NOVEMBER2015 – MONEY MONEYMONEY

IN THIS ISSUE: Monthly Highlights 2

Reports you should read 3

Magazine Summaries 5

Magazine Summaries cont. 6

FREE Resources 7

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MONTHLY HIGHLIGHTS “Money makes the world go round”, “It is all about the money”. There has been a lot of discussion about money in the media. If they are not talking about how much properties have „made‟ they are talking about how lenders are trying to increase interest rates and curb investing. However I believe the conversation should be more about what lies ahead and is there storm clouds on the horizon or are we in for just a few light showers? (Thanks to my father for your awesome storm photo on short notice) The reality is that overall property in Australia has gone up in value over the 8 years. In fact according to

Corelogic: “Since the end of 2008, the Sydney housing market has recorded a cumulative capital gain of 77.0%, while Melbourne values have moved a cumulative 66.6% over the same time frame. Based on the median selling price at the end of 2008, Sydney home owners have accrued approximately $316,000 in gains from the housing market compared with around $246,000 in Melbourne.” There should be no doubt that property has created wealth for many home owners and investors alike. Especially if they have bought

in the right areas and the right type of properties, but everyone knows how to do this.The RBA‟s decision to keep rates on hold and APRA‟s new lender guidelines have largely been driven by the Sydney and Melbourne markets. Make no mistake property is the largest asset class in Australia valued at over $6 billion. So if we agree that property could be a safe haven for what lies ahead how can you keep more

money in your pocket? Well firstly you might look at what is going out ie what interest your properties are costing you. So that leads me to interest rates, the last RBA statement was confusing on one hand there is reason to reduce rates to stimulate employment and the economy but on the other hand there is the flow-on effect that has on the Sydney and Melbourne property markets. I believe the Dec RBA decision will stay much the same unless the APRA changes drive an even more significant drop in investor lending and clearance rates should show us those figures soon. Remember the RBA does not meet in January so there may be no movement till Feb 2016. However the lenders have gone ahead and put up their rates, this is on top of already increasing investor rates up by up to 0.3%pa. This new rise is said to cover the new cost of funds

required by the APRA protocols. Just as a summary of these increases: Bank Increase % Current Standard rate %*

ANZ 0.18 5.56 NAB 0.17 5.60 CBA 0.15 5.60 Westpac 0.2 5.68

*NB Most loans have discounts of 0.7%-1.2% applied to this standard rates.

So the future may or may not see rate cuts however many of my Investors Choice Mortgages clients are not waiting around and have recently spoken to me about fixing their interest rates. With 5 year fixed rates

starting to increase many believe the 4.6%pa or better is a good hedge against uncertain times ahead,remember the longer term average interest rate is over 7%pa. However fixing does now suit everyone if you would like to get my e-book “Is it time to Fix” please contact me at http://investorschoice.com.au/ or organise a time directly to talk to me by clicking here. Alternatively you

can make a time by ringing the office on 1800 46 48 10. Another way to weather any storm is making sure you have an in-demand property that people want to rent or buy. On my monthly Your Property Success Mentor group coaching monthly calls I regularly am asked to assist in showing how to work out where to buy and what to buy. Don‟t miss Money magazine this month as I show the exact tools I use to find a property that costs less than $50pw and is going up in value. The key thing to know is that where to buy is different for every person, because your long term goals and needs are different. But what it boils down to is that you need to create money through your investment and in the long term this is done through capital growth, but you can do it faster by creating a higher and better value ie renovating, developing, subdividing or adding a granny flat to name a few. So it is all about the money and there are things you can do to weather any storm on the horizon real or imagined. As always have a great month. Here is to Your Property Success. Jane

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Reports you should read Herron Todd White

This month HTW looks at what is happening on the ground around the country with the investor market. Where are investors buying, and importantly what are investors doing now in light of all the changes? A great read this month. Click Here to Download the full reportUnlike other reports the Regional areas are not forgotten.

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Source: Herron Todd White

Capital City Market Conditions at a glance

A quick look around the country to see what stage the markets are in. Data is sourced from Herron Todd White and RP Data. Source October 2015.

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RP Data– Wrap

Sydney and Melbourne growth is easing – but these 2 powerhouses are still growing. According to CoreLogic RP Data head of research, Tim Lawless, a range of factors are contributing to the slowdown. “It’s not just the fact that mortgage rates have recently risen outside of any lift in the cash rate. We are also seeing approximately a 30 per cent premium on investment related mortgage rates, tighter lending standards and borrowers generally requiring a larger deposit”Watch this 10 minvideo for a full wrap

Check out these growth figures over the last 3.5 years.

CoreLogic RP Data – Housing and Economic Market Update

Each month RPData puts out this Housing Chart Pack this month the Australian Residential Property Market has topped over $6 trillion, great statistics on rental yields, property values around the country and mortgage growth. Click Here to Download

Understanding Housing costs

The group at ID have been through the most recent data released by the Australian Bureau of Statistics and they have pulled some really interesting information, including how unaffordability is not really the issue that we continually are told it is. Having said that home ownership has reduced 41.2% to 31.4% over 20 years however a lot of this is to a large migrant intake over the past decade and most new immigrants renting. To check out the article click here www.id.com.au

Looking for a great gift? If you have not got a copy of my latest book

http://yourpropertysuccess.com.au/book/.

