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“Thanks for all your help in selling our 8 acres.

Thanks to you we are now off to our new life in Tassie.

By the way the buyer ( from Canberra ) was interested in your service also, so I explained it all to him.

Thanks again Coreyna for all your help and please pass on this message and our thanks to Andrew also.”

Sid Edwards

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Real Estate Investing
What makes a good real estate investment? And what makes a great real estate investment? 

Though it's a simple question, the answer is a different one for different people.  

One investor seeks long term capital growth while another wants positive cash flow. And yet another real estate investor may not be happy unless he is achieving highly in both areas at the same time. 

While the sort of property which brings the most capital growth is generally capital city or coastal it may also be property in a town or city that's inland but about to experience economic and employment growth. Wherever the property is, surely an investor's preference should be for brand new homes, which have the added advantage of being maximally depreciable.  

Of course such a preference might mean missing out on some real bargain buys in the second hand market, along the way. So the definition of the perfect investment real estate might be the one that most perfectly fits an investor's individual needs, his means, his personal situation and his tolerance for risk. 

Remember also that the true return on any property investment isn't gauged by ROI calculated on the amount borrowed. If an investor borrows $500,000 to buy a property and the property goes up $100,000 in 5 years the real ROI is dependent on the deposit invested rather than the Principal controlled.

It's this fact that makes real estate potentially so lucrative, with the leveraging of the deposit being the real key in any success. Therefore an important factor in the perfect real estate investment is the amount of leverage you can get in the deal. 

Of course all these factors are important but to some people it's even more important that their property investment is sleep easy. A friend of mine once explained that no investment is worth it unless you feel good about it when your head hits the pillow at night i.e. sleep easy investing. In other words your own idea of the perfect investment may be for one that has loads of security built in… so you can sleep easy! 

On the subject of security it is helpful to imagine that investing is actually less risky than not investing at all.  Not investing will mean that achieving real wealth may well be unattainable and surely that's a risk not worth taking! Getting in the game is more important than trying to clean up big.  Sage investing advice is not to have timing in the market but rather to have time in the market. 

So perhaps many investors should stop trying to find the perfect property investment lest it ends up causing them paralysis analysis. Get in the game and stick to the basics and the market will love you for it, over time. Don't reinvent the wheel and try to model yourself on other people's successes.

The basics of investing never ever change and the important thing is to control cashflow and to control risk rather than eliminate it.

People will always need a place to live and a roof over there head.  

There are only 3 ways to have that roof and these are, buying a house, renting a house or living with family or friends ( ok perhaps prison qualifies as a fouth .. and it does represent an ever growing demographic )
 
Prison time aside however all 3 ways require a house in the first instance and that's what makes real estate investing so powerful and so enduring. With real estate investing time really does become your friend so what are you waiting for?

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