welcome packmembers.iinet.net.au/~vanproc/investprop/pwp.pdfproperty club welcome pack your key to...

Your key to Financial Independence

www.propertyclub.com.au

Welcome Pack

Property Club | Welcome Pack | Your key to Financial Independence4

Congratulations On Taking Your First Step To Financial Independence.

Property Club | Welcome Pack | Your key to Financial Independence 1

Making the right investment choices can be a minefield of costly traps. It’s no wonder that 90% of average property investors only buy one investment property. They stumble into problems and have no guidance on how to overcome or avoid them.

They buy the wrong property in the wrong location, and probably with poor finance and tax structures that only make matters worse. It’s so simple to invest in property when you tap into the proven success strategies and support that Property Club offers.

Property Club shows you how to become financially independent - sooner than you ever imagined!

You don’t need to handle everything yourself with an experienced support team behind you. Our Club specialists provide ongoing free support to ensure your investing journey is as smooth as possible.

When Property Club began in 1994 it took seven years just to make one millionaire. We now have four new Property Millionaires every week. Our aim is to create 90,000 millionaires! We want you to be one of them.

We wish you every success in creating your wealth through property.

Kevin Young50 years property investment experience and one of Australia’s most successful property investors with over 180 properties.

Property Club can show you how to be financially independent sooner than you ever imagined.

Welcome


You have already taken the first step to financial freedom!Now take advantage of our wealth of experience and free services.

Regardless of what stage you’re at with your property investing, you have access to:• Personalised property investment mentoring

• Investor networking and educational opportunities

• Current market and economic information

• Personal wealth creation plans

• Property market forecasts

• We hold to account reputable finance brokers

• Detailed property cash-flow analysis

• Valuation reports and value comparisons

• Insurance recommendations

• Individual property portfolio analysis

• Contact with other Club investors who are happy to share their Club experiences

Other free services include• Ongoing help and support during your entire

investing journey

• Location appraisals

• Property management and leasing support

• Legal documentation and tax office compliance

• Recommended insurers for Landlord and other insurance

Free and discounted services1. Avoid tax audit worries: by having a professional

itemize your legal tax deductions.

2. Loan comparisons: Our accredited Club Loans brokers ensure you get the best deal by comparing all bank’s loan products.

3. Conveyancing: Subsidise your legal costs by using our recommended solicitors, conveyancers and settlement agents.

4. Tax Rebate Guidance: The Club can guide you on how to claim your tax back early through a PAYG Withholding Variation application.

5. Property Leasing: We alone multi list to avoid vacancy problems..

6. Free Education: Property Club’s bi-monthly magazine, webinars and nationwide workshops

7. In-depth market research: Our Researchers specialise in obtaining the right information; future supply, population growth and local prices – all essential to maximizing capital growth.

8. Cash flow analysis: A critical component to wise decision making - and provided free by the Club.

Eight Steps to Financial Independence

Step 1 Join - it’s FREE!



Property Club’s 9000th Purchaser

“Within a few weeks of being introduced to the Property Club I put my first Expression of Interest (EOI) in for a unit in the Darwin CBD. I missed out on the Club’s ballot but another property soon became available on the top floor of the same development, and having already done the research on the other unit, I grabbed the opportunity and immediately bought it.”

“My Club Loans broker assisted with setting up an extremely good arrangement for the financing. Property Club has given me fantastic support, information, confidence and a sound basis on which to grow my portfolio. I now feel more ‘at home’ with property than ever before and am keenly looking forward to my next purchase, possibly in Sydney.”

“I have one particular friend in Wollongong who had been telling me for some time that I should be doing this, but I just never got around to it. Now that I have started, largely due to the wealth of information and support from my Property Mentor and the Property Club, I cannot imagine why I didn’t do this ages ago.”

Rob Foote Property Club Member, Darwin

If you haven’t done so already, make sure you attend a free property investment workshop.

This will give you the essential foundations for successful property investment. It’s also a great opportunity to meet like-minded people and established investors who are happy to share their experiences.

Typical workshops cover:• Understanding how financial independence can be

achieved on an average income

• Why property outperforms other investment classes if using the right strategy

• How Property Club works to help members create wealth

• Understanding finance, debt and leverage

• Key components of selecting quality property

• How to build a property portfolio that performs

• Current market situation and forecasts

• Simple steps you can take to move forward

Step 2 Learn

R


You have been matched with a Property Mentor as your personal guide to investing through Property Club.


