Sunday, September 24, 2017

Inspirational Quotes from Super Successful People

Most successful people you’ve heard of has been faced with adversity – often that’s what lead to their victory. 

Get inspired by these quotes from some of the world’s most successful people…

“Once you choose hope, anything’s possible.” — Christopher Reeve

“You must expect great things of yourself before you can do them.” — Michael Jordan

Pablo1

“When you cease to dream you cease to live.” — Malcolm Forbes

“Failure is another steppingstone to greatness.” — Oprah Winfrey

Pablo2

“Learn from yesterday, live for today, hope for tomorrow. The important thing is not to stop questioning.” — Albert Einstein

“Success is most often achieved by those who don’t know that failure is inevitable.” — Coco Chanel

Pablo3

“Don’t cry because it’s over, smile because it happened.” — Dr. Seuss

“The way I see it, if you want the rainbow, you gotta put up with the rain.” — Dolly Parton

Bonus Quote

Pablo4

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Household income & wealth survey – almost three quarters of Australian households indebted

The results of a recent household income and wealth survey conducted by the Australian Bureau of Statistics (ABS) are not necessarily what you’d expect.

The results state that higher income households are more likely to be over-indebted than lower income ones and determined those households that are over-indebted and those that are not.

Household Income 1

The 2015-16 household income and wealth survey results, which includes household debt and over-indebtedness considers a household to be over indebted if their debt is either three or more times their income, or 75% or more of the value of their assets.  Family Drawing Money House Clothes And Video Game Symbol

On these measures the ABS considers 21.6% of households to be over-indebted, 51.9% of households to be not over-indebted and 26.4% of households have no debt.

According to the results, households with the lowest disposable income are the least likely to be over-indebted while the fourth quintile households are most likely to be over-indebted.

The end results is that households with higher incomes are less likely to be debt free and are more likely to be over-indebted than lower income households.

Household Income 2

investor-enquiry-form

Lower income households are more likely to be debtfree compared to higher income households which is reflective of many lower income households having paid off their debt.

The data shows that 94.6% of households which are either not overindebted (37.8%) or without debt (56.8%) have no persons in the labour force which is reflective of retirees or people that are in a position to choose not to work.

Households with mortgage debt are more likely to be overindebted than those households that either rent or own their home outright; only 3.5% of households that own without a mortgage are considered to be over-indebted compared to 47.0% of household with a mortgage and 9.1% of rental households.

Household Income 3

Lone person households are likely to be those persons who are living debt free (45.9%), while single family households with a couple and dependent children (10.7%) are the least likely to be living debt free.

Interestingly, the data indicates that group households are among those least likely to be over-indebted (16.2%) as well as being amongst the least likely to be without debt (20.8%). 25221363 L

This probably reflects the fact that university students and young professionals are most likely to live in group households while studying and prior to purchasing their own home.

The data also shows that households that are over-indebted spend 24.2% of all goods and services expenditure on housing costs compared to not over-indebted households spending 16.8% of their expenditure on housing costs.

The report shows that on average, over-indebted households spend more than double ($150.54) each week on their mortgage repayments than households which are not over-indebted ($73.44).

Households with no mortgage debt, most of which are retiree households, are least likely to be overindebted.

On the other hand, higher income households with a family that have outstanding mortgage debt are those most likely to be over-indebted.

While you could say that families of working age with higher incomes are better able to service their debt, interest rate hikes or reductions in the value of their assets could have a significant impact on their ability to service their debt.

16 Tactics property buyers need to keep in mind when making an offer

When you make your offer on a  property there are a few things to keep in mind to give you the upper hand in the negotiation

Here are 16 tactics that should help you.

1. Substantiate Your Offer

woman property deal

Provide an explanation for your offer.

For example, your first offer might be based on the lowest recent comparable sale of a property in the area, less an amount of say $20,000.

You would then justify this discount based on defects in the property you’re buying.

If you get to the stage of making counter offers, attempt to validate these counter offers in the same way.

This will give your negotiating more credibility and force.

