Uncertainty in the Market

2016 has started as the year of uncertainty. So many times we hear financial commentators giving “uncertainty” as the reason why markets are down, or the dollar is down or other economic indicators are poor.

Usually it is the uncertainty that is affecting the stock market that we hear about, but perhaps it just seems this way because you can get a price for a share on a daily basis. We don’t really know the value of a property until it has been presented to the market and, a few weeks later buyers have made an offer. There just isn’t the same volatility in the property market to measure levels of uncertainty.

Government “conversations”

The current coalition government has been having “conversations” this year about increasing the rate of the GST, taxing our superannuation contributions and more recently making changes to negative gearing and the deductions property investors can claim against their other taxable income. There have even been whispers about changing the rules associated with capital gains tax (CGT).

The Labor opposition has now come out with a proposed policy to make changes to negative gearing, should they be elected back into power.

In short, there is a great deal of uncertainty about how we might be taxed and how we might be financially affected as we save and invest for our retirement years.

With the stock market officially in a bear market (and most of our superannuation funds that invest heavily in the stock market taking a hit as a result) and interest-bearing accounts paying all-time low interest on our cash investments, it’s little wonder that investors have been looking at property as a way to provide for themselves when they leave the work force. If politicians change the rules around property, many of you may feel at a total loss about what you should do to fund your retirement years.

Don’t panic

First of all, don’t panic. It may never happen! Many of you will remember numerous other occasions over the years when governments have “taken a look at” how property investors are taxed and the deductions they can claim. So far, no government has been foolish enough to take steps to make major changes due to the high risk that there would be a housing crisis as a result, as private landlords pull out of the market. Both sides of politics also preface their ideas about making changes with assurances that new legislation will be “grandfathered” which means that if you invested in property in good faith in the past, and in the 18 months or so leading up to any new rules, then the changes to how your existing investments are taxed will not be altered.

Talk to your adviser

If you are a Destiny client, don’t sit at home worrying about all the bad news and uncertainty in the media. Contact your qualified property investment adviser at Destiny and talk it through. They will discuss the facts not the hype. They will review your investments and put your mind at ease. If you are in a position to start investing it still might be a good time. Interest rates are still at all-time lows. If either side of politics is really determined to tamper with property investment rules, they first have to be re-elected and then have their legislation passed through both the lower and upper houses of parliament. Meanwhile, you will still need to fund your retirement and investing in property may well be the best way to do this.

 

 

What to demand from your property investment adviser

When people start considering property investing, they can be overwhelmed by the amount of information and advice that is available to them. It can be quite confronting deciding how to go about it. Just as when you start to learn any new skill, you may try to  nut it out all by yourself; by reading books, magazines, watching TV shows and YouTube videos. While there’s absolutely nothing wrong with this approach, it does take longer and a lot of your time.

An alternative is to fast-track your progress by seeking out a professional property investment adviser. This way:

• You can learn from other people’s mistakes so that you avoid making the same mistakes yourself
• You can learn from other people’s success – what proven strategies did they use?
• You can usually ensure that you are getting advice from someone with experience.

Many property investors who become Destiny clients start out on their own and then, after not doing that well, they find out how we can help!

You get what you pay for

Before we look at what an adviser should offer you, let’s first cover off the issue of what it will cost. First of all, you get what you pay for. If you look for free advice it will never be free. The advice may not cost you anything at the time but it will not be independent advice. It will most likely be a recommendation to invest in a development or property or ‘scheme’ and the ‘adviser’ will receive a kick-back from sending your business their way. People who work on these terms are not ‘advisers’, they are salespeople or marketeers.

At the other end of the scale, the most expensive is not always the best advice either. Ask yourself what you are actually getting for the price you are paying, and compare the services of other advisers and their charges.

