Equity: The superhero of investment

Equity: The superhero of investment

Masks might be all the rage right now, but not every superhero wears a cape!  Iron Man, Spider-Man, The Flash – all cloak-free.  Yet, their powers were extraordinary!

And there’s another dynamic contender that’s perhaps a bit of an unsung hero.  Equity.  The silent ninja of investment.  Often an overlooked source of funding, equity gives you the power to invest when cash is tight.  But many Aussies either don’t understand how it works, or don’t realise it’s even an option.

So, what exactly is equity?

Equity represents the value that would be returned to the bank if all your assets were liquidated.  So, it acts as security against further loans, giving you greater borrowing capacity. It’s an effective way to build your investment portfolio and increase your cash flow.

In a nutshell, equity equals opportunity.

And as Property Magazine puts it –

 

“The true beauty of equity is that it increases over time, isn’t taxed like your hard-earned savings are, and can be used to help you climb the property ladder much faster.”

 

What can equity do for you?  Here are the primary benefits:

 

  1. Deposit power

 You can use some of the capital in your home as a deposit for investment purposes.

 

  1. Leverage

The more equity you have, the more a lender is likely to help you out.

 

So, if you’re considering this type of capital, we have the perfect investment opportunity!  It’s a more affordable and lucrative option than many alternatives.  And you get your rewards much sooner!

Give us a call today!  We’ll help you fight off debt to protect your future (cape-free).

Getting sick only makes it stick

Getting sick only makes it stick

Of course, we’re not wishing poor health on anyone – but it turns out COVID hasn’t changed investor mindset one iota.

Even amidst a disastrous pandemic, Aussies are still ready and raring to buy property.  In fact, some say the crisis has actually egged them on.

So, it seems a high temp is not enough to lower investment fever.

According to a recent survey, 70% of investors say it’s a good time to buy real estate.  With 30% more likely to buy in the next 6-12 months because of the outbreak.

So, why are so many investors seemingly unfazed?

Well, chairman of Property Investment Professionals of Australia attributes the optimism to low interest rates and a resilient market.

Because it doesn’t seem like rates will significantly rise any time soon.  And historically, real estate is known to perform well even in turbulent times.

But it still comes down to whether or not you can afford to buy.

Yes, interest rates are favourable – but do you have the cash or equity to invest?

Let’s look at your options: You could buy a cheaper property in a low-yield area and struggle to keep it afloat.  Or you find a way to use less capital to invest in an affluent suburb that guarantees great returns.

Assuming you’d rather choose option B, we recommend contacting our investment team asap.  Because this is what we do best.  With GSA, you have the unique opportunity to make some tidy profits – without breaking the bank!

So, take advantage of the current conditions and watch your financial health rejuvenate.  You’ll be feeling better in no time.

Don’t be taken in by the media’s welcome grin

Don’t be taken in by the media’s welcome grin

We all know the media has a happy knack of creating mayhem and drama.  And when it comes to property investment, they’ve spared no spectacle.

If the news moguls had their way – no one would go near real estate again!  But let’s just take a step back for a second.

Yes, we’re facing the triple threat of social, financial, and political unrest around the globe.  Yes, the economic slowdown has resulted in unemployment and falling property values.  And yes – the negative headlines are fuelling the fires of anguish with gusto.

So, it’s easy to see why many Aussies would be feeling nervous about investing in property at a time like this.

But if you look at all the facts and figures, you’ll see that things are not so bad.

How is this so?

According to MoneysaverHQ, property values in the majority of state capitals have doubled every decade since 1980.

Sydney prices have doubled four times – hitting a 1536% gain.  With Melbourne and Brisbane not far behind.  Canberra has even doubled a whopping five times!

So, even with all the bad news circulating like hungry vultures, prices are still significantly higher than they were 12 months ago.

Of course, it’s not always smooth sailing – and no one ever said it would be. Booms and busts come and go.  But the thing you must remember is that property slumps are temporary.

So now what?

So now – you should use this downtime to explore your options.  And what better way to beat the bust than invest in property syndication.  Because not only do you need less upfront capital; you also forego all the extra expenses.  Plus, you gain a skyrocketing profit in around five years.  What’s not to love about that?

If you want to learn more about GSA’s proven investment model, get in touch today. And it will be YOU who’s grinning from ear to ear.

Fail safe is an oxymoron

Fail safe is an oxymoron

There’s no sugar-coating it.  Investment fails leave you feeling anything but safe.

Yet, many an inexperienced investor has gone in all guns blazing without having done their homework.  Unsurprisingly, they tend to accomplish little and lose big.

