1. society
2. work
3. retirement

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©2012 Col Pyke ‘Your Property Coach’
For information about how to replace your income using Australian property call 0437 181 023
Congratulations!
You’re doing what most people ‘think’ about… but never get around to actually ‘doing’.
You’re taking control of your future… and the future of your family. This is the first of
many exciting steps to setting yourself up for the retirement you really want.
It’s my privilege to be a part of this journey with you. I don’t take that for granted.
And in the next few minutes (pages) I will try my best to give you relevant information
to help you on your way.
But I ask you one thing:
Give yourself permission to hear -- really hear -- and learn NEW things.
Silence the voice that says “I already know that”.
Block out the constant negative noise of the media that tells you there is no
hope.
And resist the advice of family and friends who, although mostly well meaning,
try to discourage you from taking action because they don’t yet have all the
answers themselves.
As you’ll soon discover, the most dangerous state of life is a state of feeling
‘comfortable’. And we all find comfort in being part of a ‘herd’ or ‘tribe’ – being just
like those around us.
But to get different results (better results) you have to be different and do different
things.
I’m getting ahead of myself.
So let me say again: Congratulations! In a few short years you’ll think back to this day
– today – and remember it as the day that changed your life. I’m privileged to be here
with you.
With warmest wishes…
Col Pyke
1
©2012 Col Pyke ‘Your Property Coach’
For information about how to replace your income using Australian property call 0437 181 023
Disclaimer
The information contained in this report is general information on matters of interest
only. The application and impact of laws can vary widely based on the specific facts
involved. Given the changing nature of laws, rules and regulations, and the inherent
hazards of written communication, there may be delays, omissions or inaccuracies in
information contained in this report.
Accordingly, the information in this report is provided with the understanding that the
authors and publishers are not herein engaged in rendering legal, accounting, tax,
investment, or other professional advice and services. As such, it should not be used as a
substitute for consultation with professional accounting, tax, legal, investment or other
competent advisers. Before making any decision or taking any action, you should
consult appropriate professional advisors.
While we have made every attempt to ensure that the information contained in this
report has been obtained from reliable sources, Your Property Coach is not responsible
for any errors or omissions, or for the results obtained from the use of this information.
All information in this report is provided "as is", with no guarantee of completeness,
accuracy, timeliness or of the results obtained from the use of this information, and
without warranty of any kind, express or implied, including, but not limited to
warranties of performance, merchantability and fitness for a particular purpose.
In no event will Your Property Coach, its related partnerships or corporations, or the
partners, agents or employees thereof be liable to you or anyone else for any decision
made or action taken in reliance on the information in this report or for any
consequential, special or similar damages, even if advised of the possibility of such
damages.
2
©2012 Col Pyke ‘Your Property Coach’
For information about how to replace your income using Australian property call 0437 181 023
Not a Best Seller – But It’s My Story
The son of a banana farmer, an electrical contractor, A-Grade Rugby League Referee,
property investor of 34 years, and Property Coach -- that’s me… Col Pyke.
In many ways, I’m an ordinary Aussie. A ‘battler’ who has seen (and experienced) both
good and bad – just like you. But no matter what has happened throughout my life, I’ve
made it my mission to LEARN.

From my childhood on our family banana farm in Mullumbimby – up at the
crack of dawn working beside my Dad and siblings

To my education at boarding school (oh the stories I could tell you!)

My move to Newcastle (by myself) when I was 16 to do my electrical
apprenticeship with BHP

My days as a successful Electrical Contractor – coaching young apprentices to
be successful contractors themselves

Playing Rugby League (before I busted my knee) and later refereeing A-Grade
games with heroes like Peter ‘Sterlo’ Sterling, Paul ‘Fatty’ Vautin and ‘The
King’ Wally Lewis

Investing in properties for 34 years

And now coaching others – from train drivers to brain surgeons – how to use
property to replace their income and prepare for retirement
My Accountant Got Me Started
It was back when I had a successful electrical contracting business in my twenties. I
owned my own home and, to save tax, my accountant told me I should buy an
investment property. A month later I was paying 19% interest (ouch!) on a block of
flats at Brunswick Heads. When I sold the flats at a profit of $105,000 18 months later I
knew I was onto something.
Oh The Mistakes I’ve Made
I continued to invest in property over the next 34 years – learning as I went. I hate to
think of the millions I wasted in mistakes. But I don’t cry over it because those
mistakes taught me what I know today.
