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Currently there is about 6.8 billion people in the world and out those people just 10 million households worldwide have at least $1 million US in invest-able assets excluding their own home. So why is it that such a small portion of people are actually doing well financially? The answer is simple. They found out what the rest of the world was doing and did the exact opposite. Most of us do what our parents did and their parents did before them. They get a job (any job will do), get a loan for a house and furiously try to pay the home loan off so one day they can own the title. Most property millionaires understand things a little differently. You see, you never truly own your home, and if you don’t believe me just stop paying your rates bills.

Most real estate millionaires build there wealth through leverage. Its all about control, not ownership, and as soon as you understand this the better off you will be. Instead of buying one home and paying it off as fast as they can, the savvy property investor will leverage themselves into controlling as many well located properties as they can. Risky you say, well life is full of risks, but whats more risky doing nothing and failing, or doing something and risking temporary defeat.
A good way to negate the risk of making the wrong choices when investing in property is to have a good team around you. The costs involved in hiring the right property professionals are more than paid for in the services they can provide in helping you buy the right properties for your investing needs at the best possible price and terms. Well over ¾ of the worlds millionaires invest heavily in property, will you be one of them?

There is quite a science behind choosing the right investment property to maximize capital growth, cash flow and future development potential. However by following a few basic rules can result in the difference between having an average performing property and having a property that consistently outperforms the market.

Ask most property professionals what to look for in a property investment and they will undoubtedly recite to you the tired phrase “Location Location Location.” Whilst location to transport, infrastructure and amenities is important in maximizing future growth, there are other factors that are equally as important. Certain types of properties will outperform other properties in the same location, so what are these properties?

Firstly nothing can beat a property that you can develop to a better and higher use. These properties include large sub dividable, or underutilized high-rise zoned blocks of land, properties situated on main roads and high traffic areas which can be used for commercial use, and ugly ducklings which can be transformed with a budget cosmetic renovation. All three of these development options can produce massive results to both the value of a property and the cash flow it produces in rents.

Sub dividable properties and high-rise zoned blocks of land are becoming more and more common, but most people do not know how to identify them. Each local council has different rules on what you can do with a certain type and size of property. A councils zoning restrictions are the best place to start if you want to find out if you can subdivide or build a multi-level building. The easiest ways to find out what you can do is jump on the councils website or phone them and speak to a town planner. A town planner can tell you the restrictions in place and the required size a block of land needs to be to subdivide or build that multi story development. Often councils will review zonings for areas every few years, so if you get a negative response it always pays to ask when they next plan on reviewing the zonings for that area.

Recently I was looking at purchasing property in an area that I felt had great potential for future development and was told by the local town planning department that I could not currently do anything with the block of land in question. Something told me to pursue the matter further so I asked “I have heard that you may be looking at changing the zonings for properties in this area soon” to which the town planner replied “I will put you through to the task force in place to rezone the area.” It always pays to ask lots of questions. When the call was put through and I talked to a member of the task force I was informed that the current mayor has told them to push through rezoning of the area before the year is out. I then asked still more questions to which I got the reply we are looking to rezone this area to high-rise development. High-rise zoning would have a major effect on the value of properties in this area. In the property game knowledge is definitely power. Other important info is freely available from your local council including access to flood mapping, and on council websites you can view plans and development approval documents of similar properties.

Two years ago I purchased a 3 bedroom unit in the desirable Queensland beachside suburb of Broadbeach. The reason that this property appealed to me as an investment was because it was one of only five units on a high-rise zoned block of land. After purchasing this property I made it known to the owners of the other four units that I would like to purchase theirs as well. At the time of writing my family is about to settle on the final one of the five units, thereby giving us full control of a high-rise development block. The interesting thing is that we paid no more money per unit in the building than similar properties sitting on blocks of land that are not zoned for higher use.

I believe that main road residential properties in built up areas are an untapped goldmine. Reason being that they are not particularly desirable dwellings in their present use so can often be bought for a song or under great terms and conditions, but the potential many of them have as a business premises is enormous. One such property I purchased in a joint venture has proven to be a perfect example of the potential of these types of properties. The property was listed for sale as the cheapest in the area due to the cosmetic state of the property combined with its position on a very busy road leading to the city of Brisbane. Locals knew the property as the ugly brown house on the hill and many stopped in to compliment us on the renovation that we undertook. Once renovated I secured a lease with an accounting firm who were very happy with the prominent exposure of the property for their business.

