TIC Magazine - May June 2010

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www.tic.com.auVolume 1 May/June 2010, Issue 137

magazineThe Leading Publication in Wealth Creation Through Property.

10 year cash flowthe bigger picture:

wrap up

2010

pErFOrMaNCE OF prEMIuM prOpErTIES

rp daTa

ExplaINEdESTaTE plaNNINg

CONFErENCE

tic magazine | 1

What an exciting couple of months it has been. The end of February saw the 17th annual The Investors Club conference held on the Gold Coast. Thank you to all 950

members who attended the event and advanced their knowledge and network of fellow investors. We were delighted to catch up with members (new and old) and celebrate many milestones with them.

Of course the annual conference would not be possible without the support of sponsors who contributed financially to the event and therefore reduced the cost of attendance for members. Without their support the normal entry fee for this leading event would be far greater than the $395 (weekend fee) that our members paid. We encourage you to support these businesses who continue to support the Club and its members. Thank you to Heran Building Group, Sunland Group, Emander, Habitat, Ausbuild, The Heights Real Estate Property Managers, Club Financial Services, Davlin Group, EBM Insurance, Run Property, Club Loans, M’OR Mortgage Options, House + Home Loans, Kastle Group, Crystal Finance. Editor: Thank you also to Kevin and Kathy who provided over $200,000 to subsidise the conference, resulting in a minimum saving of $210 per ticket.

With such an array of speakers, events and milestones, it is difficult to isolate only a few conference highlights. A few of our favourite moments included:

Being able to break open the bubbly with those members who had purchased over the weekend. A high number of members purchased property during the conference and it was the first time we had gathered them together for a celebration.

New investors sharing their excitement with advanced investors who had added to their portfolio over the conference weekend. These

people were inspired by our wonderful speakers and decided to take action.

We also had an absolute blast with our ‘wheelie investors’ who were out on the dance floor at Saturday night’s Gala Dinner and we all had a fantastic time. Nothing stops them and it is great to see.

We thoroughly enjoyed all of our guest speakers. They truly are world class and it illustrates the level of service that The Investors Club offers. Linda Lo-Doc (Simon Norris) deserves a special mention for his fantastic and entertaining session on Lo-Doc lending. I won’t pretend it was not fun sticking it to the RBA on Saturday – the media loved it too, giving us national coverage again.

Seeing the Young Investors Club growing up was also a big highlight. We celebrated their first birthday together. Over 60 young investors enjoyed drinks at Q1 building on Friday night. The rest of the conference saw some fantastic YIC speakers feature, not only to serve as inspiration for other Young Investors but as a wonderful testament what can be achieved with some courage, determination and the right support. What some of these investors have achieved before they reach 30 years old is formidable.

Thank you to those who filled in the online survey regarding the conference. This information goes a long way to growing this event even bigger each year. Here are some of your comments:

“Good to get together with like-minded people. Always good to catch up with fellow investors and discuss advantages / pitfalls experienced.”

“Good information was provided by the various speakers. Amanda Gore was a great motivational speaker.”

“On the Gala Dinner, a memorable night, I loved the atmosphere, the couple who danced. the competition, the photographer who went round everybody, the young waitress who offered to help us in any way, the food, the pre-dinner drinks was great.”

COPYRIGHT AND DISCALIMER Established 1994 The Investors Club Limited ABN 53077 935 862. Published by Kevin Young and Lisson Pty Ltd ABN 53 080 115 872 © DISCLAIMER: This newsletter is not financial investment advice but property investment advice and our comments are of a general nature only. Case studies are genuine. The information contained in editorials is reproduced in good faith. No responsibility is accepted by The Investors Club for the accuracy of information contained in advertisements. Unless specifically stated, products and services advertised or otherwise appearing in this Newsletter are not endorsed by The Investors Club. If you would like to be removed from or added to our mailing list please contact your Branch Manager or Support Member whose name you will find on the attached cover letter. Please note that the following are registered trade marks of The Investors Club and or Lisson Pty Ltd: The Investors Club®, Investors Club News®, Club Loans®, Investment Workshop®, Support Member®. For advertising or media enquiry please contact The Investors Club on 07 3456 4200, 8/107 Miles Platting Road, Eight Mile Plains QLD 4113.