Five non-negotiables

Here are what we consider five essentials that you should expect from your property adviser:

• Independent advice that is right for you: By law, financial advisers are not allowed to offer advice without getting to know their client first. Introductory discussions should cover your financial situation (your assets and your liabilities); your income and work history; your dependants and other financial commitments; your age and risk profile. This is to ensure that the advice you are given is relevant to your own situation. If ‘advisers’ offer recommendations to invest in property without finding out about YOU first, then run a mile.
• Education and transparency: Even if the adviser ends up doing a lot of the work for you — as is the case with some companies that offer buyers advocacy services as well as independent advice — you should ask to learn and understand the process and demand total transparency. What are they doing on your behalf? This way you can start to do more yourself when you know more about the process and become more experienced.
• Ongoing support: When you are starting out in property investing you will need support – some need more than others, but ongoing support should be a prerequisite with any property investment advisory service. You don’t want to just make one investment and then never hear from them again. You also want to know that you can contact your adviser regularly and at any time that suits you (not them).
• Accreditation: Is the company you are considering a member of PIPA? PIPA is the Property Investment Professionals of Australia, a non-profit organisation that “has been formed by industry practitioners with the objective of representing and raising the professional standards of all operators involved in property investment.” A good place to start looking for a property adviser is on the PIPA website. 
• Wealth of experience: Although we all have to start somewhere, would you rather have an adviser just starting out or be part of a winning team that has years of experience to share with you and thousands of happy clients who they have helped over this period? I know what my answer to this question would be.

Of course, we’d love to help you with your property investing. Destiny ticks all these boxes and more. Contact us now www.destiny.com.au.

Winners are grinners but self-praise is no praise

At Destiny this week we were delighted to learn that two of our branches had received Investors Choice Awards. Smart Property Investment, in conjunction with homesales.com.au invited property investors to nominate their favourite/most helpful property professionals in a range of categories. Andy Scott from Smart Property Investment said, “With over 7,000 votes the competition for these awards was intense”.

We are extremely proud that Jim Leone who runs Destiny’s Sydney branch was voted Winner of the NSW property adviser category and he was Highly Recommended in the Property Educator/Mentor category. Carolyn Walshe who runs Destiny Gold Coast was Highly Recommended in two categories: the Qld Property Investment Adviser and Mortgage Broker categories.

Well done to Jim and Carolyn and their respective teams.

Self-praise is no praise

What we are really proud of is the fact that it was satisfied Destiny clients who voted for us; not industry peers nor the media but investors who we have helped achieve their property goals and who were so pleased with Destiny’s services and products that they made their nominations.

There are some ‘advisers’ and educators in the Australian property investment marketplace who are quick to make claims about the wealth they have helped create for their clients in record time, and the ‘award-winning’ services they offer! When you read about achievements and awards which at face value give a person or a company credibility, scratch beneath the surface to find out where these accolades come from. It is misleading advertising to make claims that you cannot support, but this doesn’t stop some in the property investment industry from doing so.

Likewise with testimonials. How do you know that they are legitimate? Talk to other investors who are happy to recommend the professionals they have worked with. A reputable company will put you in touch with investors who will share their experiences with you.

Remember, self-praise is no praise, the praise you want to hear comes from satisfied clients, not a company’s marketing department!

Recognition of a range of Destiny services

Another thing we were proud of at Destiny when we received the Investors Choice awards was that Destiny was recognised for the range of services that it offers. Destiny is well-known for its property investment education, our Essential Property Education (EPE) course teaches and motivates investors to start or kick-start their property investing. But we also offer ongoing advice and mentoring as we support you to find the right property for your own individual circumstances. We help you research areas and properties and then we help you in your negotiations as you close the deal. Your Destiny adviser is with you every step of the way. And as Carolyn’s award attests, we have mortgage brokers who will find the best loan that suits your circumstances too ­­– make that “award-winning” mortgage brokers!

To find out more about Destiny visit www.destiny.com.au

Sound too good to be true? It probably is.