3
©2012 Col Pyke ‘Your Property Coach’
For information about how to replace your income using Australian property call 0437 181 023
Once A Coach… Always A Coach
It only dawned on me after I started helping people to invest in property. I’ve always
enjoyed helping people. Back in boarding school I was the guy people came to when
they needed a hand.
When I was a Ref I worked to bring out the best in the players. And the results amazed
even me.
My whole contracting business was built around finding young guys who had been
rejected by other companies, and coaching them to succeed. It was a proud day when
one of my apprentices won second in the region for Apprentice of the Year.
What’s Your Story?
You’ve got a story too. Perhaps not a New York Times best seller. But it’s a ‘best
seller’ to you.

Perhaps you’ve had a good start. You’re on a good income, you own your
home, and you’ve got some money in Super. But do you have enough to
replace your income in retirement so you can maintain the lifestyle you want?

Or… perhaps you think you’ve left things too late. Your Super looks a bit slim,
your mortgage (or weekly rent) consumes most of your income, and you wonder
if there is hope.
Is This Your Last Chance?
I have coached hundreds of people over the past 14 years. And the one thing they all
had in common is this: They hadn’t sat down as a couple and seriously looked at their
finances and planned for their future. None of them.
So I congratulate you on taking action today. Because the alternative is…
Not a Pretty Picture
According to the Australian Bureau of Statistics 2011, 79% of Australians will end up
on some sort of pension. Now that may not seem very significant until you know how
much the pension pays.
A full single pension is: $20,090 p.a. or $386 per week
A full couple pension is: $30,300 p.a. or $582 per week
Just stop and think about that for a moment. And let’s compare it to some expenses
these pensioners may have.
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©2012 Col Pyke ‘Your Property Coach’
For information about how to replace your income using Australian property call 0437 181 023
The average weekly council rates: $27 per week (ACA Group 28/1/2013)
The average weekly building & contents insurance: $22.59 (ACA Group 28/1/2013)
The average weekly grocery bill is: $200 (Daily Telegraph 27/06/11)
The average weekly electricity bill is: $38.46 (ABS as cited on www.crikey.com.au)
Add that together and… these people are in trouble.
And that’s before they pay any medical expenses (which only get bigger as you get
older). It doesn’t account for car expenses, clothing, hobbies, travel, gifts for family
and friends, or any type of leisure activity.
Again, you may think that doesn’t have much to do with you because you’re not
planning on being on a pension when you retire. Well the shocking thing is, most
people don’t plan on being on a pension. But the facts are clear – 79% do end up on the
pension.
What really makes me angry is…
The Bad Advice So-Called Experts Offer
You see it all the time – ‘gurus’ on TV and radio giving tips on how to prepare for
retirement. The first (and often the only) tip they give is: start saving early.
It makes my blood boil. Not because the advice is bad. But because, for most people,
this advice is irrelevant and downright condescending.
Why? Advice like this only helps the small percentage of people who are young
enough to start early. For most people watching / listening… it’s already too late to
start early.
And because the so-called experts offer no real alternatives, the average Aussie is left
feeling like there is no hope. Feeling disempowered. Certainly not motivated to take
action (because it seems it’s too late). And feeling a little bit stupid for not knowing
what to do earlier – when they still had a chance.
So, thinking there is nothing they can really do…
Most Aussies Do Nothing
They are overwhelmed to the point of paralysis. As the saying goes: They put their
head in the sand.
And frankly, I don’t blame them. I mean, if there is no hope, why bother putting
yourself through the pain of analysing your situation. Why bother looking for
alternatives when the ‘experts’ tell you there is none? Why not just sit back and enjoy
life while you can?
5
©2012 Col Pyke ‘Your Property Coach’
For information about how to replace your income using Australian property call 0437 181 023
Listen closely. I was fortunate to receive some great advice from my accountant many
years ago. And I want to tell you now…
You Do Have Alternatives
And you can set yourself up for a great retirement – even if you think you’ve left things
too late.
Sure, it may not be as easy as if you started early. But there is still hope. In fact, there’s
more than hope – there’s a proven, predictable system you can start implementing
today. A way to build a nest-egg – and even get rich – in the next handful of years.
But I must warn you – it’s not going to be easy. You have to be open to new ways of
doing things. You have to be prepared for some challenges and frustrations along the
way. And you have to decide to block out the negativity of the media… and sometimes
even friends and family.
Remember: If you want different results, you have to be different and do different
things. Right here, right now…
You Have a Decision to Make
Will you resolve to be different and do different things? Will you resolve to be openminded and get the information you need to set yourself up for retirement? Will you
take action and follow through with perseverance even when things get tough?
