Integrity Property Investment https://www.integritypropertyinvestment.com.au Australia's Leading Property Investment Education Provider - We provide the necessary education, mentoring, research, property selection, and other services essential to being a successful property investor. Tue, 02 Jul 2019 01:54:57 +0000 en-US hourly 1 https://www.integritypropertyinvestment.com.au/wp-content/uploads/2017/02/cropped-logo1-2-32x32.png Integrity Property Investment https://www.integritypropertyinvestment.com.au 32 32 Australia's Leading Property Investment Education Provider - We provide the necessary education, mentoring, research, property selection, and other services essential to being a successful property investor. Integrity Property Investment clean Integrity Property Investment info@integrityproperty.com.au info@integrityproperty.com.au (Integrity Property Investment) Australia's Leading Property Investment Education Provider - We provide the necessary education, mentoring, research, property selection, and other services essential to being a successful property investor. Integrity Property Investment http://www.integritypropertyinvestment.com.au/wp-content/uploads/powerpress/podcast-ipis-848.jpg https://www.integritypropertyinvestment.com.au Think You Can’t Afford To Send Your Kid To A Great School? Think Again! https://www.integritypropertyinvestment.com.au/think-you-cant-afford-to-send-your-kid-to-a-great-school-think-again/ Wed, 24 Oct 2018 23:33:20 +0000 http://www.integritypropertyinvestment.com.au/?p=10684 https://www.integritypropertyinvestment.com.au/think-you-cant-afford-to-send-your-kid-to-a-great-school-think-again/#respond https://www.integritypropertyinvestment.com.au/think-you-cant-afford-to-send-your-kid-to-a-great-school-think-again/feed/ 0 <p>The post <a rel="nofollow" href="https://www.integritypropertyinvestment.com.au/think-you-cant-afford-to-send-your-kid-to-a-great-school-think-again/">Think You Can’t Afford To Send Your Kid To A Great School? Think Again!</a> appeared first on <a rel="nofollow" href="https://www.integritypropertyinvestment.com.au">Integrity Property Investment</a>.</p>

Think You Can’t Afford To Send Your Kid To A Great School? Think Again!

One of the reasons I often give for people wanting to invest in property is to afford the best schools for your kids. I do this because I believe education is important, and I find that it is one of the number one expenses that parents worry about.

So, I thought it was appropriate that I share this story with you about how property could quite literally send your kid to Oxford (or whatever their preferred top school might be).

I was at a function not long ago and I saw a friend of mine there. She’d recently got back to Australia from a family holiday in the United Kingdom. While she was there, she took her 10-year-old son to Oxford University. Obviously, he was inspired by the surroundings because he told his mum that he wanted to go there and study when he finishes high school.

My friend looked at me at this point in the story and said with a bit of a laugh, “Like I’m ever going to be able to afford that!”

But the thing is, there is a way that she can afford it. I explained to her the steps she needed to take…

  1. Use the available equity in her home to buy an investment property with current interest rates. She could borrow all of the money and it will pay for itself after tax.
  2. Let the property just sit there for the next eight years.
  3. Once her son turns eighteen and is ready for university, use the increased equity and increased rent to refinance the property and pay the expenses for Oxford.

My friend was quite blown away with the idea of it all, but I didn’t come up with it. People have been doing this for years!

If you have kids and want to provide for their future, go and buy an investment property for each of them. Use the equity in your home to get started. At today’s rates, you can get properties that will pay for themselves. These properties will keep increasing in value and rental income over the years, resulting in available equity to cover your child’s education.

And if little Jimmy or Jane ends up interested in something other than a top university, perhaps the funds can go towards their first car, the deposit on their first house, their wedding, or something else. The important thing is that it gives you options.

This is just one way of looking at property investing – it can help you achieve so much more! Property and money gives you choices you wouldn’t otherwise have.

Happy property investing!

Want to learn more about how property investing can secure your financial future?

Click below and gain access to a FREE webinar.

Daimien Patterson is the CEO of Integrity Property Investment, a property investment company based in Australia. He regularly produces books, blogs and videos on the topic of property investing, helping thousands of people create financial security and freedom through education and property investment. Get started today.  

