Investment Property Books

Do you want to create financial freedom? Are you concerned about becoming financially independent for your retirement? Do you want to build a wealth base for your children’s education?

Taking a proactive approach to building wealth is vitally important for anyone who is seeking financial independence.

Effective money management, regular investing and utilising the power of property and leverage are techniques employed by many people who have already gained financial freedom.

It is estimated that over 98% of the world’s millionaires have made their money through property investment.

Why is property investment such a powerful tool for building wealth? Do you have to be rich to start investing in property? How can gearing and tax advantages be used to create financial security? What are the steps involved for effective money management and wealth creation?

These and many more questions are answered in these enlightening property investment books by author Debra Lohrere.

How to Research Investment Properties (Book) By Debra Lohrere

Find out the amazing potential that property investment has for creating wealth and building financial security. Discover the techniques used by successful property investors to locate investment properties that are both easy to rent and have the potential for the greatest capital growth. Whether you are an experienced or novice investor, this book has something for you.

This property investment book explains in simple to understand terms the criteria you should be looking for and how to start researching the property market for a good investment property. It discusses the varying price ranges of property - low end, median priced and high end properties and explains the advantages of each.

It covers the topics of positive gearing, neutral gearing and negative gearing and shows how each of these can be effectively used. It gives examples of different property investment strategies that will suit different investors, depending on their current financial situation and comfort levels.

The most important advise that anyone can ever give you in relation to investing in anything is to "Do your homework first". Research and knowledge are the keys that enable you to make intelligent, well informed decisions. This book explains 'where to' and 'how to' start researching the property market to find the investment properties that will best suit your current requirements. This is a must read for anyone seeking financial freedom.

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Buy Now at Equilibrium Books AUD$18.95 (USD$17.85 subject to currency fluctuation)

ISBN 10: 1-920764-48-8
ISBN 13: 978-1-920764-48-7

Creating Financial Security Through Property Investment (Book) By Debra Lohrere

This property investment book demonstrates how to embark on the road to financial freedom using the wealth creation tool of property investment. It explains in simple to understand terms how to Set Goals, take control of your finances for effective money management and how to begin building an investment property portfolio. It shows why Real Estate is such a secure investment and demonstrates how to utilise the tax advantages available to property investors for building wealth.

It is an invaluable step-by-step wealth creation guide, with many graphical illustrations. This investment book demonstrates how to analyse the property market and select investment properties with the greatest potential for creating wealth. It shows why property investment is such a powerful tool for building wealth and creating financial security for retirement.

This book explains in straightforward terms how to use the three wealth-building principles employed by those who have already succeeded in becoming financially independent. It shows how to invest in property, utilise the powerful wealth building techniques of using 'other people's money' to build your wealth base and explains the power of compounding interest. This book gives detailed descriptions of positive gearing, neutral gearing and negative gearing and shows how these can each be used effectively to build wealth by becoming a property investor.

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Published by Lulu Printed Book USD$14.95 plus postage USD$3.99

Why is Property Investment such a powerful tool for wealth creation?

In Australia and elsewhere over the past 50 years property has averaged around 10% capital growth per annum. Due to recurring property cycles there are periods of flat growth, slow growth and accelerated growth, with the long term result of an upward trend.

Due to the power of compounding, the time it takes for a property to double in value can be calculated using the Rule of 72.

This rule states that "72 divided by the compounding growth rate equals the number of years it will take to double in value".

This means that when a property increases at a rate of 10% it will double in value every 7.2 years. It will quadruple in value in 14.4 and in 21.6 it will have increased in value 8 fold.

As an example: If an Investment Property is purchased for $250,000 and held for 21.6 with a 10% growth rate it will increase in value to $2,000,000 (increase of $1,750,000). This averages out to a growth of $81,018 per annum.

Why does gearing into property purchases have such a great effect?

Most people don't have a spare $250,000 to invest. This is where gearing comes into play. Gearing is where you utilise a portion of your own money, along with a greater proportion of borrowed funds, to allow for the purchase of an asset of a much higher value than you could otherwise afford to invest in.

If you purchased the above $250,000 property using a 10% deposit plus 5% of the property value for purchasing and legal expenses, then you would be investing $37,500 and borrowing the remaining 90% ($225,000).

Therefore if this property had an average growth of 10% in 21.6 years your property would have grown in value to $2,000,000. Your investment of $37,500 will have increased in value to $1,775,000 giving you an average profit of $82,175 per annum.

Had you just invested your $37,500 into an asset which had also grown at 10% per annum then after 21.6 years your investment would have grown to $300,000, a gain of $262,500 or an average of $12,152 per annum. Hence gearing would have gained you an additional $1,512,500.

This example has not taken into account the effect of inflation, holding costs or the rental income and is used for demonstration purposes only.

The following graph demonstrates the rising property values over time of medium house prices in Melbourne, Australia from 1965 to 2002. In 2002 where this graph finishes the medium property price was just over $332,000. As at June 2007 the medium house price was $420,000 (Source REIV).

Property Prices Growth Chart. Quarterly Medium House Values for Melbourne, Australia 1965 - 2002

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