Open Developments

03/10/2012

Hi guys, girls and Smart Investors,

You may have noticed we've been postless for a couple of weeks, with very good reason.

We're pleased to announce a new structured business page, re-branded in line with our business Open Wealth Creation and designed in such a way to not only provide useful articles and facts, but regular tips and examples of why the Smart Investor system produces proven results.

The link to the new page is :
http://www.facebook.com/pages/Open-Wealth-Creation/267663600021759

Just click and 'Like' (and then share with everyone you know!)

Thanks for your support so far and we look forward to continuing your property investment education.

OpenCorp are property investment specialists. Let us help you through every stage of your investment journey.

23/08/2012

What a great summary of how smart investors operate from another successful property investor - education, planning, risk mitigation and long term view. Sound familiar?!

Is it encouraging to know that you're on the right track? Although investing well is simple, it's not easy.

Spread it around so others can get ther right guidance and avoid costly mistakes.

Michael is a director of Metropole Property Strategists who create wealth for their clients through independent, unbiased property advice and advocacy. He has been voted Australia's leading property investment adviser and his opinions are regularly featured on radio as well as in major newspapers a...

14/08/2012

Way to go Melbourne. Even though we got marked down for climate, we're still number one! Australia dominating the Top 10 of the world's most liveable cities.

MELBOURNE has claimed gold as the world's most liveable city but Sydney has lost its status as Australia's second-most desirable destination to Adelaide.

12/07/2012

Tax time is upon us! The attached article is a great read on how to avoid the spotlight of an ATO audit where property deductions are concerned.

For those of you aware of our finance structure utilising a line of credit against equity for deposit and costs, remember a key benefit of that is transparency that those funds are for investment purposes and therefore the interest is tax deductable. Helps you to easily avoid red flag #2.

http://www.yourinvestmentpropertymag.com.au/article/danger-16-mistakes-that-can-trigger-an-ato-tax-audit-141511.aspx

Are you filing your tax return? Read on for 16 serious mistakes to avoid if you don’t want to trigger an ATO audit.

05/07/2012

Who struggles with motivation? Especially in winter? Yes, most people do but overcoming that is easier than you think. Whether it is motivation to work hard, spend more time with your family, continue growing your wealth or to get fitter, this is a great read on easy tips to get ahead and feel great for it! If you have a tip of your own, please share it.

: http://tristanwhite.com.au/tpc-culture/how-motivated-people-get-so-much-done/

How motivated people get so much done Culture Add comments Jul 052012 On Monday night, I’d planned to go for a run. I love running and I always feel so much better afterwards. But on Monday I felt pretty unmotivated and questioned whether I’d even go. I did e...

06/06/2012

The GDP figures announced today show a 1.3% increase in the March quarter contributing to a total growth in Australia's gross domestic product (GDP) of 4.3%.

You wouldn't believe it given all the negativity around. As we've said before and we'll say again, there is global concern about Europe. In Australia though, we have minimal exposure to this market as 70% of our exports are to Asia. Our banks are profitable and highly rated amongst the worlds best. They employ some of the smartest economic minds as economists and for the best part of the last 12 months, several economists predictions have been proved wrong.

They're not bad at their job, they're dealing with an emotional market place where rational thought isn't taking place. Take for example the significant share market reduction last week. The only thing that changed from one day to the next, in real data terms, was the release of the US unemployment data. Not enough to warrant such a significant drop by any stretch on it's own but due to 'fear' billions were wiped off the value of world markets.

So remember the big picture. Remember the opportunity given high population growth and an undersupply of housing. Remember our low employment rate and inflation under control. And remember the opportunity just got better with the rate reduction yesterday as it costs less to hold a property.

We take education very seriously as it's only fear that holds people back. So if you'd like to understand more about what this means and how you can benefit, visit www.openwealthcreation.com.au now! Sign up to receive our newsletter. Give us a call for a free educational appointment.

Annual economic growth soars to 4.3%

29/05/2012

Would $100,000 per year tax free give you the financial freedom you want?

If we took the approach of posting every article we saw about property, the market or anything related you'd never have time to read them all. That's why we only post the most useful, informative and educational of them.

If you're investing in property, thinking about investing in property or just interested in what makes successful investors successful, this is a must read!

