So for the average Joe who is not the next Mark Zuckerberg or young millionaire, pay attention. The 4 wealth fundamentals you’re about to read are not only practical and realistic, but integral to your success.

Goal

When it comes to building wealth, always start with the end in mind. By knowing your goal, all your other decisions and actions will be better guided towards its attainment. Although it’s the most simple, it is also fundamental.

Ask yourself – How do I want to live after I retire? Comfortable? Lavishly? The answer will help find the solution to the next question which is – How much would I need in my retirement for this lifestyle?

Once you know this information, you need to create a flexible plan that can be adjusted as time goes by.

Income

At the foundation of your wealth building strategy will be your start up capital, which usually derives from the income you create.

There are a lot of factors that you need to take into consideration when it comes to income. One would be whether you know if your present income is going to be stable, increasing or decreasing in the future based on your circumstances and career. The answer will dictate how freely you’re able to spend or how cautious you should be with the money you’re currently making.

Aside from living expenses and leisure, your income should be set aside for a smart and proactive savings plan. This is a factor that is highly recommended especially if you’re young, as the earlier you begin the longer you have to build this up.

Investing

Only after your savings plan is set up and active, should you start investing. Every other factor in building wealth is based on surviving. The reason why investing is so important is because it’s geared towards thriving and having a great future instead of just preparing for a “rainy day”.

In many cases, time is the most important factor in investing, oftentimes more important than the amount you invest due to compound interest. The most important component is that you start as soon as possible, even if it’s a dollar that you can build on over time.

Expenses

Without a doubt, expenses are the one factor that if you get wrong, can cause failure for the rest of the fundamentals. The fact is, if you’re spending more than you’re earning, not only are you losing money, but you cannot save, invest or create a prosperous future for yourself.

If this is the case for you currently, feel good that you came across this article. Have a look at your weekly expenses, what are the musts and what are the purchases that don’t really matter?

This could be as simple as cups of coffee, excessive shopping or anything that you feel you do to an excess. Although cutting these are small at first sight, in hindsight you will find they build up to massive savings and will tip you over the scale to more income than expenses.

There are many more facets and factors to learn of course, but these tips will give you a basis of understanding on what to initially pay attention to. Wealth is a major component in our lives, so making these fundamentals a focus will be one of the most important decisions you make. Contact us today to discuss further. 

Although this seems like an ultimatum between the two, the truth is that you can be involved in both. This article will delve deep into both sides of the coin so that you can better delegate your funds to each one.

Paying off the mortgages

Focusing on paying off a mortgage can have its pros and cons. It’s always optimal to be aware of both. This section will give you insight on the main four factors that you will be both gaining and missing out on when paying attention to this area.

Advantages

Certain return

When most people think of paying the mortgage, it’s usually associated with clearing debt rather than making money. In fact it’s both. Every cent off the mortgage allows you to collect interest that would have been spent on the mortgage. Perhaps the best part about this is that there are limited risks, it is a guaranteed return.

Piece of mind

The main reason why people focus on mortgages rather than investing is because of a tendency to choose safety over risk. Perhaps the best benefit of paying off a mortgage is that you gain certainty that cannot be equaled in the volatile share market. Although you’re not playing to win big, you are securing your future in the sense that you won’t have an overbearing mountain of debt.

Disadvantages

Tunnel vision

Although tunnel vision may work well for athletes or anyone competing in certain industries, it does not apply to this. By focusing all your energy on paying of the mortgage, you can very often miss extremely lucrative investment opportunities that would otherwise have paid you a much higher return. Although you’re securing your financial safety, you might also be missing out on your financial freedom.

Eggs in one basket

Like the above, sometimes putting all your eggs in one basket can work. If safety and security is your priority though, this can often-times backfire when you place all your attention on your mortgage. When your capital is involved in only one asset, if anything goes wrong you have nothing to fall back on.

Splitting Funds Between Mortgages and Investing

Alternatively to the above, it is possible to use your capital for both options. Although you will be diversifying your focus, there are benefits as well as the negatives that you will come across.

Advantages

Potential for large return

The beauty of investing in things like shares is the potential for long term income that is likely to be more lucrative than what you would save in interest by paying off your mortgage. This also allows you to better pay of your home whilst having excess cash to spend.

