investment in properties: 2015

Thursday, 9 July 2015

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:

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.
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.
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

7 things to do before investing

So you’ve decided to start investing in property and vowed to get into the game this year.
Seeing how prices in Sydney and Melbourne have surged during the past two years, you’re worried that the markets are running away too fast. You’re scared that if you don’t get in now, you won’t get in at all. You’re tempted to get in now at all costs.
Stop right there. This kind of mentality is a sure-fire way to get yourself into financial ruin. Instead, take some time to lay the groundwork and plot your investment game plan.
So what should you do first before you dive into property investing?

1. Decide what you want to get out of property investing

It may sound like a cliché, but you won’t get anywhere if you don’t know where you want to be in the first place. Therefore, you need to be clear about what you’re actually trying to achieve. You need to decide how much money you want to make and when. Be specific.

2. Assess your assets and expenses

This is as simple as listing all the assets, such as your home if you own one, car, jewellery and so on, that you currently have. Also include other financial resources you have to work with, such as other investments if you have any.
Then do the same with your ongoing expenses. Make a list of all your bills and loan repayments. Having this information at the start of your investment journey will help you gauge your ability to take on more debt and avoid overextending yourself.

3. Speak to a mortgage broker

A good mortgage broker can be an invaluable resource for a beginner investor. They have access to a wide range of mortgage and property information that you can tap.
They can help you calculate how much you can borrow given your personal and financial situation. They can also give you advice on what type of loan would suit you and how to structure it so you can continue borrowing money down the line.
Make sure you choose a broker who understands property investing.

4. Talk to a property-focused accountant

Investing in property is not just about earning rent; it’s also about maintaining your cash flow. A good accountant will be able to help you structure your investment property so that you will be able to maximise your tax deductions and cash flow. They can help you structure your investments so that you can minimise your tax bills while protecting your property investment and yourself.
Just like choosing a mortgage broker, make sure your accountant specialises in property investing.

5. Understand how much risk you can take

Knowing how much risk you can tolerate is crucial when deciding what investment strategy to adopt. You can start to self-assess your risk profile by looking at the following:

Your age and years remaining until retirement. The closer you are to retirement, the less risk you will likely want to take on because you will not have time on your side to rectify any potential mistakes and you will not want to squander your nest egg.
Your buffer. Do you have a savings stash to tide you over in the worst-case scenario?
Extra income. Do you have excess income between your job and your property portfolio (and other investments you may have), and how reliable is this income?
If you are younger and earning a modest income, then taking on more risk to achieve your long-term goals could be an option.

6. Familiarise yourself with the investment jargon and what it means

Getting educated about the different aspects of property investing is so much easier these days, thanks to the explosion of available information and data. Online sources like realestate.com.au are teeming with articles and information about property investing and the property market as a whole. There are also many books and magazines you can peruse.

Spend some time understanding how the market you’re about to dive into actually works.

7. Get comfortable with the numbers

You don’t have to be a maths whiz-kid but you need to be comfortable crunching the numbers and analysing each deal. This involves really understanding what the numbers mean and where to get them. It may take some time to get conversant at the start, but they’re fairly easy to grasp.

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

Tips For Finding New South Wales Properties

There are lots of places in New South Wales wherein you can easily spot a nice and perfect flat. You will also find that there are lots of providers offering great packages. However it is important that you still consider the factors that will help you choose and get the best flats in New South Wales these days. Bear in mind that you will be spending your hard earned cash so better choose the best one.

Here Are The Factors in Finding new south wales properties

Check Online
It is important that you check online for more details as well as images of available flats in New South Wales. There are hundreds of images as well as details that will help you decide which granny flat nsw which perfectly match up your needs as well as your budget. Through the net, make sure to get in touch with the customer service provider so as to get more details and information regarding the flat you wish to buy.

Read Reviews
The second most important factor you should consider is to read reviews. Since there are many providers and companies today claiming to be the best, it will help if you will consider reading those reviews and comments made by people who already found the best granny flat builders nsw. Through their feedbacks, you will be able to find which one will provide the best granny flat designs nsw these days. Most of the time, you will also get to learn more about the offered price and such through these online comments.

These reviews will also help you determine the selling background of the company wherein you wish to get the flats. This is very essential since there are now lots of frauds out there. Checking the history and selling background of the company will certainly help avoid any issues along the way.

