Spotting Potential in Rundown Properties

Buying an old and rundown property to fix and flip is a very common property investment tactic. While other property investments may require investors to wait for years before seeing any returns, fixing and flipping old properties is a great way to make quick cash from the real estate market. Of course, being able to do this successfully means property investors must have a good eye for a property’s potential to ensure the repairs don’t exceed the value of the property. Spotting the potential is easier said than done, so here are some tips for what to look for when searching for a rundown property.

Sound Overall Structure
The structure of the house or building on the property must be sound overall with no major defects; otherwise you’d be looking at some very expensive renovations. What you’re looking for in a property is simple fixes that will make the property look better than before without having to commit to major structural renovation. If you’re not sure what to look for, bring in a building inspector who can tell you if the foundation and structure of the building is sound.

Good Location

No matter what you do to fix up a rundown, profit-potential house, no one will want to live there if it’s in a bad location. Houses next to noisy freeways or busy streets won’t appeal to most homeowners, as well as houses that are surrounded by other derelict houses. Look for a location with a bustling neighbourhood, a low crime rate, a good quality school district, access to public transit and so forth. The neighbourhood should also be economically stable with plenty of jobs available so that the house will be appealing to both renters and buyers.
Need for Cosmetic Repairs
Cosmetic repairs are the easiest and cheapest repairs to make, and will bring you the greatest returns. Look for a house that would look monumentally better simply with a fresh coat of paint and some landscaping. Inside the house, examples of cosmetic repairs include fresh paint, new light fixtures, new carpets and flooring, and new appliances. Repairs that won’t give you value for money include new wiring and plumbing, major kitchen or bathroom renovations, room additions or a new roof. The more cosmetic repairs you can make, the better your return on investment will be.
There is No Tenant
When looking to buy a fixer-upper, make sure there is no tenant, or that the current tenant will vacate immediately once the title is transferred. The best way to make a decent profit is to begin working immediately on a vacant structure. Trying to make improvements while a tenant lives in the property will make it twice as difficult and will take a lot longer to complete.
The Seller is Motivated
Let’s face it, you want to get the best deal possible on the property to get more bang for your buck. Purchasing the property from a motivated seller is the best way for you to get a fantastic deal. Motivating reasons for selling a home include a job transfer, pending foreclosure, divorce, health reasons, family reasons or unemployment. If the house has been listed for 60-90 days with no other offers, then this is also an excellent opportunity to make a deal.


Elite Wealth Creators have been involved in the property and finance industry for over 20 years.  Our Investment Property Strategists deliver investment grade properties to the investment market and mediate between the developer and the investor. We also assist first home buyers in purchasing their first home in QLD through our house and land packages – this includes receiving $20,000 cash back towards their mortgage by buying one of our full turn-key packages.
Our service will take you through the complete process of buying positive cash flow property, including:
• educating you on positive cash flow and the ability to pay your mortgage off years in advance
• saving you thousands of dollars in interest
• supporting you in the decision on which property to buy
• assisting in the organizing of your finances, if required
• preparing you for settlement of contracts
• liaising with other professional advisers on your behalf if required.
Our Strategists specialise in delivering quality positive cash flow property and also helping investors pay off their mortgage years in advance

http://www.elitewealthcreators.com/
sales@elitewealthcreators.com
1800 GO ELITE

Borrowing Money Before Selling Your Home

When buying a new home or investment property, it can be really difficult for the average homeowner or property investor to be able to finance a new property while still in possession of their old one. To address this common conundrum, lenders now provide a bridging loan, which can be used to manage the transition between buying and selling properties. If you can’t afford to buy a new property until the old one is sold, then read on for some tips to help you decide whether or not a bridging loan is right for you.

How a Bridging Loan Works
A bridging loan ‘bridges the gap’ between two home loans. Your lender will take security over both properties and lend against them until the your have officially bought the new property and sold the old one. Depending on your lender, you will have up to 6 months to sell your old property if you’re buying a new established one, and up to 12 months if you’re building a new house. When you sell your old property, the proceeds will pay off the bridging loan, and any remainder on the loan will become your new home loan. Your new home loan will take on the interest rate you and your lender agreed on.
Types of Bridging Loans
Generally, there are two types of bridging loans that you have to choose from, and which one you get will depend a lot on how much equity you have in your existing property. The lender might:

• Offer you a single loan that will cover the mortgage debt you currently have as well as the new purchase. In this case, the lender will take on both properties as security while you try to sell your old property. Then, the proceeds are put toward your overall debt, with any remaining debt serving as your new home loan; or
• Offer you a second loan for the new property while you retain your existing mortgage, requiring you to make repayments on each one during the bridging period. Upon selling your old property, the proceeds would first pay the lender for the original mortgage, with any leftovers going towards reducing the debt on your new loan.