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<p></p> Integrity Property Investment clean 2:21
Can Business Owners Invest In Property? https://www.integritypropertyinvestment.com.au/can-business-owners-invest-in-property-2/ Tue, 23 Oct 2018 00:28:32 +0000 http://www.integritypropertyinvestment.com.au/?p=10681 https://www.integritypropertyinvestment.com.au/can-business-owners-invest-in-property-2/#respond https://www.integritypropertyinvestment.com.au/can-business-owners-invest-in-property-2/feed/ 0 <p>The post <a rel="nofollow" href="https://www.integritypropertyinvestment.com.au/can-business-owners-invest-in-property-2/">Can Business Owners Invest In Property?</a> appeared first on <a rel="nofollow" href="https://www.integritypropertyinvestment.com.au">Integrity Property Investment</a>.</p>

Can Business Owners Invest In Property?

Are you a business owner and want to get started with property investing? Great! Business can be very profitable if you know what you’re doing. If you’re doing well, you might be looking for something to do with the money you’re making.

It is a good idea to channel at least some of your earnings into property, as it is one of the most stable investments with good returns. Your portfolio can give you some extra security that if you want or need to get out of your business in the future, you’ll have a stable passive income you can count on.

However, when it comes to property investing (particularly the financial side of it), there are a few things you need to be aware of as a business owner.

The Problem…

Many business owners structure their expenses and finances to minimise the tax they pay, which is very smart. They might pay for a lot of expenses (like their phones, cars, and home office space) through their business. This reduces the amount of profit the business makes, and therefore the amount of tax the business owes. They simply pay themselves a smaller income, as these expenses are being covered through the business.

The problem with this is that it can look like they are making a lot less money than they actually are, which will make it harder to get a loan from the bank.

So, it can take some planning and careful structuring for business owners to be able to get started with property investing. Here’s what you need to do…

    1. Give Yourself Some Time

Before you get started, you need to have been in your business for about two years. I only know of one bank that will lend you money after one year. For most banks, it’s two years.

    2. Be Profitable

For both of your two years in business, you need to be able to demonstrate that you’re in the green and your business is clearly making a profit. If it’s not already profitable, talk to your accountant and business advisors about how you can reduce your expenses and bring in a consistent stream of income.

   3. Use Add Backs

Good mortgage brokers who are familiar with working on behalf of business owners will use this technique called “add backs” which can demonstrate to a bank that you’re technically earning more than it might first seem. Allow me to explain…

Let’s say you only paid yourself $37,000 during the financial year. There might be a bunch of other things that you used your business for which technically added to your income by covering your expense (like phone bills, car repayments, etc.). Or major purchases through the company that you could have chosen to forgo and instead keep the cash as profit. For example, paying cash for a car that wasn’t totally necessary. Let’s say the car was $30,000… it could be demonstrated that this $30,000 could technically have been additional salary if you had wanted it to be, bringing the amount up to $67,000. Alternatively, you might have chosen to reinvest your cash into the business. A good mortgage broker can demonstrate this to help get your loan through when you appear to be earning less on paper than you actually are.

    4. Get a Good Broker

In case you haven’t already guessed, a good mortgage broker is integral to your success as a property investor, especially when your situation might be a little more complex. Find a good mortgage broker who gets it (we know a good one!) and know where your income needs to be before you can get started. Even if you don’t think you’re ready yet, talk to your broker now so you can get a solid plan in motion.

I know a lot of talented businesspeople who are doing well in their businesses, but many of them are missing out financially because they haven’t got serious about property investing yet. Most of them have homes sitting there with heaps of lazy equity that they could be putting towards investment properties. That’s heaps of money they’re leaving on the table.

If you’re a successful business owner, you know that you have a responsibility to use your resources for maximum impact in your company. It’s time to start looking at your personal finances the same way. Get serious about property. Talk to my team for more specifics on the best structure for your finances so you can grow a portfolio while you continue to grow your business.

Cheers,

Daimien J Patterson

Want to learn more about how property investing can secure your financial future?

Click below and gain access to a FREE webinar.

Daimien Patterson is the CEO of Integrity Property Investment, a property investment company based in Australia. He regularly produces books, blogs and videos on the topic of property investing, helping thousands of people create financial security and freedom through education and property investment. Get started today.  