“Reminds us that we’re on the right track, with the right people. Reinvigorates us, gives us a chance to focus our attention on the property investment part of our lives for a lengthy period. Brings us up to date with current trends/thinking.”

We look forward to next year’s conference which will be held at the Perth Convention and Exhibition Centre from 4 to 7 March 2011 (more details will be available in June this year). In the meantime I urge you to attend a state conference. Page 5 details the upcoming conferences in your state including one in the Northern Territory, Queensland and New South Wales which will be held in the coming two months.

You can read more about the conference and the calibre of speakers on the following pages. Also in this issue we have Tim Lawless of RP Data looking at premium properties (pg 6). I encourage you to also read Tom Hackett’s explanation of capital expenses (pg 19) and their treatment by the ATO, and an informative article by John Ioannou of Cleary Hoare Solicitors on Estate Planning (pg 20). Plus this issue includes a host of other interesting articles, member’s stories of success, and the national events coming up in the coming months.

We have a large number of members who have provided testimonials about their experiences with TIC over the years, including many members who regularly attend the Club conferences. We are pleased to announce the formation of a consolidated referral list, which is housed on our website. This is an added resource for new members and new purchasers looking for the added piece peace of mind on the Club and the plan to financial freedom. These referees are happy to be contacted to discuss their own experience with the Club and their own journey.

Happy Investing!

Publisher The Investors Club Limited 8/107 Miles Platting Road Eight Mile Plains QLD 4113

Website www.tic.com.au

Enquires and Advertising E: [email protected]: 07 3956 4248

On the CoverKevin and Kathy Young, Amanda Gore and Paul Martell at the Annual TIC conference.

magazineThe Leading Publication in Wealth Creation Through Property.

Kevin and Kathy Young

What An Event!

2 | tic magazine

Held from Friday 26 February, the 17th annual conference was the largest and most in-depth Club conference to date, with 950 delegates having the choice of attending 67 sessions over four days. Speakers were world class, including RP Data and Amanda Gore, igniting the audience’s passion for property and inspiring them to continue to lead their peers.

The 2010 annual The Investors Club attracted unprecedented attendance from members and heightened levels of support from sponsors, making it the most successful conference to date.

Getting Ahead Of The Wave

Young’s annual much anticipated session on Property Predictions – Past and Future. Joining the stage throughout the day were Executive Director, Jo-Anne Wilson and Wayne Pratt of TIC Super, and Sabha Abedian of the Sunland Group.

Wendy Priestly, Branch Manager, engaged the audience with her insightful presentation on Overcoming Hurdles, giving everyone the confidence to keep going when experiencing challenges in their property portfolio journey. This provided the perfect backdrop to fellow Branch Managers and Support Members presenting concurrent breakaway sessions throughout the afternoon including 8 Steps to Financial Freedom,

Bookkeeping and Tax Return Tips, Profitability of

Renting, and member success stories including Richard van Proctor motivating the audience with his information session covering his 10 years of investing.

Tony South provided an update on the people Club Cares has been able to help throughout the past year and then assisted in presenting Tegan Crick with a $14,500 donation for a new power wheelchair, to replace the manual chair she has been using for the last few years, and a new laptop computer with speech recognition.

Club member and acclaimed international speaker and author, Amanda Gore, captivated the audience to deliver one of the delegates’ favourite

sessions, Live out loud on the wave. More than 20 years ago Amanda launched her speaking career by talking about the connections that count, leading with the heart, motivating with laughter, and bringing out the best in people.

“I never thought I would see such a transformation in the collective mindset of an audience,” said James Crow, Young Investors Club Support Member. “We laughed, made fools of ourselves and left feeling thoroughly inspired to live ahead of the wave and share our knowledge with others.”

Iconic sportsman, Max Walker, opened Sunday’s conference session with The Essence of Change, an inspiring session on recognising the best wave to the future. “A true Australian legend who illustrates through personal experience the importance of grabbing opportunities without hesitation, and just going for it,” said Michael Gunning, Property Guide.

