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Hi there and thanks so much for taking the time to subscribe to my little corner of the world. I’ve always loved communicating with and helping people get great results in their life. I trust that through this newsletter I can inspire you and give you some of the tools you need to live the life of your dreams.

I’m never short of things to say so I hope you will take the time to email me any requests for things you’d like discussed or particular areas of interest you’d like to hear about. I’m not here to sell you anything, I just want to inspire you to get the lifestyle results I know are possible by taking, well, Massive Action.

In looking at my subscriber list there are many of you who may not know me and why I do what I do, so I thought this month I’d cover a few basics regarding property investment before getting into some meatier topics.

Why Property?

When I was looking at how to generate the income I needed to fund our work with the poor I researched what I considered to be the 4 main options to generate wealth quickly.

Businesses, Forex, Shares and Property. I believe one can do very well out of any of these but I have found property to be unique in 2 ways.

1. Tax. There is nothing else that touches property in terms of tax advantages. I share this with you because so many people are not getting the tax benefits they are entitled to. Did you know for example that you can get your tax rebates every week taken off your PAYE?  Did you know that you can have property that shows a loss for tax purposes but actually puts money in your pocket every week?If you’re not sure whether you are getting all the tax benefits you should be then you probably aren’t!! Sit down with a professional adviser and get yourself sorted out today. It costs you money everyday you are not structured correctly and can cost you a fortune. Just today I heard of an investor who sold some property and because she was not structured correctly had huge depreciation clawback bills. Tax bills she didn’t have to pay.
   Email me if you’d like me to recommend an advisor.
2. Low risk. Nothing compares to property from a risk management point of view. Your business can fail overnight, your shares can be worthless overnight, currencies can collapse overnight. Property just sits there going up in value. You can sleep at night with property. You KNOW that your net worth will increase over time, even if you do nothing.
   A really bad property investment will come right within 5 years everytime. Get any of the other 3 wrong and you can be wiped out. So that’s why I believe property is the best way to go.

   Now let me tell you how……

Where are we going?

We are in a typical “weird” phase of the market. Some areas are still growing, others are flat. Some parts of Auckland and the country are dead. Experts like Kieran Trass from Hybrid believe there will still be some growth this year, others think the doom and gloom is setting in. We can only look at history and make informed decisions about the future. What we know for certain is:

1. We have been in a boom for a long time.
2. Busts always follow booms and then we recover and boom again.
3. Rents are always flatter in a non boom phase of the cycle.
4. Finance is always more difficult in a slump.

These are facts. We have to plan our forward investing around these facts. We will be coming into a time where prices will flatten or drop, but at the same time rents will be flatter and money will be harder to borrow. So if you have plenty of income and equity the world is your oyster. Accumulate property and accept that yields will be lower than you’d like but that will come right in the boom.
However if your financial position is not so rosy then you need to stick close to your broker and ensure that what you buy next doesn’t stop you from buying another property.

Generally I believe we all need to be accumulating property over the next 2 to 3 years. Buy as much as you can. Then in the boom sell down the worst performing properties and freehold what you have left. This should put you in a position to then retire whenever you want. Even 4 or 5 properties with no debt, returning $400 a week is more than most of us earn.

A funny thing happened on the way to success!

I find that often people think success “happens” overnight by chance to some people, but never them. I’ve lost count of how many times I’ve been told how “lucky” I am to have achieved financial freedom in a short space of time. I wanted to de bunk that myth by sharing some of the things that happened on the way to success for me so that you will understand that it is often our failures that teach us to do things differently so that we can ultimately succeed.

I had visions of conquering the world by the age of about 12. As I spent my 16th birthday in prison I realized I didn’t know how to be socially successful.  I had planned and stated to all and sundry that I would retire by the time I was 25. As I walked out of the official assignees office as a bankrupt when I was 25, I realized I didn’t know how to be financially successful.
As I worked hard, often in excess of 60 or 70 hours a week, for year after year, I found myself at nearly forty years old, not far from bankruptcy again. As my marriage imploded and I limped through each day I realized I didn’t know how to be relationally successful either.
The one thing I did know was that God loved me and all my effort and hard work had been somehow misguided and self sabotaging.