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<p></p> Integrity Property Investment clean 3:43
Beware Of The FIFO Trap! https://www.integritypropertyinvestment.com.au/the-fifo-trap-2/ Wed, 17 Oct 2018 23:10:35 +0000 http://www.integritypropertyinvestment.com.au/?p=10678 https://www.integritypropertyinvestment.com.au/the-fifo-trap-2/#respond https://www.integritypropertyinvestment.com.au/the-fifo-trap-2/feed/ 0 <p>The post <a rel="nofollow" href="https://www.integritypropertyinvestment.com.au/the-fifo-trap-2/">Beware Of The FIFO Trap!</a> appeared first on <a rel="nofollow" href="https://www.integritypropertyinvestment.com.au">Integrity Property Investment</a>.</p>

Beware Of The FIFO Trap!

Today I want to talk to those of you who are FIFO workers. It’s a tough gig. You spend a lot of time working hard, long hours, away from your family, friends, and home. Why would anyone choose to do that? Well, it’s obvious. You want to get ahead in life. FIFO just pays better. There’s money in the mines, so it makes sense to follow it.

But here’s the thing… a large portion of FIFO workers just aren’t getting ahead. They’re trapped in a cycle of working more to spend more. Think about it…

While You’re at Work

You work hard, live a basic existence, and earn the big bucks (hopefully). You don’t get to see your family or your mates, you don’t get much leisure time, and most of your hobbies don’t come along with you. Your quality of life takes a major hit.

When You’re at Home

You have a week or more at a time back home, which is basically heaven… meanwhile, life goes on for everyone else. Your mates are all at work. Your family still has to go to school. You’re sitting at home, bored, with nothing much to do. You start feeling like your time off is going to suck again and it will be over before you know it, so…

You Spend Up BIG

Because, hey, if anyone’s earned the right to a bit of a treat, it’s you! So you compensate yourself for your lost time at work and your boredom at home. You buy a motorbike, a jet ski, a boat, and other types of things. You fill the hole and empty your pockets.

And Then You’re Trapped

It’s hard to give up a higher income once you get used to it. You get accustomed to buying things and living life at a certain level, and suddenly, returning to a normal job closer to home and going on a smaller income is less appealing by the minute. So your initial plan of doing FIFO for a year or so starts to look more long-term and permanent than you’d hoped. You’re trapped!

If you’re feeling a little trapped and this is resonating with you, please keep reading, because you can get out! Here’s what you need to do ASAP…

1.  Get Educated.

Get an education in wealth creation and property investing. I’d recommend that you watch my webinars and get any of the education we offer. People prioritise their money allocation (aka spending) based on their knowledge. Once you see the benefits of property investing and how powerful it can be when you get it right, you’ll be motivated to use your FIFO money for maximum impact.

2.  Save.

It seems obvious, but a lot of people still can’t seem to commit to a savings plan. Start putting money aside now. You can even set it up to happen automatically when your pay comes in. This will help you get into a property by saving for a deposit and demonstrating to the banks that you can afford a loan.

 3.  Get a Team.

Don’t go on your journey alone – that is the fastest way to fail before you even start. Get a reliable team behind you (like myself and my staff) who can provide you with knowledge and experience to help you get ahead.

4.  Remember Your Reasons.

Remember why you signed up for this in the first place. It’s probably not because you love plane rides, right? Remember that you want to get a head start in life, to benefit yourself, your partner, and your kids (if you have them). Stick to the plan!

5.  Have Fun!

Just because I’m telling you to save and prioritise getting into your property, doesn’t mean you’re never going to get to go on that holiday or buy the boat you’ve had your eye on. I’m just saying that there’s a better way to go about it. Get your property first so it can start growing and earning you money. Then go on that holiday or pursue whatever hobby you want. Because if you’ve bought a $500K property and it goes up 1%, that’s paid for your $5,000 Bali holiday, if you like. But if you go on your holiday before your buy your property, you’re not making any money and you’re setting yourself back financially.

Does that make sense to you? If you are on the FIFO journey and are interested in getting help and clarity around your property investing, get in touch with my team. That is something we can help you with – we do it all the time.

Happy property investing,

Want to learn more about how property investing can secure your financial future?

Click below and gain access to a FREE webinar.

Daimien Patterson is the CEO of Integrity Property Investment, a property investment company based in Australia. He regularly produces books, blogs and videos on the topic of property investing, helping thousands of people create financial security and freedom through education and property investment. Get started today.  

The post Beware Of The FIFO Trap! appeared first on Integrity Property Investment.

