can’t achieve anything. That is why I spend so much time talking to people about setting goals and then working out which property investing strategy will help them achieve that goal.
Without those fundamentals I believe you are gambling with your investments success. Similarly I know that tracking your portfolio regularly and reviewing how each property fits into that strategy is imperative. I have devised a very simple spreadsheet with very simple formulae’s to help track if your property is on track to helping you achieving your goals.
In April 2010 we will be launching gogoalsgo.com a free goal setting web site to help you set those goals – this is how important I believe goal setting is.
This spreadsheet and an interesting article will be appearing in April 2010 Australian Property Investor Magazine. If anyone has any improvements they would like to suggest please send them to me firstname.lastname@example.org This spreadsheet is an alternative to you spending hundreds on software that will assist you in achieving the same outcome – perhaps without even linking it back to your goals.
QBE BIS Shrapnel October 2009 Property Report
QBE once again has engaged BIS Shrapnel to look into the future property market and put forward tehir predictions for 2010-2012. A must read for any investor
Bernard Salt recommended reads
This Article was published in The Australian Feb 26 2009. There is not much that Bernard Salt from KPMG can’t do with census statistics. As property investors, we should be interested in understanding how one of Australia’s most prominent property predictors gets his information from and how he uses it. I hope you find the article interesting.
Remember to subscribe to the ICM newsletter for future articles and access to budgets, property inspections checklists and many tips and tricks. Subscribe on the Home Page.
Bernard Salt, KPMG Baby Boomers and Beyond Oct 08
This presentation looks at predictions of how the Australian property market will grow and why. This presentation was only supplied as a PDF, so many of the slides are not self explanatory; therefore I have provided some commentary to accompany a few of the slides.
Page 3. Meet the new consumer tribes…the bush, the beach, the ‘burbs and the Chinese. This slide looks at the top 10 growth areas in Australia over the 12 months to June 2007 in context of the very large immigration numbers (viewed by country of origin). Incidentally, during his speech Bernard drew attention to the potential business opportunities of supplying the Chinese and Indian communities.
Page 4. Singles and couples dominate household formation in capital city markets. This is especially interesting as it shows how different capital cities have different household structures. As an investor you might want to consider your purchase with this in mind
Page 5. More housing required in Australia’s’ fastest growing lifestyle communities on the coast. An amazing indication of population growth and, one would assume capital growth. Note that the top 10 are on the beach. Bernard believes that given half a chance most Aussies would elect a ‘sea change’ or ‘tree change’ lifestyle. NB the first regional area highlighted is Mt Barker. Bernard indicated the large population growth in this area is due to the new infrastructure that makes this ‘tree change’ area less than 30minutes to downtown Adelaide CBD. His hot prediction is the Victorian coast once the Geelong bypass is in place
Page 9. Growth in the value of residential property has been underpinned by a demographic tailwind. Population growth within the prime earning years of 40-59 has created growth in property values. Note the large population reduction in the next 20 years and the effect that may have on property prices.
Page 12/13. There is a ‘demographic fault’ line running through the Australian labour force. In 2004, predictions for the population over the next 20 years created considerable concern as baby boomers were exiting the market in greater numbers than those of the Gen Ys coming in. Consequently there will be a smaller workforce to provide stimulation to the economy and to provide for the ageing population. The 2008 prediction comes from the Immigration Dept releasing plans to substantially increase immigration. The next slide shows this is an issue in most developed countries and because other countries have similar immigration plans, attracting the workforce we need may not be that simple.
Page 17 Housing construction has dominated the Australian economy for much of this decade.It is interesting to note which industries have had substantial expansion, especially for those of you looking for new business opportunities
Conclusion: Bernard has just written a book called The Man Drought, which shows that a single woman at 35 can expect significant issues finding an available man. The next few slides show where the single men are in Sydney and how to get there. The news is even worse for Kiwi women. The good news is that at age 60, Australian women will have their selection of men.
Accessing Equity Presentation
Many people use equity in their own home to leverage into property investment. There are a number of ways that this can be done. In my experience I find that most purchase their first home and investment property without a clear strategy and hence without having their finance setup correctly. I often find that this then limits flexibility and can actual stall investment plans. For those who plan to create a property portfolio finance strategy is almost as important as which property you buy. If you do it correctly you can leverage off the new equity you have created to allow you to purchase again. This short presentation demonstrates one such strategy. Remember this is general information and not specific to your circumstances so please contact Investors Choice Mortgages to discuss how you can apply this strategy. Please also read the article on cross collaterisation to further understand the implications of not setting up your finance correctly.
- with kind permission from Defence Housing Australia
Why Investors Choose Interest Only loans
I am often asked why 99% of investors choose interest only loans. This article which Your Investment Property Magazine kindly allowed us to reprint simply explains why most investors choose this approach.
A comical explanation of the Credit Crunch
These funny little stick men simply describe one view on how the credit crunch came about – be warned there is some offensive language.
Property vs Shares
Recently at a conference Saul presented his analysis on the current and future economic climate in Australia, his information is in depth and thorough with interesting implications for property investors.
Renovation Survival Guide
Having just complete our 6th renovation using the buy, renovate and hold strategy we have learnt a few things along the way. Remember like most things if it was easy everyone would be doing it, and in the end you get out of it what you put in. That does not mean you can’t learn from the learnings of others. I hope these shared learnings assist you in your renovations
Essential qualities of multi-millionaire property investors
“Essential qualities of multi-millionaire property investors” Dale Beaumont
Checklist for preparing your home for sale
Thank you to Emma McDermott, Principal of n-gauge property marketing for supplying this check list.
Tax spreadsheet for Investment Properties
We have used this spreadsheet for years to assist in gathering information for our accountant at tax time. As always this is for your personal use and does not consider your specific circumstances. This spreadsheet does not take the place of advice from a qualified accountant or financial planner, you should speak to your advisor. I hope it saves you time and money as it has done for us
Improving your borrowing capacity
Lenders have various criteria when considering your borrowing capacity. This handy document gives you access to a number of these. By no means is this list exhaustive however it is the main factors you need to pay attention too.