Or will you be like most Aussies and put your head in the sand?
Will you refuse to face reality and continue to live for today?
Take a moment right now to look into your future. Picture yourself on the pension –
trying to live on $582 per week for couples and $386 for singles. Where will you live?
What will you eat? How will you get around? How will you occupy your time?
What things will you miss out on?
Is that how you want to live?
It’s not how 79% of Aussies currently on the pension want to live either. But
unfortunately, it becomes daily life for most people.
Look, people don’t put their head in the sand because they want to. They don’t want to
retire and struggle day-to-day just to survive.
They give up because they don’t know what else to do. They give up because they can’t
find the help they need.
6
©2012 Col Pyke ‘Your Property Coach’
For information about how to replace your income using Australian property call 0437 181 023
In a minute, you will know what to do. You will have the help you need to set yourself
up for retirement. You will have options even if you think you’ve left things too late.
But I have to tell you…
The Truth Is Almost Always Ugly – But It
Will Set You Free
Please let me speak frankly with you.
I don’t care how much money you earn. You may be on minimum wage, struggling to
get by. Or you could be a business owner, Doctor, Lawyer or top CEO earning
hundreds of thousands (even more than a million) a year. Either way, I’m not
concerned… and I’m not impressed.
And here’s why: It’s not how much money you make when you are working that
matters.
It’s what you have ‘working’ to make you money (without your effort) that is really
important.
The shocking truth is, no matter what you earn, you probably spend it. And as you earn
more, you spend more.
You know it’s true. And it’s true for most people. You could be among the highest
income earners in Australia and still be heading for trouble in retirement.
And that’s why…
You Need to Take Stock
And you need to think about what you want your life to be like in retirement.
Take a moment now:
Think about something you really like to do. Do you like to travel, eat out, see
shows, buy new clothes / jewellery / perfume, update your car every year, give
gifts to your children, donate time and money to charities, spend time on your
boat, collect premium wines, or something else?
Go on – take a moment to dream about these things. What do you love doing
NOW that you’d love to do more often when you retire?
You see, preparing for retirement is not about putting away a million dollars… or ten
million dollars. It’s about having enough cash-flow to support a lifestyle that is just like
your current lifestyle… or a little bit better.
7
©2012 Col Pyke ‘Your Property Coach’
For information about how to replace your income using Australian property call 0437 181 023
Then you’ll be able to afford to do the things you love to do. You’ll have choices.
You’ll never have to go through the pain of saying: I don’t have enough money to do
that!
That’s why you need to…
Do the Maths
Experts agree: To maintain your current lifestyle in retirement you need somewhere
between 10 and 20 times your yearly income working for you in the form of
appreciating, income-producing assets.
That means if you earn $75,000 a year and want to maintain a similar lifestyle, you will
need about $750,000 to $1.5 million working for you in retirement.
If you earn $150,000, you will need about $1.5 to $3 million working for you.
Are you on track? Do you know what to do to make sure you reach this level of
income-producing assets?
Most people are nowhere near on track and have no idea what to do. That’s a
vulnerable and even dangerous position to be in. You see, we have an epidemic in
Australia that is wiping out what little retirement income many Aussies have saved.
That’s why I’m…
Blowing the Whistle On Get Rich Quick
Schemes
I’m sure you’ve seen the seminars, read the ads, and been tempted by the outlandish
promises of unlimited wealth. I’ve met dozens of people who have borrowed against
their family home to invest in outrageously expensive courses to end up with nothing
but a bookshelf full of books they have hardly read and certainly not put into action.
Don’t do it!
There are no magic bullets. Getting rich takes skill, time, and a lot of hard work.
Of course there are ways to speed up the process of becoming wealthy (as I’m about to
show you). And things you can do to make the journey more predictable. But it’s never
as easy as these ‘opportunity spruikers’ say it is.
I’ve written this booklet to give you hope. To give you alternatives to the irrelevant
advice of ‘start saving early’. And to empower you to put a realistic plan in place and
simple steps to set yourself up for retirement.
8
©2012 Col Pyke ‘Your Property Coach’
For information about how to replace your income using Australian property call 0437 181 023
Sure, you can learn everything yourself by trial and error. That’s called ‘the hard way’.
I’ve certainly tried that way too much in my life.
Or, you can learn from the experiences of others. That’s called ‘the smart way’. And a
good way to begin is by…
Learning From History
Would you be surprised to know that the median price of a house in Sydney in 1970
was $18,700. In 2003 prices had risen to $454,250. That’s an increase of more than 24
times or a yearly rise of around 10.15% per annum.
