Investing in Real Estate and Owning Property Assets
Many Australians believe that owning their own home is the biggest and best financial decision they can make because they don’t have to pay rent and the value normally goes up over time (long term investment approach).
Our series of information and education guides are aimed to educate you about various aspects of owning property to live in as well as how to get the most value out of it as a landlord and investor. You’ll find micro course case studies included in our software courses which teach you about property investment decisions.
Many property experts talk extensively about property values and drivers like jobs and demand and supply in the capital cities and being the largest capital in Australia, Sydney is often the focus.
EzyLearn CEO, Steve Slisar moved with his family to the Lake Macquarie area of NSW after closing EzyLearn’s physical training centres and becoming an online-only training course provider. Many of the examples, case studies and exercise files we use are based on property investment in the Newcastle, Lake Macquarie and Central Coast area.
Regional Areas Like Newcastle, Lake Macquarie & NSW Central Cost are Growing
In various businesses and partnerships since going online, Steve has advocated the use of virtual assistants (remote contractors) because technology enables businesses to find the best person for the job regardless of where they live and this is becoming more relevant with cloud-based programs like Xero and QuickBooks, Online Digital & Social Media Marketing and Google G Suite.
With our property investment education guides we take a similar approach to understanding the potential return on investment of a property just as we would forecast future potential returns if you started your own business.
- a regional airport which will soon be capable for international flights,
- large and busy sea port for mainly coal shipments,
- great beaches,
- a large and successful university, and is the
- main capital for the hunter region.
Areas like Wallsend, Cardiff and Warners Bay & Belmont (Lake Macquarie) connect travellers from the outer rings to the inner rings of Mayfield, Waratah, Georgetown, Adamstown and Mereweather.
Case Studies, Exercise Files & Micro Courses on Property Investment
Understanding the need for people to invest for their future and have a roof over their head we’ve incorporated property ownership and investment topics in most of our courses. Our digital and social media marketing courses even cover how a successful Sydney real estate estate agent, who worked within the McGrath real estate brand, as a commission-only sales agent, promoted himself online to stand out from other agents and gain traction on Google without having to pay for advertising. Here is a summary of where we’ve built property investment education into our courses.
Basic and advanced household budget spreadsheets in Microsoft Excel Courses
The journey of home ownership and property investment usually starts off with a visit to a mortgage broker or your bank and what they want to see is “How much profit you make”. Profit means income MINUS expenses, so it’s important to keep your expenses down as well as your liabilities (like credit cards) and the best way to do that is with a personal budget. A home budget usually starts with REAL information like how much money you spend each month and it’s purpose is to ensure you maintain the same level of profit each year or better.
How much can you borrow?
Currently in development
Not sure how much you can borrow? Learn about the financial functions in Microsoft Excel, for instance Internal Rate of Return, Value based on future cashflow, Forecast value and much more.
We combine real-life investment property values based on the areas of Newcastle, Lake Macquarie and the Central Coast in NSW, and go through scenarios where you make an investment purchase at high rates and mortgage insurance penalty rates to discover whether an investment is worthwhile.
All figures are based on past performance and future performance based on rates similar to historical rates. This training course and workbook will enable you to see the investment property potential to invest in any area.
Releasing equity in your home to invest in property
If you have owned your own property for some time, you can probably make some fresh property investments without any savings (although it’s always better to have a buffer).
In this guide we outline a scenario that is simple to understand and may help you act and become a property investor!
When you begin the journey into property investment, you enter a new world of managing assets and liabilities, managing the income and financial return by good cashflow management. The most important consideration for quality (investment grade) property investment is to buy into areas that are growing so that the value of your investment property grows just like your house has.
How Much Can You Borrow with Home Equity Release?
This step is really a combination of working out how much you can borrow (or afford to repay) based on the step above and rather than having just a cash deposit you’ll calculate a deposit based on cash+equity in your existing property. This is the area of investing in property that enables people to grow their real estate wealth without having to save up the money.
An increase in the value of your home is like an increase of cash in your bank, but be aware that a reduction in the value of properties around yours may also result in a reduction in your equity.
What Can You Buy and Expected Return
This step can be a lot of fun when you first get started but as you look at different houses in different areas you’ll realise that this step is as much crystal gazing as it is looking at old historical data. Many websites have this information as statistics but no one can tell the future nor can you really know the value of a property by just seeing it in an online directory. A consideration for many property investors is what they can “develop” on that property, what renovations they can carry out in order to value add and what the rental return will be.
If you own a property with at least 450m2 of land you may be able to earn an income from your own home — and we’re not talking about renting out a tent in your backyard using AirBNB!
Building a granny flat has enabled many home owners to build a property cheaply in their own back yard, whilst reaping a solid rental return.
Should you invest in Commercial Property?
Xero Cashflow, ROI and Budgets Course
Unlike Residential Investment properties which are affected by sentiment (ie. the emotional drive to live near a beach, lake, school, shopping etc), commercial property values are determined by their yield.
Yield is simply the rental income based on annual rental amount and as a percentage of the total cost of purchase so the value of the property will increase if the rental income increases. The returns are normally higher because when a tenant vacates the premises may be empty for longer periods of time, and the premises may only suite a certain type of business.
Our Xero Cashflow, ROI and Budgets online training course goes through a business case study based on historical financial information, and corresponding profit and loss, to determine whether the business owner in question should invest in a commercial property for his own business to use.
Selling and buying property are among the biggest transactions people make in their life. For some, they only happen once or twice, so we’ve created educational material to help you understand the various stages of the sales process and associated legals. We also draw on real estate examples in some of our online training courses.