Your Property Mentor is experienced in property investing and has gained a deep understanding of the strategies required for successful investing.

Use their knowledge, skills and ability to guide you towards your financial independence.

Your Property Mentor is your first point of contact with Property Club. They themselves are supported by a network of other people, including Branch Managers, Property Researchers, Property Loans brokers, Club National Leasing, Head Office staff and National Managers. Your Property Mentor will be happy to guide you through the learning and purchasing process and is always happy to assist you long into your property investment journey. They can help you to obtain all the information you need to ensure your journey is a comfortable and successful one.

We expect you will have a lot of questions. If your Property Mentor doesn’t have the answers, they’ll seek out someone in Property Club who does.

You may have friends or family members who are dubious or cautious about your property investing. Bring them along to one of our workshops so they too can learn and benefit from Property Club knowledge. You will then be fully surrounded by people who understand your goals and the safety of being in Property Club

Step 3 Discuss

“Your obstacle to wealth is tax. I haven’t legally paid tax since 1971.”

Kevin Young



By completing a Financial Wealth Check, your ability to borrow will be analysed by a Property Loans approved finance broker.

Once you have received your assessment, you are in a position to evaluate how you would like to move forward. Your Property Mentor can direct you to the most convenient Property Loans approved broker to secure finance for a property purchase. The broker will help you choose the best loan package to suit your needs from the extensive range of loan products available. They understand that the lowest interest rate may be counterbalanced by entry and exit fees that erode perceived benefits, so will take all options into account.

Property Loans keep your current and future investment strategy very much in mind when assessing the most appropriate loan package. They also offer a free, no obligation review on any current loans to see if your lender is providing a competitive product and interest rate.

Property Loans is the finance division of Property Club, and our members can utilise this service free of charge.

You can submit a Finance Wealth Check online at www.propertyclub.com.au or fill out the form in this pack and give it to your Property Mentor. It’s only a two page form asking for details of your financial position.

If you prefer, you can return it to Property Club’s Head Office:

Property Loans Property Club Technology Office Park Building 8, 107 Miles Platting Road Eight Mile Plains QLD 4113

The next step is to find out your ability to borrow funds for investing.

Step 4 Finance



How soon can you be financially independent?What kind of lifestyle do you want to have?

One of our most powerful tools is our financial independence planning software. Your Property Mentor can help you create a personalised investment program that suits your situation and long-term goals.

As you create your own plan, you will soon see the “big picture” of building a property portfolio and how quickly your financial independence can become a reality

A Great Way to Retire

“Property Club has helped us towards a better, financially secure future. Financial freedom at retirement age is now very obtainable and it will come much earlier now, so we can enjoy our life retiring younger. The thought of living on a pension is something we had dreaded in retirement. Even though we have superannuation, we wouldn’t have had anywhere near enough for the comfortable lifestyle we wanted for ourselves in retirement.”

“Property Club is such a brilliant idea and a huge credit to Kevin Young and his staff. The research has been done for you as far as market trends and location. When investing in other states we are a little unsure of the places and surrounding areas. All of this is on the website. It’s quite daunting investing on your own, but with Property Club walking each step of the way with

you, that fear disappears. We have now purchased three properties through the Property Club. We have such confidence in Property Club and like to tell others. We even have my parents involved and they love it to.”

“The resources Property Club has are incredible. Everything you do is done holding your hand every step of the way. From your initial finance inquiry right through to the managing agents contracts. For young, older and new investors that’s a huge help. Everything you need to know is only a phone call or an e-mail away. Also the fact that through the Cashflow Analysis Program you are able to see an estimate of how your investment will perform in the future, the bottom line per week/pa, the capital growth and so on, all before you make the purchase.”

Jeff & Tania Agar Property Club Members, WA

Step 5 Plan


Property selection is crucial for successful investment. This is why our research department invests over 1000 hours a week researching the property market across Australia and selecting property based on our strict criteria.

Now that you are finance qualified, you can browse these specially selected properties online from the comfort of your home. Your Property Mentor can also help you select from the hundreds of properties available to make sure that it meets your own criteria

Some of the key features our researchers look for in properties:

• Located close to schools and shops

• Regular, easily accessible transport facilities

• Located close to high employment areas

• Close proximity to public and private infrastructure

• High quality construction, preferably brick and tile

• New or near-new to qualify for full tax depreciation

• Located in low vacancy areas where there is high demand by tenants

Individual property details and supporting information such as historical growth rates, rental appraisals, site & floor plans, area maps, expected property expenses, detailed property descriptions and inclusions are all provided in a Property Profile for every Club listed property. Everything you need to know to evaluate the best property for you is right at your fingertips.