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<p></p> Integrity Property Investment clean 3:43
Is There Such A Thing As Good Debt? https://www.integritypropertyinvestment.com.au/is-there-such-a-thing-as-good-debt-2/ Mon, 15 Oct 2018 23:33:53 +0000 http://www.integritypropertyinvestment.com.au/?p=10670 https://www.integritypropertyinvestment.com.au/is-there-such-a-thing-as-good-debt-2/#respond https://www.integritypropertyinvestment.com.au/is-there-such-a-thing-as-good-debt-2/feed/ 0 <p>The post <a rel="nofollow" href="https://www.integritypropertyinvestment.com.au/is-there-such-a-thing-as-good-debt-2/">Is There Such A Thing As Good Debt?</a> appeared first on <a rel="nofollow" href="https://www.integritypropertyinvestment.com.au">Integrity Property Investment</a>.</p>

Is There Such A Thing As Good Debt?

Let’s talk about debt. How do you feel when you hear the word “debt”? Does it bring up negative or positive connotations?

For most people, debt, or owing money, is a bad thing. It’s something that makes them uncomfortable, keeps them up at night, and stops them from doing things they’d otherwise jump at. But I’m here to tell you that not all debt is bad. In fact, there is such a thing as good debt!

What is Good Debt?

Good debt is debt that is acquired in order to buy real assets. A real asset is something that generates an income for you. The reason this debt is good is because the income produced by an asset can cover the interest charged on the debt (and other costs). You end up being in front! And of course, that’s a very good thing.

An example of good debt is a loan that you get for an investment property. Because your property is going to increase in value and produce a rent (that will continue to go up), it can service the loan and is therefore good debt.

What is Bad Debt?

Bad debt is a loan that is acquired in order to purchase something that decreases in value and does not produce an income.

Some examples of bad debt are cars, jet skis, weddings, holidays, and all those types of things. Debt on these items is only costing you money, not bringing in an income.

If you have bad debt, it’s important to wipe it out as quickly as possible. It’s not serving you financially. However, if you have good debt, you can relax, because it’s working to make you wealthier.

There’s an old saying in wealth creation that says, “No one ever got rich without getting into debt.”

But I like to change this a little and say, “No one ever got rich without getting into good debt.”

The distinction between the two could be the difference between being financially free and financially ruined.

Want to learn more about how property investing can secure your financial future?

Click below and gain access to a FREE webinar.

Daimien Patterson is the CEO of Integrity Property Investment, a property investment company based in Australia. He regularly produces books, blogs and videos on the topic of property investing, helping thousands of people create financial security and freedom through education and property investment. Get started today.  

The post Is There Such A Thing As Good Debt? appeared first on Integrity Property Investment.

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<p></p> Integrity Property Investment clean 1:52
Is Your Home An Asset Or A Liability? https://www.integritypropertyinvestment.com.au/is-your-home-an-asset-or-a-liability-2/ Thu, 11 Oct 2018 00:34:07 +0000 http://www.integritypropertyinvestment.com.au/?p=10642 https://www.integritypropertyinvestment.com.au/is-your-home-an-asset-or-a-liability-2/#respond https://www.integritypropertyinvestment.com.au/is-your-home-an-asset-or-a-liability-2/feed/ 0 <p>The post <a rel="nofollow" href="https://www.integritypropertyinvestment.com.au/is-your-home-an-asset-or-a-liability-2/">Is Your Home An Asset Or A Liability?</a> appeared first on <a rel="nofollow" href="https://www.integritypropertyinvestment.com.au">Integrity Property Investment</a>.</p>

Is Your Home An Asset Or A Liability?

Most Australians go through life thinking that their home is an asset. But this is a big mistake!

A real asset is something that is worth something and also generating you an income. Some examples of real assets are share portfolios that pay dividends and investment properties that have surplus rental income, and perhaps even YOU if you generate an income by working. But does your family home generate an income? No.

In fact, your home is a liability, not an asset. Even once it has been completely paid off, you will still need to pay rates each year (that’s $2,000 on average), insurance (probably totalling $1,000), maintenance, and more. The older a property is, the greater your yearly maintenance costs, as carpets, curtains, and air conditioners need fixing or replacing… the gardens need maintaining, and paint needs a refresh.

If you are pumping all of your earnings into paying off your house (plus all the expenses it generates), instead of acquiring real assets that will produce an income, you’ll end up owning your home but you’ll be stuck working indefinitely to pay for it.

What’s the alternative? Acquire real assets! Instead of focusing on your own home, look at other options like renting the home you live in, and buying an investment property (often this makes more sense financially).