Tim Lawless, RP Data Director, took delegates through an informative session on where the Australian residential property market has been, and where it is going. Tim’s outstanding career in property data analytics spans 12 years, and he is ranked as one of the most notable analysts and commentators on the property market in Australia today.

Simon Norris of Club Financial Services also took to the stage, delighting the audience with his ‘Indiana Norris’ presentation of ‘Lo-Doc of Doom’. Andrew Kemeny, Kastle Group Finance, spoke to young investors on their finance options.

Internal speakers complimented the industry identities throughout the day, including Chris Grannery on the pros and cons of house and land purchases, Derek Jones speaking on the importance of building a property portfolio and

Outside of the wealth of knowledge and networking opportunities that the conference provides, the forum provided members with time to speak with researchers about current property listings and the opportunity to submit an Expression of Interest on a property immediately. Over the four days, 46 Expressions of Interest were submitted and 85 Registrations of Interest were received putting these delegates ‘ahead of the wave’.

A Stellar Line UpThe conference launched to almost 300 Branch and Support Members on Friday 26 February. This closed session featured guest speaker Mark Chapman on Leadership, and closed with Bruce Doyle, Action Coach, showing delegates the importance of Goal Setting.

The day also featured several break away sessions, a new initiative introduced in 2010, which featured training workshops presented by peers. These sessions catered to all levels of tenure as Support Member and included Personality Styles, Explaining Valuations, Managing Emails, and Mentoring Techniques, to name a few. Rael Bricker, House and Home Loans, also presented Financing your Future to the young investors.

Saturday marked the official opening of the full conference, which saw members join their Branch Managers and Support Members to listen to Kevin

tic magazine | 3

the right property and property selection, while Troy Gunasekera, Branch Manager, held an advanced session on the Property Investment Analysis Program.

In addition to the wealth of information provided throughout the conference, in the lead up to the main event, 31 Gold Plus Property Millionaires Club members participated in a Leaders Forum on the Gold Coast. PMC Leaders Forums are round-table gatherings of The Investors Club’s most dynamic achievers and thinkers, and focus on discussing and discovering new and better strategies to assist members who have purchased more than three million dollars of Club property.

The Gold Coast Forum was open to members who receive the PMC Leaders Forum Audios, which are a gift for those who have purchased Club property to the current value of than three million dollars, and which are also available by subscription.

One On One TimeOutside of the conference sessions, the Exhibitions Hall provided delegates with opportunities for some one on one time with the researchers and developers including platinum sponsors Sunland Group and Heran Building Group, gold sponsors Emander Group and Habitat, and silver sponsor Ausbuild. Sponsors, Davlin Finance Group, Club Financial Services, Crystal Finance, House and Home Loans, Kastle Group and MO’R Mortgage

Wendy Priestly on how to manage that portfolio over the years. Support Member Ralph Cartwright closed the Advanced Sessions by delving into what to do with your property portfolio, and how to set up your children’s future.

There were many other sessions too, all presenting a range of topics suited to the delegates needs, from first time investors to sessions tailored to the advanced investors’ thirst for more knowledge. “Thank you to all of our speakers,” said Kevin and Kathy Young. “Without your time, energy and expertise we would not be able to provide such a diverse range of sessions, and such a wide array of knowledge to our members attending the conference.”

Monday’s additional workshop sessions were a continuance from the success of previous years’ Question and Answer style forums, and included two open forum Q&A sessions by Kevin Young. Shelley Smith, National Leasing Manager and Kristal Burns, Senior Property Manager led a session on TIC Realty and TIC Leasing. Meanwhile Karen Horsfall of Club Body Corporate and Jill Clifford of the Property Millionaires Club all held sessions specific to their area of expertise.

John Ionnou, Cleary Hoare Solicitors, provided an overview of Estate Planning while Bill Tomkins, Deppro, explained how to compound cash flow generated by depreciation from multiple properties. Max Clemens, NSW Support Member, conducted a workshop on choosing

Options provided immediate guidance to members on finance. Deppro, Cleary Hoare Solicitors and EBM also participated in the exhibition providing timely advice to members on Depreciation, Legal and Insurance services, respectively. The Investors Club’s services and departments were represented including Club Loans, TIC Realty, TIC Leasing, TIC Super, Club Body Corporate, Club Cares, Club Travel and the Young Investors Club.

