Buy home. Buy Property - rental property investment

Many people set out on the journey of wanting to buy property for rental property investment and for personal occupancy. If you want to buy property for rental property investment you can. If you are looking to buy a home to occupy you probably can do that too. Whilst the money is a big part of the process to buy property, it is not the only part. Even if you only have a little bit of money set aside you probably can buy property - you definitely do not to be filthy rich to become a savvy property investor or home owner.

So what is important about becoming a property investor who might one day own a portfolio of property investments? Here are a few important tips to start you thinking about your journey to becoming a property investor.

1. Establish a plan to buy property. There is no greater risk than that of buying property off the cuff without any planning, goals or research. Setting aside some time to create your own personalized property investor blueprint is worth its weight in returns in the long term.

2. Review your financials. You need to know exactly the condition your personal finances. Review your existing financial commitments. Document your income both gross and net (take home pay). It is important to understand the differences. Understand your current spending habits for your daily costs of living. Scrutinize your social expenses too. Review your current savings in the bank and any saving plans you might have in place now.

3. Seek advice from a financial planner. A good financial planner will help you to review all of your financials. The process of putting all your financials on the table for an outsider to review can be challenging but also very rewarding. You will be surprised how many new insights you can gain from a professional about your present situation. Some people advocate an accountant which is well and good however I believe that a financial planner will help you to create a big picture tapestry of your circumstances and set you up with a plan to help you buy property in the future.

4. Understand your superannuation. Have you ever considered establishing a self managed superannuation fund? Believe it or not, you might be sitting on a wealth of opportunity and resources by tapping into your superannuation funds to assist you with your plans to buy property. Just a note, if you buy property using your superannuation you will be unable to occupy such a purchase - the property can only be an investment property in most circumstances.

5. Research the areas that you are interested in or want to buy property. Don't limit yourself to buy property in areas you simply like but adopt a property investor mindset and research information from leading commentators and property professionals. Exclude slippery salespeople and "get rich overnight" investment companies from your research. Visit local councils and speak to town planners about future infrastructure to be constructed.

6. Follow the market. There is so much free information in the public realm nowadays - don't be afraid to use it. Inspect some homes for sale, attend public auctions, speak to some active salespeople , follow some leading property websites. Know the current value of home prices in the for sale homes pages of your local and state newspapers. You can develop a good understanding about an area in a reasonably short period of time. The internet does make research so much easier nowadays.

7. Research the cost of buying property as a property investor. Every state has variations in the cost of stamp duties and title registrations when you buy property. Every bank has a suite of fees, valuation fees, settlement fees and bank account fees associated on your loans when you buy property.

These suggestions can all be broken down into much smaller items and extensively expanded upon. The list is presented as an appetizer to the discussion you should be entering into in your pursuit of becoming a property investor. The real secret behind any property investor who sets out to buy property or establish a portfolio of investments properties is their commitment to the development of a plan that is researched, prepared, calculated and implemented.

Good luck with your mission to buy property - wishing you rental success.

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Australian Run Property Manager to Serve 15 Months in Prison for Maintenance Fraud

When you are undertaking repairs to your rental property are you certain that the works are being completed satisfactorily on your behalf. You might be wise to seek some proof from your property manager if you are in doubt about the work or uncomfortable with the financial deductions from your rental statements. 

A former property manager from the Run Property Group in Melbourne has been found guilty of jailed after stealing $580,000 through a web of fake invoices and contractors.

Between 2005 and 2011, Leigh Aizen fabricated more than 400 fake maintenance work invoices through the Run Property agency where he was employed mostly for uncompleted maintenance on behalf of property investors and home owners of rental property under his care. At times, no work was ever undertaken.

Such was the sophistication of his underground operation, Mr Aizen created false maintenance companies and paid himself by sending the payments through a web of international banks and offshore accounts.

The court heard that the "elaborate" and "sophisticated" scheme was set up due to pressure from Mr Aizen’s then-partner to maintain her extravagant lifestyle. But the breach of trust of his employers and clients led County Court judge Gabriele Cannon to sentence Mr Aizen to a minimum of 15 months' prison.

"At the end of the day it was your decision to remain in the relationship with your [then] partner and commit the offences which I now sentence you," the judge said. "This was no spur of the moment offending ... but a lengthy course of conduct which you continued until you were discovered," Judge Cannon said.

The property manager has also since repaid $450,000 of the $580,000, and intends to pay back the remaining balance - Thankfully for the victims of this unsavory breach of trust! 

When you are authorizing substantial maintenance works and repairs on your rental property be sure to sight proper quotation documents and supportive photographic evidence of the subject repairs before you instruct your property manager to proceed with the works. If you are being asked to spend considerable amounts of money then you are wise to seek a second quotation from another contractor. I also recommend that if you are in a position to talk with the contractors directly before approving quotes inn order to satisfy yourself that the work is necessary and that all repair options have been taken into consideration. 

When the works are complete your property manager should confirm same with you and confirm the payment amounts that are due to the contractor. You should ensure that your property manager has personally inspected the works on your behalf and can send you some photographs of their inspection. For substantial and costly repairs you should seek to inspect the work yourself if you are able. 

Article Modified by Chris Snell, Property Manager, Australia, 

Article sourced by Written by Steven Cross  Friday, 06 June 2014

http://www.rpmonline.com.au/news/12470-15-months-jail-for-pm-who-stole-over-half-a-million?utm_source=Residential+Property+Manager&utm_campaign=Residential_Property_Manager_Bulletin06_06_2014&utm_medium=email

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Reserve Bank holds the Cash Rate 4 February 2014 - CommSec Economic Insight

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