Compare
After you have gathered all the necessary details and information regarding a certain provider, make sure to take down notes and compare them with one another. It will provide you lots of benefits if you will compare their offered features and prices. With this, you can be sure that you are going to get the one that will perfectly match your preference and budget.

Budget
Now this is the most important factor of all in buying your chosen flat in New South Wales Properties. There are actually tons of designs and packages which you can choose from. However it is essential that you know your budget and limitations in order for you to get the best deal.

Shopping for the best flats in New South Wales will be easier if you only know how to do it right. There are many granny flats for sale now that are not only affordable but also very convenient. Just make sure to deal with the right provider in order for you to get the best deal in town. This will also help avoid any issues in the long run. To get you started in buying flats, why not find out more about ValleyKitHomes granny flat NSW.

£20 million investment in Welsh housing

A £20 million boost to renovate derelict buildings into homes in Wales was announced today.
The Welsh Government is investing the money to bring thousands of uninhabitable properties back into use.
One scheme to do this will offer loans to home owners and landlords to improve poor quality housing across Wales.

Communities and tackling poverty minister Lesley Griffiths announced funding of £10 million over two years to offer interest-free loans of up to £25,000 per property to homeowners across Wales.
The minister also announced £10 million for the Houses into Homes scheme, bringing the total investment in the programme to £30 million.
Houses Into Homes provides re-usable, interest-free loans to owners of empty run-down properties, to bring them back into use for sale or rent.
Old Town Hall in Aberdare, where the announcement was made, is itself a formerly disused building which was transformed into affordable homes thanks to £80,000 of House into Homes funding.
To date, 4471 empty and run-down properties have been turned into homes so far this Assembly term, only 529 short of the Welsh Government’s 5,000 target for the whole term.

Lesley Griffiths said: “One of the biggest issues facing the housing sector at the moment is the lack of homes for sale or for rent. Empty homes are not only a wasted resource, but they can also attract vandalism and anti-social behaviour and can spoil the appearance of our neighbourhoods.

“I am delighted to announce our Home Improvement Loan programme is now open for business. This innovative scheme will improve poor quality housing across Wales – eliminating hazards which can cause harm to residents and health issues such as damp and cold.
Councillor Keiron Montague, Rhondda Cynon Taf Council’s Cabinet Member for Service Delivery, Communities and Housing added: “Good quality housing is so important as it can positively impact on health and prosperity and I welcome the Minister’s announcement today that significant funding is to be made available to support the development of poor quality housing across Wales.”

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

New South Wales property awards finalists announced

Twenty-three projects from New South Wales have today been named as finalists in the 2012 Property Council of Australia / Rider Levett Bucknall Innovation and Excellence Awards.

The Innovation and Excellence Awards, showcasing Australia’s finest, celebrates innovation and leading practice within the property development and investment industries.
"NSW’s reputation for innovation is clear, with four projects listed as finalists for the new Nepean Award for Innovation," NSW Executive Director of the Property Council of Australia Glenn Byres said.
"These awards showcase Australia’s best new projects, developments which will deliver far reaching social and economic benefits for the community," Mr Byres said.
"NSW finalists will be recognised across 12 of the 16 award categories, confirming the state’s commitment to excellence.
"A remarkable number of world-class entries were submitted for the awards and it is great that the achievements of the state’s finalists will be recognised at the property industry’s annual awards program."
Director of Rider Levett Bucknall Sydney, Mr Bob Richardson, says the New South Wales finalists set a high standard for innovation and excellence in the Australian property industry.
"We are proud to be associated with an awards program that celebrates the achievements of Australian developments, measuring their success by way of innovation, operational efficiency, design and return on investment", Mr Richardson says.

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

INTERESTED IN PROPERTY DEVELOPMENT?

Our sales Manager, Fyona Coulton has lived, worked and breathed building from a young age and has been part of the evolution of property development during her 23 years in the industry. Having started as her Dad’s right hand girl in the 1980’s, then moving into administration, Interior Design, Greensmart accreditation and Al Gore’s global leadership programme, Fyona knows what she knows but wants to know more.

Fyona started looking for a development expert who had some chops – she found him. In conjunction with Jones Homes, Fyona is proud to present to you, for one day only Jim Kapetangiannis.

