Table of Contents
Part I : Real estate basics
1 Advantages and disadvantages of real estate
Advantages of real estate
Disadvantages of real estate
2 Characteristics of the real estate market
Location
Land
Houses vs apartments
Owner-occupiers vs investors
New vs old
Architectural styles
Median prices
Part II :
SYSTEM T®
3 Security
Return of investment
Return on investment
Declining long-term demand
Operational risks
Overextending
Protecting your wealth
Excesses
4 Yield
The power of compounding
Capital growth
Rental income
Growth vs income
Buying vs renting
5 Spread
Out-of-phase markets
Building a property portfolio
6 Time
Time in the market
The real estate cycle
Timing the market
7 Equity
Deposits
Piggybacking
Say no to ‘no money down’
Other uses of equity
8 Magnification
Magnification ratio
How much can you borrow?
Types of loans
Choosing a loan
Refinancing
Paying off debts
Types of gearing
Servicing a property
9 Tax
Income tax
Capital gains tax
The effect of tax
GST
Stamp duty
Land tax
10 Bringing it together
Part III : The buying process
11 Pre-approval
12 Research
The 80/20 principle
When to buy: the Buying Zone
Where to buy: drilling down to suburb level
What to buy
Bird’s-eye view
Local information
Agents
How much to pay: recent sales
13 Inspection
Online inspections
The four key questions
Open inspections
After the inspection
14 Valuation
Professional valuations
Agent valuations
Automated valuations
DIY valuations
Valuer-General valuations
Last sales price
Pre-purchase vs lender valuation
15 Getting to yes
Buying strategies
Privates treaty sales
Auctions
16 Closing the deal
Holding deposit
Exchange of contracts
Conveyancing
Settlement
Part IV : Managing your properties
17 Property management
Tenancy laws
Property management functions
Choosing a property manager
Keep good records
Review your property portfolio
18 Renovations
Structural renovations
Cosmetic renovations
Extensions
19 Property development
Buy land and build
Dual occupancy
Small-scale developments
20 Selling
Avoid selling if possible
Sell if long-term demand declines
If you get a great offer
When to sell: the selling zone
How to sell
Part V : Making money in real estate
21 Common real estate investing strategies
Negative gearing
Motivated sellers
Positive cash flow
Renovation
Value
22 How I make money in real estate
Yield vs costs
Buying when market value < intrinsic value
23 The development of a property investor
Appendix: Comprehensive buying example |