Well written, in simple English explaining the power of compound growth over a long term investment strategy and how to get your hands on the money you've made to fund your lifestyle.

We agree with everything written about, but know you can do better than 4% yield :-)

Have you wondered how many properties you would need for financial freedom? I’ve found that while most property investors hope to one day replace their personal exertion income with cash from their investment properties, most don’t have a strategy to achieve their goal. So just how many properties...

16/05/2012

Streamlining processes and maximising cash flow are two critical factors to control as a smart investor.

This week's property investor tip looks at a simple, yet very effective way to do this - by paying your builder's deposit prior to settlement, ideally 2 months before if possible.

Most investors who buy house and land off the plan wait until the land has settled prior to thinking about the construction process. Did you know that even before land is registered the builder can gain access to the site and commence some preiminary works such as soil testing and get their insurances arranged? This not only redues the time between land settlement and the construction start as most of the work is already done, it also saves you siginficant amounts of bank interest.

Let's assume the purchase price is $400k. If the builder's deposit is 5% of a $200k build, then let's say you pay them $10,000 two months prior to settlement. This will cost you, at a 7% interest rate, about $115 in interest over the 2 months. Compare that with waiting until the land has settled, meaning $210k has been drawn down to cover land purchase, stamp duty and costs. Add the builder's deposit at this point and interest over 2 months on $220k will cost you $2565. So just by thinking ahead and streamlining processes, you've saved $2,450 in interest. That's a nice summer holiday!

Was this tip useful? Anything else you'd like to know about? We'd love to hear your thoughts and feedback.

30/04/2012

This week's property investor tip of the week draws on Cassandra's experience in property management and optimising the return on your investment.

Professional photography where real estate is concerned is most commonly used by agents looking to maximise the appeal of the home they're selling to potential buyers. Why not do the same for your property targeting potential tenants?

Not only will using professional photos enhance the marketing of your property and assist you in generating more interest and therefore placing a tenant sooner (and possibly at a higher rent), they can be used in the future should the property need to be re-let.

Increasing the demand for your property can only ever be a good thing! Have you used professional photos to good effect in the past?

23/04/2012

The next weekly instalment of our property investor tip!

Last week we talked about continually staying tuned in to our investments as even though they work over the long term, treating them like your own business separates the successful from the not as successful. This week's tip is along the same lines and motivated by talking with 3 different investors last week.

This week's tip: Even with a 12 month lease, ensure you have a 6 monthly rent review clause.

Your tenant has signed up for another 12 month lease. Great! Consistent cashflow! However, given rental shirtages around Australia rents can increase quite rapidly in a market in a short space of time. A 6 monthly rent review clause allows you to review, and raise, your rents half way through the 12 month lease. You do need to specify a cap at the start of the lease that the rent may rise by, but at least it means you're maximising your cash flow without having to wait the full 12 months. Gradual rent rises are also more likely to be accepted by a tenant as being reasonable.

Enjoy your week and if you've had a good experience maximising your cash flow, please share it!

16/04/2012

Weekly property investor tip: Even though property investments work their magic over the long term, don't forget to continually monitor them.

It is important to remember that one property is not going to make you wealthy, so you're not ready at this point to start out then kick back and relax just yet! Whether it be your cash flows, your loan products, seeing good sales in the area that can increase your valuations or whether it be just understanding your borrowing capacity, doing all of the above on a 3-6 monthly basis (at least) can really help propel you forward. Here are a couple of examples:

When interest rates dropped, there were opportunities to convert to a fixed loan at under 6% for 3 years through one lender. This may not be for everyone but if you're in the market to fix, this deal wasn't available 3 weeks later.

Secondly, two valuations were done on the same property two weeks apart and they came in $30k different. Now clearly the market won't move $30k in a fortnight but the second valuation was higher as there was one comparable sale in that period which pushed the valuation up. Always looking for useful comparable sales is fundamental.

If you're wondering how you can tweak the k***s on your current portfolio (even if it is just your own house), please comment on what you'd like more information on. Have a great week!

04/04/2012

To all of our clients, partners, family and friends, we wish you a very happy Easter and hope you enjoy the break.

If you're travelling, please drive carefully. Stay tuned next week as we report on Cassandra's next attempt at mastering the art of wakeboarding. We're hoping there's a video!