Jim Kapetangiannis will take you through the property development process.

Topics Include:

Driving forces behind property value
Understanding property supply and demand
Identifying an opportunity
Planning Laws explained
Coming to grips with the Planning Approval process
Property feasibility studies
Overview of sales, marketing, and finance

Jim holds degrees in Architecture, Applied Finance and Investment, Theology and Business and has over 30 years of experience in Corporate Design, Property Development and Construction Management. He currently runs the capital investments and property for a pharmaceutical company and continues to develop property for private investors and charitable institutions.

This is an exclusive opportunity for anyone who wants to refine their development skills or take their investment knowledge to the next level.

Hot Property: When investors and developers agree

Planning uncertainty certainly hurts hotel development. Hotel investors and developers don't always see eye to eye but are unanimous when it comes to defining what holds back further investment in New South Wales' hotel sector.
Council development approval is nominated as the top obstacle to investment and this bugbear is shared with professional associates involved in the acquisition, design and delivery of hotels in the State. Traditionally, the top two constraints in the hotel development game have been competing on land uses and construction costs. Not all that much has changed, with hotels still competing with residential and commercial assets for highest and best land use.

To soften land cost issues and increase financial viability, developers often combine retail, residential, commercial and hotel uses. Similarly, the design and construction industries have risen to the challenge and use innovation and common sense to deliver new hotel projects cost-effectively.
It appears there's just one remaining stakeholder needing to step up and play nicely to make hotel development in New South Wales stack up again - the approval authorities. Lodging planning and development applications is an expensive and at-risk outlay, starting at around several hundred thousand dollars for the simplest of developments.

Developers accept this costly first hurdle. But it's the lack of certainty of timing for planning approvals that hurts most and this is clearly deterring hotel investors. While holding costs hurts financially, absolute uncertainty can be crippling. Planning approval constraints are a contributing factor for the recent extraordinary sale prices for existing hotels assets.
The value of certainty is creating record transaction values. A known premium cost factor is a safer position for investors and developers rather than not knowing when, or even if, a new hotel proposal is likely to gain planning approval. Planning red tape in New South Wales has also become a strong deterrent for overseas investors with many detouring to Victoria and Queensland where planning frameworks are easier to navigate.
On a recent project, an iconic regional resort in NSW was closed for four years awaiting development approval and subsequent refurbishment. When the approval finally materialised from this notoriously obstructive regional council, it was so onerous that the project's financial feasibility was severely impacted. Transparency is good stuff.
It's one of the reasons Australia fared so well through GFC and continues to attract strong overseas investment. We are deservedly and comparably an economic safe haven. Yet development approval systems and processes remain archaic, convoluted and often misunderstood. If New South Wales wants to be seen as a viable state for new hotel development, we need to replace uncertainty with transparency and maintain a reasonable timeframe for approvals.

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

NSW to spend $400m on housing construction

New South Wales is set to shell out an additional $400m to transform land and make them ready for over 664,000 new housing units in the next 15 years.

NSW is also looking at spending another $19m to create a planning body to oversee the housing project for the state.

According to a report by the Australian Financial Review, the latest increase to the Housing Acceleration Fund comes on top of the $566.5m invested in the fund since its inception in 2012. This brings the total spent on land preparation close to a total $1bn.

NSW is currently leading Australia’s housing construction boom which is targeted to produce more than 200,000 new dwellings this financial year and the next. However, NSW needs to speed up the production of new homes after a decade of underinvestment, the report added.

NSW recorded 49,000 new housing starts in the 12 months to December last year, the highest since 2003.

"The Government is taking concerted action to address housing supply, and therefore housing affordability," Treasurer Gladys Berejiklian was quoted as saying. "With our surplus position, we have put an additional $400m in the Housing Acceleration Fund, the largest ever single contribution, to go directly towards the infrastructure required in growth areas and to bring housing to market as quickly as possible."

Moreover, Glenn Byres, Property Council of Australia NSW executive director, said he is hopeful that the state “continues to step up in the national tax reform debate and begin shifting away from inefficient taxes that hurt housing affordability and the economy”.