In 2001 God gave me a second chance at a relationship and I am now married to the most wonderful woman on the planet, and I’m learning that being relationally successful requires selflessness, time and lots and lots of hard work. In 2004 as I got an education about investing, God showed me that I had always been incredibly guilty about having money. In fact I had repeatedly sabotaged opportunities for success subconsciously because I was afraid of success. Now that I have dealt with that I have become financially successful.

As God changes me and teaches me how to be a man of integrity I find myself able to assist others to become successful and basically just pass on what I am learning. I now am socially successful.

This overnight success has taken 44 years to achieve for me. So if you’re just starting your journey, don’t give up. Allow your past to teach you about your future. I read somewhere that the definition of stupidity was repeatedly doing the same thing over and over again and expecting to get a different result.

Make me a deal I can’t understand.

As is my bent I’ve been looking at all kinds of deals lately. In particular there is a lot of inactivity at the upper end of the market so that has been my main focus. I recently looked at 2 townhouses in East Auckland with RV’s in excess of 2.6 million. Vendor was going under owing 1.7 million. I could have bought them had the vendors rich brother not bailed her out.

Another deal I have on the go at the moment is a subdivisible do up in East Auckland. GV of 1.235 million. The vendor is the immediate neighbour who bought the property solely to put a view protecting height restriction on it and then resell. They didn’t understand that the market was turning and so have been unable to sell for more than they paid. They turned down an offer of 1.2 million, which they should have taken. I could secure the property for 1 million at the moment as the vendor cannot afford the 10K per month bridging finance.

Now obviously some of these deals require deep pockets, they can tie up a lot of capital and you can’t do as many of them as the smaller ones, but I mention them to encourage you to look outside the square. The deals are there.

My chief cook and bottle washer Jo has a great property under contract in Manurewa. 3 legal incomes 100K under valuation and can be subdivided to add another 100K. In fact there is a plethora of multiple income properties on the market at the moment. This always happens as things tighten as uneducated investors bail fearing impending doom. Sadly for them they are selling too late and with some education would know that they should be buying, not selling. This creates great opportunities for you and I though. I can think of at least a dozen properties I’ve seen in the last 2 weeks that would be great additions to anyones portfolio all on the market from scared investors. Many of these deals are lower end value wise and have great cashflow so don’t think you can’t start investing. There will never be a better time than today.

One thing you learn as you progress is to not be scared of big numbers. There is often less risk in them than you think. For example my other project at the moment is an East Auckland beach front subdivisible property. Asking around 3 million. Easy subdivide at a cost of about 90K. Existing house will still be worth 3 million and the section will sell for at least 900K. Money for jam. And the risk is so low because you can give the section away for say 500K and sell it in 24 hours. You’re still left with enough profit to hold the property for 2 years while you sell it and that’s without allowing for the GST which would give you another year!!
Final Words

The battle for success in investing is won and lost in the mind. Those who believe they can, can. Those who are plagued by doubt and fear never achieve their dreams. You will never look back at your life and say “I wish I’d spent more time at work”.  Do you want your epitaph to be: Here I lie, I was “reliable”!

How the rest of your life plays out will be determined by the decisions you make today, tomorrow and next week. If you want your life to count for something, then don’t settle for mediocrity. Don’t believe the lies that you are average. That you will “never amount to anything”. Also remember these statements are a BIG FAT LIE!

1. It takes money to make money.

2. It’s not what you know it’s who you know.

3. All rich people are %*%%*_()*&^

4. I am too (dumb, ugly, fat, lazy, uneducated) to succeed.

These are lies!!

You can succeed. You can have purpose in your life. You can wake up each day looking forward to a day where you can do the things you are passionate about.

But you have to decide that the frustration of where you are is unacceptable. You have to decide that the perturbation, (look it up) caused by change is worth it. You have to decide that failure and mediocrity is not an option for your life anymore. If you’ve made that decision and don’t know what to do next, please email me. I love to help people who want to get their lives back.

Safe investing and I look forward to hearing from you. Please forward this to anyone you think would be interested and tell them to SUBSCRIBE.

Dean

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June Newsletter