Frequently Asked Questions about
Investment Property and N.P.I.S.

• Why do I give free information about Investment Property and how do you make your money
   

• How to use negatively geared investment property to purchase more investments!
  
  All these questions below will be answered in the Free Report and on your weekly tips and newsletters.

• What Happens if Interest Rates Increase?

• What happens if I can’t get a tenant?

• What happens if the Government changes the ruling for Tax?

• What do I do if I have a tenant from hell?

• What will I do if I lose my job

• What happens if Prices drop because of a recession?

Firstly let me explain that I am very passionate about Investment Property and I really do enjoy Investing and helping people gain knowledge from my experience.

I have been helping and working with clients for many years plus helping clients from Financial Advisors, Planners and Accountants in building Wealth through Property Investment for many years now.

No-one can ask for anything more in life than helping people create Wealth for their Retirement, this to me is so satisfying and self full-filling.

But at the same time, YES you are all right, I do not do this for nothing, so I'm going to put everything on the table for you to understand.

 

* Firstly my Property Specialists do all the research and find areas that have potential for capital growth, they work in hand with the ABS Figures and BIS Shrapnel reports, re- population movements, type of population etc to locate the investment property areas.

* They talk to the Local Councils for future developments re plan for
Shopping Centers, Schools, Commercial and Industrial areas.

* Once a couple of ideal areas have been pin pointed they start to
research the vacancy rates, what type of tenants will be attracted in the area
(just remember you can have tenants, but what type of tenant is it), what
is the average rental return and what is the potential for capital growth for the investment property.

* Then builders are researched as far as, do they have any complaints with
the Department of Fare Trading, quality of work and most importantly
what are the Valuations coming in at, plus there is so much more research that is made that I cannot reveal here.

* Remember we turn away 80% of the investment property and developments for some unknown reason, but as soon as a property or development has met the criteria's of an Ideal Investment, we then put our clients in direct contact with the developer where they will pay a real estate agent fee, saving them thousands of dollars in advertising and marketing.

This creates a "WIN-WIN" situation for everyone.


 

As time rolls on, Property and Rent increase in value, you can expand your portfolio by leveraging off the first Investment. I use the equity in my first property (allowing for the shortfall in the new investments) to purchase many new properties.

Therefore my personal contribution is nil.

Think about this very simple but effective formula.

Let say for this example you had 1.2 million dollars of investment property working for you and your Debt was $700k at a Interest Rate of 7%.

$1.200.000 Rental Return of 5% would give you $60.000
$700.000 @ 7% Interest to pay per year would be $49.000
There will be running expenses on the Investments like Rates, Insurances, and Property Management etc. Rule of thumb should be Approx $12.000 and don't forget tax advantages you will have against your Investments. You will be in the positive but for this example lets say your not, and its just Neutrally Geared. (In other words it's paying for itself)

This is how you maintain your Lifestyle and you can still keep on Building Your Portfolio!

I can now go out, and purchase more Properties, and run a Line Of Credit against my first Investment so any shortfall will come out of that loan. Let’s say again, for this example, my weekly contribution on another Investment of $300.000 is $100/week-$5.200/year.

My Average Capital Growth on my First Investment ($400k) is only 7%, which would mean, I am building Equity in the First Investment of Approx $28.000 and my Total Shortfall on my new Investment is $5.200, I am ahead in equity of approx $22,000 plus any capital growth on my entire Portfolio which would now bring it to $1.5 Million Dollars working for me.

Imagine a 7% capital growth on the whole portfolio $1.500.000.
It would be a increase in my equity of 
”$105.000” for one year alone.

What happens if you have your portfolio ($1.5 Million) working for you and the next property cycle comes around?
Lets say you had a moderate 12% growth in one year alone.

That’s $180.000 of extra equity ready for your disposal if you wished.