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Property Investing

Can you still get finance for a property investment?

by David Pascoe 30 January 2020

written by David Pascoe

The question that’s on property investors, mortgage & finance brokers, banks, property experts and the mum & dads ‘minds at the moment is, can I still borrow money to buy an investment property?

The simple is yes, there is still plenty of money around to purchase a property investment despite what the media is saying.

It’s true that some of the lending criteria has changed and I believe maybe it’s better for the client. It’s also true that some people are finding it harder to get loans and maybe they really should not be buying a property investment at the moment, probably because they really can’t afford it or don’t have enough equity in their current home to do so. It’s also true that the powers that be (governments, government bodies like ASIC, APRA, RBA and others) are playing a political game of cat & mouse regarding the property market which I believe is influencing the media to a large degree as to what they put out each day. Remember there is an election coming up so lots of things change when this occurs.

The best way to obtain finance at the moment is go to a qualified and independent mortgage broker who has plenty of options for finance and get a financial assessment of your current situation. Listen to what they say and maybe its not the right time for you to purchase a property investment, you might have to save more, change your spending habits, cut back or look at a different type of property but you will get there in the end if you take your time. Don’t rush and buy a property investment based on FOMO (Fear of missing out) as there are thousands of good, quality property investments available all the time.

So, don’t give up on your dreams, goals and aspirations of being a property investor, just start planning it better. Work on a long-term strategy for success and talk to your finance broker, accountant, financial planner and property expert who is independent and client focused. Work with independent professionals who have integrity and your best interests at heart.

30 January 2020 0 comment

Buy Australian Property Investments

Start investing as young as possible

by David Pascoe 29 January 2020

written by David Pascoe

When should you buy your first property investment? It’s a really good question to ask yourself.

Answer = as young as possible, as soon as you can, as soon as you can afford too, when you get a full-time job, when you get a part-time job, when you have a deposit, when your parents gift you a deposit, when you inherit some money, when you win some money ( although I would not count on this strategy).

All the above answers are correct, the quicker you get into the property market the better. Now as some of you might know already, you don’t need to stop renting to getting into a property investment, you can rent vest (buy a property investment while still renting a place) or even stay at home and buy your first property investment while living with mum and dad.

Gone are the days when you save up a small or large deposit and buy your first home to live in. Some cities and suburbs in Australia the property prices are now so out of reach for the average person plenty of people are buying a property investment before their principal place of residence. At least this way they are getting into the property market and getting some capital growth which, they can use down the road for a deposit when they eventually buy their home to live in.

Take for example, my daughter, living at home and going to university, working part time and she has already saved up a small deposit by the time she is 20. I am about to gift her the balance of deposit to buy her first investment property in 2019 and by the time she is 21 and finished university she is on her way and in the market.

So, when you are talking to your clients, your friends, your family and they ask when the best time is to start investing in property, tell them now. Its never too early to invest and you are never too young.

29 January 2020 0 comment

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Is regional Victoria a good place to buy a property?

by David Pascoe 28 January 2020

written by David Pascoe

With the Victorian government plan to de-centralize Melbourne and move some industries out of town due the massive population growth its experiencing, a lot of property investors are looking towards regional towns to purchase their next property investment in.

If you look at the growth that some of the houses in regional towns like Geelong, Ballarat, Bendigo, Shepperton have experienced in the last 3-5 years you can quickly see that some think is going on. Large parcels of land in these towns have been rezoned to residential land to make way for the influx of people moving into these regional areas as the cost of property continues to blow out in the Melbourne suburbs.

In some of these towns and others in regional Victoria you can still buy a house at approximately 50% of the cost of the medium Melbourne property price, which in turn makes the rental yields for property investors a more attractive option than buying in some Melbourne suburbs.

With the increased demand and pressure on the government to provide affordable housing options the regional towns are looking good and will continue to expand, with the jobs and industry quickly moving out to these towns. As more businesses relocate to regional towns the demand for housing will continue and property investors are the ones who will benefit.

So, is buying an investment property in regional Victoria a good idea? In my opinion it’s a big Yes, I think that there are some really good buying opportunities. You still need to do your research carefully and don’t rush into buying anything, take your time and make a well-informed decision before buying.

Click on the links below to see the future of regional Victoria.

https://regionalliving.vic.gov.au
https://www.rdv.vic.gov.au

28 January 2020 0 comment

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60 Minutes of total Crap!

by David Pascoe 27 January 2020

written by David Pascoe

Well what can I say about the recent doomsday report except for that was “60 minutes of total crap”!

I normally don’t watch TV or read newspapers (except the Financial Review for business matters) and have not done so for the last 15 years because generally its all crap and negative rubbish which I can do without. Who needs to fill up each day with loads of negative stories from all over the world about death, drugs, rape, murder, disasters, certainly not me.

However, a few Sundays ago I was told about the 60 minutes story on residential property and the 40% plus drop that’s coming in the next 12 months in Australia. So, I thought I would sit down with my Dad, grab a glass of wine and have a good chuckle.

Well was I surprised, like the rest of Australia was, at the complete bullshit reporting that 60 minutes put on. I have never seen such bad, one sided, unethical display of journalism in my entire life, Kerry Packer would be turning in his grave screaming. Firstly, some of the so-called experts were actually “hacks” in my opinion and not even qualified to be on the show reporting about the state of residential property market. I later found out that some “real” experts didn’t make it to the show, isn’t that interesting, I wonder why?

Secondly the way story was cut and pasted to completely distort the real thoughts, facts and opinions of the people on the show was even more interesting.

I wonder who gave the order to create, manipulate and run this kind of one-sided inaccurate story? It must have come from somebody high up the chain and very important as they wanted to put the chill in everyone’s spine and fill them full of fear when it comes to residential property in Australia. And I think it worked.

The property investment industry in Australia has had a long reputation as being one of the most stable, reserved, steady, strong and reliable forms of investment for the last 200 years so to believe anything else is just plain silly.

27 January 2020 0 comment

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Looking after your clients should be the number 1 goal

by David Pascoe 26 January 2020

written by David Pascoe

How do you build a huge business? By looking after your current clients of course. It sounds so basic & simple, but many businesses are struggling to grasp this basic concept, let alone do it.

Personally, I find now, that in 2018 that client service is thing of the past and most businesses don’t give a flying frog about their existing clients, which totally amazes and disturbs me at the same time. From buying a coffee, ordering lunch, buying something online or God forbid ringing a bank for help, the servicing of clients just doesn’t seem to rate anymore.

So many businesses these days are just trying to focus on getting new customers through a plethora of advertising mediums, especially social media platforms like Facebook, Linkedin, Twitter, Instagram and Snap Chat to name a few. Now getting new clients is a great idea to build your business but what about your current clients?

Have you forgotten about them? So many businesses these days are sitting on millions of dollars in potential sales that could be simply obtained by just tapping into their current clients and servicing them in a professional manner.

Here are some basic ideas that work:

Contact your current clients and thank them – email, phone, sms or even post a card
Contact your current clients and re-engage with them for no reason at all
Send your current clients a little present – doesn’t have to be much
Ask your current clients for a referral – family and friends are the best
Throw a party for your current clients and ask them to bring a friend along
Send your current clients a coffee or meal voucher

You will be amazed at the results.

Do you know that its easier to get a current client to purchase again, refer a family or friend then to try and get new clients? This is true for all types of business including the professional service businesses and the property investment industry as well. So maybe your number 1 goal in business should be to focus on current clients and service them like crazy.

26 January 2020 0 comment