We are a network of experienced investors, property professionals and finance specialists.
Is to create wealth for our members, keep them informed with the latest information & provide knowledge, services and opportunities to our clients.
We aim to create wealth as individuals but collectively share our tools, research, knowledge, information & use the group to help each other succeed.
Who is Affordable Property Investments?
What do we do?
We are “ Introducers”.
We are not financial planners
As “Introducers” we “Introduce” people to Property investment.
… and then “Introduce” them to “ Professional People ” and Services
Thus providing you with a team of professionals to assist you in growing your wealth.
We help Grow Your Wealth
provides you with the benefits of:
Professional Property Research
Tennant support and Property Management
Quality control & Quality Properties
Correct financial structure
We support you through the whole process
Affordable Property Investments Support System
What are our Investing Rules?
We follow our rules. We are investors in our own right
We are always learning & researching the market
Plan the work and work the plan
No surprises – Communication is the key
Long term capital Growth Components of a Solid Investment Foundation Cash Flow Education
How do we get paid? Our Commissions are paid by the Developers. So you Don’t Pay us Anything
What is the reality out there?
Not enough cash flow
Lack of knowledge
Real Estate Agents & brokers giving advice?
Advisers – are they licensed to provide advice?
The key to financial success: If you want financial freedom, the key is to find someone who has it and duplicate what they do!! Do not “work for money”, have your money “ work for you”.
Why do you need financial freedom?
According to the Australian Government Bureau of Statistics, more than 30% of Australian retirees on the pension have less than $1000 in their bank account
26% of the Australian population will retire in the next 20 years
Less than 20 % of Australian baby boomers have adequate superannuation and private insurance cover to fund their health care in retirement
60% of the people surveyed did not have private health insurance and many simply did not know how they would pay for medical care in their old age
Did you know…
Building Towards the Aged Pension
95% Do This ….
Save money Spend money Save a small deposit for a home Forever paying off your home Small nest egg Small Pension Working Years Retirement Years
Income of Retired Persons – 65 and over Source: Australian Bureau of Statistics - Census 50.5% $3,000 - $8,000 29.1% $8,000 - $12,000 8.8% $12,000 - $16,000 3.8% $16,000 - $20,000 3.0% $20,000 - $25,000 1.7% $25,000 - $30,000 1.6% $30,000 - $40,000 1.4% $40,000 + Percentage Retirement Income
RETIREMENT CALCULATOR Capitial Required To Provide Desired Retirement Income. Investment Return @ 4.5%. Inflation @ 2.5%
What are your options?
Keep doing what you are currently doing?
“ Because they way you are today is a direct reflection of your “ACTIONS”
Team your self with people who are doing something different, and start doing what the wealthy are doing?
10% of the population ( the “Wealthy” )
increase their tax deductible debt, they invest in capital growth and never sell.
They do not invest in consumption and lifestyle
They understand the strength of leverage and gearing and know the difference between good and bad DEBT.
This is a Generational Problem – Unrelated to income. Most Lottery winners end up worse off than before their win.
We Help Grow Your Wealth
How Most People Save
Income Minus Expenses -
Save what’s left, right?? $$$$$$
The Problem usually is, NOTHING IS LEFT !!!!!!
Solution… Borrow more money and get deeper into debt….? Usually a credit card or a small loan….?
According to ABS Statistics
The Average Australian spends
121% of their wage! Source ABS
We Help Grow Your Wealth
In order to have a stronger financial position, you must strive to understand what 90% of Australian’s population is doing – then do the opposite. 90% of the population have a JOB or have bought a JOB (a small business) and live below or just above their income. They Struggle To Save Break the Pack
You Need a Plan Life is not Subtractive, it is Additive Goal Plan Execute your Plan Measure Correct Re-execute your plan Remember: Determination gets you what you want
Stop Pimping your Ride!!!!!!!! Financial Planners recommend that you set aside between 5% and 15% of your Gross Income for Your Future If you spend every dollar you make, you will never get want you want $ Your Gross Income 5% 15% ?
PLEASURE OR PAIN If we gave every Australian $10,000 today, in one years time:
80% would have spent it
16% would now have $10,300
because they put it in the bank
3% would have made 100% or $20,000
1% could potentially make up to $1,000,000
Two Emotions Control Your Life's Decisions
Financial Intelligence 101
Everyone has a balance sheet and income statement to their lives.
Assets – Liabilities = Net worth
Definition of Assets and Liabilities:
Assets feed you
Liabilities eat you
Your Net worth is what is left after you have paid all your bills.
If your Assets exceed your Liabilities your net worth is a positive
If your Liabilities exceed your Assets your net worth is a negative … This is a bad thing!
Financial Intelligence 101
Financial Freedom is not how much money you make, it’s how much you keep.
The best way to determine your position is to count the number of days, weeks or years you can live without having your job.
Why Residential Property?
High Capital Growth
Regular Cash Flow
Leverage and Compounding
House Values 1985 home loans 13% 1989 home loans 17% 1991 First Gulf War rates fall to 7% 2000 GST introduced and five interest rates rises 2001 Second Gulf War
Car/Boat Super Gearing/Property
What the 10% know about Benefits of Leverage & Gearing 300,000 3 0,000 3 0,000 Year 1 Year 10 15 ,000 6 0,000 (2 7 0,000) 3 0,000 (cash or available equity) 600,000 (2 7 0,000) Year 20 5 ,000 12 0,000 1,200,000 (2 7 0,000) Source: Chan & Naylor 3 3 0,000 9 3 0,000
How does Compounding let you retire?