Stop looking at your home as an asset, because this mindset isn’t going to serve you long-term.

If you want to be financially free, you will need to generate a passive income so that you don’t have to keep working. The only way you can do that is with real assets.

Want to learn more about how property investing can secure your financial future?

Click below and gain access to a FREE webinar.

Daimien Patterson is the CEO of Integrity Property Investment, a property investment company based in Australia. He regularly produces books, blogs and videos on the topic of property investing, helping thousands of people create financial security and freedom through education and property investment. Get started today.  

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<p></p> Integrity Property Investment clean 2:40
The Sneaky Way To Tell If Interest Rates Are Going To Go Up https://www.integritypropertyinvestment.com.au/the-sneaky-way-to-tell-if-interest-rates-are-going-to-go-up-2/ Tue, 09 Oct 2018 00:55:10 +0000 http://www.integritypropertyinvestment.com.au/?p=10634 https://www.integritypropertyinvestment.com.au/the-sneaky-way-to-tell-if-interest-rates-are-going-to-go-up-2/#respond https://www.integritypropertyinvestment.com.au/the-sneaky-way-to-tell-if-interest-rates-are-going-to-go-up-2/feed/ 0 <p>The post <a rel="nofollow" href="https://www.integritypropertyinvestment.com.au/the-sneaky-way-to-tell-if-interest-rates-are-going-to-go-up-2/">The Sneaky Way To Tell If Interest Rates Are Going To Go Up</a> appeared first on <a rel="nofollow" href="https://www.integritypropertyinvestment.com.au">Integrity Property Investment</a>.</p>

The Sneaky Way To Tell If Interest Rates Are Going To Go Up

I can’t give you a crystal ball (wouldn’t that be handy?), but I can perhaps give you the next best thing. I can tell you how to make a calculated guess at whether the interest rates are likely to go up or down in the near future.

Here’s how…

The banks employ huge numbers of economists who predict what the interest rate is likely to do. This is important, because the banks want to be in the know so that they price their lending rate appropriately. So, if you want to know what these economists are thinking, all you have to do is see what the banks’ lending rates are doing.

Fixed Rates

Fixed rates are usually priced above the variable rate. This is because the banks need to work in some “cushioning” in case the RBA dramatically increases the interest rate during the fixed interest period of your loan.

Variable Rates

Variable rates are usually priced below the fixed rate, because the bank can simply adjust your lending rate as the RBA makes changes to the interest rate.

Compare the Two

If you look at the banks’ fixed rate and it is significantly higher than the variable rate, the economists think that the RBA is going to put interest rates up.

If the fixed rate is somewhat higher than the variable rate, the economists think the RBA is going to keep the interest rate steady.

If the banks’ variable rate is similar to or higher than the fixed rate, then the economists think that the RBA is likely to drop the interest rate further.

 

Does that make sense to you? If you look at things from the banks’ perspective, comparing the variable and the fixed interest rates is the smart property investor’s trick to predicting what interest rates are likely to do!

Want to learn more about how property investing can secure your financial future?

Click below and gain access to a FREE webinar.

Daimien Patterson is the CEO of Integrity Property Investment, a property investment company based in Australia. He regularly produces books, blogs and videos on the topic of property investing, helping thousands of people create financial security and freedom through education and property investment. Get started today.  

The post The Sneaky Way To Tell If Interest Rates Are Going To Go Up appeared first on Integrity Property Investment.

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<p></p> Integrity Property Investment clean 1:54
How Are Interest Rates Set In Australia? https://www.integritypropertyinvestment.com.au/how-are-interest-rates-set-in-australia-2/ Thu, 04 Oct 2018 01:20:14 +0000 http://www.integritypropertyinvestment.com.au/?p=10589 https://www.integritypropertyinvestment.com.au/how-are-interest-rates-set-in-australia-2/#respond https://www.integritypropertyinvestment.com.au/how-are-interest-rates-set-in-australia-2/feed/ 0 <p>The post <a rel="nofollow" href="https://www.integritypropertyinvestment.com.au/how-are-interest-rates-set-in-australia-2/">How Are Interest Rates Set In Australia?</a> appeared first on <a rel="nofollow" href="https://www.integritypropertyinvestment.com.au">Integrity Property Investment</a>.</p>

How Are Interest Rates Set In Australia?

Understanding interest rates should be an essential part of every property investor’s (and indeed, every Australian citizen’s) education.