The reason that it’s important to have a rationale to support your offer is because this affects the seller’s expectations about what you’re prepared to pay and usually will soften their response when they make a counter offer.

Property developer John Potter says, “When you’re dealing with a more sophisticated seller, for example on the sale of a development site or someone who is experienced and understands the feasibility process, send them a copy of your feasibility and go through the numbers.

Substantiate your offer in this way.  It’s very hard for them to argue with the figures, particularly on matters such as the amounts for civil works.”

2.The Amount Of Your First Offer

It’s there that the importance of good preparation shows its real value. 

investor-enquiry-form

Making an offer which is too “low ball” can sometimes insult a seller.

This could prompt them to refuse to deal with you after that.

The amount of your first offer is a balance therefore between the desire to secure the property at the best price possible, and presenting an offer that is credible, but without being offensive to the seller.

This is where it’s important to have some rational basis for the offer, as discussed earlier.

Potter says, “Be very careful about going in too low. This is really a cultural thing in many ways, as I recall once offering to buy a shopping centre for way below its listing price.  The people who owned the property were Chinese and they didn’t talk to me for months after my offer as they were offended.  This cultural response is far different to the response of Americans or Aussies who would not withdraw from the negotiation process because they were offended by a low offer.”

“If I had my time again, I wouldn’t have offered such a low price and would have made a more realistic offer.

This approach avoids running the risk of losing the property by offending the seller.”

3. Beware Of Splitting The Difference

A sale price is often struck by splitting the difference between the seller’s lowest sale price and the buyer’s highest offer.

Beware of this strategy.

For example, if you make an offer to purchase a property for $300,000 and the seller wants $340,000, the first person to offer to split the difference will usually be the loser.negotiation compromise barter win lose argue

If you as a buyer offer to split the difference by increasing your offer to $320,000, the seller’s classic response will be to offer to split the difference between the offer of $320,000 and their price of $340,000.

In other words, you pay $330,000 and not $320,000.

The better approach is to increase your offer by small increments.

For example, offer $310,000 with your next offer after that to be $315,000 and your offer after that to be $317,500.

Each offer should go up in decreasing amount as this suggests to the seller that you’re running out of steam and they had better accept your offer.

As part of this strategy it’s also wise to delay making the next incremental offer, as this adds to the impression that you’re running out of momentum.

As a negotiating strategy, the only time that you would offer to split the difference first was where your first offer was so outrageously low that the figures are already stacked in your favour.

4. Authority

Authority

A clever negotiating strategy the only time that you would offer to split the difference first was where your first offer was so outrageously low that the figures area already stacked in your favour.

Often the claim is phoney.

This tactic can be used to extract further concessions which wouldn’t have been made, because the other party thought they’d concluded a deal with the person who had authority to make the decision.

As a lawyer, when I’m confronted with this blunt tactic by another lawyer negotiating a deal, I usually respond with: “Oh no, not the phoney no authority routine again.”

Potter says, “I use this tactic a lot (as a buyer). It gives you time to think about the offer and gives you a second shot at it.  I usually throw it in towards the end of the negotiation process when other concessions have already been made.

Be careful not to say you need to ‘check with your husband or your wife’ as this sounds very ordinary and weakens your authority.  It’s much better to say that you need to check with your fellow director or your business partner.”

5. Negotiate The Conditions

Agents operate on the principle that “yes is less.” deal property busing

That means the less conditions and the less matters that are dealt with in your offer, the greater the chance they have of getting a yes from the seller, and an acceptance of your offer.

But you shouldn’t work on the same principle.

From your perspective as a buyer, a simple offer to buy a property on a 10 per cent deposit, settlement in 45 days, cash unconditional, will work against you, as the only thing you can negotiate over is the price.

In this example, experienced negotiators might make their offer subject to finance, pest and building inspections with say, a 120-day settlement and much smaller deposit with as many inclusions as possible in the sale.

This will allow them the opportunity to negotiate away some of these matters, ultimately arriving at a settlement with a 10 per cent deposit, 45-day settlement, but at a reduced price.

