Archive for the ‘Profit’ Category

Have A Clear Strategy Without Distraction

Wednesday, July 1st, 2009

Too often, real estate investors put their money into a property based on what someone has told them, such as the value will rise or a discount is offered. All too often, investors make a purchase without first establishing a clear strategy, or they purchase the wrong type of investment property to meet their specific goals.

contemplate1In addition, there are times when an investor will have a strategy they are working with that is reasonable, but then they are distracted by a fresh deal that does not suit their overall goal, or purchasing a property in need of restoration without the means to complete the work.

It is critical that you plan your investment strategy before you purchase your first investment property. When drawing up your plan, you must take into consideration the amount of time, money and expertise that you are willing to put into each property.

Create A Strategy That Works For You

Too often investors try to create a strategy for investment that is too broad. For example, there are investors who will buy individual pieces of real estate in a number of different countries. Although they may be getting good deals, managing finance, legal and tax issues can be difficult.

Instead, it may be better for you to aim for two or three investments at a time, making it easier to watch the overall market. It is best to be an expert in a couple of markets, than to be spread too thinly over a large number of investments.

Be sure to include an efficient exit in your investment strategy. It is extremely important to know how long you plan to hold each property, as well as what it will take for you to sell. Your strategy plan should detail how soon you plan to sell in order to effectively estimate your overall profits.

To sum it up, your investment strategy is very important right from the start - you
must consider:

• How will you invest your money, such as commercial, multi-unit, etc.?
• What are your goals, such as profit and timescale?
• How much time do you want to put into your investment for renovations, etc?
• What is your exit strategy?

Property Options Australia
Property Options Blog © 2006 - 2009

Time To Sell

Thursday, June 11th, 2009

According to the Australian taxation system, taxation is usually not due on the escalating value of your assets. The only thing you are required to pay taxes on is the capital gain at the time of sell.

If you purchase the property to hold and you keep it for over a year, then you will be eligible to receive a 50% discount on General Capital Gains Tax. If you purchase the property with a plan to sell, then you will be responsible for paying the full marginal tax rate on your profit, regardless of how long you keep the property before selling.

Avoiding Tax Triggers

figuring-profitsA number of investors think that the only way to received increased asset value is by selling, however, by selling your property you will trigger several costs and taxes such as:

• Capital Gains Tax
• Income Tax
• When you make your next purchase – loan costs, legal fees, stamp duty, etc. If you buy a new property, the price will include GST as well.

When you have to pay these additional taxes and expenses, you profit is minimized considerably and in some cases, lost completely. Many investors chose to refinance their properties and draw cash against the equity through a credit line. If the credit is use for investment reasons such as funding negative gearing, purchasing a new property, etc, the interest costs on the credit line are tax deductible.

You need to careful analyze if borrowing in such a manner is the right thing for you, including funding capacity. In addition, this should be done before you commit to purchasing any investment property. Be sure that you do all of your homework and are aware of all of the rules and regulations that are involved in buying and selling real estate in Australia.

Sean Rasmussen
Property Options Australia
Property Options Blog © 2006 - 2008

Careful Not To Train Competition

Saturday, May 30th, 2009

When you desire to hire an assistant, you need to be sure that you are not actually training your competition, while still hiring someone with the motivation to get things done.

Same Initiative, Different Interest

It is important to understand that not all people who have such initiative are those who are interested in real estate investment. Several people are interested in investing in real estate and do nothing about it. There are just as many people who have the initiative and are willing to take on the task of becoming a personal assistant to property investors, but do not necessarily share the same interest in the real estate market.

assistant-trainingThink about it, you do not see very many office managers and secretaries working at an accounting firm who yearn to crunch numbers in their spare time. Likewise, you will not find many law firm receptionists who would rather be preparing briefs and arguing cases. Assistants take the types of jobs they do because they want to work as an assistant. You do not have to hire an assistant who is interested in closing his or her own deals.

Keep Your Secrets

When you hire someone who is interested in becoming an investor, you run the risk of losing their services once they decide to do their own deals. This will end up costing you extra time and money in the long run finding a replacement.

Confidentiality is also a concern. If the individual you hire as your assistant decides to open a real estate investment business of his or her own, they may attempt to steal your deals, prospects and trade secrets. They will have the opportunity to get to know your private lenders, potential buyers, seller leads, and not to mention your best top-secret marketing techniques. You could lose thousands of deals and opportunities.

Property Options Australia
Property Options Blog © 2006 - 2009

Property Options or Gold

Friday, March 6th, 2009

All throughout history, people have found gold to be a valuable investment. Typically, investors purchase gold as somewhat of a safe haven against declines in the market, social unrest, war and inflation. Other times, investors will purchase gold simply to increase their wealth. There are a few factors that influence the price of gold, which increases and decreases to some degree almost daily.

Supply And Demand

The interesting thing about investing in gold is that the value of the market depends greatly on supply and demand. You see, it is not very likely that gold production will see many changes in the immediate future. Supply and demand is influenced by private ownership and is subject to sudden changes. This is what separates gold from other types of investments.

Better Options

Another road you could take with your investment is property options. When you invest in gold, the only way to make a profit is to buy low and sell high. You have to check the news and watch for changes all of the time. With property options, you make one small investment and then just sit back and let the money roll in to your pockets.

The best thing about property options is that you do not have to worry about how the market is doing every day. You do not have to monitor you rin vestment constantly in case you have to sell suddenly to avoid losing it all. Not only is the initial investment in property options low, so is the risk.

Good As Gold

If you are interested in learning how you can use property options to build a fortune so grand that you could buy all the gold you would ever need, then you need to contact Massland. Massland is a wonderful company that was founded by Mark Rolton, a man who has taken everything he knows about the business, made his fortune and is now ready to tell you how to make yours.

Property Options Australia
Property Options Blog © 2006 - 2009

Getting What You Want With Property Options

Friday, February 27th, 2009

The same is true for all types of property investment prospects; the trick is to get what you want and to do that you have to have the necessary resources and skills to accomplish such a goal. To be a successful investor, you must have the negotiation skills required to get the best possible deal out there. Thriving investors must have the ability to flaunt your aspirations and your overall talent for building a fortune. The owner of the property wants to know that you are going to take this piece of property and make it something of great value. You must be able to sway even the most stubborn individuals.

Prove Yourself

Property options are a special kind of investment that provides the investor with the advantage of less risk as well as lower initial investment. You need to prove that if you are involved the value of this particular piece of property will exceed great heights. The best part is that the skills you need to be successful in the property options industry are actually quite easy to learn.

If you are one of those ambitious types who like to be in power from the very beginning, then you will find investments in property options especially interesting. The best way to learn how to succeed is to learn from someone who knows the ropes; someone who has been there, done that; someone who has swam with the sharks, and come out kicking. The someone to which I am referring in this instance is none other than the great Mark Rolton, founder of Massland.

Not all people are effective salespeople, but that does not mean you cannot learn all of the special negotiation skills that Mark Rolton and the fine people at Massland will teach you. There is no reason to wait any longer, register to attend one of his great seminars today.

Property Options Australia
Property Options Blog © 2006 - 2009