This book have never been free till now as far as i know and its for 48hours only.
Retails for $29.95, but i just borrowed it from the library last time.
Free ebook 47 Biggest Mistakes Made by Property Investors and How to Avoid Them
4610
Related Stores
closed Comments
thanks for this!
I would love to avoid property investors
A free ebook on overpriced property is hardly a bargain
A free ebook is a bargain
fixed ;)
just because you can't afford the property.
What if reading and acting on this book is #48?
then you have a book to help revise and perhaps take a cut in
Free toilet paper!
If you have an epoop.
Haha I didn't read the "ebook" bit :P
hahahaha. you made me ROFL at 6am in the morning =)
Book is pitched at unsophisticated investors. Good deal if you have little to no knowledge of investing and finance. Otherwise seems to be stating the obvious.
They only need one line. Don't buy at the peak of a bubble. Mystery solved!
Spruiking rubbish. Not a bargain because these people need to spruik in order to get new entrants into the market, hence they give their spruik away for free. There is plenty more of this sort of trash on the internet.
thats cuz therz no one left to buy overpriced houses
Agreed, these books & guides are total rubbish.
good ol infinite and his agreeing on a neg without adding anything himself
duplicate, sorry :)
if people don't -ve this i don't know what will. Next on ozbargain, free pack of 3 wooden toothpicks!
free pack of 3 wooden toothpicks ?!?! where where .. !!!??
OMG free rubber band as well… weee
Plus free how to start your own business with AMWAY
3 toothpicks would be more useful than this waste of bits&bytes ;)
Property is a pyramid scheme, no doubt about that, but we all need to live somewhere, and if the population continues to increase then residential property value in well located areas will also increase in $ value.
The pyramid can/will collapse, but when?
I never thought of the property market as being a giant interconnected pyramid. Heck, the whole economy and even our institutions/corporations are one big hierarchical apex of Illuminati power. I should stop having these epiphanies at 6am, need more coffee!
Spruiking rubbish indeed…
agreed
rubbish
So in some peoples opinion here anything to do with property investment automatically deserves a neg?
Seems harsh to me
well anyone trying to sell property investment 'advice' in the current market deserves to be negged. its just taking advantage of those who dont know any better. real estate market in australia is headed for real trouble… and anyone advised to buy now needs to find another advisor.
This book is basically an advertisement for real estate. Buy property, buy now, buy lots of it. If ads are given away for free, do we promote them as OzBargains?
Biggest mistake is buying property and reading books about buying property.
How so? I am looking into buying my first house next year. Should I just go in impulsively after listening to advice from everyone who thinks they know what they are doing.
Funny how people who have never bought property always say this
I'm quite happy with my $1.5m equity I now have as a result of buying property
Pay me $47 to read this book! and I'd refuse!
This is my favorite quote from the book:
Overall, this investor was able to purchase a property portfolio worth $1.2
million which only cost him $40 a week to sustain. How many times could
he do that? The property portfolio has since grown in capital value by around
10 to 12 per cent per annum. For nearly $1.2 million in property assets, this
investor now earns more than $120,000 per year and it only costs him $2080
per year. Not bad at all, and if you can do it correctly upfront and consider
your lifestyle then growing real wealth is as easy as ABC!In 1997 I was 18 years old earning 21k per year, I read a book called "Building Wealth Through Investment. Property" by Jan Somers. Through collection of rent, tax incentives and capital gain (very little out of my own pocket) I now have a portfolio of 7 properties and equity equal to the total sum of every dollar I have ever earned in my entire life. (ie Since I have owned the properties they have appreciated more than my entire working lifes total income) My boss at the time told me "don't buy property it is overpriced". He still lives in a house he rents from someone else.
Always remember that while the price you paid for property remains stable throughout the time you own it, the rent always goes up.
Always remember that it doesn't matter if the price of a proprty falls while you own it - rents generally won't decline, and unless you plan on selling it what difference does it make if the market drops 5-10-20% anyway within 3-4 years it will recover.
Historically Australian home prices have doubled each 7-10 years for the past 100 years. Let's say things are bad and it takes 20 years to repeat this cycle again - so what?
well said.
its not ALWAYS about captial growth. Banking on a rise in capital growth is akin to gambling.