But someone has to do the hard yards so that others know what they should and shouldn’t do.  One such someone is Sydney’s savvy real estate investor, Lloyd Edge.

Lloyd went from low-paid freelance music teacher to multi-million-dollar real estate mogul in just over a decade.

So, when it comes to property investment, he knows a thing or two.  He knows it literally pays to do some solid due diligence, for one.  And he cites several common investor mistakes on their road to financial freedom.  Here are 3 of the top contenders:

 

1. Buying in the wrong location

There are a few key locational factors that can determine whether market values will increase.  Get this wrong, and it could mean your property is worth less than you thought in years to come.

 

2. Having the wrong financial structure

You don’t want to give the banks too much control by crossing collateral.  All loans should be stand-alone to prevent one property fall affecting another investment.

 

3. Using one bank for everything

Expanding your “empire” by putting all your financial eggs into one basket is a risky move.  Limiting yourself to a maximum of two properties with the same bank is a better way to go.

 

Lloyd has even written a book on this stuff.  If you want to hear more about his journey, you can find his works online.

If you want to hear more about premium, well-honed property investment opportunities, talk to us!  One of our senior consultants is standing by to take you through the steps and set you up with everything you need for financial abundance.

Think of us as your safety belt as you confidently venture into your prosperous future.

Make it your business

Make it your business

When the average person looks at acquiring investment property, they probably imagine the joy of earning a passive income from a single rental apartment.  After all, it’s quite possibly all they can afford.  And surely, this will be enough to give them a little something extra in their pocket.

While this approach has some merit, it’s not exactly going to provide them with the riches they may seek.  More often than not, the ongoing costs of insurance, agency fees, and maintenance will quickly eat into their profits.

So, rather than having a mere flutter on the market, they should be treating their investment process less like a hobby, and more as a business.  Instead of settling for one lone piece of real estate, a diligent investor should aim for a portfolio of multiple properties.

But it would be foolish to think that you could just go from nothing to wealthy overnight.  It takes time and strategy to get the ball rolling along nicely. And quite often, many people find it difficult to even come up with the extra cash for a small unit in an outer suburb.

Then how do you find the funds you need for your first investment and accumulate enough for further ventures?

What you need is an opportunity to spend less to make more.  But does such an option exist?  You bet!

With GSA’s property syndication model, you can pool your funds with other like-minded investors – which means you won’t have to outlay as much for a piece of the action.  But you do get to invest in an entire complex of apartments or townhouses, as opposed to just one tiny flat. This means you receive a share of the profits for the whole building.  Plus, you never have to worry about all the added costs of going it alone.

The beauty of our strategy is that you need only invest for a short-term five-year period.  At the end of the term, you can either take your high yield returns and opt out, or you can extend your investment for another term.  And this is how you get the ball rolling.

Get in touch with our investment team today and find out how you can effortlessly go from hobbyist to managing director.  You really can mix business with pleasure!

Acclimatising to climate change

Acclimatising to climate change

Who would have thought that climate change had anything to do with the property market?

It’s not unheard of to associate natural forces with housing structure, such as raising a Queenslander onto stilts to avoid flooding.  But how exactly do terms like “global warming” and “greenhouse effect” determine where we live?

Once it was only areas known for extreme weather conditions that influenced the housing market.  It now seems there’s a broadening in the market locations that are affected by the elements.

 

Australian summers are getting hotter, and rising temperatures are proving disruptive to town planning.  This hampering of events creates affordability pressures and increasing insurance costs.

 

Sydney’s western suburbs seem to be fairly hard-hit, especially the outer west in places like Penrith.  Data from the Australian Bureau of Meteorology shows the maximum daily temperatures each month steadily rising, with plenty of days sweltering above 35 degrees.

The need for thermal comfort is a major focus for urban planners, supplying things like water technologies and tree canopies.  Trees make sense, but in certain areas, the planners must also consider that bats and birds are a hindrance.  You then have conflicting interests, and this places strain on planning options.

So, with all this heat, it’s no wonder people are now flocking to Tassie to escape the oppressive conditions.  This movement has boosted the housing market in areas such as Launceston, once again eroding affordability.  Those with higher means are likely to migrate south, crowding out those on lower incomes.

But it’s not only a matter of people seeking leafy respite.  Climate change has also increased the severity and frequency of extreme weather events, such as flood, fire and violent storms.  More Australians could, therefore, be slapped with rising insurance premiums.

Regions that offer insulation from aggravated weather patterns or higher temperatures could see demand rising, placing an increasing burden on their low-paid residents.

So, it seems there’s more to this housing game than meets the eye.  And, once again, money is a driving force behind what happens next. This inequality will warrant a response from policymakers, planners and the housing industry.  Watch this space.