Welcome to the webinar! Property Investing ISN T for Dummies This webinar will begin shortly

Welcome to the webinar! Property Investing ISN T for Dummies This webinar will begin shortly

Why we are Different Licensed Financial Advisors PPI Investment Advice operates under an Australian Financial Services License (AFSL) 276 895. Our PI insurance covers direct property advice. Real Estate Licenses We hold a real estate license in most states and territories across Australia We don t sell property You can be guaranteed that as a PPI client, you wont be sold any property. Our clients pay us a fee for our services and we do not take any commission from builders, developers or agents.

Webinar Agenda Are you a Dummy? The Ice Berg Theory What do successful investors do differently How you can do what successful investors do

What Planning looks like for you How a property advisor should really work The most common mistakes of investors What should your next step be? FAQS & viewer questions The End

Who is this webinar for? First Time Investors The best time to get things right, are from the start. The best solution to mistakes is to not make them. Second time investors While 80% of investors own 1 property, the jump from 1 to 2 can be extremely important to get right Seasoned investors Even seasoned investors need to take stock and often re strategize. The most successful investors never stop growing SMSF investors The principles in this webinar apply to people looking to purchase in their SMSF also

So, Are you a Dummy? don t worry, it s a rhetorical question!? We don t think anyone is a dummy. However it is a fact that the most successful people in any field or activity seek the advice of professionals to harness the increased results that other people can deliver. Property Investing is no different, having access to a listing portal means absolutely nothing! In fact, it will often be the silliest thing you could do when it comes to investing. Most people know something about investing, or at least knows someone who does. This leads us to the ice berg theory. So, an investing dummy is really summarised as someone who simply does not know, what they don t know.

The Iceberg Theory Often we can look at an iceberg and be tricked to thinking that what we see is all we need to know about. Where in reality the majority of the iceberg is under the surface, which not many people see. The same rings true for investing, whilst its easy to see what s on the surface, there s a lot more to it that you need to get right 90% 90% of an iceberg is often under the water

The Iceberg theory applies to property investors too, but only the minority know it and seek professional advice to discover what s underneath that they don t see from the surface

How most investors buy property 1 See their bank or broker for pre approval 2 Do some suburb research 3 Negotiate and purchase a property 4 Wait and hope it grows in value

So What do successful investors do differently? There is ONE stand out trait between success and failure Planning Successful investors start with planning. Every time you see someone who is successful at something, you could almost guarantee that at some stage, they planned, and planned well.

Lets explore how successful investors do it

What successful investors do 1 SET THEIR INVESTING GOALS Investment goals should first be set by your wants out of life Don t let you current position determine your goals, it only determines your path. Use the SMART system. Specific Make each goal clear and specific Measure Frame each goal so you can measure it Actionable/Achievable Ensure each goal is able to be activated and achieved Realistic A goal must be relevant and realistic Timely You should assign a timeframe to each goal

What successful investors do 1 SET THEIR INVESTING GOALS cont Having goals and plans that are written down increase your chance of actually achieving them A Harvard University study conducted in 1979 of MBA students showed that those who wrote down their goals (only 3% of participants) earned 97% of the combined income of the participant group. Successful people see a strategy as a way to get to their goals. Goals & Strategy go hand in hand Successful people understand that goals & strategy are not optional

What successful investors do 2 HAVE A HEALTHY RELATIONSHIP WITH DEBT Successful investors know that debt is a common element to growing wealth The don t let debt stress them out They see well managed debt as a path to growing market share of assets They recognize that with debt, comes risk, and implement strategies to mitigate the risk where possible and live with the balance of the risk Seek advice on debt/credit related risk issues, and not from debt/credit issuers.

What successful investors do 3 USE FORECASTING TO REDUCE RISK Forecasting future activities is paramount to managing outcomes Taking large steps becomes quite daunting, by forecasting the future, you will be able to take calculated and measured steps in investing. When forecasting, you also need to allow for a variance of both positive and negative changes in market performance Further to forecasting market changes, successful investors plan ahead when they trigger change in their portfolios

What successful investors do 4 KNOW THE IMPORTANCE OF ASSET PROTECTION Most investors buy property to save tax, this strategy is flawed and will most likely cost you more money in the long run When deciding what entity to put your property or properties into, there's a lot to consider: Pros & cons of income & capital distribution Taxation pros and cons Internal and external asset protection mechanisms Directorships & trustees

What successful investors do 5 CREATE, UNDERSTAND & INVEST TO THEIR RISK PROFILE The best investors create a real picture of their risk profile Understanding where your risk profile lies is not about how risky you are as a person. You must align your goals and strategies with your risk profile Your risk profile is determined by asking some of the following How would you manage & tolerate substantial market fluctuations How your age, income & capital determines your risk appetite How capital and cash flow are two competing outcomes from your risk profile Understanding your investment timeframes Understanding your liquidity requirements

What successful investors do 6 MANAGE THEIR MONEY LIKE PRO S Successful investors create and use systems to manage their money like an accountant would. The more you invest, or want to invest, the more governance you need on your money You cannot take on more debt without first proving your responsibility with managing what's in your hand today Make sure you are using software, and regularly, to manage personal budgets

What successful investors do 7 Manipulate investing lifecycles to their advantage The best investors are pro-active, not re-active All markets move, in different ways and at different times. You need to learn to pre-empt this and either move before the market or with it, but never after it.