What to Watch Out For
As with every type of loan, there are some things you should consider before jumping right in. After doing some careful research and assessing their finances, many people find that they are better off waiting to sell their existing property before committing to a new one. While a bridging loan is still a fantastic alternative in some situations, you should consider some key issues:

• If your old property isn’t sold by the end of the bridging period, then you will have to start making repayments on the peak debt or continue to pay two mortgages.
• You may have to sell your existing property for less than you expected, which would leave you with a larger debt than you envisioned.
• Bridging loans in Australia typically have higher interest rates than other loans.

To ensure you get the right loan package for your situation, then you’ll want to shop around and see what different lenders can offer you. Often, lenders will have divisions in the loans specific to demographics, time frame and so forth, so you should be able to find one that is more suitable for you.

Elite Wealth Creators have been involved in the property and finance industry for over 20 years.  Our Investment Property Strategists deliver investment grade properties to the investment market and mediate between the developer and the investor. We also assist first home buyers in purchasing their first home in QLD through our house and land packages – this includes receiving $20,000 cash back towards their mortgage by buying one of our full turn-key packages.
Our service will take you through the complete process of buying positive cash flow property, including:
• educating you on positive cash flow and the ability to pay your mortgage off years in advance
• saving you thousands of dollars in interest
• supporting you in the decision on which property to buy
• assisting in the organizing of your finances, if required
• preparing you for settlement of contracts
• liaising with other professional advisers on your behalf if required.
Our Strategists specialise in delivering quality positive cash flow property and also helping investors pay off their mortgage years in advance

http://www.elitewealthcreators.com/
sales@elitewealthcreators.com
1800 GO ELITE

Saving Enough for Retirement

Most Australians are busy setting aside funds for retirement, and many are investing in property, stocks and various saving accounts to try and pad up their retirement income. What is less clear, however, is just how much is required to support a comfortable lifestyle in those senior years. It’s an issue that that everyone will have to address, but unfortunately there’s no single answer to how much is enough. Now is the time to start thinking about what finances you need in order to live the lifestyle you want, and here are some tips:

Working Out Your Needs
Once thing that every Australian is aiming for is enough savings to live out their retirement in comfort. Of course, the life that one person finds luxurious may seem quite modest to another. The best way to get a general idea for what you need is to observe your current budget, and use that information to work out an anticipated annual retirement budget. Think about things like hobbies, travelling, cars, dining out, entertainment, clothing, utilities and so forth. You may have other factors to think about as well, such as children, health, the costs of keeping up your home, the costs associated with your investment property, any assisted living you might need, and the list goes on.

As a general rule of thumb, if you want to continue living the same pre-retirement lifestyle, then you’ll need to have a retirement income of at least 60-65 per cent of your pre-retirement income.
Comfortable Living According to ASFA Retirement Standard
The ASFA Retirement Standard study has measured the average target that Australians are aiming for in order to have a basic to comfortable lifestyle in retirement. The study takes into account the changes in living standards, spending patterns and the evolving costs of life in general. Assuming that you own your home, the following is how much the study estimates you’ll need for retirement:
1. For a basic lifestyle, $20,088/year for a single person or $30,285/year for a couple. This single Age Pension represents approximately 27.7 per cent of the average weekly earnings of an Australian male. Living solely on the Age Pension will afford you a basic lifestyle and access to discounts on health services and energy costs. While this amount is enough to survive on, many Australians expect better for their retirement.
2. For a modest lifestyle, $22,539/year for a single person or $32,511/year for a couple. This lifestyle is better than living solely on social security, but you would still only be able to afford low-cost activities.
3. For a comfortable lifestyle, $41,090/year for a single person or $56,236/year for a couple. This level of income would ensure you could afford more recreational activities as well as things like private health insurance, a higher quality of household goods and even some travel. This isn’t anything outlandish, but it is what most Australians are hoping for.