As if this extensive research isn’t enough, we also subject each property to the scrutiny of an expert panel of investors. These Property Assessment Reports will identify what the panel believe are the best aspects of each property and give it a star rating. It’s just another safeguard to ensure Property Club members have the best quality properties to choose from.


Step 6 Property


Expression of InterestOnce you have selected a property that suits your requirements, you can submit an Expression of Interest. Your Property Mentor can help you through this process.

Inspecting your propertyWhen you have secured a property, we strongly recommend you visit and inspect your property before going unconditional on your purchase contract. Property Club has experienced investors and Property Guides who can accompany you on your inspection, pointing out everything you need to consider about the property and the area.

Settling the propertyProperty Club can recommend independent conveyancers who assist members with their property settlement. These specialists operate with the needs of Club members uppermost in their minds. They work within our guidelines and requirements ensuring buyer friendly special conditions drafted by the Club are included in most contracts. These conditions protect the interests of Club members, not the seller.

Quality InspectionsProperty Club provides a free pre-settlement condition report for all new Club-researched investment properties. New properties have the added advantage of maintenance and warranty periods. No unhappy tenants complaining.

Insuring your wealth creation strategyProperty Club acknowledges a duty of care to its members and has established Club Insurance to meet this need. Club members are strongly encouraged to minimise their risks by taking out suitable property and landlord’s insurance, as well as personal life insurance for their own protection.

Finding a quality tenantOur Club National Leasing Department has a unique policy to list available Club properties with multiple local agents. They regularly liaise with a number of local property managers and on-site managers before a Club property settles. Even years after the purchase, this free service gives Club members considerable peace of mind and ensures Club rental vacancy rates continue to be below those in the wider market.

Your support team at Property Club will assist you through the entire purchasing process – and beyond.

Property Club will support you through the entirepurchasing process.


Step 7 Purchase



Many would-be investors make the mistake of only investing in oneproperty. This is where the journey begins, not ends!

You can continue to build on your knowledge and contacts, while you position yourself to add the next property to your portfolio.

Invest again when you can, keeping your eye on your long term goal.

Step 8 Future

“Property Club offers many benefits for our Club purchasers. These benefits include negotiated solicitors fees, discounted professional quantity surveys, assistance with finding tenants and, in many instances, Property Club can arrange to do the final inspection on your behalf.

The Club has saved our members a lot of money during the purchase of their properties and continues to help with ongoing free advice and continuing support.”

Wendy Priestley Australia’s most experienced female investor - enjoying an early retirement lifestyle

Will you be retiring on the pension or living the dream?

How to retire in just eight years, tax free

The success of Property Club’s wealth creation strategy is founded on the strength of our four core investment principles.

One of the key principles of Property Club is that you should never, never sell your investment property.

Buying investment properties has been compared to harvesting fruit trees. Once the fruit trees are cut down – similar to selling an investment property – you never again receive the annual bounty they can produce. By following the Club investment strategies, you could retire early and wealthy without ever selling. Curious? Talk to your Property Mentor to find out how.

The importance of holding onto your investment property over the long-term is highlighted by the latest property investment survey undertaken by the Real Estate Institute of Australia (REIA). These statistics clearly demonstrate the benefits of buying – and holding – property.

The residential property index measures the total investment return for investors, before tax, taking into account the growth in capital values together with returns from net rental income.

Founder of Property Club, Kevin Young has released a second edition of his best-selling book: Property. Prosper. Retire. Take a sneak peek at the wealth creation strategies outlined in the book.

10 Property Club | Welcome Pack | Your key to Financial Independence

Here’s how our unique retirement plan works

To fund your first year of retirement, you simply borrow against the growth in your first property. To fund your second year in retirement you would borrow against the growth in your second property. In your third year go to your third property and do exactly the same. After seven years, you then come back to your first property which should have increased further in value. This is provided that you bought carefully in the first place.

Choosing the right property

Property Club’s specialist researchers identify areas for investment with strong underlying fundamentals, including population, jobs and infrastructure growth. Rents and capital growth will always increase in areas with strong demand and low supply, for example, close to a capital city CBD.