LOL: I can't believe Jason101 seriously thinks house prices double every 7-10 years.
See: http://www.whocrashedtheeconomy.com/?p=329
While this shouldn’t be of any surprise to anyone, for many whom where naive to believe that house prices actually do double every 7 to 10 years, this is a very hard concept to stomach.
It was Albert Einstein who said never to underestimate the power of compound interest. If houses did in fact appreciate faster than household income, then the gap between income/wages and the house price would deviate larger and larger as time passes.
ABS data shows the average wage growth over the past 25 years has averaged about 4.55% pa. If prices double every 10 years, then house prices will increase in value by 7.2% pa. On the other hand, if houses double every 7 years, then house prices will increase by 10.4% pa.
In June this year, the mediam Sydney house price was $562,496. The yearly ordinary full time adult earnings was $59,456 which means the mediam house is 9.5 times average wages – Historically this is very high, it should be around 3 times.
Now let’s jump forward 100 years to 2108. At 4.55% per year, the average Adult earnings in 2108 should be around $5 million. If houses double every 10 years, then the medium Sydney house price will be $588 million or 115 times wages. (Sure hope life expectancy increases.) However, if houses double at a faster rate of every 7 years then the average medium house will be $11.1 billion dollars or 2190 times wages! – try paying that off with interest in your lifetime.
What happens if we go back 100 years? In 1908 and assuming wages grew by 4.55% from 1908 to present, the average wage would have been $694.70 in decimal equivalent. If houses double every 10 years, then the medium house price would have been $537. My great grandparents could have brought a house every 9 months. If houses doubled every 7 years, then the average house price would have been $28. My great grand parents could have brought 24 houses a year!
My advice to any of my friends, staff and relatives is ….buy your own home. You will never regret it. Even if you don't subscribe to property investment theories, owning your own home will be the best investment you will ever make.
But
Don't buy with less than 20% deposit
Don't allow repayments to errode more than 25% of your gross income (combined if a couple), if you can't balance this equation get a better job or buy a cheaper property.
Have the mindset that you are never going to sell.
Don't feel you need to live in the home yourself at first, stay at home, continue renting etc for the first 12 months to allow yourself time to get used to the outgoings and expenses home owners incur while you receive rent. If you find it hard to juggle the first 12 months while rent is still coming in, wait another 12 months. Don't be afraid to sell, if it doesn't work bail - so what if you lose 20% which is unlikely. You gave it a go and took a chance which on the balance of probability should have gone your way. Opportunities will come again.If you do believe the bubble is about to burst take the weeks, months, years or decades ahead you are waiting for this to occur to generate your deposit, then strike when you feel it is right.
The worst thing anyone could do with regard to property is ….nothing.
That's all sound advice: don't borrow too much, don't get in over your head.
However… I'm going to build my first house. I have the average income in Australia (around $60k) and a 20% deposit on a $300k property. $300k is about the cheapest property you can buy in the outer suburbs on a 300m2 block of land. That means I have to borrow $240k at 7% (and it's going up 0.25 to 0.5% this year). $16200 in simple interest just to service the loan. That's already 27% of my gross income. Don't forget everyone needs to pay tax. If I ever want to pay off the property I probably need to fork out 40% of my net income every month.
Under these circumstances, I either have to get a better job or marry someone so they can pay off the house with me. Getting a better job is easier said than done: there are probably tens of thousands of Australians in similar circumstances. Can they all get a better job? Not likely. Even if they could all get better jobs, the housing market would readjust around the higher income, and we're off and racing again.
The one concern I have is the common belief that Australia is special. We're different. A housing crash cannot happen here. It's the same line that was taken in the USA, Spain, Ireland, England, etc. There are only three housing bubbles worldwide that have not burst: Australia, China, and Canada. Two of those are resources nations relying on the third to keep growing. If China stops growing at its current pace there is nothing we can do to prevent a housing crash.
Probably should also add… Or save a bigger deposit, 20% plus costs is the smallest deposit I personally believe one should enter the market with. Capital growth probably will stall in parts of Australia for the next 2-3 years, use this time to grow your deposit. It's a great opportunity to outpace the market and save faster than the market is appreciating.
