Monthly Archives: March 2016

The difference between property and real estate as investor


By the time I was 22 I had bought, sold or developed more than 40 properties. I thought I knew a thing or two about real estate. I had no idea!

Like a lot of ‘would be’ property moguls I had reached that place where I was tapped out financially. I had maxed out my borrowing capacity and cash flow was stressful. I decided to look for a partner. Someone with deep pockets and, more importantly, someone I could learn something from.

My criteria for the right partner was having a minimum 20 years in the business and at least $100M in property under their belt.

One day I was bragging about my accomplishments when one of the moguls asked me the one question that hit me right between the eyes: “how much land tax did you pay last year?” I had no idea.

In fact I’m not sure I even paid land tax or even why it was relevant. Then he told me a truth I live by today… In this business, everybody has a story – but there’s really only truth in numbers.

Lesson learned

Always remember the difference between property and real estate.

This is important because the golden rule of property and step 1 in my 7 Steps to Wealth book is “Land appreciates, buildings depreciate’. Real estate is the land. Property is what sits on the land. Land is the commodity and the only part that grows in value.

Last year I spoke at the Sydney Property Expo and tested my audience of 150 people or so. I showed a slide with some interesting stats from RPData/Corelogic:

— The Sydney median UNIT price in 1985 was $70,500 and is now $660,000.

— The Sydney median HOUSE price in 1985 was $88,350 and is now is $920,000.

I then gave the audience my take on the REAL value of that 1985 median HOUSE price: “It is, in fact, now worth $1.2M not $920,000”.

I asked my audience why I would make such a statement. The answers were quite interesting; it went from different suburbs, inflation adjusted, income not accounted and so forth, and of course let’s not forget the usual default answer everyone uses in property: location – location – location.

The answer is a number!!! In a sea of perplexed faces, I then surprised them with the real data:

— The average size block of land in 1985 in Sydney was 800m2 when today it’s down to nearly half at 435m2.

— The 435m2 house and land might sell for $920,000 but in reality the 800m2 lot with any sort of house on it – that you purchased back in 1985 – is really worth at least $1.2M.

There is only truth in numbers.

What does it all mean to you as a real estate investor?

It means whenever you invest in real estate you must know your land content. Our clients invest with a minimum of 40% land content and this is one of the seven key factors I believe you need to be successful in your investment strategy.

Here is an actual example of how it works: We bought 400 blocks of land in Sydney from 2011-2013 for around $558/m2. We put houses on them to give us leverage, cash flow and tax deductions; today the land is worth between $1,200-$1,500/m2.

That represents an average growth of 140%, while the median house price in Sydney went up by 72% for the same period.

A fool and his money are soon parted

There are a lot of people out there providing advice who don’t actually own any real estate, so here’s an essential question to ask before you follow any real estate advice: “Can you show me your land tax statements for the last seven years?” That will tell you all about their true property expertise and experience. These numbers are very relevant in a world dominated with overload of information.

For the record I paid $187,000 in land tax in one state alone last year and have done so for more than 15 years. I own property in three other states.

In 2015, Sydney land price per m2 went up by 46% while the average block size dropped by 7%. The median house price also went up by 11.5%. These numbers clearly indicate that in this rapidly evolving climate, the end game in property is and always will be land use.

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Top on Market Financial Website


For every dime, you have tens of options to invest in. So where do you go for sound investment advice? The web is chock-a-bloc with financial websites and personal finance blogs. To wade through them you will need the most precious resource of all – time.

And if it is something you don’t have then you can thank these websites who have built-in mass communication tools like RSS feeds, newsletters, Twitter, and Facebook updates.

But it still pays to visit these ten websites because of the sheer depth of financial guidance.



Three well known names are behind all the financial information on this site: CNN, Fortune, and Money. The business and financial news gets updated throughout the day and so you can expect to pick up fresh tips and market hints thanks to the range of newsletters and the alerts. It is also one of the neatest newsletter sign-up pages you can ever get to see.



The well known name in financial circles brings business forecasts and personal finance advice across the entire media spectrum. The Kiplinger Letter (a weekly business and economic forecasting periodical) requires a paid subscription, but the email updates from the site does not. The site has a section for the first time investor who needs to know the basics.

This Is Money


The UK-centric financial website is a part of Daily Mail, the second largest selling British newspaper. The financial website covers personal finance with investment tips, news, predictions, advice, and guides. Check out the site map at the foot of the homepage for all the wealth you can find on the site. With all the tools on the site, it’s better that you be there, but if you can’t then make do with the weekly roundup newsletter packed with investment advice or the one which covers breakings news and special deals.

The Street


The Wall Street based financial website has a mix of free and premium services for financial updates. The website gives you a choice of seven free e-mail newsletters “” The Daily Booyah!, Before the Bell, Midday Bell, After the Bell, Winners & Losers, TheStreet Top 10 Stories, and TheStreet ETF Weekly that help you be on top of market trends with timely investment advice from guys like financial journalist (and bestselling author) Jim Cramer.