How about Melbourne? In 1970 the median house price was $12,800. By 2003 the
median price had grown by more than 21 times to $276,000. That’s growth of around
9.75% per annum.
The median price in Brisbane grew from $17,500 in 1972 to $249,000 in 2003. That’s
an annual growth of 8.9% per annum or 14 times.
(source: House Prices In Australia: 1970 to 2003, Peter Abelson and Demi Chung)
How about some more recent examples: (Source RP Data [House Prices] as cited in
Courier Mail 4th November 2012)
Suburb
2002 Median
Price
Helensvale
$220,000
Coorparoo
$295,000
Logan Village
$184,000
Nundah
$132,000
Yeerongpilly
$240,000
Beenleigh
$100,000
West Gladstone $109,000
Willowbank
$85,500
Blackwater
$37,250
2011 Median
Price
$439,500
$665,000
$460,000
$365,000
$729,000
$324,000
$382,000
$375,000
$355,000
Overall %
Increase
100%
125%
150%
177%
204%
224%
250%
339%
853%
Per Annum %
Increase
7.17% p.a.
8.3% p.a.
9.6% p.a.
10.7% p.a.
11.75% p.a.
12.47% p.a.
13.36% p.a.
15.93% p.a.
25.28% p.a.
Wouldn’t you like to have bought 4 or 5 homes like that just 10 years ago? Even if you
had invested in the lowest performing suburb from this list (Helensvale) and borrowed
100% of the purchase price on 5 properties, you’d have amassed more than $1 million
in equity in just the last few years. That’s like making money out of thin air!
If you’d bought 5 in Willowbank (again borrowing all the money) you’d have amassed
nearly $1.5 million in equity.
And you can see, only one of these towns (Blackwater) has a primary focus of mining.
The growth in all other suburbs was fuelled by a diverse range of economic drivers
making them relatively secure, predictable investments.
9
©2012 Col Pyke ‘Your Property Coach’
For information about how to replace your income using Australian property call 0437 181 023
Aussies LOVE investing in property. And you can see why. No matter how many
peaks and troughs prices have gone through in the history of Australian property, each
peak has ALWAYS been higher than the last peak.
In other words, prices have never failed to rise.
But what you may not understand is…
What Causes Property Prices to Rise?
When it all boils down to it there are really only two things that determine the price of
property:
1. Supply
2. Demand
Lots of properties with no buyers results in low prices.
Few properties with lots of buyers results in high prices.
Now that is oversimplifying things, I know. But the truth is, a property is only ever
worth what someone is willing to pay for it. So if enough people want property, the
price will always be higher.
The question for Aussie investor is…
How Is Supply and Demand Affecting House
Prices In Australia Right Now
To determine supply and demand we need to look at population trends. When you
compare Australia to the rest of the developed world, our rate of population growth is
among the highest.
For example, from 2002 to 2003 Japan’s population grew by 0.1% p.a., United
Kingdom grew by 0.3% p.a., United States grew by 0.9% p.a. and Australia grew by
1.2% p.a.
In other words, housing demand is high and growing every year as our population
increases.
That means, over the medium term, property prices are rising (and likely to continue to
go up).
Again, that analysis is too simplistic and far from adequate when you are looking to
invest hundreds of thousands of dollars. Although national population growth has
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©2012 Col Pyke ‘Your Property Coach’
For information about how to replace your income using Australian property call 0437 181 023
averaged at about 1.2%, various regions have grown more than others.
For example, between 1998 and 2033 Adelaide grew by just 0.53% p.a. while
Brisbane’s population grew by 2.02% p.a. In the same period Newcastle grew by
1.12% p.a. while the Gold Coast grew by 3.67% p.a.
And then there are different rates of population growth per suburb in those regions.
(Source: Year Book Australia 2005)
Along with population growth (demand) you need to consider the other side of the
equation: housing supply.
According to National Housing Supply Council Housing Supply And Affordability Key
Indicators 2012, in 2002 Australia had a housing shortfall of 21,000 dwellings. In the
last 10 years that has ballooned to a shortfall of 228,000 dwellings. Demand is
outstripping supply by around 28,000 homes a year. State by state, Queensland has the
largest shortfall at around 17,000 homes with New South Wales closely following with
a shortfall of 15,000 homes.