Asset diversification

We mentioned that putting all your eggs in one basket is not always the best option when it comes to money. This is why investing alongside mortgages is phenomenal for securing a safe future. This means that if one of your assets is performing poorly, it is likely that another will balance it out.

Compound interest

If you have ever heard of the term “making money work for you”, this would be the closest thing to it. The compound interest effect of investing cannot be overstated when you give time for it to grow. This is why if you choose to go down this route, invest as soon as possible even if it’s only a dollar, so that you can begin taking advantage of this principle.

Disadvantages

Experience required

Although not much, a decent level of understanding is required if you desire to be successful in investing. This can be a negative or positive depending on your situation. If you are in the situation where you lack the experience or knowledge, either learn or find an individual who knows what he or she is doing.

Higher risk

The potential for bigger gain also comes with the potential of a large loss. The risk in investing is real and must be minimised when making decisions as to where to put your money. Factors such as unexpected market fluctuations and so on all happen regularly. A long term approach is much more ideal for minimised risk as opposed to a short term approach which rarely works out.

As you can see, both options are viable depending on your personality and circumstance. If you are someone with confidence and experience in investing, the latter will always be ideal. Alternatively if you’re not, you can always minimise the amount you put in initially compared to the mortgage so you can at least get your feet wet.

Interested in learning more about investing? Contact us today!

Although it seems like much of the work is already finished if a property is tenanted, this can very often be a negative. If you are in this situation or it relates to you, carefully study this article so that you can be certain that the tenanted property you’re looking at is right for you.

The Potential Pitfalls of Diving Straight in

Before assuming the best and going for the purchase, detailed research must be conducted as to why the property is still tenanted and is it for the wrong reasons.

The most common pitfall is that the tenants are substandard. Often-times this is the very reason as to why the property is up for sale in the first place.

Management disagreement can sometimes be the issue, especially when the current tenant has unrealistic expectations. A very real and potential scenario could be that you’re forced to put a property manager in charge, and that shift of responsibility and routine for the current tenant causes issues.

Often-times it is not advised to investors if a tenant is short term or not. Many of the times when they are, the rental price is elevated which at first sight will create an attractive deal for the investor. When price is the deciding factor,  you will be in for a shock when it comes time for the tenant to leave. Not only do you need to find a replacement, but one at standard market price.

In rare cases, tenants can be quite opportunistic or even greedy, for lack of a better word. This can be common when the investor is a beginner. As soon as you take ownership, there may be unrealistic material demands made upon you for improvements that the other vendor did not consider.

These are just some of the potential pitfalls that could arise. Although there are more,  the foundation you need is research. As an investor looking into a tenanted property, you must be willing to put in the time to find out as much as possible to be certain that the property is tenanted for the right reasons.

The Importance of the Lease Agreement

So you’re now certain that the property is tenanted and none of the above or other issues are apparent. There are certain variables that you will need to look at to avoid any silly mistakes, and these involve the tenants.

A common thought that ponders around new investors heads is whether they’re eligible to kick out tenants or not. This would especially be critical to know if they fall into one of the negative categories mentioned above. This brings us onto the lease.

Is the lease fixed term or periodical?

A fixed term is exactly what it sounds like. For whatever period the contract is set (usually 6-12 months), it cannot be terminated unless the tenant and new owner make an agreement. Alternatively, a periodical lease is the opposite. A monthly contract is usually the case in which the tenant can be granted 60 days notice to vacate.

Aside from the above, it is critical you know other details about the lease so that you’re in control. What is the amount of bond held? Are inspections held, and how often? How much does the tenant currently pay in his or her current contract? All these questions can be answered in the agreement or with a bit of investigation and communication.

As always and as mentioned with tenanted properties, research comes first. Use this information as a guideline as to what to look out for immediately, with every different circumstance there may be a different factor involved with the tenant. It’s worth going to the trouble of finding out as much as possible before making an investment that could be potentially detrimental. Contact us to research your next investment.

Despite there being many, the following fundamental factors will serve you incredibly in determining whether an apartment is lucrative or not.

Research

As basic as it is, research will be the starting and most important step in your investment. You must be able to decipher between what’s hot and what’s not.