There has been news lately in the press about ASIC uncovering an unscrupulous Land Options scheme. I’m not going to go into all the details of how this worked but to cut a long story short, naïve investors handed over thousands of dollars on the promise of earning thousands more. They probably didn’t understand how the scheme worked themselves. They fell for the photos in the glossy brochures that depicted what the property they would be investing in would ultimately look like (ignoring the fact that what they were currently investing in was a piece of vacant land). It’s called “selling the sizzle, not the sausage”. As a property investor, it’s important that you protect yourself against such schemes and know how to spot a scam when you see one.

Rags to Riches

Another approach to dupe unwary investors is to sell the investor’s story. Instead of focusing on a secret property investment scheme that will provide phenomenal returns, they focus on the person. You know the sort of thing – ‘Aussie battler fights adversity to end up managing a portfolio of scores of property, providing thousands in passive income to retire at 30’! You have to be careful of this one because it’s true that you can build a property portfolio by investing in good, solid property that will provide you with a good passive income. But it’s usually not as easy as spruikers claim and the returns are generally more conservative.  In addition to this you need to invest in the right kind of property (not necessarily the over-priced developments they get a kick-back from selling to you) and that property type has to suit your own personal risk profile.  This means that it’s simply not possible for the properties being sold by spruikers to be appropriate for all people.

Who is to blame?

Some people say that you can’t blame investors for taking their financial security in hand and wanting to invest to provide for themselves in their retirement – and so they become easy targets. Others do blame them for their greed and naivety, and say they deserve what they get. You have to remember that spruikers and marketeers are very good at what they do. They are persuasive and know what buttons to push and can be persistent. Their skills can take advantage of even the most informed and intelligent investors.

The old adage, “if something sounds too good to be true it probably is” should not be forgotten, particularly when large sums of money are at stake.

Independent support is the key

At Destiny, over the 21 years that we’ve been helping property investors build profitable property portfolios, we’ve seen many “get-rich-quick” property investment schemes come and go. Very often victims of these schemes come to Destiny and tell us they wish they had come to us earlier as they would have avoided falling for these traps. We wish that more investors would see the value of investing in the right kind of independent support before they make their decisions.

Too-good-to-be-true checklist

If you’re considering an investment scheme or property expert’s advice, then this simple checklist will help to determine whether you should go ahead:

1. Is the company you are considering a member of PIPA – the Property Investment Professionals of Australia, a non-profit organisation that “has been formed by industry practitioners with the objective of representing and raising the professional standards of all operators involved in property investment.”
2. How long has the company (or person heading up the company) been in business? What is their track record in business?
3. Can they give you referrals so that you can talk to other investors who have been happy with their service and advice?
4. Are they pressuring you to make a quick decision before this “once-in-a-lifetime” opportunity passes? Or are they happy for you to take your time and do your due diligence to make sure you are comfortable with your choice to become one of their clients.
5. Is their advice to you truly independent, or do they have a property they are wanting to sell to you? Where they are selling property they are not independent and their advice cannot be guaranteed to be appropriate for you.

I think you’ll find that Destiny ticks all these boxes.

Investment loan interest rates on the way up

Every first Tuesday of the month (except January) the media and social media is a-buzz with speculation. Will the Reserve Bank of Australia (RBA) cut the cash rate, increase it or leave it on hold? The cash rate influences the bank’s lending interest rates, so although the moves are usually only 0.25% up or down, this can be cause for celebration or concern for anyone with a home loan or property investment loan.

The last four interest rate movements have been down and rates are currently at all-time lows. So it is hardly surprising that investors have been very active taking advantage of the low cost of borrowing. As we keep telling our Destiny clients, there has never been a better time to invest!

However, recently, with some parts of the market regarded as over-heated, regulators have been concerned about the proportion of loans that have been taken out by investors.  What will happen if there is a correction and property prices fall? Will there be a massive default on loans that could destabilise lending markets? In the past, the Reserve Bank would have increased rates to cool the market down but, in the current economic climate of low growth, they are reluctant to do this.

Investors pay the price

So, instead, the regulators have put pressure on the banks to come up with a solution and their solution has been to increase rates on their investment loans. Many investors will have negotiated discounts and rates on their investment loans – often with the one lender – only to find that they are now facing rate increases. The ANZ’s announcement was for 0.27% premium on investment loans and the Commonwealth Bank and other lenders are looking likely to introduce similar changes.