The National Housing Supply Council report suggests this may even get worse because
of two reasons:
1. Decrease in public sector housing: The contribution of public sector housing
completions was significant in maintaining new supply growth in 2010-11
accounting for 8 per cent of all completions, the largest share in 20 years. Much
of this is attributable to the Social Housing Initiative (SHI)5, which was
launched as part of the Nation Building – Economic Stimulus Plan in February
2009. The majority of almost 20,000 new social houses funded under the SHI
will be completed by the end of 2011-12.The level of new building in the public
sector is expected to decline sharply after that.
2. Decrease in building approvals: Approvals for building new dwellings, which
lead the construction process, have declined significantly since early 2010. The
33,500 approvals (seasonally adjusted) in the last quarter of 2011 was down
13% on the previous three months, and 24% on the same period in 2010.
Overall, there were 149,800 approvals in 2011, a little higher than the GFCinduced lows of 148,300 and 146,200 in 2008 and 2009 respectively, but lower
than the average of 161,000 over the last decade.
All this points to a continuation of demand outstripping supply which puts upward
pressure on prices.
It’s important to stress again that an assessment of individual areas is needed before
investing. Remember, individual regions do not necessarily follow national trends.
11
©2012 Col Pyke ‘Your Property Coach’
For information about how to replace your income using Australian property call 0437 181 023
Another Reason Aussies Love Property
Apart from capital growth (prices going up causing you to make money out of thin air)
there is another important reason why people love investing in property.
Imagine this seemingly ridiculous scenario:
Your bank manager calls you up and says: I have an unusual opportunity for
you to make some money for your retirement. If you open a special account at
the bank today, based on historical returns, it’s likely that account will
appreciate in value by at least double by the time you retire in 15 years. In fact,
it’s possible it may even appreciate to four times its opening value.
That means, if your opening balance is $400,000, based on historical returns, it
will most likely be worth somewhere between $800,000 and $1.6 million dollars
in just 15 years.
And here’s the best part. What if somebody else paid the opening balance of
$400,000 for you?
As ridiculous as that sounds, that is what happens when you structure your investment
properties correctly.
You not only experience the leverage of capital growth. You experience the leverage of
using OTHER PEOPLE’S MONEY to get started. That’s right…
People Will Give You Money
Firstly, your tenant will pay rent that will go towards (and possibly cover) your
mortgage.
On top of that, the tax department will give you concessions saving you many thousands
more.
Here is a common scenario:






Combined Income ....................................................................... $101k/yr
Property purchase price .............................................................. $400k
Rent ............................................................................................. $390/wk
Tax Depreciation Benefit ............................................................ $9k per year
Tax Refund ................................................................................. $6.8k
Out of pocket expense to support investment ............................. $44/wk
That’s right – in this common scenario your out-of-pocket expenses would be just
$44/wk. That’s about the price of one takeaway meal. For less than $50 a week you
can have an appreciating, income-producing asset that will provide REAL MONEY in
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©2012 Col Pyke ‘Your Property Coach’
For information about how to replace your income using Australian property call 0437 181 023
retirement.
And even better – while this investment may cost you $50 a week in the beginning, as
the mortgage decreases and the rent increases… it will become POSITIVE and actually
start putting money back into your pocket.
The specifics of this are different for every person and every property. But the
principles are rock solid. When it comes to investing in property, other people will
contribute to the investment giving you both immediate and long term leverage.
So now do you see you have alternatives? There is a way to replace your income and
set yourself up for retirement? But now you may ask: Where should you buy?
Hot Spots and the Truth About Location,
Location, Location
Do you have a crystal ball? Neither do I. And the truth is, nobody does.
Even the ‘experts’ get it wrong when it comes to choosing so-called property hot spots.
But if you understand the very basic principle (I mentioned earlier) about SUPPLY and
DEMAND, you will have a far better chance of choosing a location that’s likely to
appreciate in value.
Remember, lots of demand with little supply will cause prices to rise.
But you need to…
Heed This Warning
I never invest solely for short-term gains. For example, while a town built solely
around the mining industry may give you fast short-term growth, it may not be the best
long-term investment.
In my opinion, it’s important to choose locations where supply and demand are
influenced by several factors. Sure, a local mine may be one influencing factor. But
what about other infrastructure projects like a new school, university, hospital, port,
power station, railway station or shopping centre. These things are all positive
economic drivers you should be looking for.