Elite Wealth Creators have been involved in the property and finance industry for over 20 years.  Our Investment Property Strategists deliver investment grade properties to the investment market and mediate between the developer and the investor. We also assist first home buyers in purchasing their first home in QLD through our house and land packages – this includes receiving $20,000 cash back towards their mortgage by buying one of our full turn-key packages.
Our service will take you through the complete process of buying positive cash flow property, including:
• educating you on positive cash flow and the ability to pay your mortgage off years in advance
• saving you thousands of dollars in interest
• supporting you in the decision on which property to buy
• assisting in the organizing of your finances, if required
• preparing you for settlement of contracts
• liaising with other professional advisers on your behalf if required.
Our Strategists specialise in delivering quality positive cash flow property and also helping investors pay off their mortgage years in advance

http://www.elitewealthcreators.com/
sales@elitewealthcreators.com
1800 GO ELITE

Marketing your Property Online

In times of a buyer’s market, exposure is the key when it comes to selling your property quickly, and there is no single outlet that will give you more exposure than the Internet. The Internet isn’t just amazing for reaching more people, however, as it also a far more cost-effective way to advertise. Real estate agents have known this for a long time, which is why the industry is well known for being the most Internet savvy. If you are looking to sell your home or investment property online, then the following tips will help you do so effectively.

Don’t Ignore Print Media
Although the Internet provides the most important source of marketing, print media still has its place. Many agents agree that people searching for real estate will often see a house in a newspaper, local glossy magazine, or even on a sign first. Once they have noticed the listing, prospective buyers will then take to the Internet to conduct a preliminary house inspection and obtain information about the house as well as your contact details. The reason that people still like print media is because it suggests an active selling campaign, which provides assurance that the online ad for the same house is still relevant.

Listing Your Property With Real Estate Websites
Real estate websites are the primary vehicles that most Australian sellers use to drive their online marketing campaign. Nowadays, house hunters will peruse online listings on their own before they contact a real estate agent to help them. So if you have a flawless listing that will pop up in common searches, then you are already reaching out to a lot of potential buyers. Make sure you take attractive photos, use attention-grabbing headings, and list all the best features of your home so that your listing really stands out. Place your ad on sites like realestate.com.au, domain.com.au or industry-owned portals to get noticed.
Make Use of Social Media
Just because you have a listing posted in a few different places online, it doesn’t automatically mean that you’ll get a lot of traffic. If you want to attract a full range of homebuyers or property investors, you’ll need to cast a wider net, which is where social media comes in. The following are just a few techniques that can help you effectively combine the power of social media with your online listing:

1. Property Blog. By creating a blog for your property, you can more effectively tell the story of your home and reach out to prospective buyers on a more personal level. You can also add any media you want, such as videos, images, social media apps and a question/comment section.
2. Keyword Research. Find out which keywords are used most frequently when people search for properties like yours online. Then, work these keywords into your blog and online listing to improve the amount of traffic your listing gets.
3. Have Multiple Accounts. Having a social media account for all the major platforms will help you reach out to a greater audience. For instance, Twitter, Flickr, Picasa, Facebook and LinkedIn can all be used to create a unique property profile.

Elite Wealth Creators have been involved in the property and finance industry for over 20 years.  Our Investment Property Strategists deliver investment grade properties to the investment market and mediate between the developer and the investor. We also assist first home buyers in purchasing their first home in QLD through our house and land packages – this includes receiving $20,000 cash back towards their mortgage by buying one of our full turn-key packages.
Our service will take you through the complete process of buying positive cash flow property, including:
• educating you on positive cash flow and the ability to pay your mortgage off years in advance
• saving you thousands of dollars in interest
• supporting you in the decision on which property to buy
• assisting in the organizing of your finances, if required
• preparing you for settlement of contracts
• liaising with other professional advisers on your behalf if required.
Our Strategists specialise in delivering quality positive cash flow property and also helping investors pay off their mortgage years in advance

http://www.elitewealthcreators.com/
sales@elitewealthcreators.com
1800 GO ELITE

Investing in Residential Real Estate

Buying property has always been seen as one of the most stable and reliable investments one can make. Has this changed after the recession or does it still carry weight. “The answer to this is yes. Due to current lower markets, investing in property is one of the most profitable investments you can make", says CEO of Engel & Völkers Southern Africa Craig Hutchison.