After all, they have a huge effect on not only an investor’s portfolio and finances, but how our country’s economy works.

How Interest Rates Used to be Set

Just a couple of decades ago, interest rates were set by the government. The Reserve Bank of Australia would lend money to banks, who would then lend money to consumers. The RBA lends the money at a variable rate to banks, and the banks pass this rate on with a mark-up to make some money in the process.

The problem with public servants and the government controlling the interest rate was that they could use it to their political advantage. After all, the interest collected by the RBA is revenue for the government that is then used to pay for their expenses and promises, so parties would ramp up interest rates when they had bills to pay, which, as you can imagine, was not healthy for the economy.

How Interest Rates are Set Now

During the recession in the 90s, then Prime Minister Paul Keating decided to make the RBA independent, by setting an independent board to govern it with the following duties and goals:

  • To stabilise the currency of Australia
  • To help maintain employment levels
  • Ensure the economic prosperity and welfare of Australians

Source: http://www.rba.gov.au/about-rba/history/

The ideal inflation rate was identified as 2-3% per year on average to ensure these targets were met. The RBA board is able to influence inflation rates by adjusting the interest rates. Here’s how…

  • Each month, they check the prices of key indicators – everything from the price of milk to the price of petrol, and everything in between
  • Price trends are noted to see what inflation is doing
  • If it appears that inflation is going up significantly, the RBA board will put the interest rate up
  • In turn, the banks will increase their lending rate, which will result in homeowners and property investors having less money to spend, which reduces pressure on inflation
  • The opposite will happen if inflation is going down significantly
  • The RBA will drop the interest rates, leading to banks dropping their lending rate, and anyone with a mortgage will find they have more money to spend, which will help inflation level out again

Thus, the RBA helps to stimulate or de-stimulate the economy as needed.

What GFC?

You’ll have to admit that it’s a pretty brilliant system, which is evidenced by how well we did even through the Global Financial Crisis. When the crisis hit Australia, the RBA board dropped interest rates by about 4.5% in just 6 months, a move which helped to keep the economy stable when the rest of the world was in turmoil.

I can remember when the GFC hit Australia and I had a multi-million-dollar property portfolio. Was I worried? Nope! Interest rates dropped and I certainly didn’t feel affected by any financial strife.

Historical Interest Rate Trends

I like looking at the historical basis for interest rates, and what events have caused them to go up and down. Take a look at the graph below. The blue line is the RBA’s interest rate, and the black line is the banks’ lending rate.

So, let’s talk about some of the events that correlate to the peaks and troughs we’re looking at.

1990: We were at the height of the recession with double digit interest rates. The board governing the RBA was made independent, driving the rate down to stimulate the economy.

1995-6: The economy starts to recover and the tech boom takes off. Shortly after this, the tech collapse occurs in the late 90s.

2001: September 11 terrorist attack in America, resulting in Wall Street closing for two weeks. The world was massively uncertain about the markets. America invaded the Middle East, Afghanistan, and then Iraq. As a result of this uncertainty, the RBA dropped the rate.

2002- 2008: Australia enters a time of great prosperity and interest rates go up gradually.

Oct 2008: The GFC hits, resulting in interest rates dropping from 6.5% down to 2.25% in a short amount of time.

2010-11: Things go quiet as Australia starts to recover, and is seen as one of the top investment choices around the world. Australia also gets a mining booms which further boosts the economy and interest rates go up to slow inflation.

2012: The mining boom comes to an end and interest rates fall again.

Interest Rates in 2017

So, where are interest rates at right now? We’re sitting at 1.5%, the lowest our country has ever seen, and they’re going to stay there for quite a while.

This is a GOOD opportunity for savvy property investors to get into property now, fix their rate for, say, 5 years, and hold the properties for that period, while rents go up, and then reassess at the end of the period.

Want to learn more about how property investing can secure your financial future?

Click below and gain access to a FREE webinar.

Daimien Patterson is the CEO of Integrity Property Investment, a property investment company based in Australia. He regularly produces books, blogs and videos on the topic of property investing, helping thousands of people create financial security and freedom through education and property investment. Get started today.  

The post How Are Interest Rates Set In Australia? appeared first on Integrity Property Investment.