The hall acted as an ideal setting for breaks throughout the conference, which gave members the chance to speak with their Support Member and discuss investment properties showcased by the researchers.

A Cause For CelebrationHaving most of the Branch Managers and Support Members together with members for the weekend provided the platform for a number of events to celebrate the successes of the previous year and discuss the opportunities that lie ahead. For Support Members, Jeff and Tania Agar, the conference also provided the perfect time to toast Andrew Jagot on his purchase of the Club’s 14,000th settled property.

The Heights Real Estate - Property Managers hosted a welcome function on the Friday evening.

4 | tic magazine

Congratulations to this year’s award winners:

Branch Manager of the year FFVP Frank Friedman and Richard Van Proctor

Support Member of the year Swarnie and John Condon

Club Loans Mortgage Professional of the year Crystal Finance (Robert Coombs)

Researcher of the year Jean and David Cairns

Researcher with highest value of settlementsDaniel and Rosina Mavin

Branch Manager with the highest average purchased price Garth Davis

Highest purchased member for 2009 Tri Cao (Branch: Bettison)

YIC Purchaser with highest value of propertyLuke Dimech (Branch: YIC, Townsend)

Head Office Staff Member of the year Jacinta Littler

High Commendation Richard Hoffman

Shortly after, young investors came together again for the annual Young Investors Club conference function, which was this year held at the Q-deck at Q1. Over 70 young investors, Branch Managers, Support Members, Sponsors, and Researchers enjoyed the amazing view and each others networking company. At the annual PMC Luncheon members were entertained by comedian Paul Martell, who had the audience in stitches.

The pinnacle event however, was Saturday evening’s annual Gala Dinner and Awards function sponsored by House and Home Loans. This year’s Hollywood theme promised to lift past years’ Galas to new heights, and it certainly did not disappoint. Following a delicious three course dinner, plenty of dancing, the applause for this year’s award winners, the 450 dinner guests were surprised when the curtains opened to reveal a fun casino.

Paul, a member from the Central Coast, owns farming land in the eastern states and has investment properties in his home town. He was introduced to The Investors Club (TIC) in March 2009 when he approached a Club stand at the Ulysses Club Annual General Meeting (NSW). He was interested to hear more about TIC so he attended a workshop in Dubbo where he bought Kevin’s book Property. Prosper. Retire. and subsequently received more information on the TIC, including the Club’s DVD, through Irene.

Six months after this first meeting, Paul bought his first Club property. During his property inspection he was shown another Club development and lodged a second Expression of Interest (EOI). This property will be completed later this year.

Dan was introduced to the Club from the Club DVD, which Paul gave to him. “He has gone on to introduce other members through this DVD as he believes the Club has a great system and offers ongoing support and information not available anywhere else,“ commented Irene. In January Dan also joined the Club and a month later he joined Paul at the annual The Investors Club Conference, armed with his Finance Capacity Form (FCF).

Both gentleman decided to participate in the optional Conference Bus Runs, which saw members join researchers to see a range of showcase properties in South East

Commitment and resourcefulness are just two words that spring to mind when thinking of Support Member, Irene Moss. With her laptop at the ready and iPhone in hand, Irene turned a quiet drive back to Sydney after the annual conference, into a mobile Club office. She confirmed the good news on not one, but three, properties for her members including Paul and Dan, two new faces to The Investors Club.

Three In A Day!

The celebrations and social events did not end here, with a number of Branch Managers hosting smaller dinners and events, and many members opting to catch up with each other over meals throughout the day.

“The celebration, the speakers, the whole conference – it is about coming together, about like-minded people enjoying each others’ company – listening and learning from each other. And that’s exactly what we did,” said Kevin Young. “We now look forward to coming together again in Perth in 2011.”

Support Member

Irene Moss

Queensland. “On the Bus Run they found our Club Researcher, Daniel Mavin, and his developer very impressive,” said Irene, “and decided they would buy adjoining Club properties”

“The EOIs had to be submitted asap,” Irene said. “It was after 4pm on Monday afternoon and we were going back to the Gold Coast Convention Centre for drop off. Both wanted to use their own lenders, so needed letters from their respective lenders stating their borrowing capacity.” Irene returned to the hotel and immediately went to work.