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

Regional New South Wales makes good property gains

Regional New South Wales may be the place to purchase with 29.8 per cent of re-sales gaining a profit equal to or greater than 100 per cent.
Those wondering whether to purchase real estate in the Hunter Valley - whether as home buyers or investors - could draw some lessons from RP Data's Pain and Gain report for 2013's final quarter.

While 13.1 per cent of home re-sales across Australia in the three months to January 2013 recorded a gross loss, the figure dropped to 9.7 per cent for the three months to December 2013.
Buying in the Hunter Valley
The figure for regional New South Wales (10.8 per cent) was only 1.1 percentage points ahead of the national average.
By comparison, 23.7 per cent of regional Queensland properties noted a loss on re-sale. Regional areas of Western Australia, Tasmania, Northern Territory and South Australia recorded losses significantly higher than the national average, ranging from 17 per cent to 19.3 per cent.
Of all the regional areas, New South Wales drew the second-lowest proportion of losses, beat out only by regional Victoria, where 8.1 per cent of resold homes failed to make a profit.
"Of those homes sold throughout the December 2013 quarter, those held for a short period of time have been much more susceptible to loss," noted RP Data.
This suggests that investors and home buyers should think carefully about their purchase decision so they are comfortable holding on to their assets into the future, whether to build up their home's equity or continue to receive rental income.
However, when it comes to profits, regional New South Wales performed relatively well.
The average number of home re-sales across the country that made a profit equal to or greater than 100 per cent was 31.8 per cent. Regional New South Wales had a figure only two percentage points behind this (29.8 per cent). The highest figure was recorded in Perth (44 per cent).
With the proportion of sellers of regional New South Wales property making gains as significant as this creeping close to one-third, now could be the time to sell.
While fluctuations in the market will dictate sale prices to a degree, experienced selling agents can make all the difference.

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

Land Court says NSW apartments too small

The NSW Land and Environment Court has made a ruling on minimum apartment sizes which could have implications for projects across the state.

The decision, Botany City Council v Botany Developments Pty Ltd (No 2), handed down by Justice Sheehan last week, surprised the industry by turning established practice on its head and ruling that the key sizes set out in State Environmental Planning Policy 65 were not those of the widely used "rule of thumb" but the larger sizes set out in associated table of the residential flat design code.
Tim Blythe, the regional director of planning consultants, Urbis, said the minimum standards for apartment size in the residential flat code were in stark contrast to the rules of thumb, which were widely accepted by the industry and consent authorities.
"If the minimum standards for apartment size in the residential flat development code are enforced this will have implications for current and future development applications for residential flat development in New South Wales," Mr Blythe said.

Under the rules of thumb, the minimum size for a one-bedroom apartment is 50 square metres. Under the residential flat development code table, the minimum for a one-bedroom cross through apartment is 58 square metres and 71.4 square metres for a maisonette or loft one-bedroom apartment.
Similarly, the minimum size for a three-bedroom apartment under the residential flat development code table is 35 per cent larger than the rules of thumb
Mr Blythe said that if the minimum standards in the residential flat development code table became standard they would affect unit mix and apartment types, project feasibilities, and the general layout and design of apartment projects.
Ultimately it would affect affordability, he said.

The case was over a proposed development of 158 apartments,
The proposed apartment sizes, with one-bedroom units at between 50.7 square metres and 67.5 square metres, did not meet the minimum standards of Botany City's Development Control Plan and Botany City rejected the proposal.
The developer went to the Land and Environment Court and won on the basis that the council could not refuse the project on the basis of apartment size because the sizes exceeded those set out in the state environmental planning policy's rules of thumb.

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

Dublin is second best city for real estate investment

Dublin remains the second best city in Europe for real estate investment and development, according to a new report.

The Emerging Trends in Real Estate Europe 2015 study, which is published jointly by the Urban Land Institute and PwC, highlights a surge in popularity for investment opportunities in a number of cities that were hit particularly hard during the last market downturn,. These cities include Athens, which rose by 23 places in the latest rankings, and Lisbon, up 17 positions.

Berlin was named as the best European city for real estate investment, followed by Dublin and Madrid. Last year’s top ranking city Hamburg and Athens round up the top five investment markets.

The report said that in 2014 Dublin recorded another strong year in which investors jostled for opportunities.

“It has a good story to tell: strong rental growth based on low supply, employment growth and an improving economy. Office rents and values are recovering strongly but still have some way to go before they reach their pre-crisis peak,” the report said.