6. Using Conditional Clauses

Many people add clauses to their offer, such as making it subject to a pest and building inspection, and then attempt to use these clauses to drive the price down.

The last time I saw this used in practice was where a client purchased a property subject to a pest and building inspection, and advised the seller that as the building inspection revealed a number of building defects that had to be rectified, they would proceed with the purchase but only if the price was reduced by $15,000.

Unfortunately, for the naive buyer this seller was present when the building inspector conducted the inspection. Signing a house rental contract

The inspector had advised the seller that the house was in pretty good shape for a house of this age, other than needing a bit of minor work.

The buyer’s attempt to drive the price down by using the pest and building clause was transparent and destroyed the goodwill between the parties.

The buyer was “just having a go” and proceeded with the purchase anyway.

The seller repaid the buyer’s ruthlessness and lack of sincerity on settlement date when the buyer asked for approval for their removalists to move the furniture in at 11 o’clock in the morning, some four hours before the agreed settlement time of 3pm.

The seller refused, as they were entitled to, as settlement had not yet taken place and the buyer had to pick up the cost of the removalist’s standing time for four hours until they could get access to the house.

There is therefore a real danger in using these clauses to lever down the price. value

However, there is one clause that you can genuinely use to do so.

That is, make the contract subject to a valuation.

If the valuation does not come in at the purchase price then you can provide a copy of the valuation to the seller and genuinely ask for a reduction in the price.

“Subject to valuation” clauses are one of the few clauses you can use to genuinely lever down the price – a small negotiating point that can become very big where you’re looking to achieve a win/win situation from the negotiations because of a continuing relationship between the parties after the settlement.

Potter says: “I really get offended by this strategy when I’m a seller and I sense people are trying to use things like building clause and pest inspection clause to drive the price down for hollow reasons.  I use the reverse selling principle and tell them that if they feel that way I would rather they didn’t buy the property as I want to sell it to someone who loves it.  This usually brings them right back to the table and they then waive the problem and proceed on regardless.”

7. The Big Deposit Myth

piggy bank

All too often people try to make their offer as enticing as possible by attaching a large deposit cheque for 10 per cent of the purchase price.

The flaw in this strategy is that most people negotiate to buy a property subject to various conditions (pest and building report, sale of another property, finance, etc.).

The power of attaching a big deposit is lost or watered down substantially by these conditional clauses.

You might as well put down a token deposit (for example $1,000) till the conditions are all satisfied and then pay the balance deposit up to 10 per cent.

8. Be Careful What You Say

Be careful about the comments you make in relation to the amount of your offer.

Statements such as: “this is my highest offer,” or “this is the most that I can pay, take it or leave it,” can work against you.

If the seller doesn’t accept this offer, you can’t then credibly go back and make a higher offer.

The seller will get suspicious because you have just told them that you couldn’t go any higher.

Statements like this undermine any trust that you may have with the agent and the vendor and are counter-productive to the negotiating process.

Avoid them unless they are absolutely true.

9. The Ghost Theory

Potter says, “I always use the ghost theory.  I always tell the agent the I’m looking at another property through another agent and of course, given the confidentiality of dealing with agents I cannot mention the agent or the property.”

“I’m always confident that the agent then passes this onto their client, the vendor, and creates the impression that I’m not too keen a buyer. This levels the playing field.”

10. People 2566433 1920Wait For A Response

Patience is a virtue in negotiation.

Once you’ve made an offer it’s important to wait for the seller’s response.

If they won’t respond to your offer, then walk away.

Don’t be tempted to make a further offer without hearing from the vendor.

To make another offer is to send a strong message to the seller that you’re keen and they will probably take advantage of you.

11. Get Something In Return

Likewise, don’t make a concession in the negotiations without getting a concession in return.

12. Take Your Time

Never say, “Let’s cut to the chase”.

Remember you must play the game so that the other party feels that they’ve gotten a good deal.

Statements like this send a clear message that you’re over willing and over keen and you could end up at the bottom of the food chain, consumed by the more experienced and sometimes predatory negotiator.

13. Negotiating For A Team

Tell Me More About This...