Renovation is by far my favorite way to add value to a property, and is the vehicle by which I built my portfolio in the beginning. The most important factor to consider when undertaking any renovation for profit is not to overcapitalize. Overcapitalization occurs when you spend more on the renovation costs than the increased value you add to the finished product. Always keep in mind when undertaking a renovation that your aim is to add much more in perceived value than you have spent. At the same time there is no use in trying to do everything yourself to save money thus taking forever to finish the job, because of the time cost involved. Time cost factors include interest payments on loans, rates bills and most importantly lack of rent you could be achieving to assist with these holding costs. If you are a hands-on person go for it, but know your limitations especially when it comes to electrical, plumbing and structural repairs. If you are someone who is good with delegation you may like to project manage the tradesmen or you can just hand the project over to renovation specialists.

When purchasing an investment property it is always good to have someone batting on your side. Buyer’s Agents can be a valuable asset to he property acquisition process. A good Buyers Agent is a real estate agent who does not sell properties, but has access to every property on the market and many that are not currently publicly listed for sale. They work on your behalf to source, negotiate and secure you a quality property at the best possible price and terms.
Investor’s Friend
Property Purchase Professionals,
Gold Coast, Australia.
Click Here to visit the website.

Recently you may have noticed in the media, talk of High-rise developments in the suburbs. High density infill was once a pipe dream of our government and local councils but now is fast becoming a reality, so how can we as property investors profit from this changing environment?
In the past the best long term investments were found close to the major cities. As the demand for city life has grown over the years due to the lifestyle and infrastructure advantages, you will now pay a premium price, and also premium rents the closer you venture to these hubs. The past decade has seen cities such as Melbourne, Sydney and Brisbane spread further and further out to a point that both government and councils now see this urban sprawl as unsustainable due to the costs of delivering important services such as Schools, hospitals and transport to the more outlying developments.
So where to from here? If places like South East Queensland are receiving around 2000 new citizens each week it does not make financial sense to keep opening up new pockets of land in the far reaches of our boundaries and then supply the billions of dollars in infrastructure needed to make these areas appealing to residents.
The solution is to zone in on established hubs that already have these required services and rezone the land from single dwelling to high-rise residential, or even commercial zonings. Often these hubs are found between 10 and 30 km’s from the major cities. I am currently concentrating my investing one such hub that currently has a task force in place to rezone this area from houses on medium to large blocks currently with a median purchase price in the low $300k’s to become high density high-rise and therefore once this happens this land will become more and more valuable and become very desirable to developers.
If what my inside contact tells me is correct, by as early as the end of 2010 they plan on rezoning this area to high-rise development. As you can imagine I am very excited as this information is the closest thing that I have found to a crystal ball in all my years investing in property.

As you probably know by now I am a strong believer in personal development and finding the untapped potential that lies within, this habit started for me 6 years ago when I read Napoleon Hill’s timeless classic “Think And Grow Rich”. The day I finished the last page of “Think and Grow Rich” I resigned from my day job and vowed to live a life of my own design and have not looked back since. I have recommended this book and given it to many close friends and family since, but found that most of them did not commit to the lessons taught or did not give the book a chance. Most people do not like to read or do not have the time.

I have just found this great product which teaches the priceless principles taught in “Think And Grow Rich” but in audio format so the listener can devour the messages more easily. It contains a mixture of both Napoleon Hill’s powerful message inspired by his 20 years of research and interviews of  hundreds of the worlds greatest achievers and the power of hypnotism to drive its message deep into your subconscious  mind.

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If used correctly the predictions of this government database can be like having your own crystal ball, allowing you to chose the suburbs to invest in for maximum future capital growth. The free downloadable documents show yearly government suburb by suburb predictions for population growth in Australia up till 2027. Remember though that only certain types of properties will outperform in differing markets. Once you identify a suburb to invest these documents give a breakdown of the number of males and females and their ages, so you can target or develop the type of property that will suit the most prevalent age group in that suburb.
This tool has also been helpful to me to assess my portfolio in terms of which properties I will hold and which I will sell now for profit.
The more information you have at hand the more chance you have of becoming a successful investor.
Click on Population projections for your free population statistics downloads.

In today’s age of wisdom and information leadership is a way of thinking rather than a formal position. Leadership is the ability to influence and inspire others to find their own purpose in life. Leadership begins with self mastery and maturity because only then can we really inspire others to be the best they could be.

Here are the ten steps to developing true leadership

1.Find Your Own Path.
Many of us are great at something but not everything. There are big picture abstract people and those that are good with details. There are those who work best alone and those that excel in teams and are best placed in positions to motivate people. Working to your own strengths and surrounding yourself with people who have complementary strengths is a positive step to high achievement. Most people know what they are best at doing. If not a personality test may be helpful. There are many websites that offer personality tests which give you a wonderful insight to your strengths. Email us xenia@adprop.com.au if you would like us to recommend one to you. It doesn’t’ matter what tests you take the idea is to get you onto a path that is uniquely you and use your time to play to your strengths.