The proof of this can be seen through a number of international players such as International housing solutions that have invested in the residential South African market specifically in the rental market. Low interest rates combined with low home prices equal the prefect investment. These two factors open the door for first time investors, but like any investment you should first bear in mind a few factors when buying as an investment.
Firstly ensure you understand the specific area that are considering investing in. The easiest way to find out is by doing research on the area. Something you should consider is what infrastructure development is taking place in the area. Areas with good infrastructure will be more profitable as good amenities attract rentals. Look out for the offering of schools, security, retail shops, public transport and very importantly the traffic congestion in the area.
Another consideration is to partner with someone who has property investment experience. This is especially for first-time investors. An experienced partner will assist you in obtaining the best possible outcome for your investment.
Also the old saying in real estate, location, location, location, applies here. If you do buy a property with the intent of renting it out, location is the key. Homes in areas where rentals are high or highly populated areas are ideal. Also look for homes with multiple bedrooms and bathrooms situated in secure neighbourhoods. Consider potential selling points for the property you wish to invest in. You want your investment to be as profitable as possible and buying in an area where you can make a good return in a few years is the ultimate investment.
Ensure you have sufficient capital. Before investing speak to a financial planner about whether you have enough assets to handle the ups and downs which come when you invest. If you intend to rent out the property, make sure you have the capital to pay the mortgage if the property is vacant.
Second home markets in South Africa have recently shown a slight increase. This is a good opportunity for you to invest in areas that are predominantly a second home area. Coastal areas have shown to be gainful as a second home investment. But also bear in mind that when you reside inland and you invest in a coastal home you should ensure that you have someone who can attend to the regular maintenance of that home.
Whatever you do, understand that investing in property is entirely different to buying a primary residence. When buying your primary home you have emotions that go along with the purchase. Should you invest take those emotions into consideration. If you find an investment property to be of the standards you would choose to live in, its more than likely that it will be a good investment.

Elite Wealth Creators have been involved in the property and finance industry for over 20 years.  Our Investment Property Strategists deliver investment grade properties to the investment market and mediate between the developer and the investor. We also assist first home buyers in purchasing their first home in QLD through our house and land packages – this includes receiving $20,000 cash back towards their mortgage by buying one of our full turn-key packages.
Our service will take you through the complete process of buying positive cash flow property, including:
• educating you on positive cash flow and the ability to pay your mortgage off years in advance
• saving you thousands of dollars in interest
• supporting you in the decision on which property to buy
• assisting in the organizing of your finances, if required
• preparing you for settlement of contracts
• liaising with other professional advisers on your behalf if required.
Our Strategists specialise in delivering quality positive cash flow property and also helping investors pay off their mortgage years in advance

http://www.elitewealthcreators.com/
sales@elitewealthcreators.com
1800 GO ELITE

Golden rules for property investment

When deciding what type of property to buy, the focus must first be placed on the income that the investment property will generate and only then on the potential capital gains.
Your primary focus as an investor should be on the investment’s suitability as a source of rental income, rather than its potential to deliver a quick capital gain from a short-term rise in the property market. Generally speaking, where the majority, or all, of your property investments are financed, regular monthly contributions will be required until such time as the rental income exceeds the bond repayments and other costs. Other costs could include expenses such as rates and taxes, property insurance, maintenance and repairs. By focusing on the cash flow first you will ensure that your investment will break even sooner than if you were focusing exclusively on capital gains.

The surest way to lose your property is by getting the cash flow wrong. Provided you get the cash flow right, property can – over time – forgive almost every other mistake that you may make.
Gearing (borrowings, such as a mortgage bond) is at the heart of property investment risk. High gearing now means more purchases now and more income later. But what it also means is more chance of losing everything. If you’re young, eager and ready for risk, high gearing is fine, provided you know when to go for it and when to wait and consider your options. But, if you’re older and/or risk averse, lower gearing will be more appropriate.
A helpful tip when deciding on your appetite for cash flow risk is to do some scenario planning. This is achieved through running “what if” cash flows. The starting point is to determine the likely rental, as well as monthly costs that the investment property will incur. These will include your gearing level and the cost of servicing the bond, maintenance costs, rates and taxes, levies, and any other expenses that may be applicable. Then play around with various scenarios. For example, increase the interest rate, escalate operating costs, make provision for maintenance expenses, and make allowances for vacancies. This is to ensure that you will have the cash flow to cover these eventualities.
Many speculative investors were swept up in the emotion of the boom times, and ended up being burnt. They over-geared and when the property market and interest rates turned, they lost their properties. It is a key rule of property investment that the investment must generate sufficient cash flow over the short to medium term to cover operating costs