And yes I also agree the property market is now something easier for working couples rather than singles. If affordability is an issue look for something positively geared to get to started.
I'm starting to sound like a property spruker here, but really I believe property is the easiest way for average Aussies to get rich or at least live a comfortable life.
I also believe young people thinking about buying a home should talk and associate with like minded people. Misery builds misery in any area of life. Success builds success. If you want to be a property owner talk to other property owners, listen to their stories and learn from their mistakes.
I mentioned my first boss who loved talking property doom and gloom in 1997, fast forward to 2011 and my current boss owns 1,200 leased properties, with plans to top 2,000 within 10 years. Learning from him has opened my mind to what can be done on a smaller scale by ordinary Joes like myself with finite resources.
I would like a small house to live in myself. I'm not looking to build up a property portfolio. You're right Jason about housing now being something couples can only afford. That brings us to the next problem: both people in the relationship need to work. Someone has to take time off work to have a child or children and take care of them. Then come child care costs. The next leg up in the housing price boom is difficult to see right now. We have a situation where 30 year loans requiring two people to work full time are common and almost mandatory. Having more than two people working to pay off a house is not really possible. Maybe we'll end up with 50 year loans. Who knows.
Wouldn't it be wonderful if everyone else got in early on in an asset bubble. The spruikers conveniently say that houses double every 7-10 years except they only look at the figures for the last 20 years. Go back 30,40,50,60 or 70 years and housing has always been in step with household income ratios. Yes property is in one prolific bubble and the spruikers are eating their words at this very moment. Enjoy the fireworks because it's becoming one hell of a show.
We have lived through record growth in credit from the 1980s to 2007 or so. The credit growth rate in Australia actually accelerated last decade and is now in recession. Saying "I'm so clever because I bought during a credit growth boom" is misleading to people buying today. Our housing debt to GDP ratio is currently over 100%. We either have to start earning a lot more to keep the credit growth growing, or the growth in credit has to stall for a large number of years to let income catch up. The only reason houses are growing in price is increasing credit.
I looked up the median price of a house in Sydney in 1973: $27,400, and I doubled it every 7 years. I've had many property investors tell me houses double every 7 years (just because it happened once in the 2000s).
1973 $27k
1994 $219k
2001 $438k (so far so good)
2008 $876k (already broken)
2015 $1.75M
2036 $14M
2064 $224M
2078 $897M
(somewhere around 2080 the average price of Sydney housing should be AU$1 billion)
2099 $7.182 billionThe rent always goes up?
Not according to this article today, where a majority of cities are going down taking into account inflation, Brisbane the biggest fall: http://www.news.com.au/money/property/rental-returns-sluggis…
The only biggest mistakes in capitalist country is to allow property investor. They drove price out of range for next generation while those money just sit there doing nothing for the economy. With same amount of money we can create many thousand of jobs and seeds creativity to develop this country. Australia is a huge land mass with size about China but population not even 2% of it. But land with size of 400 Sq meter in Newcastle is reaching 200 k without building on top. Complete bullshit
Try living in Canberra. 400sqm blocks are selling for almost double that at close to $400k!
Property owners here are in for a real shock, believe me!
Sounds like you are getting a ton of laughs out of it.
Great bargain for a comedy e-book!
I received this book free a long time ago. It lays down a number of common sense tips which are not so bad but it is laced with horrendous assumptions such as the property market will increase at the rate it has increased at between 2001-2008 and that leverage is not so much an issue.
the reason for the GFC and the depression to come is over indebtedness. With housing debt being one of the biggest causes.we borrowed too much and now we are going to have to pay the price
Bargain should be something valuable.
Free stuffs without value are not bargains.
Here's a free property tip, the Aussie Housing market is in free fall and no magic real estate shine in the papers or on the TV or in an e-book is going to stop the unavoidable crash coming now to a market near you!
Anyone who owns property knows how powerful it can be to build wealth — however, reading a book will not make you wealthy… you need to put it into action!
LOL they must know somethings about to happen.