In your search, find out what’s in demand and in what areas. Aside from the internet, speak to experts, view local ads and do everything you can to collect as much data as possible.

Location, Location, Location

As overused as this term is in real estate, it’s still the most fundamental to your investment’s success. More than the apartment interior itself, the location will have the biggest influence on the interest of tenants.

Make sure you aim to invest in a major city if possible, and to avoid rural areas. If your capital does not allow for this, then be sure to find a deal that will have proximity to hot sites where a large population resides.

Parking

An apartment with an enclosed locked parking garage cannot be understated, especially if you’re purchasing in an area that may be near a high crime rate sector.

If your tenants are forced to park outside, this will be a big turn off for certain individuals. When possible, always ensure there is designated parking space that is safe, the extra cost will be worth it.

Renovation

This depends on your budget and the state that the apartment is in. If you are financially comfortable and the apartment space is rundown, then renovation should be high up on the priority list.

There are not many things that will better yield an impressive return on your money than fixing up an apartment so that it attracts your ideal tenants. The risk is attracting the opposite due to your lack of respect towards the property.

Public Transport

Although this is tied in with location, it deserves its own heading. If buying in a city is too out of your budget right now, make sure that wherever your purchase, it has convenient access to public transport.

The fact is that most people commute to work, and if your location does not allow for this to happen in an easy way, you simply won’t gain half as much attention as you could.

Background Check

This applies mainly to new apartments, be sure to research not only the developer, but the builder as well. This means credentials, past work, what tenants say from their other projects and so on. Most people don’t take the time to conduct it despite its massive returns in data.

This alone can save you a whole heap of money if you find out that all their past tenants and associates are not happy with the work they have done, and the opposite is true as well. If you’re unsure about the apartment’s credibility or sustainability, a background check will give you enough information to come to your own conclusions.

When applied, these 6 factors in choosing an apartment will skyrocket you ahead of the masses when beginning to invest in apartments. Some of these do take effort, but that is what will ultimately eliminate the risk of your investment and increase the chances of a massive return.

More than anything, be patient and don’t rush into anything when it comes to choosing an apartment. To get started on your investment journey, contact us today!

With all investments there comes risks, but fortunately with granny flats that risk is minimised greatly. Read on so that you can get a perspective of both sides of the coin when it comes to protecting your money whilst also growing it with this potentially great investment choice.

Advantages of Granny Flats

Affordability

Whether you’re purchasing an already established granny flat or building it from scratch, it is remarkably more affordable than a standard property. The power in this is that if you’re new to investing or just tight on funds, you can wet your feet in the market without as much risk.

Asset

If you are purchasing a granny flat as an addition to your current property as opposed to a separate standalone, it will add value to your residence. The power in this is that if and when you sell your house, you earn the added value on top of its already existing rental income if there are tenants.

Risks Involved

Substandard Tenants

This applies especially if they are in proximity to you. When renting out, there is always the risk of having less than ideal occupiers. Be sure to have a certain criteria for who you want to occupy the granny flat. Bad tenants can far outweigh the financial gain and even create a negative cash flow in certain situations.

Unexpected Charges

Additional funds must be set aside when those unexpected costs arise.You’d be surprised at what can arise during a tenant’s stay or just standard costs that weren’t anticipated, so preparation for these potential situations is a must.

Overcapitalisation

Generally the banks will not increase the value of your property that much compared to the capital you initially invested. This means that you could potentially be spending $100,000 on a granny flat, and the banks will only raise the value by $75,000.

Rules and Regulations

In every state there are different rules and regulations, so this must be something researched by yourself. Despite the division in rules, there are fundamental regulations that apply nationally, so ensure you’re aware of these:

• Granny flat space  should not exceed 60 square metres (can vary slightly across states).
• Must have differentiated access from main property.
• Primary property already has zoning permission.
• Primary property owner owns the granny flat.
• One granny flat per property.
• Property exceeds 450 square metres in space.

As you can see, like every investment, granny flats have their ups and downs. In the current Australian economy with the affordability crisis, they are a great option for investments due to their low initial costs.

Ensure that you conduct research in not only the points addressed in this article, but in relation to the tenants you’re considering or the area you’re buying in. This will always be a viable option for investment, and if you’re a beginner, it is ideal due to its massive price saving compared to standard properties.