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<p></p> Integrity Property Investment clean 6:29
There Are Two Types Of People In This World, Which One Are You? https://www.integritypropertyinvestment.com.au/there-are-two-types-of-people-in-this-world-which-one-are-you/ Tue, 02 Oct 2018 00:35:40 +0000 http://www.integritypropertyinvestment.com.au/?p=10555 https://www.integritypropertyinvestment.com.au/there-are-two-types-of-people-in-this-world-which-one-are-you/#respond https://www.integritypropertyinvestment.com.au/there-are-two-types-of-people-in-this-world-which-one-are-you/feed/ 0 <p>The post <a rel="nofollow" href="https://www.integritypropertyinvestment.com.au/there-are-two-types-of-people-in-this-world-which-one-are-you/">There Are Two Types Of People In This World, Which One Are You?</a> appeared first on <a rel="nofollow" href="https://www.integritypropertyinvestment.com.au">Integrity Property Investment</a>.</p>

There Are Two Types Of People In This World, Which One Are You?

In our series on fears and blocks to investing in property, we’re up to number seven, which is caring family.

If you have a caring family, that’s wonderful. Not everyone is as lucky as you! But when it comes to sharing your property investing dreams, goals, and plans, you might be surprised to hear that it’s best to keep it to yourself.

I have seen this happen so many times… a new property investor will be ready to go, and on the verge of making a really exciting step in their journey, when all of a sudden, things grind to a halt. When I get down to the truth of the matter, I find that they’ve opened up to their mum, sister, uncle, or whatever, and their family member has discouraged them from moving forward.

Even if you know that you’re making the right choice, financially, and all the numbers are stacking up, it can be hard to move forward with your property investing journey once you come up against family. Here’s why…

  • They just don’t get it
  • They’re afraid of you failing or getting hurt, but they don’t understand why it won’t happen
  • You really want to take their advice out of respect to them
  • You want to avoid conflict and keep the peace
  • It might make you uncomfortable to try and achieve wealth and success beyond that of your family’s current level – it’s easier to self-sabotage

But, here’s the thing: unless they are a successful property investor and understand wealth creation, its best to keep them out of the loop with your investing. Otherwise, they will drag you down every time. If they had the same knowledge and education as you, they’d be cheering you on, but they don’t.

Don’t let your caring family stop you from making the choices you know you need to make as a successful property investor.

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Daimien Patterson is the CEO of Integrity Property Investment, a property investment company based in Australia. He regularly produces books, blogs and videos on the topic of property investing, helping thousands of people create financial security and freedom through education and property investment. Get started today.  

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How To Identify An Armchair Expert https://www.integritypropertyinvestment.com.au/how-to-identify-an-armchair-expert/ Thu, 27 Sep 2018 00:55:12 +0000 http://www.integritypropertyinvestment.com.au/?p=10552 https://www.integritypropertyinvestment.com.au/how-to-identify-an-armchair-expert/#respond https://www.integritypropertyinvestment.com.au/how-to-identify-an-armchair-expert/feed/ 0 <p>The post <a rel="nofollow" href="https://www.integritypropertyinvestment.com.au/how-to-identify-an-armchair-expert/">How To Identify An Armchair Expert</a> appeared first on <a rel="nofollow" href="https://www.integritypropertyinvestment.com.au">Integrity Property Investment</a>.</p>

How To Identify An Armchair Expert

Our sixth in our series on fears that stop many people from investing in property is on armchair experts.

What’s an Armchair Expert?

In short, they’re someone who passes on unsolicited advice or expertise from their (rather comfortable) armchair, even though they have no solid education or experience in the area they are talking about.

Picture your Great Aunt Beverley, sitting back in a faded armchair at your yearly family gathering, jumping into everyone else’s’ conversations every now and again, offering advice (whether its wanted or not) on parenting, marriage, current fashions, and careers, none of which she has done particularly well at (sorry Bev).

A Story About My First Client

When it comes to property investing, armchair experts can be very damaging if you let their advice take hold. Here’s a classic example of a time when (thankfully), such a person was ignored…

I put my very first client into a property worth $450,000, with a $60,000 deposit. Within 12 months, that property had gone up to $600,000. So, in just one year, he had essentially added $150,000 value to his initial $60,000 investment. Not bad, right?

The next thing we did was use that equity to go and purchase an additional two properties. Then we organised a self-managed super fund with a financial planner to help him get into another property. This meant that in the space of just two years, this client had bought four properties and had a portfolio valued at over $2million. All of the properties were paying their own bills. Here’s where the magic happens… when you have a property portfolio worth that much and the market goes up even just 10%, you make $200,000.