Investment Properties are like Sheep
Look after them, let them mate and duplicate. One becomes two, two becomes four and four becomes eight, let them compound in growth.
Wait for the wool to grow, shear your sheep and live off the processes of the wool.
Never kill the sheep and try to make money from their meat.
Real estate is not a get rich quick system, it is a get rich slowly process.
Start small and you grow your wealth. Real estate is a vehicle that you look at for a minimum of 10 years, you never sell. You use the equity.
What is Compounding? Statistics show quality properties double in value every 7 to 10 years Value $300K Value$600K + 10 Years = EQUITY $300K
The more properties you have, the better the Compounding After 10 years properties have doubled in value, to $2,100,000 equity = $1,100,000 After 20 years properties have doubled again in value to $4,200,000 equity = $3,200,000 + + Portfolio’s value today = $1.1 million dollars Benefits of a Property Portfolio
Benefits of a Property Portfolio PPR $400,000 Year 1 Year 3 Year 4 Year 6 Year 10 $750,000 $1,307,000 $2,388,000 $3,441,000 $5,760,000 Available Funds 80% of Equity $160,000 $220,000 $322,000 $684,000 $2,016,000
According To RP Data The average house price increased in 2008 by $45,370 If you own1 house you made $45,370 in equity for the year. If you own 5 houses you made $226,850 in equity for the year. If you own 10 houses you made $453,700 in equity for the year.
How To Invest In Property… Use equity in your home to purchase an investment property Borrow against the equity in your property to buy a 2 nd property Continue to borrow to buy more and more investment properties Duplicate Again and again buying more investment properties Live off the equity Retirement Years Property can pass to your children Working Years
Purchase in a Buyers Market It has never been a better time to purchase an investment property. Market conditions have not been better in the last 45 years
These are the three main concerns people usually have about purchasing an Investment Property?
Will it be Rented all the time?
Will it Grow in value?
Will it be Value for money?
The simple answer is “No” you can never expect 100% occupancy , however a suitable safeguard against losing Rental Income would be to have “ Landlords Insurance ” in the event of the tenant breaking the lease.
Preventative Measures - the best strategy is to select – The Right Property The Right Location The Right Price
This will attract, The Right Tenants .
1. Will it be Rented all the time ? Affordable Property Investments directs all their clients to SAS property management as they specialise in getting the right Tenants
One of the most accurate ways to determine the “Potential Growth” of an Investment Property in the future is to look at recent trends in the areas of:
Population Growth – Supply and Demand.
Growing Popularity for Investment in the area.
Levels of Infrastructure Growth
e.g. Shopping, Schools and Transport
Capital Growth “Hot Spots” e.g. South East Queensland
2. Will it Grow in value enough? Affordable Property Investments provides a Service to help you determine these factors
By using the services of Affordable Property Investments you can be assured that property is always purchased “ Subject to Finance” Finance can only be approved if it is accompanied by an appropriate, independent valuation that meets with the “ Lending Institution’s Criteria”. 3. Will it be value for money? Your Bank will decide if the Property meets with current market pricing.
Negative Gearing Worksheet $28 Your Investment
This is How You Can afford to buy an Investment Property, for very little money. These Tax Dollars can be in Your Pay Packet, Weekly. Tax Variation:- Form --------------------------- Depreciation & Deductibles: Building Costs Fixtures & Fittings Stamp Duty Borrowing Costs Insurances Property Management Rates Etc. Investment Property Negative Gearing Diagram This Example:- Bank Payment $2,000 / Month $462 / Week ------------------------- Investment Property Payment Structure. Income:- Taxman $140 Tenant $380 You $28 Total $548/week Taxman $140/week Rental Income $380/week YOU $28/week
This Was Me… Struggling to save and my FINANCIAL SECURITY COULD BE SERIOUSLY THREATENED at any time. Married with two children. With a financial position something like this: Probably never! $30 $2,500 $5,000 limit Credit Card 3 years $175 $10,000 $15,000 Car 17 years $600 plus an extra $100 $150,000 $350,000 Home Will have paid it out in: Repay per Fortnight Debt Value
My Position 5 years later… Today I can handle the financial surprises that arise due to EQUITY and FINANCIAL SECURITY By Purchasing Investment Properties and entering into a mortgage reduction strategy, Julie and I were able to save considerable time and money: Normally 17 years In another 2.5 years Mortgage PAID OUT Including all personal loans, credit cards, car loans etc In 5 years All Bad Debts PAID OUT Would normally pay only $2,500 off Approx $13,000 Amount PAID OFF in 1 st year Normally no tax savings Approx $6,500 TAX SAVINGS in 1 st year Would normally pay $330,000 over 17 years Approx $180,000 Interest SAVINGS on our Mortgage
Affordable Property Investments Our 5 step process
Contact Appointment and Introduction
Personal Assessment gaining an understanding
Finance Consultation (Tailored for Individual goal)
Property Consultation (Selecting the right Property )
Making an Informed Decision. The First Step Towards Achieving Your Goal (Simply put YES or NO)
What’s next? Prognosis without diagnosis is ……….. malpractice
You have taken the time tonight, you are not average.
Most people have never spent time thinking about how they can save tax, invest, and become financially free.
No wonder they are not financially free.
Financial freedom is like a relationship. If you ignore it, it will ignore you.
I have a favourite saying…
Most of us are all “WISH BONE” But only a few of us have “BACK BONE”