Putting this into perspective

Experienced property investors will remember that it was not so long ago that investment loans always used to attract a higher interest rate. In fact, overall it was more difficult to secure finance for property investing than for a home loan. The loan-to-valuation ratios (LVRs) were always higher too. Home-owners could borrow up to 95% with some lenders whereas investors were capped at an 80% LVR. Whether banks will apply the higher rate to new loans only, or go back and increase existing loans, will depend on individual bank policy.

Should investors be worried? 

To offset the increased costs of borrowing, investors will be left with no choice but to increase rents, adding further financial burden to renters. Perhaps the regulators failed to factor this response into their thinking. The cynics among us might also see this as an opportunity for banks to increase their profits by increasing their margins on lending.

If you are concerned about how these increased rates will affect you and your borrowing capacity or serviceability, and you are a Destiny client, then talk to your Destiny property investment adviser or mortgage broker.

 

Boom, bubble or bust?

If you’ve been following the media to keep abreast of property news lately, you can be forgiven for feeling a bit confused. Every week at Destiny, we send our VIPs an email which provides a weekly roundup of property stories and this just highlights the conflicting opinions that are published in the media on a daily basis. But you need to get past the headlines to find out what is really being said.

There’s no doubt about it, the words “boom, bubble and bust” are very emotive and attention-grabbing. They will suck you in to read more but when you do, are you really any better informed? Let’s take a look at some recent media reports.

Sydney and Melbourne not a bubble yet

On 4^th July, the Sydney Morning Herald, reported that according to 25 leading economic forecasters, Sydney and Melbourne would continue to enjoy strong growth this coming year. (Great! We’ll stop worrying.)

Bubble forecast

But hang on, only two days earlier, we saw the headline “UBS bubble forecast”. But if you read the article you would realise that what investment bank UBS was really forecasting was a “potential” correction in the next two or three years. (A bit vague, to say the least.)

Correction next

The Domain article at the end of June chose the word “correction” over “bust”. This article gets the prize for most confusing. According to BIS Shrapnel, price falls (in Sydney) will hit in 2017. CoreLogic RP Data’s senior research analyst thought it would come sooner and was reported as saying “the boom has got to be getting close to its end”, an observation seconded by AMP chief economist.  But Andrew Wilson, Domain Group’s senior economist, had “no expectations” for price drops.

So who do you believe? None of them, of course. The fact is, when measured over a 10-year term, all of our capital cities have had exceptionally similar performances.  This means that, whether you invest in a boom or not, after 10 years you’ll probably get a similar result in most markets where there are growth drivers in existence.

 

Do your own research

Booms, bubbles and busts make great headlines – and there is a place for media comment – but nothing beats your own research. At Destiny we teach our clients how to research. We share with them online search tools (and new ones seem to be becoming available all the time) and we share information between ourselves – there’s nothing like peer-to-peer learning when its base is first-hand experience. We also remind clients frequently that what is happening in one market bears little relevance to other markets. If an area is over-heated and there is strong evidence of buyer frenzy, then move on and search for another location.

Better ideas for getting people into the property market than removing negative gearing

You know, our politicians have never been known for their creative thinking, but really, removing negative gearing as a panacea for prospective first homebuyers being unable to get into the property market is not only short-sighted but very limited. At Destiny, we’ve come up with some other strategies that would be far more helpful for people looking to buy their first property and stepping onto the property ladder.

Stamp duty relief

Let’s look at stamp duty first. Stamp duty is a state-based tax, the rate of which differs quite markedly. In NSW, stamp duty on a $600,000 property for first homebuyers would be: $12,370; in Victoria: $15,535; Qld $12,850; ACT $20,800; WA $22,515; SA $26,830; Tasmania $22,498; Northern Territory $22,700. There are grants and rebates in some states and in many areas, stamp duty is far less on lower priced properties. Despite this, it is an impost that adds further pressure on property purchasers struggling to save for a deposit, buying into an ever-increasing property market. Wouldn’t it be great if state governments offered larger up-front grants and the complete removal of stamp duty for first homebuyers?