Elite Wealth Creators have been involved in the property and finance industry for over 20 years.  Our Investment Property Strategists deliver investment grade properties to the investment market and mediate between the developer and the investor. We also assist first home buyers in purchasing their first home in QLD through our house and land packages – this includes receiving $20,000 cash back towards their mortgage by buying one of our full turn-key packages.
Our service will take you through the complete process of buying positive cash flow property, including:
• educating you on positive cash flow and the ability to pay your mortgage off years in advance
• saving you thousands of dollars in interest
• supporting you in the decision on which property to buy
• assisting in the organizing of your finances, if required
• preparing you for settlement of contracts
• liaising with other professional advisers on your behalf if required.
Our Strategists specialise in delivering quality positive cash flow property and also helping investors pay off their mortgage years in advance

http://www.elitewealthcreators.com/
sales@elitewealthcreators.com
1800 GO ELITE

Help build a deposit for a home sooner with shares

In saving for a deposit to buy property in the next five years or so, it might be useful to consider how investing in the share market could form part of a strategy to get there sooner.
 Head of Investment Product Solutions at BT Financial Group, suggests five strategies for those considering investing in the share market as part of their overall strategy to help with building a home deposit.
He says that the right planning and, in some cases, support from experts, can help. He also says that people needn’t feel overwhelmed.
“Even though the potential exists to earn higher returns from shares, especially in the low interest rate environment, people may not have the time or confidence to capitalise on the opportunity. But there are ways to make investing in the share market easier,” says Greenhalgh.

5 share market investment strategies

1. Get educated (if you’re doing it all yourself)

“While you don’t need to become a share market expert to become a successful investor, it can help to understand the basics,” says Greenhalgh.
The share market provides an opportunity to purchase shares in particular companies but there are also opportunities to access exposure to other asset classes including international shares, fixed income and listed property securities. These different investments generally have different risk and return profiles and this should be considered in creating an appropriate investment strategy.
Greenhalgh says, “You also need to be aware that with most strategies, time is required (over five years) to manage the variability of the market and to give the greatest chance of achieving the investment goal.”

Different types of investments carry different risk profiles.

2. Create an investment plan

“Creating an investing roadmap is an important step to reaching financial goals,” says Greenhalgh.
“For example, starting with $25,000 today and a target home deposit to be achieved over the next 5 years means calculating how much can realistically be saved, or invested, each month and what rate of return will be needed to get there.”
It is important to know what you are aiming for, as well as having an understanding of your tolerance for risk, so you can build an investment plan that is aligned to your goals.

3. Diversify your investments

“Diversification of your investment can help manage risk and drive potential returns,” says Greenhalgh. “Even within a specific asset class such as ASX listed securities, holding shares in more than one Australian company across different industries can be beneficial.”

4. Invest regularly

“One of the best strategies for reaching financial goals is to commit to regular monthly investing,” says Greenhalgh. “The discipline of regular saving combined with the right investment strategy can achieve the goal faster than simply relying on an initial lump sum invested.”
“By investing regularly whether the market is rising or falling, benefits can be derived from ‘dollar cost averaging’,” he says. “This means that when the market dips, you continue to buy at cheaper prices with the intention of benefiting from the gains when the market turns.”
This strategy also means having to worry less about “guessing” when is the right time to invest.

One of the best strategies is to commit to regular monthly investing.

5. Tap into experts as needed

Not everyone has the time or experience to do their own investing. Instead of going it completely alone, Greenhalgh recommends considering tapping into the expertise of a professional investment manager. “They can manage the share market portfolio, monitoring and rebalancing the portfolio over time,” he says.
Greenhalgh acknowledges that, “Everyone’s situation is different. You’ll need to consider your own needs and objectives including your risk profile before deciding where and how to invest.” Share market investing could be one element of reaching a goal for a home deposit.


Elite Wealth Creators have been involved in the property and finance industry for over 20 years.  Our Investment Property Strategists deliver investment grade properties to the investment market and mediate between the developer and the investor. We also assist first home buyers in purchasing their first home in QLD through our house and land packages – this includes receiving $20,000 cash back towards their mortgage by buying one of our full turn-key packages.
Our service will take you through the complete process of buying positive cash flow property, including:
• educating you on positive cash flow and the ability to pay your mortgage off years in advance
• saving you thousands of dollars in interest
• supporting you in the decision on which property to buy
• assisting in the organizing of your finances, if required
• preparing you for settlement of contracts
• liaising with other professional advisers on your behalf if required.
Our Strategists specialise in delivering quality positive cash flow property and also helping investors pay off their mortgage years in advance

http://www.elitewealthcreators.com/
sales@elitewealthcreators.com
1800 GO ELITE