In true mobile office style, as Irene travelled home to Sydney the following day she balanced her laptop on her legs and iPhone to her ear, making calls and downloading the documentation and emails required to confirm the EOIs that afternoon. Before she arrived in Sydney Irene was able to deliver the good news to both members.

Meanwhile Irene and husband Mike had also decided to purchase a property in the same development. “Fortunately we had spoken to Andrew Kemeny, Club Loans Mortgage Professional, at the conference and our EOI was ready, but we required a Finance Capacity Form (FCF),” commented Irene. “A quick phone few phone calls later we had all documentation in hand.”

All three EOIs were all approved, thanks to the friendly guidance of Irene Moss, and her commitment to her members.

Members names have been changed on request, to protect their privacy.

tic magazine | 5

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For Support Members, Tania and Jeff Agar, the 17th annual The Investors Club conference provided the perfect forum to recognise and celebrate the first investment property purchase of member, Andrew Jagot, which was also the 14,000th Club Property to settle. In 2008 Andrew Jagot first visited Tania and Jeff Agar in their home in Perth. Over a few hours and several cups of coffee, Tania and Jeff spoke about everything from their own experiences with property investing and The Investors Club, through to Andrew’s serious thoughts about relocating to New South Wales for family reasons.

“We kept in regular contact after that first meeting,” said Tania. About 12 months later, after Andrew was all settled in New South Wales, he filled in a Finance Capacity Form and like so many members before him he was shocked at how much he could borrow.

Tania organised Jeff a broker not too far from where he was residing, which made it easier for him. “I was surprised at the area that The Investors Club covered,” commented Andrew. “Having the ability to speak with a broker locally, face to face, was very reassuring.”

“Andrew does not have a computer and often he is out of range due to his work, so we relied on snail mail and mobile phone message bank to make contact and keep Andrew up to date on what was happening,” said Tania. Many phone calls and late nights of viewing profiles on the library and friends’ computers, Andrew then selected a unit in Kallangur, Queensland. Andrew’s property settled in late 2009.

In early 2010, Jeff and Tania received an email from The Investors Club congratulating them

on assisting Andrew to settlement of his Club property, and advising them that this was the 14,000th settled Club property. “We called Andrew and told him that The Investors Club would like to provide him with a gift to celebrate the milestone,” noted Jeff. Andrew was given free flights to the Gold Coast, accommodation at Conrad Jupiter Casino, tickets to the annual The Investors Club conference and two tickets to the Gala dinner. Andrew was shocked and elated and could not believe the call.

Andrew and his partner, Sabrina, and Tania and Jeff travelled to the conference together for a weekend of education and celebration (“and a little R&R” added Jeff). “What a weekend it was,” said Jeff. “We dined with all of our members on the Friday evening and bought a bottle of wine to toast Andrew on his success. Kevin Young also came to congratulate Andrew and say hello to

members at the restaurant.”

“Congratulations to Andrew, and thank you to Jeff and Tania Agar for their guidance in settling the 14,000th club property,” said Kevin Young.

Support Members

Tania and Jeff

Agar with 14,000th

purchaser Andrew Jagot

(middle).

14,000th Property Settles

6 | tic magazine

Premium properties provide higher returns but volumes have remained relatively low.

National Research Director of RP Data

Performance Of Premium Properties

Tim Lawless

For cashed up buyers, the premium housing market could be poised to deliver excellent returns in the future.

Property Pulse Highlights

Sydney’s Mosman leads the nation with the highest number of house sales priced at $1m or higher.

Sydney and Melbourne featured equally in the top 20 suburbs for $1m plus house sales in 2009

The Western Suburbs of Perth holds two of the top performing suburbs in the analysis.

For units, the Sydney suburb of Pyrmont led the charge with 95 unit sales priced at $1m or higher (that’s only 22 per cent of all Pyrmont sales in 2009, highlighting the wide variety of unit product in this inner city suburb).