Interest-free loans for a deposit

Saving for a deposit is often the biggest hurdle for first homebuyers. As soon as they have saved a certain amount, in hot markets, the property values have gone up and they find they have a shortfall. The banks could come to the party and offer interest-free loans to first homebuyers for their deposit. They would secure a lot of new business doing this and add new lenders to their books who will also borrow the balance of the value of the property.

GST could be removed off new property for first homebuyers

Coming up with a further 10% on the price of a new property to cover GST is a huge added financial commitment. Again this would be loss of revenue to state governments, but it would make new property more attractive to first homebuyers and perhaps encourage further development, creating greater supply, which in turn would cool overheated areas of the market where supply is a major issue.

An improved NRAS scheme

The current Federal government’s National Rental Affordability Scheme (NRAS) was introduced to make it easier for people to find and rent affordable property. It offers a financial incentive for investors to purchase NRAS property and for tenants to pay 20% below market value rent. The new scheme would provide tax incentives for developers to build first home-owner accommodation and selling it 20% below market value, but stricter controls around the scheme would be required to prevent a repeat of the dismal failure of the first attempt. Even better, offer the tax incentives to the actual first homebuyer to live in the property themselves.

Rent and buy elsewhere

At Destiny, we have long been proponents of buying an investment property first. This allows first property buyers to buy in areas where property is more affordable. Then, instead of living there, they continue to rent in locations that better suit their lifestyle and rent their property out.

When the Hawke government tried to phase out negative gearing in the 1990s, they reversed the decision 18 months later. It might raise $42 billion in revenue over the next 10 years but it adversely affects already tight rental markets, reducing the supply of rental properties. Seems to be a very short-sighted proposal indeed.

Changes in lending practices — what does it all mean?

Investing in the Right Property Now!

The media is just full of property news these days. Is there are bubble? Isn’t there a bubble? Are first-home buyer’s being priced out of the market? Will interest rates stay low? Will there be further cuts?

A couple of things are clear. Firstly, with interest rates so low it is very attractive to investors to borrow and leverage further into property.

Secondly, property in some areas has recently outperformed other investments – by a long way.  According to CoreLogic RP Data’s Tim Lawless, Sydney and Melbourne property values are up a staggering 65.4 per cent and 52.3 per cent respectively since the Global Financial Crisis (GFC) started in 2007! Over the same period, the sharemarket has vacillated and struggled to reach pre-GFC levels. Don’t bother even looking at cash with interest rates so low.

Hardly surprising then that investors are channelling money into property and that values are increasing in some parts of the market at alarming rates. Hence, scaremongering about a ‘bubble’.

Looking at the lenders

The Australian Prudential and Regulatory Authority (APRA) has decided in its wisdom that the way to cool down the markets is to make it harder to borrow money if you are an investor. So they have worked with banks and other lenders to come up with a four-pronged attack:

• Increase the ‘stress test’
• Discontinue offering discounts on lending rates to property investors
• Cease to lend to self-managed super funds to invest in property
• Do not lend more than 80 per cent loan to valuation ratio (LVR).

Let’s review the reasoning behind these decisions.

Increase the ‘stress test’

When you apply for a loan, banks and other lending institutions will assess your financial position to see whether you qualify. Part of this process involves conducting a ‘stress test’. This means they do some modelling against your financial situation to find out whether, when interest rates increase, you will still be able service your loan.

Up until recently, lenders have added one to two percentage points to the standard variable rates currently on offer to find out if, at these rates, you are still able to service the loan. Since the financial regulator has become more concerned about property investors over-extending themselves in the low-interest rate environment, it has imposed a higher ‘stress-test’ interest rate of 7.5 per cent—that’s three whole percentage points higher than many investors are currently paying.