The study finds that in spite of economic uncertainties in Europe, property remains fertile ground for investors. As many as 70 per cent of investors said they expect more equity and debt to flow into their markets this year in a quest for the best real estate.

The biggest problem investors anticipate is a shortage of assets, ahead of the challenges of regulation or the cost of finance.

Farmland Investing: A Smart Strategy Made Smarter by Farmland LP’s REIT

Two articles recently appeared in the news on farmland investing that demonstrate why Farmland LP’s value-added approach and niche market focus – organic and local – make for smarter farmland investing. The Economist’s article, Barbarians at the Farm Gate, describes the benefits of farmland investing through an institutional lens. The Economist makes a convincing macro case that productive farmland has historically been an excellent investment, often dubbed “gold with a coupon”, because it offers both appreciation and cash flow. Consider this: From 1970 to 2009, agricultural land values, as reported in the U.S. Department of Agriculture’s Economic Research Service database, outperformed both domestic stocks and bonds on an annualized basis, returning 10.25% compared to 6.24% for the S&P 500 and 7.3% for 10-year Treasuries.

Institutional investors own only 1% of the $2.4 trillion of U.S. farmland. Most farmland is owned by families and individuals, passed down from one generation to the next, and the market for buying and selling farmland is very local and highly inefficient, presenting a barrier to entry for investors interested in this asset class. However, demographic shifts, namely the retirement of farmers (per USDA statistics, the average age of principal farm operators is 58 and one-third are 65 or older) and the younger generation not taking over the family business, will result in billions of dollars of farmland changing hands over the next decade, with relatively few institutional buyers in place. Farmland has performed well when compared with other assets categories (see excerpted chart, above), generating superior annualized returns and lower volatility. Investor interest will continue to grow, but key to sustained value is creating investment vehicles that venture beyond the typical investment strategy of chemical-dependent commodity crops. Pensions & Investment’s article,’Moving beyond buy-hold-lease strategies‘ states that farmland for row crops, like corn and soybeans, “often account for more than 60% of the typical institutional portfolio.” Most institutions typically lease their row crop holdings to commodity farmers to “enjoy predictable cash flows because they are shielded from short-term commodity price and yield swings”, with the trade-off that “income returns from leased row crop land investments are typically lower and less risky.” However, “According to NCREIF, row crop income was just 4.1% in 2013. This was well below the 8% total return expectation that is commonly touted for row crops and which continues to be used to underwrite many row crop acquisitions.” Thus, “Institutional investors…will need to step away from passive “buy-hold-lease” strategies that have characterized the row crop sector for the last two decades.” This means that just at the time when a demographic tidal-wave of farmland sales are beginning, the primary strategy used by institutional investors — leasing land to chemical-dependent commodity farmers — isn’t going to work. The article suggests that these institutional investors will need to invest more heavily in niche markets and add value. We agree. Investors can have their farmland both work harder and more sustainably than just passively leasing to commodity farmers. As active farmland managers, Farmland LP determines the highest and best sustainable use of the land, emphasizing livestock and crop rotations. We bring in the best farmers, and create a diverse tenant mix to increase cash flow while decreasing risk. These organic and sustainable farmers benefit from the removal of the burden of land debt, allowing the farmers to scale their businesses to meet their customer demand without the added capital cost of buying and converting land. Although it is more work than just buy-hold-lease, everyone benefits from having a professional farmland manager manage the land, obtain organic certification, make key improvements, and devise a sustainable rotation plan among multiple farmers. Although institutional investors are only small owners of farmland today, we do see a ray of hope that they will convert into more sustainable agricultural methods. Our REIT is designed to make it easy for investors to own sustainably managed farmland and participate as we demonstrate that sustainable agriculture is superior to chemical-dependent commodity agriculture.

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

Why the rich stay rich: they don’t invest like the rest

Getting and staying rich... When many of us have a little cash to invest, we might buy a mutual fund or a stock — if we don’t blow it on the latest tech gadget. Not the truly wealthy, however. They often put their money in property, art, businesses and other investments that the rest of us can only dream of owning. How this rarified group uses their cash differentiates them from the rest of us — and keeps them in the black.