Smart Money

smartmoney is a part of the Wall Street Journal media network. The financial website caters to the high brow professionals who go deep into day-to-day markets with stocks and mutual fund investments. The site gives the individual investor a range of tools like watchlists, stock screeners, market maps, and the SmartMoney LifePlan as a step-by-step guide to investments. With a free registration, you can access these tools and the bundle of free investment information. You can stay on the WSJ network and keep tabs on the market with the sites in their portfolio.

Seeking Alpha


Seeking Alpha more like a financial news aggregator packaged as a blog. It sifts through the top market blogs, money managers, financial experts and investment newsletters to bring nearly 250 articles dally. The site says that it’s the only free, online source for over 1,500 public companies’ quarterly earnings call transcripts, including the S&P 500. The site has an interesting section called Long & Short Ideas where you get tips on long term stocks and those that are falling.



One of the best financial websites out there, Bloomberg is all about up-to-date business analysis and financial data. The site has a good personal finance section with news supported by videos and four calculator tools. The news coverage is international and if you are on YouTube, you can catch their channel there too. Bloomberg also owns BusinessWeek and all-in-all it has a one-third share of the financial data market.



If you are in the least bit interested in money, then you would know the lists which Forbes brings out annually. But the site is more than that as it packs in news on business, technology, stock markets, personal finance, and lifestyle with bytes of advice, tools, and investing tips.

Investor Words This financial website is not one for investment news, but it hands out words which can help to make you a better investor. You can get the Term of the Day delivered to your inbox with a free sign-up. The term of the day email newsletter provides one definition and one investing aphorism per day to subscribers. The financial glossary has database of 8000 terms which is constantly updated. In between, you can also catch up with other finance related articles.

My Money is the official U.S government website setup to impart financial literacy to the American public. The site is well designed with three clear cut sections that help with financial knowhow for each stage of life, supported by other resources and tools.

These ten websites can serve the newbie investor best with the 5 Websites Where You Can Learn To Invest Money because learning how to invest and when to with informed investment decisions go together. Do you have a favorite financial website that’s in your bookmarks?

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How to keep a profitable gold investing


Some of the tricks, tips and strategies for your benefit when investing in gold bullion. Tricks and strategy of investing in gold itself many kinds, which include gardening techniques ala Rully Kustandar gold, gold stock investing, business  forex trading gold, gold dinar investment, buy gold coins, buy gold jewelry and more way of investing in gold. Although gold has entered the world of forex or gold trading, but that does not mean gold can not be used as a long term investment. Gold remains gold remains a good security for your business as long as you know how to manage it. Below will be given guidance on how to invest in gold to keep it profitable.

1. Classical Technique Gold Investment

The first way to invest in gold is favorable for the beginner is to apply the techniques of classical gold investment. Applying the techniques of classical gold investment intention is to buy gold when the price is quite cheap and sell when it rises and the difference between the selling quite a lot. The technique is often done by the parents of the past have proven to be quite effective if done in the right time and in the long term. By running this technique could be said of gold that you have this be a long-term investment timeframe eg 5 to 10 years.

2. Make Gold Savings

Tips and secrets subsequent profitable to invest in gold is to make gold as savings and insurance. Saving gold indeed we save using gold instead of money. For example, every month we would save 1 gram of gold. When these savings is collected, then we can use as a tool to purchase a wide variety of needs, for example, to buy a car, a house, the cost of Hajj, Umrah, married, family health insurance, vacation, children’s education and others.
By running tips with the concept of saving this gold, we will not know the inflation. So the savings we will remain intact even though there are likely to increase inflation in the products that we want in the future. This is because the increase in inflation there will soon be covered with the current gold price is converted into gold in grams.

3. Gold cite Venture Capital Investments

This one strategy that is often undertaken by lien system. So let’s say you have 100 grams of gold, then to increase the value of gold, we should be pawned. Then, the money from the pawn used as venture capital and business. To actually run this technique, you must understand that the system has its own weaknesses, that is, when the business went bankrupt, then the gold we would be lost or reduced. But if our efforts forward, then it is not likely you can increase the amount of gold you have.

4. Mechanical Gardens Gold

Mechanical gold garden which had been booming in the 2010s and older. But it turns out this investment concept slowly abandoned because it is considered no longer appropriate. Moreover, this technique uses pawnshops which, if calculated, the cost is quite high and not a turnover if the gold price ‘freefall’ as in the last 2013 years.

5. Gold Investment Forex Trading System

Lastly, how to invest in gold is favorable for the beginner is to use a Forex Trading system. In carrying out this way you will use gold as venture capital or deposit trading. Your gold will be mortgaged and used as trading capital. For those of you who do not like the risk, it is better to avoid this strategy for forex trading is high risk businesses or high risk high return. If you are not expert in the world of forex trading, then you should choose how and other investment strategies.

Gold Investment Provides Many benefits

That five-way secret way of investment gold bullion and forex trading. Hopefully with the information we have stated above, you are expected to have an understanding and wider knowledge about this type of investment, because gold investment is an investment that can provide many benefits for investors. Good luck and remain cautious in carrying out this investment.