What successful investors do 8 Rely on professionals Successful investors nearly all started with the wealth they accumulated through their job, or their own profession. They continue to do this and invest surpluses. To make their surpluses work, they seek the advice of professionals who have their interests at heart Many investors think that property is easy, and go through the whole process without seeking advice Property is often one of the largest assets you can purchase, hence, the risk is right up there.

The pyramid of importance Financing Buying Strategising 20% 10% Planning 35% 35%

Know the current and future limits to your serviceability so you don t make investments that reduces it further. Know your current and future limits to leveragability so you know how much it needs to increase to gain the market share you need. Setting your goals sound easy, but it s not just about a dream. It s about knowing what you need to aim for, what you want to aim for and how you can get there. Identifying and working with your potential real risks and percieved risks will help you make good, long term decisions

Planning the creation of goals and the process to achieve them WHAT MOST INVESTORS DO Think they want more money See if they have a deposit Get a borrowing capacity from the bank WHAT SUCCESSFUL INVESTORS DO Set their personal goals Use their personal goals to set investing goals Identify their risk profile Ascertain their existing financial position Identify and explore future changes to their life Use an advisor to create a plan from A to B Seek advice on entities and structures to use Get taxation advice to work with their plans Set budgets based on risk & goals, not finance

Strategy The determining of actions to achieve goals WHAT MOST INVESTORS DO Think about what type of property they want to buy Research some suburbs Go to someone who has property to sell them WHAT SUCCESSFUL INVESTORS DO Look at the performance of different strategies Ascertain which strategies align with their plan Create an acquisition strategy Know how much to spend and when Dispose bad assets when needed Understand the ins and outs of strategies Gain tools to deploy when investing Sets their team up for acquiring a property

BUYING WHAT MOST INVESTORS DO Look on a web portals Ask agent opinions on values Tell everyone WHEN they ve bought Buy where they know, not what they know Get controlled by the market WHAT SUCCESSFUL INVESTORS DO Use people with experience based on strategy Create bespoke negotiation strategies Use professional real estate negotiators Use a professional to ascertain values Use relevant statistics to make decisions Know what statistics to look for Not get caught up in the hype of competition Know that nearly every property is replaceable Analyze the financial performance of a property

How a property advisor should work 1. Work for you, the client A property advisor working in your best interest cannot be selling you a property where they earn commission, that makes them a real estate agent. 2. Create your plan The plan must be tailored to you, and not be generic. For this to occur, they must have an AFSL. 3. Have a range of strategies Your advisor must have a range of market strategies they can deploy for you, if not, you may not be getting the best advice tailored to you 4. Have a team of professionals Your advisor should not be a lone ranger, they should be working broadly in the market and with a good supporting team. You need to ensure you are not paying just for someone's opinion, but their experience.

The power of achieving above average The power of achieving above average This graph shows a $500,000 asset across ten years of holding Series 1 compounds at 5% per annum End value $814,447 Series 2 compounds at 7% per annum End value $983,575 Equity difference of $169,128

How do you achieve above average in property? Get creative Buy Smartly Choose your asset well Use professionals

Types of properties to increase returns Granny Flats Splitter blocks Duplexes Renovations Buy and holds Developing Dual Living Commercial

The power of achieving above average

How do you achieve above average in property? Get creative Buy Smartly Choose your asset well Use professionals

In Summary PLAN STRATEGIZE BUY

Frequently Asked Questions Q How Does PPI make money? A PPI is a fee for service advisory firm. We have a range of services we provide to our clients. Q What if I cant afford advice A Advice is the first thing you should seek, not investments Q But I just want to buy one property, do I need to do all this? A Absolutely, all wealth orientated investments should have careful planning, even if you re not planning to get rich by it

Contact Us 1/158 Moray St, New Farm, QLD 4005 When the webinar closes, you will be directed to a page to provide some feedback. Your feedback is important to us and greatly appreciated. P W 1300 818 879 www.ppiadvice.com.au If you would like to have a complimentary goal setting and strategy session with PPI please provide your information on the next page E admin@ppiadvice.com.au