2.Build Your Knowledge
You just don’t know what you don’t know and it is sometimes what you don’t know that can make a difference between success and failure. Eskimos have twelve different words and meanings for “ice”. To them it is not just frozen water it is a way of life and they know their surroundings intimately. Whether you are in business or real estate investing or both you need to know your area well enough to alter your strategies with changing economic conditions and remaining proactive at all times. The average person will struggle to read one book per year…. don’t be average! Reading regularly, listening to audio books while you drive and attending three to four live seminars and workshops per year will not only accelerate your learning, it will put you heads and shoulders above the average investor. Live seminars and workshops offer the advantage of interaction and exercises designed to stimulate a more advanced way of thinking. They are also a quick way to get lots of information in one hit. I will usually read over 100 books and conduct two years of research to write just one two-day workshop.

3.Begin as Quickly as You Can
Knowledge is power but only when it is combined with action. Taking action as quickly as you can will allow you to build momentum to keep going. When I attend live seminars and workshops I book in an extra day away from the office to implement all the new information into my business plans. If the seminar is interstate, I will usually stay interstate one more day booked into a motel where I can plan to implement the information. Start at whatever level you can. If you plan to build a property portfolio don’t wait until you have the finance for a multi-storey enterprise, buy a unit or even form a unit trust or syndicate to purchase properties with other investors if you are not able to get purchase a whole property alone just yet. The idea is to just get started.

4.Develop Vision
Effective planning is better than just “seeing how it goes”. The most successful businesses including enduring property portfolios (yes they are a business) began with a written plan of action. Having long term vision is part of the mindset of a successful person. Rich people plan ahead and have a vision for the next year, 5 years and 10 years. Poor people live day by day and have short sighted vision.

5.Work Only on High Priority Items
Wealth is created by what you choose to do in your spare time. While relaxation and down time is essential, those who choose to create their life in lieu of watching television, or wasting time with small talk will do much better than those who don’t. Brian Tracey has published a book called Eat That Frog which suggests prioritising tasks and only dealing with the biggest and most valuable tasks or projects each day. Tasks that do not contribute directly to your success or plans, such as mindless chatting, television or other people’s priorities should be minimised.

6.People Before Profits
No business (including real estate investing) will succeed long term if it is just about making money. All business missions need a strong focus on service and a people before profits attitude. Real estate investing like businesses are about people, looking after the people, tenants, professionals etc will ensure that your business withstands the pressures of time enough to profit in the long term. When was the last time your properties were renovated? Are they air conditioned and comfortable? Providing a great service to clients and focusing on that will increase the chances of a longer term lease and that means no losses through vacancies.

7.Develop an Abundance Mindset
Abundance is a value, it is the mindset behind a win/win attitude and ethics in business. It is the mindset that recognises opportunities and wealth in your environment. In the absence of abundance there is a scarcity attitude that focuses on win/lose and threats in competition and successful people. People with a true abundance mindset will view competitors as a valuable source of education and networking opportunities. They are truly happy with other people’s successes and wins and are not threatened by others.

8.Build a Wealth Network
Networking with wealth-minded people ensures that you work to your strengths and builds a support team of people with complementary strengths that are happy to do what you are weak at. Wealth-minded people are those who are focused on success in their own life and have a true abundance mindset. They are able to provide insights, opportunities, ideas, finance and support to help you to grow to the best that you can be. In today’s turbulent economic times, businesses and individuals with valuable relationships with a wealth network are those who are succeeding the most. When economic times are down, quality people relationships can keep you afloat.

9.Limit Your Interaction with Poverty Minded People
While surrounding yourself with wealth-minded people is important, it is also important to recognise that not everyone is wealth minded even if they own properties or business or are in a professional position. I have met a few accountants and solicitors as well as property investors who are very poverty minded. They have a definite “ceiling” on their own growth and can also limit your success if you allow them to. Because these people are not able to mentally conceptualise continuous growth and immense wealth they tend to have a cynical, sarcastic and often controlling or suppressive attitude to people who are successful. They will either overtly or covertly disempower your plans of action by making them wrong to justify their own acceptance of mediocrity. Do not allow yourself to become the subject of other people’s imperfections and allow poverty-minded people to mess up your life.
It’s not that they are bad people they are just the average person who has been conditioned for poverty and working from pay cheque to pay cheque and find what you do “risky” or “greedy”. Limit the discussion of business ideas with these people and focus your time on the high priority item of building a wealth network instead.