The Premium housing market revealed that while premium housing values are up, sales volumes remain low in the million plus housing sector.

example, in 2007 as most of Australia’s property markets were recording strong gains, the most expensive 20 per cent of Australia’s suburbs increased in value by 19.8 per cent whilst the broader housing market recorded a much lower gain of 13.7 per cent.

As the GFC (Global Financial Crisis) kicked in and started to bite with shares and property being sold off to recoup further portfolio losses, values across this same set of premium suburbs fell by 7.4 per cent compared with a 2.5 per cent fall in all home values.

The premium housing market turned in 2009 and values rebounded by a stunning 12.1 per cent over the calendar year compared with an 11.3 per cent gain across the broader market.

What appears to be a greater level of volatility, over the last five years to February 2010 premium property values have clearly outperformed the broader market recording an average annual gain of 8.0 per cent year-on-year compared

with the middle of the market where values have increased 6.6 per cent and the bottom 20 per cent of the market where values have increased by 5.8 per cent over the same time.

The analysis confirmed that despite stronger capital gains recorded in 2009, sales volumes in the premium sector of the market haven’t returned to anywhere near the levels recorded back in 2007. The number of sales of million dollar plus

properties in 2009 were 25 per cent lower compared with 2007 (million plus house sales were down 21 per cent and million plus unit sales were down 40 per cent).

Currently the number of premium sales across parts of Australia remains well below average and

are mainly characterised by coastal markets outside

the capital cities where conditions remain soft. As

an example, the number of million dollar plus house

and unit sales on The Gold Coast, Sunshine Coast,

Tweed Coast and Byron Shire are about 55 per

cent lower than what they were in 2007.

The suburbs recording the largest number of

premium sales have not changed a great deal over

the last five years.

Sydney’s Mosman leads the nation with the highest

number of house sales priced at $1m or higher. In

2009 there were 271 house sales priced at or over

one million dollars equating to 91 per cent of all

house sales in the suburb. Over the last ten years

there have been 3,055 houses sold for at least one

million dollars which is the highest number of any

Australian suburb.

Sydney and Melbourne featured equally in the top

20 suburbs for $1m plus house sales in 2009,

with nine suburbs in each city making the list.

The remaining two suburbs were located in the

exclusive Western Suburbs of Perth.

Within the unit market the inner city suburbs of

Sydney and Melbourne have recorded the most

$1m plus sales over the 2009 calendar year, with

Sydney’s Pyrmont leading the charge at 95 unit

sales priced at $1m or higher (that’s only 22 per

cent of all Pyrmont sales in 2009, highlighting the

wide variety of unit product in this inner city suburb).

For those that can afford the price tag, premium

property markets have generally provided stronger

capital gains than the broader market place thanks

to the inherently tight supply of inner city, coastal

and character properties.

While the findings reveal plenty of opportunities for

top end property purchasers, we remind investors

to be cautious because in many instances,

premium property markets are also characterised

by relatively low rental yields, therefore, cash flow

can be an issue in these cases.

Media enquiries: Mitch Koper 0417 771 778 RP Data 1300 734 318

Property Pulse Highlights • Sydney’s Mosman leads the nation with the highest number of house sales priced at $1m or higher. • Sydney and Melbourne featured equally in the top 20 suburbs for $1m plus house sales in 2009 • The Western Suburbs of Perth holds two of the top performing suburbs in the analysis. • For units, the Sydney suburb of Pyrmont led the charge with 95 unit sales priced at $1m or higher (that’s only 22 per cent of all Pyrmont sales in 2009, highlighting the wide variety of unit product in this inner city suburb).

Mr Lawless’ analysis of the Premium housing market revealed

that while premium housing values are up, sales volumes

remain low in the million plus housing sector.

Premium properties provide higher returns but volumes have remained relatively low in

2009 In the rpdata.com weekly Property Pulse out today, national research director Tim Lawless said that

for cashed up buyers, the premium housing market could be poised to deliver excellent returns in

the future. Number of house sales at least $1m, National

Number of unit sales at least $1m, National

As a comparison, today’s results show that last year there were 19,417 house and unit sales priced at or over one million dollars which is 21 per cent

lower than what was recorded in 2007.