What’s really magic about it is when you consider the alternative methods of making $200,000… like slugging away at your day job for years (for most people), and sacrificing hundreds and thousands of hours you could otherwise spend with your loved ones or doing things you enjoy.

The interesting thing is, though, this client almost missed out on such an epic win. And it was all because of an armchair expert. After his first year, he opened up to me and said that he’d nearly pulled out of investing in his first property (the one that really got him on track) because when he went to work the next day, his best mate and colleague said that he’d never heard of the town he was planning to invest in. And it therefore, can’t be a good place to invest.

Fortunately, my client decided to call me back the next day and hear about why the investment was going to be a winner. He decided that although his best mate was a good bloke, he didn’t actually know what he was talking about with property investing.

And you can bet that my client was very glad he ended up buying that property, instead of listening to his friend! After all, he ended up with $2million worth of property in a very short space of time!

Beware!

It might be your Great Aunt, your best mate, your colleague, or someone else you might normally trust. They might love you and have your best interests at heart, for the most part. But beware of their opinions on property.

Just because they make a mean lasagne, are really good at their day job, got an A in high school math, or play an awesome game of tennis on the weekend doesn’t mean they are qualified to advise you on property.

Put your trust in the facts and only listen to an experienced mentor who has evidence of their own success in property investing. When it comes to family and friends, if they’re the type to offer unsolicited armchair advice, its best to keep your plans to yourself!

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Daimien Patterson is the CEO of Integrity Investment Properties, a property investment company based in Australia. He regularly produces books, blogs, and videos on the topic of property investing. Head to [integrityinvestmentproperties.com.au] for your free copy of Daimien’s book, Safe as Houses. 

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Do You Suffer From Analysis Paralysis? https://www.integritypropertyinvestment.com.au/do-you-suffer-from-analysis-paralysis/ Mon, 24 Sep 2018 23:40:54 +0000 http://www.integritypropertyinvestment.com.au/?p=10549 https://www.integritypropertyinvestment.com.au/do-you-suffer-from-analysis-paralysis/#respond https://www.integritypropertyinvestment.com.au/do-you-suffer-from-analysis-paralysis/feed/ 0 <p>The post <a rel="nofollow" href="https://www.integritypropertyinvestment.com.au/do-you-suffer-from-analysis-paralysis/">Do You Suffer From Analysis Paralysis?</a> appeared first on <a rel="nofollow" href="https://www.integritypropertyinvestment.com.au">Integrity Property Investment</a>.</p>

Do You Suffer From Analysis Paralysis?

The fifth in our series on fears that stop people from investing in property is analysis paralysis.

What is analysis paralysis?

Picture a deer caught in the headlights. You’re so overwhelmed, looking this way then that way, not knowing what to do, or what choice to make that your only action is to do nothing. That’s analysis paralysis.

I see it happen all the time. Interestingly, I find it is particularly rampant among jobs and industries that require detailed analysis. Engineers, architects, and accountants, I’m looking at you! But some people, regardless of their background, will have trouble making a decision until they have every single detail and fact laid out for them.

These people will only buy an investment property is they can find the perfect one. It has to tick every single box. And so, they go around in circles, examining every option, and looking at every possible perspective until they find themselves in overwhelm.

Because there’s no such thing as the perfect investment property.

Sure, there are some properties that are positioned to make you wealthier than others, but that doesn’t mean they’re going to be totally flawless. There will always be something that isn’t perfect, or some factor that you’ll need to consider as a risk that is worthwhile managing. This doesn’t mean that the property isn’t a good investment.

In fact, you can spend so much time analysing a property that another savvy investor will come along and snap it up, and put you back to square one. Successful property investors know they don’t have time to over-analyse. If the numbers add up and the factors are there, you’re onto a winner!

At the end of the day, it’s time to accept that you will need to take action in order to get started, even if that action isn’t 100% perfect by your standards. Because here’s the guarantee: if you don’t buy an investment property, you won’t make any money at all.

ADF or Ex ADF Member? CLICK HERE
Not an ADF Member? CLICK HERE

Daimien Patterson is the CEO of Integrity Investment Properties, a property investment company based in Australia. He regularly produces books, blogs, and videos on the topic of property investing. Head to [integrityinvestmentproperties.com.au] for your free copy of Daimien’s book, Safe as Houses. 

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