If you’re negotiating to buy a property on behalf of a group of investors or on behalf of a joint venture, remember the “divide and conquer” rule.

That is, don’t let the seller divide and conquer you.

Make sure all negotiations are through one person only and appoint one person as the spokesperson for the group.

In reverse, if you have the opportunity and talk to each of them about the property and ask questions of each of them.

You have your best chance of getting to the truth by doing so and you’ll gather more information about the property to help you with the negotiation.

14. Don’t Attack The Property Or Seller

Never get personal with the negotiations.

For example, you wouldn’t describe the property as a “dog box”, a “demolition job” or a “haven for drug dealers and prostitutes”.

None of these comments are likely to achieve a reduction in the price.

You’re better served if you advise the seller that the property clearly has potential, but it’s obviously in need of work to bring it up to its best condition (which will cost say $40,000) and your offer is adjusted accordingly. stress emotion buying house

A local investor was recently looking at a property that I owned, which was in a great location, but not up to standard with the other mansions around it.

Instead of telling me that my house was a “bulldozer job” he cleverly told me that I was the owner of a great property in a great area, but it was under-developed and we needed to start again.

I left the negotiations feeling good about myself and the property rather than being resentful of him and, as often is the case, determined to sell it to anyone else.

Potter says, “I never bully and always try to be an empathetic listener.

I also never look too urgent to do a deal.

I try and promote myself as being an empathetic listener who is ready to do a deal, but not desperate to do so.

“I like to be empathetic because buyers are easy to deal with if they feel that they have been heard and listened to.  Let them talk as much as they want.  And just listen (without responding), as often when they start talking they simply run themselves out and talk their own arguments out.”

Another typical comment that doesn’t do anything to promote the negotiation process is: “Don’t be offended by this offer, it’s not personal”.

To which the other party will always respond “Yes, it is”.

15. Creating Doubt

If you’re confronted with a seller or an agent who is also a hard bargainer then the best approach to their stance is to create doubt.

That is, do your best to create doubt about the value they’ve placed on the property.

For example, use comparative sales data, or reports from independent experts such as Residex, Matusik and BIS Shrapnel about trends within their area and State.

16. Ethics

All hard-bargaining negotiation has to be tempered so that you feel comfortable.

For lawyers and agents involved in the process, there are ethical and professional guidelines that prevent them from lying, making misrepresentations or being involved in misleading or deceptive conduct. Is Housing Unaffordastralia 2

The bar is not set as high with investors, however there have been many cases involving real estate sales where the parties themselves have been found guilty of misleading and deceptive conduct in breach of the Trade Practices Act, or held to have committed unconscionable conduct in taking unfair advantage of the other party in the transaction.

There is no excuse for ruthless and unethical behaviour by anyone.

Remember, it’s usually only about money, and money isn’t everything.

That’s true, but also remember it’s right up there with oxygen – that is, try living without it.

Saturday, September 23, 2017

How To Manage Property Refurbishment Costs

Whether you are managing a buy to let portfolio or looking to become a property developer with buy to sell, property refurbishment is going to be key to your success. Refurbishing your properties will increase their value, make them more attractive to your tenants and decrease what you will have to spend on maintenance. But, […]

If You Change Yourself, You Can Change Your Life | Jim Rohn

You cannot change the circumstances.

But you can get stronger, wiser, better. Jim Rohn_2015

Life is about constant, predictable patterns of change, and the only constant factor will be our feelings and attitudes toward life.

We as human beings have the power of attitude and that attitude determines choice, and choice determines results.

All that we are and all that we can become has indeed been left to us to decide and interpret through our attitude and choices.

Life is like the changing seasons—you cannot change the seasons, but you can change yourself.

So the first major lesson in life to learn is how to handle the winters.

They come regularly, right after autumn.

Some are long, some are short, some are difficult, some are easy, but they always come right after autumn.

That is never going to change.

There are all kinds of winters:   Away 1458513 1920

The “winter” when you can’t figure it out, the “winter” when everything seems to go awry.

There are economic winters, social winters and personal winters.

