February 2017 - Property Women

Monthly Archives: February 2017

The Top Six Mortgage Mistakes Women Need to Avoid

We all make mistakes, sometimes it is the best way to learn. But when it comes to property investment, mistakes can be costly. By learning from others, you can modify your strategies and create a smoother experience. TRACY KEAREY highlights six mortgage mistakes that savvy investors should avoid to build a successful property portfolio.

Building a property investment portfolio can provide a steady source of income and eventually profit, when you decide to sell. However, maximising profit is a balancing act between choosing the right property, the right suburb and the right home loan.

Buying, financing and managing your investment property portfolio requires time, skill and experience. You need to do your homework, consider your current financial situation, long-term investment goals, costs and exit strategy. Success in property investing is about being prepared before jumping in.

Here's 6 mortgage mistakes you need to avoid:

Mistake #1: Purchasing based on emotion

New investors often choose a property because they have fallen in love with it. The decision to purchase an investment property should be based on affordability, market value, rate of occupancy, location, surrounding infrastructure and future growth potential. All investment decisions should be free of emotion and based on the overall potential return.

Mistake #2: Not being finance ready

The kind of property being purchased and location determines how much finance or rather the percentage of finance you can secure against a particular property. For example, lenders treat off-the-plan CBD apartments or student accommodation differently to units and homes - often restricting the amount they will lend. Before signing contracts ensure your finance is pre-approved so you are clear on the amount you can borrow for the kind of property you want to buy.

Mistake #3: Not using the right structure to borrow

Many investors are so keen to buy an investment property, they will do it at any cost and sometimes borrow using the wrong structure. For example, using cross-collateralisation on several properties in your portfolio. It can be a risky choice and depending on the total borrowings, it might prove difficult to release a security in the future should the need arise.

Mistake #4: Not engaging the right support team

One of the biggest mistakes you can make when new to the property investing game is to try and do it all yourself. The key to achieving success in property investing is to engage the right support team so you have access to research and knowledge. Organisations such as Property Women are ideal for educating and guiding you through the investing process.

Mistake #5: Not accounting for additional costs

As an investor, you need to account for extra costs like stamp duty, GST and other expenses before seeking finance. It is important to have enough cash reserves to cover mortgage repayments, council rates, maintenance, insurance, property management fees and utilities amongst other fees, should you find yourself without tenants for any length of time.

Mistake #6: Not reviewing your portfolio often enough

Banks and lenders are continually altering their interest rate offerings and there's always great deals to be found. Sticking with the same lender year in and year out could cost you thousands of dollars. So, ditch the 'set and forget' mentality and review your loans every year. If you want a free review of your current loans to find out if you have the best structure and interest rate, please give me a call.

There is no doubt that when it comes to investing in property, knowledge is power. Whether you are new to property investing or purchasing subsequent investment properties, avoiding the common mistakes made by others will ensure you build a successful property portfolio.

Author: Tracy Kearey
Managing Director and Mortgage Specialist
Home Loan Connexion Pty Ltd

Tracy is a long term guest speaker and friend to Property Women having worked with dozens of members in supporting them toward their property goals.

Tracy comes highly regarded, an award winning professional who understands finance and what loan structures will not only suit your next purchase but position your buying power so you can grow your portfolio.

You can contact Tracy directly through from the link below.





Why I’m NOT Setting Any Goals This Year

By Miriam Castilla

I used to set a lot of goals. In fact, I was a fanatical, goal setting machine.

Determined to do everything in my power to achieve my goals and dreams, I did it all.

I carried a goal card in my wallet with my big goal outlined in perfect SMART goals manner (specific, measurable, actionable, realistic and time specific). I’d read the card several times a day and had a copy stuck on my car’s dashboard and another inside my bathroom cabinet.

I also diligently wrote out a list of another 21 specific goals each & every day.

I was determined to succeed. It had to happen!

But eventually, it all became very tiring and I would dread pulling out that little card. It made me feel like a failure. It was just a big fat lie on a card.

So now I no longer do ANY of those things and my life has become more incredible than I ever could have imagined.

After my disillusionment with goal setting, I became a Clinical Hypnotherapist and Infinite Possibilities Trainer. I studied everything from neuroscience and quantum physics to Universal Laws and the unconscious mind to figure out why people don’t achieve their goals and how to unlock that missing piece of the puzzle. I wanted to know how to get into that magical flow where everything just comes together so easily.

I found 2 main issues with goal setting:

  1. Specific goals create a sense of worry and pressure. Your goals end up stressing you out which stops your brain from building new connections and chokes the flow of intuition and creativity. Specific goals also limit the infinite possibilities that exist for you to achieve your dreams.
  2. Constantly making a list of things you’ve not achieved yet and checking for them reinforces the ‘not having it yet’ part and so you keep getting more of the same. You wind up stuck!Since we’re all being told that goal setting is the way to make our dreams come true, we often to suffer quietly and try to ‘push through’. You’re trying to feel upbeat about your goals, but your gut tells another story and so you suffer quietly and feel like a failure. This only makes it worse!

Luckily there’s an easier, more fun and powerful alternative that’s not littered with traps to bring you undone and also covers all the things that ARE positive about goal setting.
So what’s this magic pill?

Vision inspires and pulls you, whereas goals motivate and push you.

Vision taps into the ancient part of your brain that drives behaviour, it helps you powerfully connect to the end result on an emotional level which creates alignment for all the pieces of the puzzle to come together and Vision programs your brain so you actually become that person you aspire to!

Incredibly, creating a Vision is as easy as it is powerful.

To get started, simply make a vision board and spend 4-5 minutes a day standing in front of it, imagining scenarios in your mind that match the images on your board. Put as much emotion into the experience as possible. Your emotions are powerful chemicals that literally change your brain.

And as you start to change on the inside, your outside world will change as well.

It really can be that simple.

If you’d like to get learn more, keep an eye out for the free online workshop I’ll be running for Property Women soon.

By Miriam Castilla