Take Joshua Coleman, for example. When his family sold their Chicago-based telecom company for $400m in 2004, they didn’t run out and buy something extravagant. Instead, they began seeking advice on ways to save their newfound riches and help them grow.
Their quest sparked an idea for Coleman, now 27. In 2011, he launched Momentum Advanced Planning — a firm that connects people to tax, legal and wealth experts. If the business one day sells, he could see a big return, just like his family’s first business.
If you think that starting a business is an odd way to invest your money, then you probably aren’t among the ultra-wealthy. People who have at least $30m in assets — dubbed ultra high net-worth — invest in stocks and bonds, but they also grow their money by buying companies and investing in unusual securities, such as airline leasing funds. They also own art and cars that they hope will appreciate in value.
“It’s called alpha risk,” said Coleman. “It’s this kind of stuff where there can be a lot of upside.”
As for the downside, many of these investments are riskier than traditional investments, so there’s a higher chance of losing a large chunk of change. As well, they’re far less liquid than stocks and it could talk months or years for the wealthy to get their money out of an investment.
Even if you don’t have millions to invest, though, you can learn a thing or two about how the rich reap returns and apply it your own portfolios.

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

Real estate investment is considered to b

Investing: Are self-directed IRAs too good to be true?

You can invest in a wide array of things via your individual retirement account, aside from the usual stocks, bonds and mutual funds. Office buildings? Sure. Small businesses? Check. Unregistered securities? Yep.

And you can invest in all of these through self-directed IRAs. Should you? For most people, no. But for a few people, it can make sense.

An IRA is simply a tax-deferred retirement account, and has very little to do with what you decide to put in that account. You can have an IRA stuffed with stocks or bulging with bonds. You can't put most collectibles in an IRA, or whole life insurance, or subchapter S corporations. (You can have U.S. gold coins in an IRA, but that's a story for another day.)

A self-directed IRA allows you to invest in things other than securities registered with state or federal authorities. For example, you can use the assets in a self-directed IRA to buy a rental property, or even as the down payment for a mortgage on a rental property.

There are restrictions, however, on self-dealing: You can't rent the place to yourself, for example. And you must have a qualified third-party custodian for the IRA.

Self-dealing restrictions on investing in small businesses — especially sole proprietorships — are also complex, and you should see a tax lawyer before you put IRA money into a small business. "Self-directed IRAs have helped fund thousands of small businesses that otherwise wouldn't be there," says Tom Anderson, president of the Retirement Industry Trust Association, a trade group.

So. You can put many types of investments into a self-directed IRA. What are the drawbacks?

The most obvious is that while the IRA will shelter gains on transactions inside the account, you'll lose other tax benefits. If you lose money, you can't deduct your losses , and you won't get capital gains treatment on profits when you make withdrawals.

Another problem is making sure you're putting your IRA in a good investment. Yes, owning an office building can be lucrative. Have you done it before, and do you understand the deal?

You also need to know if it's legit. Your IRA trustee won't check your investment for you. It will just give you statements.

And this brings us to the biggest problem with self-directed IRAs: the potential for fraud. The Securities and Exchange Commission and the North American Securities Administrators Association put out an investor alert on self-directed IRA fraud in September.

The alert makes for interesting, if sad, reading. The Missouri Securities Division, for example, filed orders against Stephen Gwin in 2007 for misleading senior citizens into investing in unregistered securities in self-directed IRAs he controlled. He sold them at — what else? — free lunch seminars. In 2010, the SEC shut a Ponzi scheme that took $9.2 million from self-directed IRAs.

Anderson points out that the regulated securities industry has seen more fraud, and that's true. The regulated securities industry is also far larger.

"Self-directed IRAs aren't bad, they aren't illegal," says Matt Kitzi, Missouri's Commissioner of Securities. But scams involving self-directed IRAs are becoming more common, he says.

So if you are tempted by a self-directed IRA, be wary. If someone offers a guaranteed return, or a very high return, run. Avoid anyone who pushes you to invest — or offers a free lunch, for that matter. Check the person offering the investment with the SEC and your state securities administrator. And notify your securities administrator the moment something seems awry: Your chances of getting money back in a scam decrease by the minute.

Lots of people are looking for alternatives to stocks, and that's understandable. But some investments don't deserve your money just because they're there. If you're not willing to spend time checking a self-directed IRA, don't do it.