Wintertime can bring disappointment, and disappointment is common to all of us.

So you must learn how to handle the winters.

You must learn how to handle difficulty; it always comes after opportunity.

That is never going to change.

The big question is what to do about winters.

You can’t get rid of January simply by tearing it off the calendar. Checking monthly activities in the calendar

But here is what you can do: You can get stronger; you can get wiser; you can get better.

Remember that trio of words: stronger, wiser, better.

The winters won’t change, but you can.

Before I understood this, I used to wish for summer when it was winter.

When things were difficult, I wished they were easy. I didn’t know any better.

Then my mentor Earl Shoaff gave me the answer from a part of his unique philosophy when he said,

“Don’t wish it were easier, wish you were better. Don’t wish for fewer problems, wish for more skills. Don’t wish for less challenge, wish for more wisdom.”

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Friday, September 22, 2017

Weekend Reads – Must read articles from the last week

There are more interesting articles, commentaries and analyst reports on the Web every week than anyone could read in a month.

Each Saturday morning I like to share some of the ones I’ve read during the week.

The weekend will be over before you know it, so enjoy some weekend reading…and please forward to your friends by clicking the social link buttons.

Melbourne property prices: Will they continue to rise? Five economists predict

It may be the most livable city in the world ( 7 years in a row in fact) but it’s also become a challenging city to buy a property in.

So what can we expect from the Melbourne property market?

An article on Domain.com.au looks at what five top economists have to say.

Melbourne’s property price growth is among the strongest in the country, but economists are split on what prices will look like next year.  Melbourne-July

Domain asked five top Australian economists to provide their forecasts for price growth over the next 12 months – and the results were surprising.

For houses it seems the boom is yet to run its course, with the overwhelming majority of experts anticipating continued price growth.

But the big question mark hangs over the future of apartments.

There was little consensus about what that trajectory might look like for this part of the property market – with expectations ranging drastically for 2018’s unit outlook.

… it appears as though the long-overdue cooling in Sydney and Melbourne is poised to happen – Stephen Koukoulas, Market Economics

The panel

  • AMP Capital chief economist Shane Oliver
  • Market Economics managing director Stephen Koukoulas
  • Compass Economics chief economist Hans Kunnen
  • BIS Oxford Economics managing director Robert Mellor
  • Domain Group chief economist Andrew Wilson

House price outlook

  • Four expect prices to increase.
  • One expects prices to remain flat.
  • Highest outlook: prices up “5 to 10 per cent”
  • Lowest outlook: no growth

The one point all the experts surveyed agreed on was that Melbourne houses would not fall in price in the 2017-18 financial year, though Market Economics managing director Stephen Koukoulas did not expect any growth. 

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Mr Koukoulas anticipated a slowdown 12 months ago, which didn’t eventuate.

But he was not alone in his predictions then, with many seasoned experts anticipating the end of the boom.

With a crackdown on demand-side pressures — including higher interest rates for investors and interest only loans — and rising supply, Mr Koukoulas is confident the market will flat line now.

Even experts forecasting growth for this market were not expecting to see anything near the conditions of the year to June 2017 again when prices jumped 15.1 per cent.

For the four experts anticipating more upwards price movement, forecasts ranged from 2 per cent, as tipped by AMP Capital’s Shane Oliver, all the way up to nudging 10 per cent.

Melbourne’s median house price could be anywhere from about $866,000 to $935,000 by mid-2018 on these measures.

Compass Economics chief economist Hans Kunnen anticipated a strong growth trajectory for Melbourne in the bracket of 5 to 10 per cent due to strong population growth and economic activity. melbourne

“Interest rates are not expected to rise and current APRA [Australian Prudential Regulation Authority] regulations seem to have stemmed the excesses of investment lending,” he said.

Domain Group chief economist Andrew Wilson pointed to a “raft of predictions of doom and gloom for Melbourne this year that have proven nonsensical” but he didn’t anticipate any double digit annual growth figures in the near-future.

The panel was less certain about what would happen in the apartment market.