This is just one of the reasons investing in property (and many worthwhile things in life)
is…
13
©2012 Col Pyke ‘Your Property Coach’
For information about how to replace your income using Australian property call 0437 181 023
Simple But Not Always Easy
Ask almost anybody and they’ll agree property is a good investment. So why is it
that…




Only 1% of Australians ever invest in property (other than their own home)
20% sell within the first year
50% sell within 5 years
90% never buy more than 1 investment property
Let Me Tell You a Story
I love lawn bowls. I’ve played for years. I’m competitive – and win quite often.
To the novice spectator, lawn bowls looks quite easy. I mean all you have to do is roll a
bowl along the green and get it close to the jack (small white ball). But if that spectator
ever steps onto the green to have a go…
They Often Embarrass Themselves
It’s funny to watch. The bowl sometimes stops half-way down the green. Sometimes it
overshoots by a mile. And sometimes it even curves in the wrong direction onto
another green! (It can be pretty funny.)
That’s because lawn bowls is not as easy as it looks. There are a lot of technical aspects
to the game. Many mistakes that can be made. Many skills to master.
Many people who do buy an investment property mistakenly think it’s just like buying
their family home. Although they may have read a book or two about property
investing, they don’t really understand the pitfalls. And they quickly realise…
It Can Be Harder Than It Looks
That is, unless you have the right knowledge. And that’s why I coach people step-bystep through the whole process. So listen closely as I tell you…
7 Costly Mistakes Property Investors Make
Mistake #1: Emotional Rather Than Business Decisions
Builders lure unsuspecting buyers with beautiful display homes. Fresh paint, new
carpet, manicured lawns. All this is designed to put you in a buying mood. It affects
your emotions. And it tempts you to make quick (and sometimes unwise) decisions.
You may have been tempted yourself. You see and ad on TV or visit a local display
village and start thinking about investing in property. And you forget to do a complete
location analysis that includes economic drivers, capital growth history, current rental
prices and vacancy rates. You take action before considering the many types of
financing and insurance. You start to build a house that YOU like and forget to focus
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©2012 Col Pyke ‘Your Property Coach’
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on your future tenant and the things that will allow you to charge higher rent. And most
serious of all, you fail to get proper advice about how to structure this (and all your
investments) to maximum returns, and minimise tax and fees.
Stop. Count to ten. And be sure to treat your investing as a business. Think of it as
‘You Inc’. Take things one step at a time. And get good advice from people who
specialise in the many aspects of property investment.
Mistake #2: Procrastination
While many people are tempted to act too quickly -- based on emotion – many others
waste tens of thousands of dollars in opportunity-cost by procrastinating.
Consider this generic example:
John and Sue are 42 years old
John earns $65,000 p.a.
Sue earns $35,000 p.a.
They have a combined super balance of $130,000
Their home is worth $400,000
Their mortgage is $200,000
If they buy one investment property valued at $400,000
With an investment loan of $400,000 @ 7.5%pa
Capital growth of 5% p.a.
Income rate (rent) of 4.75% p.a. ($365 per week)
If they delay buying the investment property for 2 years they will be $169,804 worse off
in retirement. In other words, each year of procrastination will cost them more than
$80,000.
Take action today.
Mistake #3: Listening to Rumours
When it comes to certain things, everybody likes to think they are an expert. But in
reality, most are merely ‘armchair experts’. In other words, they have no direct
experience and nothing more than an uneducated opinion.
Unfortunately, many of these people are family members and friends. And in their
attempt to ‘care for you’ and ‘look out for your best interests’ they can actually cost you
the retirement you want – the retirement you deserve.
In 2001 a client was hesitating at the last minute on the purchase of an investment
property prices at $175,000. Friends had told him the property was $10,000 overpriced
and he was being ripped off.
Thankfully, he decided to ignore their advice and buy anyway. That property is now
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For information about how to replace your income using Australian property call 0437 181 023
worth $400,000.
Listening to the advice of friends would have cost him a staggering $225,000. Do you
think he cares about the $10,000 now?
Don’t let rumours and advice from ‘armchair experts’ cost you the retirement you really
want.
Seek advice from real experts – people who have invested their own hard-earned money
and experienced first-hand what you are trying to do.
Mistake #4: Wrong Structure
Profits are not only found in choosing the right property – they are found in how you
structure the deal (and how you structure your entire financial affairs).
Let me ask you a question: If property is such a good investment, why do you think so
many people sell their investment property within the first year, and 90% never buy
more than one investment property?
It’s certainly not because they are making TOO much money! On the contrary – it’s
usually because they run out of money. They simply don’t have enough cash-flow to
support their investment.
