Owner: Property Investment Resources URL:http://propertyinvestmentresources.blogspot.com/ Join Date: Tue, 05 Sep 2006 04:42:45 -0500 Rating:1 Site Description: Blog of Debra Lohrere, author of books on Property Investment, Creating Financial Security, Goal Setting and the Power of Compounding. Site statistics:Click here
Will Women face Financial Hardship in Retirement? 2006-08-22 13:55:00 The looming hardship that will be faced by many of the baby boomers once they retire could well affect women a lot harder than men. The likelihood of the government being able to afford any sort of reasonable amount of pension is very slim, simply because of the magnitude of the number of people who will be retirees, compared to the working population. The Australian government has realised this, and that is why they introduced the compulsory employer paid superannuation scheme and are even now beginning to give financial incentives to Self-funded retirees. They are also now encouraging people to work well beyond the 65 year barrier.
Most people have never sat down and even considered the ramifications of why the compulsory super was introduced and for many of us it is a matter of too little too late. Even for the young women in our society - who have a full working life ahead of them, they still cannot rest assured of a comfortable retirement.
Why is this? It is because that unfortu Read more:Financial
, Women
What is the best type of investment investment? 2006-06-21 03:11:00 When people look at investing, there are three main areas to choose from; shares, property or cash deposited in interest bearing accounts.
Why has property proved to be the most effective choice?
In Australia and many other places around the world, over the past 50 years property has averaged 10% p.a. compound growth. (Carefully selected properties have averaged even greater returns). Not forgetting that investment
properties also generate an income from rent.
Median priced property in Australia have averaged growing at 2 - 4% p.a. higher than inflation, making it a very solid investment.
One of the most effective way to build riches is to accumulate a portfolio of investment properties (over the space of 7 to10 years) and then let the power of Compound Interest work to your benefit.
The main reason that property can be utilised more effectively than shares as an investment, is due to the added benefit of being able to highly leverage an investment property.
Leveraging is where you u
Why is property investment so powerful? 2006-06-15 11:34:00 In Australia & elsewhere over the past 50 years property
has averaged 10% growth per annum.
The time that it will take for a property to double in value can be calculated using the Rule of 72.
This rule says that 72 divided by the compounding growth rate equals the number of years it will take to double in value.
This means that as a property increases at a rate of 10% that every 7.2 years the property doubles in value.
Therefore if you purchase a $250,000 investment
property and hold it for 21.6 years, it will then be worth $2,000,000 (increase of $1,750,000) so you will have averaged $83,333.33 per annum profit!
Well researched properties can give even greater returns.
This example has not taken into account the effect of inflation, however it is easy to see that hardly any other investment could match the power that gearing into property can have.
If you purchased a $250,000 property using a 10% deposit and allowed 5% of the property value for purchasing and legal expenses, then
Investment Property and Financial Security. 2006-05-18 11:13:00 Once you are aware of the huge potential that property investment has for creating wealth, where do you start?
The most important thing you can do is become informed. Learn how to research the property market, so that you will be able to purchase properties that will not only give a good rental yield, but they will also return the best capital growth possible. Read as many investment books as you can. Read auto-biographies of successful people. Learn what they did right, and even more importantly what they did wrong, so that you won't make the same mistakes. Speak to people who have succeeded in doing what it is that you want to do. The more you learn, the easier it will be to recognise a good investment.
Find out about Negative, Neutral and Positive gearing - and why gearing is such an invaluable tool, which will enable you to build up a wealth base in accelerated time, compared to if you only invested your own hard earned dollars.
Once you have educated yourself and understand wh Read more:Financial
What does the future hold for the Baby Boomers? 2006-05-17 14:06:00 Baby boomers face a bleak financial future. This all too common line seems to be finally sinking in, as many of the baby boomer generation are beginning to take a proactive approach to their retirement planning. As well as increasing personal superannuation contributions, many have begun to look at direct investing in both the share market and property markets. Unfortunately many of the property marketeering companies operating in Australia have sought to take advantage of this, and have targeted their marketing campaigns at them.
Two tiered marketing, where property companies sell investment properties (often off the plan) to interstate buyers, who are unaware of the current genuine market climate at highly inflated prices often $30,000.00 to $50,000.00 above true market value, have been rife in Australia for several years. The companies have a highly organised and professional approach, beginning with a free seminar that highlights the advantages of property investment and then offer Read more:Boomers
Building Financial Security Steps 1 to 6. 2006-05-11 13:36:00 We would all like to think of ourselves enjoying the good things in life, not having to stress about finances, and not having to be concerned about growing old, poor.
But if we are currently living from pay cheque to pay cheque, never seeming to get ahead or having any savings, how do we change things? Where do we start in our quest for financial security?
The best thing we can do, is sit down, take a deep breath and contemplate the differences between the haves and the have nots, the achievers and the laymen. What is it that the successful and wealthy do, that is different to us? What are the principles that they utilise to create wealth?
Once we find out the principles that others who have created financial security have used, it seems that then the only step left would be for us to try and duplicate the process.
Following is a list of some of the wealth building principles that I have discovered in my study of and conversations with successful people.
These concepts have been utilis Read more:Building
, Financial
Why do we need to invest? 2006-05-11 13:27:00 It is vitally important in this current day and age for all of us to begin taking control of our financial situation and start planning for our future, and the futures of our children.
We can no longer rely on the government to hand out an aged pension once we retire. We cannot take for granted that at the end of our working life we will be taken care of financially.
The world population is ageing, due to the baby boomer generation, and within 30 years there will be so many retired people, compared to the number of working age people, that it will be economically impossible for the government to afford to provide any reasonable source of monetary assistance for the elderly.
The Australian government has realised this, and that is why they introduced the compulsory employer paid superannuation scheme and are even now beginning to give financial incentives to Self-Funded retirees.
Most of us have never sat down and even considered the ramifications of why the compulsory super was introdu Read more:invest
Why is it important to set goals? 2006-05-11 13:24:00 Having a goal enables you to focus your energies on devising ways to achieve it. When someone makes a decision and begins focusing on achieving a specific goal (and even better in a specific period of time), the powerful subconscious mind goes to work and begins playing with ideas and developing strategies of various ways to bring about the successful completion of the goal.
When you set yourself a goal both your conscious and subconscious start working on it and begin to develop an action plan. You will find you begin asking yourself questions about what needs to be done to enable you to reach your goal. You may find yourselves coming up with amazing ideas and solutions to problems or obstacles that have been in the way of achieving your goal. Solutions and ideas that you are surprised you ever thought of may start popping into your mind.
Our subconscious is an extremely powerful tool. The more often you remind yourself of your goal, the more your mind will work on ways for you to a
New Christian Investment Book 2006-12-19 11:50:00 Hello to everyone who has been supporting my blog. I am happy to announce the release of my latest book - this time catering for the Christian
ordiance who are interested in property investment. It is entitled "Christian Investing and Money Management" and is published through Lulu.com and distributed by Ingram (or will be within the next couple of months). It is available now at my Lulu online bookstore at http://www.lulu.com/DebraLohrere
You can also find more details on my webpage at http://www.investmentpropertybooks.com/christianbooks.html
I have been getting some very positive feedback from readers and have several magazines who will be doing reviews on it in the next couple of months.
This book fills the gap for works on Christian Investment that are applicable to the Australian property market and taxation system, but most of the principles can also be easily adapted to other countries.
It covers areas including budgeting, goal setting, compounding interest, using other people
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