Apartment outlook

  • Three expect prices to fall.
  • Two experts predict prices to grow.
  • Highest outlook: prices up “5 to 10 per cent”
  • Lowest outlook: price falls of 5 per cent

Both Dr Oliver, Mr Koukoulas and BIS Oxford Economics managing director Robert Mellor expected unit prices would decline.

And if these predictions pan out, it could leave Melbourne’s current median apartment price of $474,848 dropping to anywhere between $451,106 and $465,351 by June 2018.

The most bearish predictions came from Dr Oliver, who said his outlook of a 5 per cent fall was based on unchanged interest rates for the next 12 months, but a likely increase of 25 basis points for bank mortgage rates on interest-only loans for investors.

Read the full article here

Lending finance picks up

Despite a turbulent year – it would seem lending finance has taken a positive turn.

This Blog by Pete Wargent shows the statistics behind the results.

Having a lend

Lending finance was shaping higher again by July, back up to $71.6 billion in trend terms, to be +6.7 per cent higher than a year ago, and getting pretty close to the highs of 2015.

Lending Finance

Commercial lending to businesses picked up, which is generally seen to be a good sign, while housing lending to owner-occupiers hit a record high.

Lending Finance2

Personal lending commitments are tracking back down at levels not seen since 2002.

Read the full article here

Australia’s housing market is cooling down, but there’s no sign it’s anything more sinister than that

It would seem that not a day goes by where we’re not bombarded by an ‘economic collapse’ headline.

But is it all really that gloomy?

An article from Business Insider looks at the what’s really going on in the Australian housing market – and puts some of those ‘dramatic’ headlines to rest.

Whether measured by auction clearance rates or price growth, Australia’s housing market is starting to slow down. risk investment market

But, as yet, it’s nothing more sinister than that.

According to data released by CoreLogic today, a preliminary clearance rate of 71.7% was recorded across Australia’s capital cities last week, marginally higher than the 70.5% preliminary reading reported one week earlier.

The preliminary reading points to the likelihood that the final clearance rate for the week, released on Thursday, will sit in the high 60% region, continuing the pattern seen since the start of June.

The final clearance rate for the week ending August 13 stood at 67.5%.

Corelogic-auction-clearance-rates-aug-21-2017
Source: CoreLogic

After recording its first sub-70% reading since July last year, Melbourne’s high-flying housing market returned to form last week with a preliminary clearance rate of 77.7%, the highest of all Australian capitals. melbourne

Sydney, at 70.8%, also put in a reasonable showing, although it still remains well below the levels seen at the start of 2017.

Both cities recorded final clearance rates of 69.8% and 67.6% in the previous week.

Of the smaller capitals, clearance rates improved week-on-week in Brisbane, Perth and Hobart, but fell in Adelaide and Canberra.

CoreLogic said that auction volumes were almost unchanged from a week earlier, although they remained significantly higher than the same period a year earlier.

“There were 2,041 capital city auctions this week, virtually unchanged from last week’s 2,040 auctions as well as being higher than the 1,795 auctions held one year ago,” the group said, adding that “volumes continue to track higher than what was seen over the corresponding July-August period last year”.

In Melbourne and Sydney, Australia’s largest auction markets, volumes increased in Melbourne but fell in Sydney compared to a week earlier.

Read the full article here

How many properties does it take to retire comfortably?

We all want to know that our financial future is secure – so what does it really take to make that happen?

This article from News.com.au looks at just how many properties it would take to retire comfortably.

WHEN it comes to real estate investors, those with multi-property portfolios aren’t that common, but it’s just as important to know when to stop as when to start. 40392725 L

According to CoreLogic analysis of ATO and ABS data, just over two million Australians held an interest in an investment property in 2015.

Of that two million, 71.6 per cent had just one property, while just 18 per cent held two.

From there the numbers continued to drop dramatically to the point where investors with six or more totalled a minuscule 0.9 per cent of the investor population — or just over 19,000 people.

But those 19,000 Australian are onto something according to Destiny founder, Margaret Lomas — as long as they know when to stop.

According to Ms Lomas, a portfolio of seven properties is enough to provide a comfortable retirement.