Why? Was the property they bought not a good investment? More often than not, the
actual property had nothing to do with their struggles. Most financial problems arise
because they didn’t structure things correctly in the first place.
Choosing the actual house or unit is only part of the ‘skill’ involved in property
investing. And in some ways, not the most important part. Arranging the right finance,
taking advantage of tax benefits, minimising fees, protecting your assets and wealth,
and maximising returns are all critical parts of structuring your investing.
Let me illustrate…
I recently met a man who, on the surface, appeared to be doing exceptionally well
investing in property. When I asked how many properties he owned he said, “Thirty”.
Now, when giving that answer most people would probably stand a little taller, stick out
their chest, and exclaim their accomplishment with pride. But from his body language
and tone of voice I sensed this man felt less than satisfied with his investment progress.
During our short conversation I discovered he has made a small mistake that is now
costing him dearly. In fact, he was stressed about how to pay a looming $80,000 land
tax bill and wondering how to sell several properties that were underperforming.
The small mistake he made was indeed quite ‘small’. But he made it every time he
bought a property (thirty times) and now it was going to cost him at least $80,000 a year
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in lost income. In order to accumulate thirty properties he was financially leveraged
(i.e. he owed the bank a LOT of money) and had been suffering extreme financial stress
for years… with things getting worse each month.
If only someone had given him good advice about the structure of his investments, not
only would he be feeling far more relaxed financially, he would not be slapped with an
$80,000 fee each year for land tax.
One mistake – devastating consequences.
Yes, property is important. But structure is just as important. That’s why you need the
right advice from the right advisors. Which leads me to the next mistake many people
make…
Mistake #5: Attempting to Do It Yourself (DIY)
Life is nowhere near as simple as it once was. I remember when everybody fixed their
own car. It was easy. Everything was mechanical (simple moving parts) nothing was
computerised. When a car broke down it was usually one of just a few things that had
gone wrong. Diagnosing the problem was quick and easy.
But now – everything is run by computers and a breakdown could be caused by one of a
thousand things. Your car actually contains a network of advanced computers. Apart
from the main computer controlling the engine, another computer looks after the
transmission, another computer controls the anti-lock brakes, another for the air bags,
another for the keyless entry and security system, another for the climate-controlled air
conditioning, another for the radio, one for cruise control, and even a computer to
control the motorised seats and mirrors.
I remember when buying a house was as simple as signing a single page document.
Now contracts can be mind-boggling 20-30 page ‘monsters’ filled with complicated
legal jargon. Overlooking a single ‘clause’ could mean the difference between smooth
sailing through to settlement or being completely ripped off and even being forced into
bankruptcy.
Just like you now have to take your car to a specialist for servicing and repair –
someone who is experienced with your particular make and model – it’s wise to seek
specific, experienced counsel when investing in property.
Not only will the right advice help you to maximise returns from your investments, it
could save you from making a critical mistake.
We live in a world of specialisation. Don’t try to do everything yourself. As an
investor it’s your job to manage your investing as if it were a business. And seek
specialised help along the way.
Good advice is definitely worth its weight in gold.
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©2012 Col Pyke ‘Your Property Coach’
For information about how to replace your income using Australian property call 0437 181 023
Mistake #6: Exit Plan
Habit number two in Steven Covey’s famous book ‘7 Habits of Highly Effective
People’ is: Begin with the end in mind.
He went onto say that all things are created twice. Firstly, in your mind – by imagining,
planning and creating a blueprint. And then in reality – through putting plans into
action.
This is critical when it comes to everything in life including investing in property.
Without a clear picture of what you want – where you are going – you won’t have a
clear understanding of what you need to do TODAY to get there.
You may waste years trying all sorts of things. You may waste thousands of dollars
making poor decisions. And you may become so frustrated you give up along the way
and never enjoy the outcome you hoped for.
When would you like to retire, how much would you like your yearly income to be in
retirement, what will you spend that money on, what would you like your life to look
like in the future?
These questions (and many more) will help you achieve success in property investing.
And they will help you achieve the retirement you’ve always wanted.
Your plan – your blueprint – must include exit steps. How will you turn your
investments into cash, how will you protect your cash-flow so it outlives you, and what
will you do if you need to exit early?
Remember, before you experience the actual result, you have to first imagine it in your
mind. Begin with the end in mind.
Mistake #7: Smell the Roses
They say there are only two guarantees in life: death and taxes.
Well I can only GUARNATEE you one thing when it comes to investing in property:
you will experience some challenges.