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10. Become a Person of Influence
Truly successful people are an inspiration to those who are ready and prepared to be inspired. While surrounding yourself with poverty minded people should be limited, I would not recommend ever burning bridges with any individual, everyone does the best they can with the information they have. Deep down everyone is perfect, powerful and successful it is only circumstances and conditioning that create a poverty attitude. If you truly lead from the front and provide and example of wealth, it may be just the thing poverty conditioned people need to encourage them to take action but only when THEY are ready.

Xenia Ioannou – is a Director of AdProp.com.au – Advanced Property Management, and two other businesses, she is a strong advocate on wealth creation through property investment and business growth and the creator of the high powered Millionaire Mindset Workshops Xenia is also a business coach and mentor to many entrepreneurs and property investors, a member of the property management committee at the Real Estate institute of South Australia protecting the interests of AdProp property management clients through changing legislation and runs the Real Estate Wealth Network a meeting and greeting place for wealth-minded property investors and business entrepreneurs. Over 100 investors attend the Real Estate Wealth Network meetings each month, to be part of this unique and positively charged group and receive our newsletters subscribe for free at Adprop

Latest figures show that Australian house prices are again on their way up, if this trend continues the average house price has only fallen by 3 per cent compared to 30 per cent in the US. How can Australian residential property prices hold up so well in this massive global downturn? It all comes back to the most significant property price driver, which is the law of supply and demand. Put simply, America has more dwellings than needed and Australia has not built enough.

Well located properties are currently being snapped up by first home buyers who have suddenly found that owning a home is now often  cheaper than renting. First home buyers are the ones to watch as they affect the market more than any other group. In a typical property cycle upswing first home buyers will hit desirable suburbs by purchasing the affordable properties within these areas. Investors will then follow, then once that area becomes seemingly less affordable due to competition the first home buyers turn to the next affordable surburb,  and on it goes.  The cycle always starts close to capital cities and then ripples out.

So if we are  now at the bottom of the next upswing, it makes sense to start buying property in well located areas before the herd arrive. Once they do, move to the next well located suburb you can find, always staying ahead of the first home buyers.  I do believe that we will see double digit growth again by the end of this year. If you wait until property becomes the flavor of the month again  you will most likely miss the boat as many did in 2003. Stick to the basics by purchasing the best possible located properties you can at the right price and watch your asset grow.

My school friend Kelly Cameron-Tull has created a multi-million dollar property portfolio and runs the Brisbane based mortgage broker company “Get Real Finance”. Kelly is an inspiration and in this interview shares some valuable insight into how she has created the sort of wealth that most of us dream of.
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Get Real Finance

With interest rates falling to the lowest levels that many of us have ever seen, we are now presented with the opportunity to buy well located  capital growth investment properties that will cost you next to nothing to hold. Some will even put weekly cash-flow in your pocket from day one.

To find cash-flow positive investment properties in last six years, you would have to go a fair way inland to areas of low population, no jobs and little infrastructure. Not the best mix of attributes to base a secure property portfolio on. But in recent month the tables have started to turn. Lack of supply in sort after areas with great fundamentals, such as schools, employment and transport has increased rents significantly.

I have just fixed a few of my property loans with one of the big four banks  at 4.99% for 3 years, and in coming months we may see other lenders offering similar rates or even lower. I am finding properties on the market now in areas with  great fundamentals between Brisbane and the Gold Coast for sale that achieve 6%+ rental yields. With figures like these the rent achieved could cover the mortgage, rates, and outgoings, leaving you with a property that takes care of itself.

  Throw in the mix some creative strategies, like a quick cosmetic renovation to boost the rent and property value even more and then just count the dollars coming in week after week. Ah, isn’t residual income sweet.

Beach side of the Gold Coast Highway 1970′s built unit blocks are in plentiful supply in some of the more sought after areas such as Broadbeach, Surfers Paradise and Main Beach. These well built, but often tired looking buildings have a lot more going for them than just being an affordable option to live walking distance to the beach. Quick profits can be made by buying one unit or a whole block, when undertaking a cost effective cosmetic renovation and then either renting or on selling the finished product. Unrenovated two bedroom properties in the these suburbs are currently selling in the low $300k’s, and the right sort of renovation you can add up to $5 value for every dollar spent.

Body corporate fees are much lower than modern high rise apartments, often below $20 per week whereas with modern high rise apartments you can pay many $100′s per week. Land value is huge in these underdeveloped blocks, on some beach side 600 square meter blocks you will find only 4 or 5 units, but the land may be zoned for between 7 and 30 stories.  This is where I see huge future profits, in the development potential. After all, beach side land is in finite supply, and Aussies will always gravitate towards the surf and sand.