“It’s really a value more than a number, but because people like numbers, I always think seven is about it — but we’ve got to understand how that seven then rolls out over a lifetime,” Ms Lomas said. house property

Ms Lomas said if you have the means to buy seven properties in one go, then good on you, but the vast majority of investors need long-term plans.

“If you’re like the normal, everyday person, you’re going to start with one and it’s going to take you a couple of years before you’re ready to buy a second,” Ms Lomas said.

“They might reach the fourth year with three (properties) and then by the time they get to year five and six, they’re at that point where they probably can buy two at once, and they’ve got more of an appetite for risk,” she said.

“To have a $100,000-a-year lifestyle, your need to have a clear (debt free) $2 million worth of property.

If you’ve bought seven and you’ve given those 15 years (growth), there’s a chance you’re going to get there, but I don’t want people thinking they’re going to make millions and millions out of property very quickly, because it doesn’t happen that way,” she said.

Ms Lomas said investors are sold the mindset to own more than this by ‘advisers’ with vested interests. suburban houses

“I blame the spruikers for that because obviously it’s in a spruiker’s best interest to have a client come on board and buy as many properties as they possibly can, and we all know a spruiker will make their money out of a property sale,” Ms Lomas said.

“For every sale that goes through, they’re probably in for (commissions of) anything between $20,000 to $40,000, and the more they can get a particular client to buy, the more that client is worth to them over their lifetime,” she said.

GROWTH OR CASH FLOW? 

Ms Lomas said forget about the capital growth vs. cash flow debate when selecting an investment, because you can have both.

She said look for areas with price-growth drivers like infrastructure development, increasing numbers of families, diversity of industry for jobs and limited development to keep supply down.

“Your aim as an investor is to spot growth drivers.

Once you’ve done that, you’ve got to find the kind of property in that area that’s going to appeal to both buyers and renters,” she said. property investment

Ms Lomas said over the long-term, the right properties will see good growth and achieve a comfortable five per cent yield to help service the debt.

GOT THEM! NOW WHAT?

Ms Lomas said once you’ve acquired the investments, hold off on action for as long as possible.

She said smart investors will even use their superannuation first in retirement so the portfolio has more time to rise in both rent and value.

“When you get to the point where your superannuation is starting to wear a little thin, then your property should be good to go,” she said.

Ms Lomas said, depending on circumstances, you can either live off your portfolio’s positive rental income, or choose to sell down some holdings to reduce the debt on others which boosts your total returns.

Read the full article here

How To Nail A Job Interview

What does it really take to nail a job interview?

Is it your appearance? Your resume? Or you research abilities?

According to an article in The Huffington Post it’s a collection of factors – keep reading to find out what they are.

No matter how confident you are you’re right for the job, mucking up the interview process could see you catapulting back to Seek in no time.  Handshake 2056023 1920

Which is a bummer, because finding your dream job can be hard enough at the best of times, and to be granted an interview is to say you’re in with an actual chance of landing it.

So how do you ensure you nail your interview and walk away with the gig?

HuffPost Australia spoke to people leadership expert Karen Gately to find out.

How important are first impressions?

“I think they are actually incredibly important, because as human beings our brains are wired to determine what is good or what is bad, to put it that simply, in the first instance,” Gately said.

“Everything about us is wired to make judgment calls in a very short period of time.”  Interview 2211354 1920

Meaning how you look, talk and behave is all going to factor into whether or not you succeed, and it starts from the word go.

What should I wear to a job interview?

“You need to think about the audience and what sort of organisation you are going to,” Gately said.

“It’s important to have appreciation for their cultural environment and what the acceptable standard of dress is for them. Find out as much as you can, and do what you can to match it.

“But really, at the absolute minimum, if you are going to a family function or a function where there will be people you have a lot of respect for, you wouldn’t arrive like a slob. It’s a good rule of thumb to abide by.”

How early should I be?

“Always arrive 10 minutes before your interview, because it says, ‘I’m here, I’m ready to go when you are. I have planned to be here on time and have allowed room for error,” Gately said.

