Hello and thank you for spending the time on my blog, it is great to be able to connect here as I have made many great friends online and I am sure to continue this.
I have a strong passion in creating passive income and not having to rely on a job to earn an income, I believe the most important commodity in life is time and no amount of money can buy that! I do not believe in trading my time for money, how can you put a price on your cost per hour when you cannot buy it back??Every day I use to see people driving to work in what I call their “Monday to Friday Robot state” sitting in peak hour traffic and working in a job they didn’t really enjoy only to receive a modest wage, take their 4 weeks annual leave and just get by. There has got to be more to life than that I thought!
Now do not get me wrong here, I am not all about making large sums of money as some JOBS can provide this already. I am about creating your lifestyle where you have the freedom to do what you want, when you want, with whoever you want. This enables you to create and live your perfect day and to spend your time the way you want to. It amazes me when I speak to people that they cannot even tell me what their perfect day is, do you know yours?? How can we achieve something if we do not what we are aiming for? My light bulb moment was when I read a book by David Schwartz- The Magic of Thinking big and all off a sudden I realised ,if I wanted to reach my dream day I would firstly need to think of one!!
Now that I had my dream day down on paper and a clear target to aim for I could set about achieving it, this is where I really started to get excited. As I wanted to have the freedom and choice I mentioned above, it meant I needed to grow my asset base and earn an income that would keep coming in even if I was not there. After months of researching what other financially successful people had done I decided to invest in the real estate market and our property investing began. The leverage in this type of investing has allowed us to build a mulit million dollar property portfolio over the last 5 years and will continue to grow our asset base without us doing anything.
Property investing was the first and very important step on my journey to my dreamday, it has allowed me to have the strong compounding asset base behind me to secure my financial future. This what not achieved by just gambling on black at the casino or picking a lucky horse, I had to teach myself and learn from my mistakes, what I am offering my clients now is all of my knowledge so they do not have to make the same mistakes I did. If you would like to find out what is holding you back or how to start taking action today for a better tomorrow then send myself an email at paulreid@assetz.com.au or check out my business at www.assetz.com.au
My new dream day changes as I continue to learn how to push myself to new heights and find out what an exciting time it is to be alive, my one piece of advice is. Do not sell your time as you can never buy it back, get to work on your dream day and if you need help let me know. I wish you all the best and to living your life exactly the way you want to.
If you can Think it, then You Can Do It!!
All The Best
Paul
Hi Paul,
I am really interested in getting into an NRAS Property Investment but a few concerns exist for me, perhaps you would care to comment or point me in the right direction;
1. Valuation on NRAS properties..apart from obtaining an independant valuation , what other ways can provide a true market valuation.
2. Do you have any advice on the relative performance of NRAS properties, Capital Gain , rental & tennancy performance.
3. The realative liklihood af really achieving a revenue neutral or positive position overall.
Interested in your response.
Phill.
3
Hi Phill, sorry for the delay in response to your question as I just realised I had this question waiting here for me. Please feel free to email me on paulreid@assetz.com.au also.
In answers to your questions above.
1 Valuation on NRAS properties can be an issue when some developers have inflated the price purely because the property has a NRAS contract on it, this has been quite bad in QLD and TAS in particular. I do have my own investment company so this is only my opinion and the way we like to do it- We package up properties that we believe are great value without an NRAS contract, then with our contacts we can bolt on the NRAS contract, there is a fee to purchase the NRAS contract from the supplier of @ $10,000 which is once off and you then have the contract in place for 10 years. The benefit of purchasing this way is it allows you to avoid high NRAS concentration in complexes eg Apartment blocks etc, we also recommend you only purchase the property if you are happy without the NRAS contract as it needs to be approved by the government after you have actually purchased the property. The NRAS should purely be the icing on the top of the deal not the only reason you purchase the deal.
In regards to valuation I would recommend checking out similar properties on realestate.com.au that do not have the NRAS component and ensure you are still receiving value for money and the price has not been inflated.
2. Capital Gain evidence is hard to come about at the moment as it is a fairly new incentive, I can say I purchased a property in Bendigo the way I mentioned above. I paid 317k and it has been valued at 400k 2 months ago, it is less than 1 year completed and yes I have an NRAS contract in place. Some commentators have commented on how NRAS properties will not receive any capital value??? I do not agree with this, as with purchasing properties the way I have , you would not even know my property had the grant on it so why would my capital growth be any different than my neighbours with out the grant??? I can understand their view if a whole complex was NRAS approved and the prices were inflated to begin with, you would have to wait for time to realise the extra money you paid when you purchased the property.
In regards to cash flow it depends on taxable income but here are some numbers on my property-
Normal rent is 360pw
NRAS Rent Minus 20% =288
NRAS Incentive (tax free)= 176pw
Total NRAS rent =464pw plus you have stronger negative gearing benefits as you are only achieving 288 pw rent and the grant is tax free.
I hope all this makes sense and if you would like to discuss further please let me know. We currently have one more property in Bendigo that suits the NRAS scheme, here is a link if you wish to check it out. Please ensure when you do you comparable sales you realise our product is fully turn key eg landscaping, flooring, window dressings, air cond etc a tenant can move in on completion. Also as mentioned above you need to be happy to purchase this property with out NRAS and then apply for NRAS, the 10k is only payable on acceptance of the grant. This property will be positively cash flowed from Day1 with NRAS and very close to it with out. Also we believe Bendigo will show strong capital growth in the coming years. here is the link http://www.assetz.com.au/property_search.php and then click on the Kangaroo flat property ,more details.
I hope this all makes sense.
All the best
Paul Reid
0430 008699
paulreid@assetz.com.au