Keen to learn more about investing? Contact us today!

Just east of Ipswich, and within a half hour drive of Brisbane’s CBD, lies Greater Springfield – one of Australia’s most ambitious master-planned cities.

With two rail stations, and direct, non-stop access to Brisbane airport, Greater Springfield’s vision is to become a world-class regional city and services hub by 2030. And by the time development is complete, an expected $85 billion will have been spent on infrastructure and commercial and residential construction.

Greater Springfield has been carefully designed around three key pillars – Education, Health and Technology – ensuring that sufficient infrastructure and employment opportunities are available to support the rapidly growing population – tipped to reach 138,000 by 2030.

In our latest Spotlight series, we take a look at each pillar, and provide some compelling reasons as to why you should consider this region as part of your investment portfolio.

Pillar 3: Technology

As the final key pillar, Technology has been an important driver in Greater Springfield’s establishment as an innovative ‘smart city’.

Greater Springfield has its own Digital Master Plan – a digital eco-system that businesses can easily connect to and integrate with their own products and systems.

The Greater Springfield community also has access to intelligent platforms and data to enhance their lifestyle, health, education and business performance.

This investment in technology and development of a state-of-the-art working environment has resulted in companies, such as GE, relocating their state headquarters to the area, and plans to entice tech giants such as Google and Microsoft being discussed.

Technology fast facts

• Digital Master Plan includes interconnected network of infrastructure and services, allowing community and businesses to easily connect and collaborate
• $230 million Polaris Data Centre, Australia’s leading purpose-built technology facility
• GE Australia State Headquarters
• State-of-the-art dark fibre network throughout the CBD
• IDEA City precinct, designed to encourage innovation, entrepreneurship and research
• Intelligent platforms to enhance residents’ lifestyle, health, education and business performance.

Greater Springfield investment opportunities

With apartment development at unprecedented levels in the Brisbane CBD, we’re looking to the west for its exciting investment potential.

Greater Springfield’s focus on the key pillars of Education, Health and Technology means that population growth is well supported by significant investment in infrastructure and employment.

Housing is currently affordable, with good capital growth prospects and no signs of slowing down in the near future.

We have a variety of off-market investment properties in Greater Springfield that are only available through CPS Property.

Please contact us today to learn more about Greater Springfield, or to arrange your free property investment consultation.

Information and images sourced from Greater Springfield.

Greater Springfield in Brisbane has a vision to become a world-class regional city and services hub by 2030. By the time development is complete, an expected $85 billion will have been spent on infrastructure and commercial and residential construction.

Located just east of Ipswich, and within a half hour drive of Brisbane’s CBD, the area covers a total of 2,860 hectares – almost six times the size of Sydney’s Parramatta.

It’s been carefully designed around three key pillars – Education, Health and Technology – ensuring that sufficient infrastructure and employment opportunities are available to support the rapidly growing population – tipped to reach 138,000 by 2030.

In our latest Spotlight series, we take a look at each pillar, and provide some compelling reasons as to why you should consider this region as part of your investment portfolio.

Pillar 2: Health

With Health one of the three key pillars of Greater Springfield, the region has been designed to encourage a healthy community, with plenty of open, green space, and pedestrian and bike-friendly pathways.

Health City Springfield Central is a 52 hectare integrated health precinct providing health care facilities, medical research and aged care. The hub is home to the 80-bed, $85 million Mater Private Hospital which provides a range of medical and surgical services, as well as a cancer care centre.

And Australia’s largest dementia-friendly retirement village is currently under construction, with 2500 housing units planned. This will create 580 permanent jobs once the development is complete.

Health fast facts

• 52 hectare integrated health campus
• $85 million, 80 bed Mater Private Hospital Springfield, including cancer care centre now open
• Plans for a 1,200 bed Public and Private Hospital
• 2,500 new seniors’ housing units integrated with allied health facilities
• Specialist suites facility to be completed in mid-2018.

Greater Springfield investment opportunities

With apartment development at unprecedented levels in the Brisbane CBD, we’re looking to the west for its exciting investment potential.

Greater Springfield’s focus on the key pillars of Education, Health and Technology means that population growth is well supported by significant investment in infrastructure and employment.