They see this step as protecting investors from over-committing in a low interest-rate environment and having to default on loans when interest rates increase.

Discontinue offering discounts on lending rates to property investors

If you have multiple loans with the same bank you will probably have qualified for a discounted rate lower than the standard rates on offer. This is an incentive to keep your loans with the same lender. It’s not an uncommon marketing ploy. How many of us sign up for a store card and use that store to qualify for specials and discounts? APRA is dissuading lenders from offering discounts on new loans to property investors. This measure is an attempt to level the playing field for home loan and investment loan borrowers. Some banks are deciding to adopt this practise. Mortgage brokers such as Destiny, with strong and lengthy direct relationship with lenders, can often find ways around this for their investor clients.  

Cease to lend to self-managed super funds to invest in property

This tactic is to prevent self-managed super fund trustees falling for slick spruikers’ talk advising them to place all of their retirement savings in a property, usually one that they can source, and borrow to meet the balance of the sale price. Allowing SMSFs to borrow to invest has been a controversial decision and for most people it’s not really a suitable strategy. It is also very complex to secure loans for an SMSF and compliance around this strategy is rigorous.

Do not lend more than 80 per cent loan to valuation ratio (LVR)

This action is another attempt to restrict gearing to prudent levels. The 20 per cent buffer offered by an 80 per cent LVR means that if the market does fall and your property starts to be worth less than you paid for it, you would still be able to sell it and cover the outstanding loan. It means you are now forced to have ‘skin in the game’, it’s no longer optional.

The Destiny way

Many of these measures are really no more than common-sense steps that prudent investors take anyway, and certainly supports the way that we at Destiny have always approached gearing for our clients. If you are a Destiny client, we will strongly advise you to check your loan serviceability at a higher rate than current low interest rates to make sure you are fully aware of what could be higher future loan repayments. We don’t encourage borrowing through SMSFs unless you have a significant super fund balance to begin with. Finally, we have always advised on a maximum 80 per cent LVR as we like our clients to be able to sleep at night. Oh, and the fourth point about the discounts – be sure to check with Destiny to see how we can get you the best possible deals with your lender.

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Investing in property away from home

One of the most common comments we hear from people at Destiny is that they have bought an investment property “just down the road”. Their logic behind this seems to be that their own home has proven a “good investment” so they expect the same capital growth from a rental property in the area. It’s also nice and close so that they “can keep an eye on it”. Let’s dissect these claims so that I can make my point about buying investment property close to home.

“Our home has been a good investment”

Your home might have increased in value over the 15 to 20 years that you have lived there, but so too has every other property – so this doesn’t necessarily make it a good investment. Hold property for that length of time and it will almost always increase in value. Add to that the fact that you have kept on top of the maintenance, looked after the place and done some renovations along the way. So you’ve spent quite a bit of money on it without even realising it. The important thing to consider is the rental return that the property would generate were it an investment property. It is unlikely that you would see the same rental return from a home in your area as you would from a well-researched investment property that, if you’ve bought well, should return 5%+ from the day you buy it.

 “Keeping an eye on it”

The logic behind investing close to home to keep an eye on the property is also flawed. Why would you want to see whether the tenants are looking after the place? A serious investor will put a property manager in charge of selecting good tenants and making sure they keep the property clean and tidy as per the stipulations in their lease. Even if you saw something that you weren’t happy with, you do not have the right to knock on the door and ask the tenants to fix it. There is protocol to follow to protect the tenants and their privacy as well as your property. In my opinion, “keeping an eye” on your property just leads to landlord’s angst!

If not here, then where?

Hopefully, I’ve talked you out of investing close to home. But for many investors, taking the next step and being convinced to invest some distance away and often in a different state, takes a great leap of faith. At Destiny, we teach our clients how to research areas and properties to find the best investment opportunities. For now, let’s just answer three of the frequently asked questions that help to reassure people that investing anywhere in Australia, irrespective of where they live, can be the right way to go.

•  Where do I start to look?