As a rule of thumb:

1. According to REIA, prices double approximately every seven - ten years (based on historical data 1980-2008).

2. Within ten years rent received equals purchase price.

In some years, property booms. The specialist researchers at Property Club guided our investors into Brisbane, the Gold Coast and Perth before these areas saw huge increases in capital growth.

Contact your Property Mentor to find out the areas we are recommending now – and the great rental yields we are achieving for our members.

Should I sell one of my properties to reduce the debt on another one?

I don’t recommend this. You are reducing your mortgage but with it your tax deductions. Instead, use the money to add new properties to your portfolio – further expanding your wealth.

Superannuation alone will not be enough

If it wasn’t bad enough that superannuation funds lost 25 per cent of their value in 2008, recent data shows that for most Australians, their superannuation will run out after just nine years (Association of Superannuation Funds of Australia, June 2007).

The Australian Bureau of Statistics puts the average life expectancy of men at 79.9 years and 84.3 years for women. Would you want to live on the pension when you are that age?

Can I afford to hold my property?Your Property Mentor can use our specialised cash-flow analysis software to calculate expected holding costs based on your specific circumstances. We can show how the tax man and the tenant will be paying most, if not all, of your investment property expenses. The program provides you with instant feedback on the projected after tax costs of buying an investment property. It considers all costs implications and combines this with estimated rental income and projected tax savings to give you your bottom line.

The software calculates cash flow projections and has facilities for changing significant variables such as property price, rent, capital growth, inflation, deposit and loan type. The internal rate of return (IRR) and the cost per-week are recalculated automatically whenever a change is made.

Happy investing

11 Property Club | Welcome Pack | Your key to Financial Independence


Frequently Asked Questions

If you have a question not answered here, feel free to ask your Property Mentor or go to our website at www.propertyclub.com.au

Q. What if I don’t have a cash deposit for an investment property?A. Some Club members temporarily use the equity in their home (or a friend or relative’s) for the 10% – 20%

deposit plus 6% buying costs. When the value of the investment property increases sufficiently the need for this security falls away. This is an option that needs expert guidance and independent advice should be sought.

Q. I have been to my own bank and they’ve said ‘No’ to an investment loan. What do I do?

A. All lending institutions are limited by their respective rules and guidelines that often change over time. Our Property Loans accredited mortgage brokers will work closely with different lenders to find one that’s more likely to say ‘Yes’. Understand that different lenders have different policies and you should not be dissuaded from seeking a second opinion.

Q. What if property prices stagnate?A. Property prices go through cycles, and these vary from state to state and region to region. Our

researchers concentrate on finding areas where population is increasing and supply is limited – areas that are more likely to push up values. Many Club members will therefore purchase properties in several states to maximise the growth prospects in their portfolio.

Q. How are areas chosen for good rentals and capital growth?A. We do research on the rental market targeting highly desirable areas with the lowest vacancy rates.

Rental returns and property price growth are largely driven upwards in areas where demand exceeds supply.


Frequently Asked Questions

Q. Who pays for all the Club’s free services?A. The vendor (seller) pays the Club’s costs which largely offsets their own marketing and advertising costs.

This can help them achieve quicker turnover that increases their overall profitability. This in turn gives them greater buying power for land and materials, while also offering our members competitively priced property. Stock providers are carefully selected and approved using the strictest of criteria

Q. Is there a ‘good’ or ‘bad’ time to invest in property?A. Throughout recent and more distant history there have always been supposed ‘bad times’ to invest in

property. Despite this, an analysis of property price growth over many years has revealed that prices generally rise between 2% and 4% above the prevailing inflation rate. Whilst we can’t predict future values, historical data (ABS referenced) shows median property prices doubling, on average, every seven to ten years, regardless of the time of investmentt.

Q. Am I required to make a significant commitment as an investor ?A. Property Club is suited to the needs of time-poor people. Our dedicated Property Mentors, Researchers,

Quality Control Inspectors, Leasing Coordinators, Mortgage brokers and Solicitors provide you with all the assistance you need, thus minimising your time and involvement.

Creating more millionaires than all the others combined!

www.propertyclub.com.au

welcome packmembers.iinet.net.au/~vanproc/investprop/pwp.pdfproperty club welcome pack your key to...

Documents