That’s why it’s vital to stop every now and then to ‘smell the roses’. Take time to
analyse what you’re doing (and why you’re doing it) and assess your progress.
Celebrate little victories. Realise you are making progress (even though it may not
seem like it). And share your journey with others (including the advisors who are
helping you along the way).
Congratulate yourself for taking action. Remember, the alternative (sticking your head
in the sand) will never work. So as tough as things get (and they will get tough from
time to time), realise you are your own hero. You are making things happen. You are
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©2012 Col Pyke ‘Your Property Coach’
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creating your future.
So take time to stop and smell the roses along the way.
How to Replace Your $100k a Year Income
Using Property
Every property scenario is different. And general advice is only partially helpful – you
really need specific advice for your unique situation.
For example, some people purchase several investment properties. On retirement they
sell one or more properties and live off the rent of the remaining properties.
Other people never seek to completely own their properties. Instead they get the Loan
Valuation Ratio (LVR) high enough to allow them to borrow against the equity in their
homes (tax free) for the rest of their life.
And still other people use property to supplement other investments and only set out to
have one or two properties that return $400-$1,000 a week.
These – and many more options – are available to you when it comes to property
investing. But remember, these are only generic examples and cannot be applied
directly to your situation. You must seek professional financial advice in order to
determine a plan for your future.
How to Get Started
After helping more than 300 couples successfully invest in property, I can tell you one
thing they all had in common before we met. None – from minimum wage worker to
high paid executive -- had sat down and seriously analysed their financial situation.
Sure, some had played with a few numbers. Some had even sought advice from a
financial planner. But none had taken an honest look at their situation and set a clear
plan to replace their income and set themselves up for retirement. None.
That may shock you. But stop and think about your situation. Do you know
EXACTLY what you want in retirement… and EXACTLY what you are going to do to
achieve it?
I know, it’s difficult. It can even cause some conflict in relationships. But putting it off
just makes things worse. You know that. So, the sooner you sit down and objectively
assess your situation the better.
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©2012 Col Pyke ‘Your Property Coach’
For information about how to replace your income using Australian property call 0437 181 023
Free Help
Let’s begin by chatting on the phone. I can’t promise miracles but I can promise a
listening ear and some common-sense advice. Within a few minutes we’ll both know if
we should talk more seriously. Either in the privacy of your home or via skype (if
you’re not local to the Gold Coast) I’ll help you honestly analyse your situation.
That’s the first step.
From there we’ll arrange a Free Refined Assessment for you. This will give you an
idea what financial structures you should consider, bases on your personal situation.
Armed with this information you’ll know exactly where you stand and what steps you
may be able to take to move towards the retirement you really want. Please notice that
there will be no discussion of property whatsoever at this stage. While choosing the
right property is critical, you first have to establish the right structure.
Your initial in-home (or skype) consultation and Refined Assessment are totally free
and without obligation. Once we have presented your Refined Assessment we will
either introduce some property ideas for you to consider or give you guidance and a
plan to prepare for property investment in the future.
The Three P’s of Popular Position
Don’t be like most Aussies who read this information and PROCRASTINATE. As
you know, putting things off – sticking your head in the sand – never works. In fact, it
just makes things worse.
The more you wait, the more you sacrifice PROFITS. Remember the scenario we
talked about earlier – how John and Sue threw away more than $80,000 for every year
they waited to get started in property investing.
Unfortunately, that’s the road most people take. They PROCRASTINATE. They
sacrifice PROFITS. And sadly, 79% end up relying on some sort of PENSION.
Don’t take that popular road. Instead, take the…
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©2012 Col Pyke ‘Your Property Coach’
For information about how to replace your income using Australian property call 0437 181 023
SOS To Success
START today. While this is fresh in your mind pick up the phone and call me. Let’s
have a quick chat. We’ll soon know if we can help. And if we can’t, you’ve lost a few
minutes and a 30 cent call – that’s it.
When we do talk, be sure to keep an OPEN mind. Remember, if you want different
results (different to the 79% that end up on the pension) you have to do different things.
And when you do take action, remember to treat investing like a business – ‘You Inc.’.
Take things STEP BY STEP. Start today! Call 0437 181 023 now.
Can I leave you with one final question…
Do you have a smile on your face when
you think about your future?
If not, be sure to do something TODAY to set yourself up
for the retirement you really want.
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©2012 Col Pyke ‘Your Property Coach’
For information about how to replace your income using Australian property call 0437 181 023
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©2012 Col Pyke ‘Your Property Coach’
For information about how to replace your income using Australian property call 0437 181 023