Category Archives for "Newsletter"

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.

http://propertywomen.com.au/property-experts/property-professionals/ppn-finance-brokers/tracy-kearey/

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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.

http://propertywomen.com.au/property-experts/property-professionals/ppn-finance-brokers/tracy-kearey/

 

 

Pets and Your Rental Property....

Pets and Your Rental Property….

Pets and Your Rental Property....

Australians love their animals, and many renters would love the opportunity to keep pets but the reality is that not a lot of landlords allow pets in their properties.

There are some significant benefits to renting your property out to pet owners which include:

  1. A Pet-Friendly rental property may help broaden your pool of prospective tenants
  2. Which in turn decreases the number of days your property remains unrented
  3. Responsible pet owners can make great responsible tenants
  4. Pet owners are more likely to stay longer in pet friendly properties
  5. You could also charge more rent for the property if you are offering a pet friendly environment

Many landlords have a fear that pets may destroy their properties, but in reality most pet owners are extremely responsible and there are ways you can mitigate any of the risks that come with allowing tenants with pets such as…

  1. Putting together a Pet Agreement – which could change depending on the type of Pet your tenant has. An example of this would look as follows, courtesy of  ‘Managing Your Investment Property’ by Rachel Barnes and Geoff Doidge.

The ______ (insert breed) dog named _______ (insert name) and aged (insert age) and registered (insert number of registration) must be suitably kennelled at ____ identify location of kennel on property) and must not be allowed to live inside the house.

The tenant acknowledges that the landlord has agreed to allow the tenant to keep (insert name of dog detailed above) on the property as a specific term of the agreement and the landlord does not warrant or imply in any way that it will consent to other dogs being kept on the property in the future.

If the tenant wishes to keep a different dog than (insert the name of dog detailed above) the tenant must obtain the prior written permission of the landlord. The landlord is not obliged in any way to grant consent to any other dog being kept on the property.

The tenant must remedy any damage caused by the dog to the house or grounds immediately.

The tenant must regularly clean dog fouling from the grounds.

The tenant must control the dog so that it is not allowed to roam beyond the boundary section and it is not allowed to create any other type of nuisance to neighbouring properties.

The tenant must restrain the dog on days the landlord advises an inspection is due to be carried out.

The tenant must pay to have the carpets cleaned and the yard treated for fleas when they vacate the premises.

If any of these terms are breached, the landlord may follow standard procedures relating to breach of tenancy agreement.

  1. Check references: If the persons rented a previous property and they had their pet check with the Property Manager to ensure that they left the premises as expected and that there were no complaints from neighbours re pet noise etc.
  2. Make your Property Pet Friendly: If you take the time to ensure your property is pet friendly, this will assist with any issues. Take for example a tiled house instead of carpeted, this would help with any accidents and mess left when the tenant vacates.
  3. Ensure that regular inspections are carried out. Book in regular property inspections, that way you can quickly pick up any issues that are being caused by the pet.
  4. Get insured. Make sure your landlords insurance will cover the costs of any damage that could be caused by pets.

So next time you are considering renting out your property why not consider rent it out to a Pet owner.

Stunning renovation, under $25k budget

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Is it possible to do a fast renovation, on a shoestring budget, that’s also PROFITABLE?

Well, YES IT IS and in this new video by my good friend, Jane Slack-Smith, you’ll see exactly how it’s done…step by step.

Check it out now: freerenovideo.com.au

In this video, she pulls back the curtain and shows you a real-life renovation case study.

She will show you the areas to improve, the products used, the paint colours, the landscaping, and even the results and numbers.

By the end of this video, you’ll know exactly where within a property to add the most value… even with a “tiny budget”… and how to do it WITHOUT “gambling away” your money.

This is a must-watch video if you’re serious about renovating for profit or building a property portfolio quickly.

freerenovideo.com.au

Enjoy!

declutter; airbnb

Declutter your Life

September is renowned for being about ‘Spring cleaning’. Traditionally this concept was after an intense Winter hibernation which most Australians don’t truly experience.
There is just something about this season that is energising and having blocked spaces in your life can be clinically unhealthy and impact your mood, relationships and motivation.

Decluttering seems to be a term we use frequently these days. It is growing in its use because we accumulate so much STUFF!
People find it really difficult to part with sentimental items. 21st and Wedding gifts, inherited items, your children’s artwork or a great shirt from Led Zeppelins 1973 Australian Tour (…am so referencing my Dad here).

It does begin to become a burden and we increasingly require more storage and the ability to move freely evaporates.
We shut a door on the mess but the mess is still there. We chuck paperwork in a drawer but taxes still need to be done.

I was forced to declutter on a major scale before I started to short-term let my principle home.
I went crazy, it wasn’t easy but not a single item I removed comes to mind right now with any sentimental pangs.

To make decluttering easier I wrote out a list and stuck it where I could reference it – it might sound a little crazy but it went like this:
• Will I miss this item?
• Could it be replaced if needed?
• Does it add to my life?
• Does it enrich my life?
I even took photos of some cute baby clothes I had, then I bagged them up and gave them to charity. I was able to move some things from a dearly departed relative by thinking to myself – would they really want me to cart this item around for the rest of life? Was that the intent of the gift? No….

Super proud of my sporty hubby who had a HUGE amount of trophies from his track and field/soccer playing days. He tooks pics of them and moved them along.
CD’s and DVD’s – welcome to the digital age. We filled nearly 3 recycling bins of CD cases!

The benefits of decluttering are many but my highlights are:
• Everything looks better when it has a place and purpose
• You feel lighter….truly, you are weighed down by the clutter and accrued junk in your home and that one room/shed/garage/cupboard begins to erode your happiness
• You can make money from selling your stuff – Gumtree, Ebay and plenty of Facebook groups allow you to move unwanted items quickly
• If it doesn’t sell give it away for free or ensure the quality stuff finds its way to a charity in need
• Paperwork, sort it, file it, shred it or contact your bill provider and request email statements
• Use your good towels and good glasses – if it is feral – you don’t deserve that, use the good stuff!
Once decluttered you have choices. What a great opportunity to freshen up your living space with new paint/flooring, what about getting a valuation done on your property.
You could be sitting on a pile of equity you couldn’t have imagined.

When your house looks good, you feel great, it reflects in your day-to-day performances and people will notice.
Then the thought of short-term renting is not too crazy or daunting anymore.

Happy September,
Jo

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