You start to look at areas that you think have growth drivers that mean the property values will increase in the short-to-medium term. It could be that there is infrastructure planned in the area? Or that this particular area has been flat-lining for some time; neighbouring suburbs may have taken off but the area you are considering is yet to experience its next growth spurt. All this research can be completed on the internet with online tools and search engines.

•  How will I know whether the price is right?

There are several websites that will tell you how much properties have been sold for in the past and the prices current properties are on the market for. Local real estate agents will also talk to you about their markets (just make sure you back up what they tell you with your research). Dates when the property has been bought and sold and for how much and how long a property has been on the market are all available on the internet.

•  How will I know if I like the property?

You don’t need to like the property, potential tenants need to like the property. So it must be neat, clean and as ‘new’ looking as possible and meet the tastes of the rental population in the area. You will find that a phone call to a property manager in that area will result in you having all your concerns answered. She/he will usually be happy to advise on how easy the property you are considering will be to rent out and also fill you in on the rental income you can charge and how competitive the market is. The expectation is that if they are forthcoming with answers to your questions, you may give them the property to manage should you end up buying.

Once you have invested in one property interstate or some distance from where you live, you will see that it is not difficult at all. The 20 Must-ask Questions for Every Property Investor by Destiny founder Margaret Lomas are available in book form or video. Follow the procedure and ask the questions outlined in the 20 Questions and you will be well on your way.

65 per cent of property investors are visual learners

Education is the key to property investing success. An educated investor will make better decisions and be able to filter genuine advice and objective information from the sales talk and spruiking that blights the property industry.

Education comes in many forms through different media – books and courses, seminars and webinars. And 65 per cent of people are visual learners, so we can assume that 65 per cent of all property investors are visual learners too, which makes TV and video very important learning channels.

Destiny’s founder, property expert and investor, and best-selling author Margaret Lomas is also the producer and presenter of PROPERTY SUCCESS WITH MARGARET LOMAS, a popular TV program that is about to launch into its 7^th season.

Property Success with Margaret Lomas

The aim of the 25-minute weekly show is to expose viewers to news and information that will teach them to invest better themselves. There is a theme of learning from the mistakes made by others and so avoiding making the same mistakes yourself and also learning from experts – all active property investors themselves.

Here are just some of the regular segments on the show.

Tax information

The PROPERTY SUCCESS tax expert is Ian Rodrigues, and it’s refreshing to find that he is an accountant who speaks in plain English. His regular tax topic is often a mini-series that covers a subject such as land tax in some detail, with each week covering how it affects a different type of investor. His approach is to teach through case studies which viewers can easily relate to.

Legal matters

Michael Teys is the resident legal expert on the program. Michael specialises in strata-titled property and buying off the plan – which can be a legal minefield – but often his legal lesson is around much broader questions such as what to do if you haven’t got your finance in place upon completion.

Viewers’ questions

The viewer’s questions are topical and on subjects Margaret realises have widespread effect. One very pertinent question Margaret answers in an early episode is a real cry for help: “I own mining town properties, what should I do?” The advice in the answers to these questions is only general in nature, of course, but nevertheless there are pointers and information that go a long way to providing an answer that the question-poser only need have endorsed by a professional who knows their individual circumstances.

Town hotspots

The show is made interesting to watch with lighter segments such as the town hot spots – although the message is still educational. Margaret visits towns and suburbs and gives viewers an idea of what these places are like to invest in. They could be fabulous sea change or tree change destinations or wonderful places to holiday – then she hits us with the hard, cold facts – the stats and numbers around the demographics of the area and the rental return, vacancy rates, median property prices, as well as reviewing any infrastructure plans. So for a few minutes you could be thinking you were watching Getaway, before you’re reminded that you’re watching a property investment show.

If you’ve got access to Foxtel then you can view PROPERTY SUCCESS WITH MARGARET LOMAS on SkyNews Business Channel on Saturday throughout the day. If you haven’t, episodes can be purchased from the Destiny online store http://shop.destiny.com.au/

The new series starts on May 9^th.