Commenting on the results, Mr Lawless said that Australia’s premium property markets have had a wild ride over the last three years. As an example, in 2007 as most of Australia’s property markets were recording strong gains, the most expensive 20 per cent of Australia’s suburbs increased in value by 19.8 per cent whilst the broader housing market recorded a much lower gain of 13.7 per cent.

“As the GFC (Global Financial Crisis) kicked in and started to bite with shares and property being sold off to recoup further portfolio losses, values across this same set of premium suburbs fell by 7.4 per cent compared with a 2.5 per cent fall in all home values,” Mr Lawless said. According to Mr Lawless’ findings, the premium housing market turned in 2009 and values rebounded by a stunning 12.1 per cent over the calendar year compared with an 11.3 per cent gain across the broader market.

He said what appears to be a greater level of volatility, over the last five years to February 2010 premium property values have clearly outperformed the broader market recording an average annual gain of 8.0 per cent year-on-year compared with the middle of the market where values have increased 6.6 per cent and the bottom 20 per cent of the market where values have increased by 5.8 per cent over the same time.

The analysis confirmed that despite stronger capital gains recorded in 2009, sales volumes in the premium sector of the market haven’t returned to anywhere near the levels recorded back in 2007. The number of sales of million dollar plus properties in 2009 were 25 per cent lower compared with 2007 (million plus house sales were down 21 per cent and million plus unit sales were down 40 per cent).

Currently the number of premium sales across parts of Australia remains well below average and are mainly characterised by coastal markets outside the capital cities where conditions remain soft. As an example, the number of million dollar plus house and unit sales on The Gold Coast, Sunshine Coast, Tweed Coast and Byron Shire are about 55 per cent lower than what they were in 2007.

The suburbs recording the largest number of premium sales haven't changed a great deal over the last five years.

Sydney’s Mosman leads the nation with the highest number of house sales priced at $1m or higher. In 2009 there were 271 house sales priced at or over one million dollars equating to 91 per cent of all house sales in the suburb. Over the last ten years there have been 3,055 houses sold for at least one million dollars which is the highest number of any Australian suburb.

Sydney and Melbourne featured equally in the top 20 suburbs for $1m plus house sales in 2009, with nine suburbs in each city making the list. The remaining two suburbs were located in the exclusive Western Suburbs of Perth.

Within the unit market the inner city suburbs of Sydney and Melbourne have recorded the most $1m plus sales over the 2009 calendar year, with Sydney’s Pyrmont leading the charge at 95 unit sales priced at $1m or higher (that’s only 22 per cent of all Pyrmont sales in 2009, highlighting the wide variety of unit product in this inner city suburb).

“For those that can afford the price tag, premium property markets have generally provided stronger capital gains than the broader market place thanks to the inherently tight supply of inner city, coastal and character properties,” Mr Lawless said.

While his findings reveal plenty of opportunities for top end property purchasers, he reminds investors should be cautious because in many instances, premium property markets are also characterised by relatively low rental yields, therefore, cash flow can be an issue in these cases.

Media enquiries: Mitch Koper 0417 771 778 RP Data 1300 734 318

Property Pulse Highlights • Sydney’s Mosman leads the nation with the highest number of house sales priced at $1m or higher. • Sydney and Melbourne featured equally in the top 20 suburbs for $1m plus house sales in 2009 • The Western Suburbs of Perth holds two of the top performing suburbs in the analysis. • For units, the Sydney suburb of Pyrmont led the charge with 95 unit sales priced at $1m or higher (that’s only 22 per cent of all Pyrmont sales in 2009, highlighting the wide variety of unit product in this inner city suburb).

Mr Lawless’ analysis of the Premium housing market revealed

that while premium housing values are up, sales volumes

remain low in the million plus housing sector.

Premium properties provide higher returns but volumes have remained relatively low in

2009 In the rpdata.com weekly Property Pulse out today, national research director Tim Lawless said that

for cashed up buyers, the premium housing market could be poised to deliver excellent returns in

the future. Number of house sales at least $1m, National

Number of unit sales at least $1m, National

As a comparison, today’s results show that last year there were 19,417 house and unit sales priced at or over one million dollars which is 21 per cent

lower than what was recorded in 2007.