Order now and you’ll receive free postage and a free

e-book; “Renovation Tips and Tricks”.

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Magazine Summaries and Reviews for the Month Money Magazine It is an honour to again appear on the cover of money magazine, and I am sure you will agree I am in amazing company. Each expert was asked how they would spend $10,000. I am sure you will agree some interesting thoughts, of course in property I discuss renovating. The fun though is in my case study of where you can buy a property that will cost less than $50pw. What more the suburb I have chosen has a predicted growth of 9%pa over the next 8 years and with a yield of 5.3%. Don't miss this story.

As always lots of other great content, including a readers question on how to buy property in a different State to where you live, and how to access equity in your home to invest. Don't miss the article on how to increase your income anything from completing surveys to renting out your car. For those looking for extra cash for Christmas check this out. If you are considering renting whilst you building your portfolio, as I did, maybe the article on tenants survival tips will be of interest. Finally if you are considering upgrading your home and turning your old home into an investment then you definitely need to understand the tax implications. Go on grab a copy.

Your Investment Property Magazine A little light on articles this month as the readers’ choice awards are announced but still a few good articles to justify the purchase! Congratulations to all the winners.

This month a great article about the property clock, what suburbs are booming and where is there opportunity to be had. If you have even wondered about how median price for a suburb is reached and wondered if this is a true representation of what is happening in a suburb then check out this article.

Australian Property Investor Magazine This month is all about renovations. You know I love this topic and the magazine is full of case studies. Bernard Salts’ column looks to the future indicating a short period of readjustment to the economy before we bounce back as we always have. The 100 year review of the Australian property market continues with the 1910-1920 period, insightful. By now you know I love the census data for my research in this article you learn what the latest data is telling us.Make sure you buy a copy so you can get access to the online Databank covering all suburbs in Australia.

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Our latest group of students are into week 9 of TUGTR, and getting into the fun modules of cosmetic and structural renovations. They have received their Renovation Discount card and now well into their research on where to buy and how to find, not only the right suburb complete with pricing disparity between renovated and unrenovated properties, but also how to assess the renovation costs these properties using our Quick Quote Calculator.

Also this month we had a Pop Up Meetup with inventor of the Dot Map technique Medine Simmons. Wow what a turn up! We had a huge amount of fun and Medine who has been dot mapping Melbourne for 11 years showed us how she uses the past 10 year growth data to predict the Ripple Effect and where to buy. The science behind this technique is amazing and why we start with it in Your Property Success Club.

Welcome to all the new members of the Your Property Success Club. Well month 1 of the 12 month program is Dot Mapping and armed with this technique you will be well on the way to take on the great topics in following months – including my go to websites I use to research and get into the details needed to see if a suburb deserves to be on my list before I even consider property inspections.

If you are interested in joining us with this affordable monthly education at the Club then check it outby clicking here, plus if you sign up during the special offer period I am throwing in 3 months of my monthly group mentoring valued at $97pm plus another surprise bonus.

A bit of fun!! Effie Zahos editor of Money Magazine has just written her first kid’s book, The Great $20 Adventure – and I have bought an extra one to give away.Maybe instead of gifts this year you give everyone $20 and see what adventures you can have. To win a copy of the book tell me how you would spend $20 on an adventure. My decision is final and the winner will be the one that inspires me or makes me laugh the most. Send your response to support@yourpropertysuccess.com.au. Entries close 30th November.

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Websites, Apps, Resources& Subscriptions you should sign-up for (mostly free) Let us know about any you’ve found helpful enquiries@yourpropertysuccess.com.au

Websites and Apps Christmas is nearly on us and with it comes some stress associated with buying gifts. So here is a thought plan your gift list, set yourself a budget and start early so you can find a bargain and not a last minute expensive present. I found this app and am going to trial it this year. Let me know what you think. The Christmas Gift List Free - Holiday Shopping List by Denys Yevenkohttps://appsto.re/au/xYH2T.i

A bit of fun this month check out Runpee – an app that tells you the best time to make a dash for the bathroom during a movie. Well if you have to go you have to go. It also tells you if it is worth waiting for any special extra treats in the credits.

Portfolio Planner, Borrowing Capacity and Where to Buy Calculators

Check out theInvestors Choice Mortgageswebsite. It’s a borrowing capacity calculator that tells you

where you can afford to buy AND it shows you on a map all the properties currently for sale and rent in your target area. The Property Portfolio Planner helps you plan just how big your portfolio needs to be to get the passive income you want. You can book a complimentary 30min Discovery Phone call to see how we can assist your lending needs go ahead and book a time by completing the short form on our contact page, you can access that here.

Disclosure – I purchase with my own money many courses and reports and I give my personal thoughts and opinions on these products and only recommend those I feel of benefit to property investors. In some cases I am invited to be an affiliate of some of these reports, courses and related products and if you buy through my links, I am paid a commission. I believe this does not influence me, but you need to decide that for yourself. I do believe transparency is vital and hence this disclosure.