Housing is currently affordable, with good capital growth prospects and no signs of slowing down in the near future.

We have a variety of off-market investment properties in Greater Springfield that are only available through CPS Property.

Please contact us today to learn more about Greater Springfield, or to arrange your free property investment consultation.

Information and images sourced from Greater Springfield.

Despite the impact of the “Rail Fail’’ crisis in disrupting the region’s train services, and concern about growing road gridlock, the Queensland capital has outranked Sydney, Canberra, Melbourne, and Perth.

The Sustainable Cities Mobility Index, compiled by global design and consultancy firm Arcadis, puts Brisbane at number 48 overall in an assessment of 100 of the world’s growing centres.

“These results are very strong for Brisbane,’’ Dr Louisa Carter, Arcadis city executive for southeast Queensland, said.

“Brisbane is the lifestyle capital of Australia and we can now also boast we are also the sustainable transport capital.”

Dr Carter said the result made the city more competitive in attracting economic investment and knowledge workers.

The report, which looks at public transport, active travel such as cycling and road transport, rated Brisbane well on maintaining its quality of life.

And Dr Carter said we were on the threshold of “a one in a 100 year investment cycle” with projects including Cross River Rail, the Brisbane Metro network and European Train Control System to improve rail efficiency. “These are very exciting times,” she said.

The report added that Brisbane could learn from Amsterdam where the average commute had been cut to less than half an hour by prioritising cycling, creating capacity on trains and trams, and using tunnels for road and rail projects.

The index, which ranks each city on 23 measurements across social, environmental and economic indicators, said the use of public transport, cycling and walking was low by international standards.

Dr Carter said that might reflect commuter’s experiences but the best way to improve public transport was to use it more and attract more investment in it.

A lack of underground metro systems and dependence on private vehicles kept Australian cities around the middle of the rankings or lower, the report said.

Hong Kong was number one worldwide. The report said its “well-organised, modern and efficiently funded” metro system encouraged mobility, “creating economic opportunity and enriching the lives of citizens, businesses and tourists”.

It was followed by Zurich and Paris, with European cities dominating the top 20.

Image and original source: http://www.couriermail.com.au/news/queensland/study-finds-brisbane-has-australias-best-transport-system/news-story/cc63622bbaecfe6164b6e1418a6a5e8a

However, with $6.5 billion in NSW Government funding set to reinvent this once industrial port city, Newcastle is on the verge of significant property price growth.

In this three-part series, we explore the reasons Newcastle is becoming the next investment hotspot – and why you should keep this city firmly on your radar.

Missed Part 1? Read it here: World class infrastructure: the future looks bright for Newcastle

Missed Part 2? Read it here: World class infrastructure: the future looks bright for Newcastle

 Part 3: Solid growth prospects: Newcastle is delivering

As real estate prices in some capital cities continue to skyrocket, savvy investors have been turning to regional areas to stretch their investment dollars further. Nowhere is this more evident than in Newcastle, where strong growth is already afoot. In fact, property experts have identified Newcastle as being one of the five best locations to invest in an apartment in Australia.

Significant growth ahead

According to BIS Shrapnel’s Australian Housing Outlook 2016–2019, Newcastle experienced solid price growth over the past five years to June 2016, averaging 6.1% per annum (for houses and units combined).

Looking ahead, median house prices in Newcastle are forecast to continue rising by a cumulative 12% by June 2019, or around 4% per annum, to a median price of $550,000.

With Newcastle’s median house price just 48% of Sydney’s at June 2016, the anticipated population growth in Newcastle will add demand to the local residential market.

Newcastle’s population is tipped to grow by 65,000 over the next 15 years, driven in part by people fleeing the rising costs and congestion in Sydney. Newcastle also offers first home buyers a more realistic alternative to the Sydney market.

In terms of rental properties, in August 2017, vacancy rates were below the 3% balanced market rate at 2.7%, according to REINSW. In suburbs around the University of Newcastle, it has been reported that vacancy rates are close to 0%, with students struggling to find rental accommodation.

Infrastructure and innovation behind growth

The momentum of Newcastle’s growth is also being driven by the city’s focus on infrastructure development and innovation.