“In saying that, there is a thing as being too early. You don’t want to be there for so long they feel they have to entertain you. People 2566433 1920

What do I do if I’m running late?

Of course, despite our best intentions, sometimes life can get in the way and muck up our plans regardless. Gately’s advice?

“You phone, you don’t text, as a starting point,” she said. “A candidate did to my client last week. I was like really!?

What should I say when I’m asked about my weaknesses?

Ugh. The dreaded question.

“My first bit of advice is don’t say ‘I’m a perfectionist’. It annoys just about everybody who interviews people,” Gately said.

“I can tell you right now they’re going ‘yeah, yeah, you and everybody else.’

What do I do if a question is inappropriate? Application 2580867 1920

“Okay, so that is a judgment call. If they ask you a question that is unlawful — and the classic example of this is asking when are you planning on having kids — then in my own circumstances I would choose to walk away from a job opportunity than work for an employer willing to discriminate against me. But that’s just me,” Gately said.

“Of course, there are different circumstances. For instances sometimes people can just ask really dumb questions and it’s ignorance as opposed to trying to be discriminatory.

How do I stand out from the crowd?

If you think there are likely to be lots of candidates vying for the same role, you might want to think of ways you can stand out. But Gately warns it really isn’t a one-size-fits-all kind of policy, and you will need to do your homework beforehand.

Can you ever be too prepared? business-1149630_1920

According to Gately, the answer is no. But you can be too scripted.

“You can’t be too prepared, but you can be too rehearsed. It’s one thing understanding the company and the role but if you are going to end up sounding like a robot, maybe put the books down and go with the flow a little bit.”

Is it OK to follow up on a job interview?

Not only is it okay, it’s encouraged.

“You should definitely follow up and you will get varying degrees of quality feedback,” Gately said. “If you are still going through the process, you can ask for feedback to prepare for the second round.

“It’s perfectly fine to say ‘I’m just asking for some insights so I can reflect on for being well prepared for next time’.

What are the worst things someone could do in a job interview? iphone-518101_1920

“Don’t ever, ever put your mobile phone in the middle of the table in preparation for a phone call,” Gately said. “I’m telling you because a guy did this to me, and when his phone rang, he answered it.’

“But other things to steer clear of are swearing — it’s just not worth it. Even if they are swearing, it’s a risky place to go. It might seem as though you are getting a bit too familiar.

How do I deal with nerves?

“My attitude toward this is this: if you have put your hat into the ring and you are stepping forward for a job interview, you can choose to believe you are great candidate. So often we spend so much time obsessing over all the reasons they might reject us and why we might not get the job, and so little time thinking about why we are right.

Read the full article here

Weekend video: The Real Story Behind Donald Trump’s Wealth

Melbourne’s property market outperforms all others once again

Melbourne’s residential property market has outpacedMelbourne Downtown Cbd Skyline Sydney’s and in fact all the other capitals, for the third quarter in a row.

Real estate prices in Melbourne rose 3 per cent over the three months to June, according to the latest Australian Bureau of Statistics data, while Sydney had an increase of 2.3 per cent.

On a weighted average basis, home values across Australia’s capital cities rose by 1.9% leading to an annualised gain of 10.2.

Graph01

Source: ABS

According to the ABS:

  • Melbourne property prices grew 3 per cent in the three months to June 30, outpacing a national average of 1.9 per cent,.
  • Sydney was second strongest for growth over that period at 2.3 per cent, followed by Hobart at 1.8 per cent and Canberra (1.3 per cent).
  • Perth and Darwin recorded falls of 0.8 per cent and 1.4 per cent respectively.

Graph02

Source: Domain

graphic-mel-new

These figures reflect the June quarter, but since then the property markets in our two big capital cities have lost some momentum but the Melbourne property market seems to be holding up better buoyed by its stronger population growth.

Sydney auction clearance rates are falling, more properties are being sold prior to auction and home upgraders are staying put and often renovating rather paying the high price required to move house

Looking ahead there are no obvious signs of a property crash ahead – just signs of more modest growth.