Property Investment Training Course
PROPERTY INVESTING, like share market investing, requires that you have a steady income stream from your job, or a business, so you can afford repayments.
Gradually over time, and assuming that the value of your asset increases, you’ll be able to replace your active income (i.e. work) with the passive income that comes from rent or dividends.
Here are the steps our Property Investment Training Course takes you through:
Household Budgets & Personal Profit and Loss
Basic and Advanced Household Budget Spreadsheets in Microsoft Excel Courses
The journey of home ownership and property investment usually begins with a visit to your bank or mortgage broker to determine “how much profit you make”.
Profit means income MINUS expenses, so it’s important to keep your expenses down as well as your liabilities (like credit cards) and the best way to do that is with a personal budget.
A home budget usually starts with REAL information, such as how much money you spend each month, and its purpose is to ensure you maintain the same level of profit each year, or better.
How Much Can You Afford to Borrow?
We teach you all the financial functions in Microsoft Excel, like Internal Rate of Return, Value Based on Future Cashflow, Forecast Value and much more.
We combine real-life investment property values based on the Newcastle and Lake Macquarie areas, and take you through scenarios where you make an investment purchase at high rates and mortgage insurance penalty rates but discover whether a property is worth the investment.
All figures are based on past performance and future performance based on rates similar to the past. Our training course, and the workbook also included, will enable you to see the investment property potential in regional areas like Newcastle, Lake Macquarie and the Central Coast, as well as in your local area.
There are many factors to getting a property loan and there are also lots of brokers who can help you apply for loans. If you’ve lost faith with your current broker or a loan application has fallen through get in touch and we’ll see what we can do to help.
Borrowing money to own a real estate investment is the traditional way property investment has been done but there is an alternative, Fractional Property Investment.
Learn how to use your deposit to own a fraction of a property without borrowing money. Get into property right now without the debt and sell your share if you need to exit.
Learn about Fractional Property Investment
How Much You Can Borrow with Equity Release and Why Owning Your Own Home Can Be Advantageous
If you have owned your own property for some time, you can probably make some fresh property investments without any savings (although it’s always better to have a buffer).
The course will outline a scenario that is simple to understand and which may in fact help you act and make that start to becoming a property investor!
When you begin the journey into property investment, you enter a new world of managing assets and liabilities, managing your income and financial return through solid cashflow management.
The most important consideration for quality (investment grade) property investment is to buy into areas that are growing so that the value of your investment property grows.
How Much Can You Borrow with Home Equity Release?
This is really a combination of working out how much you can borrow (or afford to repay) based on the above step.
Rather than having just a cash deposit you’ll calculate a deposit based on cash+equity in your existing property. This is the area of investing in property that enables people to grow their real estate wealth without having to save up the money.
An increase in the value of your home is like an increase of cash in your bank account, but be aware that a reduction in the value of properties around yours’ can similarly result in a reduction in your equity.
What Can You Buy and Expected Return
This step to purchasing property can be a lot of fun when you first begin, but as you look at different houses in different areas, you’ll realise that this is as much about crystal ball gazing to some degree as it is about researching historical data.
Many websites have this information as statistics but no one can predict the future. Nor can you really know the value of a property by just seeing it in an online directory.
A big consideration for some property investors is what they can “develop” on that property, or how they can renovate it to improve the value and rental return.
Learn about Property Valuation
OFF MARKET Properties
Off market properties are properties that are available for sale but have not yet been marketed and advertised on the Internet (or in a newspaper!). This saves property sellers potentially 10’s of thousands of dollars but is driven by access to a large database of buyers.
What is Your Property Worth?
It is common knowledge that property is where home owners and investors alike can put their money and expect it to grow in value, rather than decline. Normal fluctuations in value are caused by changes in supply and demand, but over the long term, property values in most parts of Australia increase every year.
The current market conditions can affect the value of your property; therefore most licensed real estate agents, and even valuers, use “comparable sales” as the best estimate of what a property is worth.
Some property owners buy property for the rental income while others are more interested in gaining a quicker increase in the capital value of the property. Indeed, this is the constant challenge that investors face — high growth, or high income.
Learn about Property Valuation
Tax Benefits of Negative Gearing & Depreciation
Some property investors buy real estate not only because it is a way to store your money in an asset which generally increases in value but because they can take advantage of tax benefits like negative gearing and depreciation.
Negative gearing is discussed a lot in the media, especially around election times and there is currently a distinction in this issue between whether you are buying an existing dwelling or a brand new property. It is essentially the ability to reduce the amount of tax you pay based on a negative cash-flow return (ie your property costs you more than it earns each year – which is designed to be temporary until rental rates increase).
Depreciation is based on the accounting principle that an asset like a house (not the land) goes down in value each year as it gets older, this affects your tax as well.
Buying a Brand New House and Land Package as a Property Investment
The major benefits of investing in a brand new property include depreciation (which helps you minimise the tax you pay), new building warranties, being able to buy an appreciating asset in a growth area and claiming the interest charges for your property investment loan.
Some of the risks include the quality of workmanship of the builder, the timeframes involved and the intricacies of a construction loan which often require the builder to reach certain milestones before each loan part payment is made.
The best part of investing in a brand new property are the incentives available by state and federal governments insofar as tax and fee concessions.
Where Should You Buy and Why
People buy investment properties for different reasons but there are some aspects to property investment that are fairly consistent including:
- The land is a significant portion of the cost and a reason properties go up in value.
- The closer you are to employment, transport and service hubs the more dense the population and the higher the value of the land
- Land is a scarce resource
- If you plan to build or develop you will need a builder and your entire project could depend on them.
House and land packages are available all over the Central Coast, Lake Macquarie, Newcastle and Hunter regions and we can help you get to know important things about these areas.
Learn about our Property Investment Tours
Investing in a Granny Flat on Your Property
If you have a property with at least 450m2 of land space, you may be able to earn an income from your own home — and we’re not talking about renting out a tent in your backyard using AirBNB!
Building a granny flat enables you to build a property relatively cheaply, yet get a solid rental return or yield. If you build a Granny flat and have it approved as a secondary dwelling you may also increase the value of your property.
Selling Your Property and Getting the Most Out of It
Selling and buying property are among the largest transactions most people make in their lives. Often, they only happen once or twice. To this end, we’ve created educational material to help you understand the stages of the sales and change of title process; we also use real estate as real-life case studies and examples within our training courses.
Discover Investment Opportunities
If you have completed the Property Investment Course or have knowledge and goals for the purchase of an investment property, subscribe to our Central Coast to Newcastle Investor List to be alerted about what we’re working on at the moment.