The NSW Government has committed more than $650 million to its Revitalising Newcastle program. The program aims to transform the city centre by improving transport, renewing public spaces, creating job opportunities and building affordable housing to cater to a growing population and tourism industry.

And the recent opening of the $90 million Newcastle Courthouse and NeW Space, a $95 million city campus for the University of Newcastle, in addition to plans to install free WiFi and smart technology throughout the CBD, are strong signs that Newcastle is ready to shake off its industrial past.

What does this mean for you?

With attractive property prices and strong growth forecasts, Newcastle represents a truly exciting investment opportunity. But the time to get in is now, before the completion of major infrastructure programs drives property prices further.

Want to know more?

We have a number of exciting investment opportunities coming up in Newcastle soon. Please contact us today to find out how we can help you build wealth through smart property investment.

However, with $6.5 billion in NSW Government funding set to reinvent this once industrial port city, Newcastle is on the verge of significant property price growth.

In this three-part series, we explore the reasons Newcastle is becoming the next investment hotspot – and why you should keep this city firmly on your radar.

Missed Part 1? Read it here: World class infrastructure: the future looks bright for Newcastle

Part 2: Lifestyle and location: life’s a beach in Newcastle

Lonely Planet has listed Newcastle in its Top 10 cities, describing it as underrated with Sydney-like assets. And in 2016, Newcastle took out the no. 2 position in ‘Australia’s Top 10 Destinations to Experience’ by travel company Experience Oz. So what’s driving the popularity of Newcastle as a place to visit?

Central and scenic

Only a 40-minute drive from the wineries of the Hunter Valley and the natural beauty of Port Stephens and Lake Macquarie, Newcastle boasts an idyllic location on the central NSW coast. And with its own postcard-perfect beaches, the city continues to attract visitors in droves. 

Thankfully, the NSW Government is doing everything it can to enhance and preserve this for future generations. In addition to a $650 million Revitalising Newcastle program, which will improve transport and public spaces in the CBD, the Bathers Way project is constructing a 6km walkway between Merewether Ocean Baths and Nobbys Beach. Once complete, visitors will be able to easily enjoy the spectacular views of Newcastle’s coastline.

And due to the growing popularity of cruising, a new $13 million multi-purpose cruise ship terminal facility will be completed in Carrington by the end of 2018 – bringing in even more tourists to the area.

A blend of old and new

In addition to carefully maintained historic buildings such as Customs House, Civic Theatre and Fort Scratchley, Newcastle is also home to striking contemporary architecture like the $90 million Newcastle Courthouse development and NeW Space, a $95 million city campus for the University of Newcastle that prides itself on its innovative approach to education.

The $17.8 million Hunter Innovation Project, due for completion in 2019, will see the installation of free Wi-Fi and smart technology throughout the CBD, along with an Innovation Hub that aims to attract and retain entrepreneurial talent, and nurture businesses in new and emerging industries.

Preserving the city’s heritage, while embracing its desire to be a centre of innovation, will ensure that Newcastle maintains a unique cultural identity that will please Novocastrians and visitors alike.

Flourishing food scene

Over the last few years, Newcastle has begun to be recognised nationally for its contemporary approach to quality casual and fine dining. The café scene is buzzing, and restaurants such as Reserve, Rustica, Subo and Chef Hatted Restaurant Mason have made a name for themselves on the Australian food stage.

Craft breweries and Melbourne-inspired small bars are growing in numbers, particularly along vibrant Darby Street in Cooks Hill and Beaumont Street in Hamilton.

Honeysuckle, a major harbour renewal project, is now home to numerous waterfront restaurants, cafes and bars like Silo, which prides itself on its use of fresh Hunter produce, and Nagisa, a modern Japanese restaurant with an extensive Japanese craft beer and sake menu. And beach lovers’ favorite, Merewether Surfhouse, boasts a casual elegance with spectacular ocean views.

What does this mean for you?

With significant investment in urban renewal and innovation, a growing hospitality and tourism industry, and an enviable location and lifestyle, Newcastle represents a truly exciting investment opportunity. But the time to get in is now, before the completion of major infrastructure programs drives property prices further.

Want to know more?

We have a number of exciting investment opportunities coming up in Newcastle soon. Please contact us today to find out how we can help you build wealth through smart property investment.