There are more property investment 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 interesting ones I’ve read during the week.
Enjoy your weekend….and please forward to your friends by clicking a social link buttons on the left.
What’s the secret to becoming an instant property millionaire?
I’m sorry to disappoint you but there is no secret, trick or formula to becoming an instant property millionaire writes Peter Boehm in Yahoo Finance he says:
Many scammers entice unwitting but genuine property investors to invest in schemes that more often than not fail to deliver
So how do you know who you can trust and who you should stay well away from? Peter suggests you should be extremely cautious and perhaps even avoid altogether the individuals and companies making these promises:
1. Become a property millionaire
Be wary of headlines that suggest you can become a property millionaire in a short time period when the strategy used is to highly gear your investment.
2. Buy properties at below market value
Everyone likes a bargain, especially when that bargain appears to save you thousands off the price of an expensive asset. Whilst it can sometimes happen, the reality is it is rare to get properties significantly under market value.
3. Get guaranteed returns
You have to be extremely cautious with promoters that promise guaranteed returns. You must look closely at the conditions so you understand how the guarantee will work. This is especially so for rental guarantees. A usual trick of promoters is to inflate the purchase price to cover off on any guarantee payments that may need to be made.
4. Get exclusive access to our proven model
Each property advisor and so-called expert will spruik some model or approach that is supposedly unique, proven and sure to succeed.
5. We’ll do everything for you
A major red flag should be waving now. You should always seek independent legal and financial advice before taking on such a big and long term financial commitment. Whilst it may appear the advisor is trying to help you out and make things simple for you, there is the possibility of collusion.
Where are the undervalued suburbs| Is it still possible to find cash flow positive properties? | Mindset of success
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Details of this week’s show
Monique Wakelin joins us to reveal what she has found in her search for undervalued suburbs in Melbourne
Jennie Brown talks about why mindset is so important
Michael Yardney shares the 18 or 19 habits successful investors have developed
Nhan Nguyen tells us if it’s still possible to find positively geared property anywhere in Australia?
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How is Sydney’s inner west faring? – Pete Wargent
Regular readers of Property Update Blogger Pete Wargent will know that Sydney’s inner west has been his number one property region tip for the past half decade – and he’s put his money where his mouth is too- something you don’t find may property commentators do (or can afford to do!)
In his Escape the Rat Race blog he explains:
Asking prices for 2 bedroom units rose +22% over the last 3 years alone, a very handsome increase indeed for owners and speculators.
And look at what has happened to asking prices for houses, +17% in the past year alone.
Not much of a housing bust in Sydney’s inner west, I’m afraid, as I’ve confidently predicted on this blog all along, even when the doom and gloom was being peddled.
Sydney has by far away the strongest fundamentals of the capital city markets at present, with stock on the market very tight and auction clearance rates at record levels.
It will be interesting to see how long that sentiment lasts.
Property spruikers scent big opportunity in super
Each week, about 700 self-managed super funds are established.
While owning a property in your SMSF could be a great investment, it is the hard sell from unlicensed property spruikers that has the Australian Securities and Investments Commission, and others, worried according to this article in the Sydney Morning Herald.
‘Regulators and superannuation experts have flagged concerns that self-managed superannuation funds risk becoming “vehicles of choice” for property spruikers.
‘In the right hands, SMSFs can be very effective retirement savings vehicles,” ASIC Commissioner Peter Kell said in a speech in April. ”In the wrong hands, however, SMSFs can be high-risk.’
Real estate operators are paying incentives to financial planners and accountants to recommend property to their clients. SMSF administrators, who set up and take care of the accounting and legal aspects, are advertising heavily on prime-time television, radio and the internet.
They are appealing to those who want to take control of their super. This mass marketing is increasing the awareness of SMSFs among ordinary wage and salary earners, most of whom are members of low-cost, well-managed super funds. It is also making the ground more fertile for the sales pitches of property spruikers.
It’s the old story of chose your advisors carefully, however sometimes it’s hard to separate sales people from advisors.
Ewww…People Don’t Wash Their What?
You may want to think twice before shaking someone’s hand, opening a publicly used door, using a hotel room remote, or even an ATM machine.
Anything routinely touched by the hands of a large group of people, and not kept fastidiously sterilized has the potential of being rife with bacteria.
[sam id=31 codes=’true’]A recent study, based on Michigan State University researchers’ observations of more than 3,700 people in a college town’s public restrooms, found that only five percent of people washed their hands after using the bathroom long enough to kill germs that cause infections–which is 15 to 20 seconds of vigorous hand washing with soap and water to effectively kill germs, the Centers for Disease Control says, but people only wash their hands for an average of about 6 seconds.
The study was published recently in the Journal of Environmental Health.
Thirty-three percent didn’t use soap, and 10 percent didn’t wash their hands at all, according to the study,
“These findings were surprising to us because past research suggested that proper hand washing is occurring at a much higher rate,” lead investigator Carl Borchgrevink, an associate professor of hospitality business, said in a university news release.
The study goes on to say, that fifteen percent of men n didn’t wash their hands at all, and when they did, only 50 percent used soap, compared with 78 percent of women.
People were less likely to wash their hands if the sink was dirty and more likely to wash their hands earlier in the day. The researchers suggested this may be because when people are out at night for a meal or drinks, they are relaxed and hand washing becomes less important.
According to the U.S. CDC and Prevention, hand washing is the single most effective thing a person can do to reduce the spread of infectious diseases Failure to sufficiently wash hands contributes to nearly 50 percent of all food borne illness outbreaks, the agency says.
The findings have implications for consumers and restaurant and hotel owners, says Borchgrevink.
“Imagine you’re a business owner and people come to your establishment and get food borne illness through the fecal-oral route — because people didn’t wash their hands — and then your reputation is on the line,” he said. “You could lose your business.”
Weekend fun video
Mr Bean teaches us how to do a renovation:-
Blogs you may have missed this week:
If you didn’t have a chance to read my daily blog, here’s a list of the blogs you missed this week:
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