Commenting on the results, Mr Lawless said that Australia’s premium property markets have had a wild ride over the last three years. As an example, in 2007 as most of Australia’s property markets were recording strong gains, the most expensive 20 per cent of Australia’s suburbs increased in value by 19.8 per cent whilst the broader housing market recorded a much lower gain of 13.7 per cent.

“As the GFC (Global Financial Crisis) kicked in and started to bite with shares and property being sold off to recoup further portfolio losses, values across this same set of premium suburbs fell by 7.4 per cent compared with a 2.5 per cent fall in all home values,” Mr Lawless said. According to Mr Lawless’ findings, the premium housing market turned in 2009 and values rebounded by a stunning 12.1 per cent over the calendar year compared with an 11.3 per cent gain across the broader market.

He said what appears to be a greater level of volatility, over the last five years to February 2010 premium property values have clearly outperformed the broader market recording an average annual gain of 8.0 per cent year-on-year compared with the middle of the market where values have increased 6.6 per cent and the bottom 20 per cent of the market where values have increased by 5.8 per cent over the same time.

The analysis confirmed that despite stronger capital gains recorded in 2009, sales volumes in the premium sector of the market haven’t returned to anywhere near the levels recorded back in 2007. The number of sales of million dollar plus properties in 2009 were 25 per cent lower compared with 2007 (million plus house sales were down 21 per cent and million plus unit sales were down 40 per cent).

Currently the number of premium sales across parts of Australia remains well below average and are mainly characterised by coastal markets outside the capital cities where conditions remain soft. As an example, the number of million dollar plus house and unit sales on The Gold Coast, Sunshine Coast, Tweed Coast and Byron Shire are about 55 per cent lower than what they were in 2007.

The suburbs recording the largest number of premium sales haven't changed a great deal over the last five years.

Sydney’s Mosman leads the nation with the highest number of house sales priced at $1m or higher. In 2009 there were 271 house sales priced at or over one million dollars equating to 91 per cent of all house sales in the suburb. Over the last ten years there have been 3,055 houses sold for at least one million dollars which is the highest number of any Australian suburb.

Sydney and Melbourne featured equally in the top 20 suburbs for $1m plus house sales in 2009, with nine suburbs in each city making the list. The remaining two suburbs were located in the exclusive Western Suburbs of Perth.

Within the unit market the inner city suburbs of Sydney and Melbourne have recorded the most $1m plus sales over the 2009 calendar year, with Sydney’s Pyrmont leading the charge at 95 unit sales priced at $1m or higher (that’s only 22 per cent of all Pyrmont sales in 2009, highlighting the wide variety of unit product in this inner city suburb).

“For those that can afford the price tag, premium property markets have generally provided stronger capital gains than the broader market place thanks to the inherently tight supply of inner city, coastal and character properties,” Mr Lawless said.

While his findings reveal plenty of opportunities for top end property purchasers, he reminds investors should be cautious because in many instances, premium property markets are also characterised by relatively low rental yields, therefore, cash flow can be an issue in these cases.

As a comparison, today’s results show that last

year there were 19,417 house and unit sales

priced at or over one million dollars which is 21

per cent lower than what was recorded in 2007.

Australia’s premium property markets have

had a wild ride over the last three years. As an

tic magazine | 7

Specialising in structuring Loan Proposals to meet your individual needs and following the Club Philosophy.

Servicing the SE Queensland area from the Tweed to Bundaberg and West to Toowoomba.

Home or office visits to suit your individual needs.

All transactions personally handled by Kevin Pardella who has 40 years experience in the Banking and Finance Industry.Finance Industry.

Let me put my experience to work for you.

Kevin J PardellaGeneral Manager

CALL OR EMAIL ME TODAY WITH YOUR ENQUIRY. PROMPT RESPONSE ASSURED.

SERVING CLUB MEMBERS FOR THE PAST 5 YEARS.

T. 07 5448 3419F. 07 5448 2728M. 0414 642 385E. [email protected]. PO Box 840 Coolum Beach Qld 4573 www.zigzagfinance.com.au

How much tax are you paying a week? Over a year, how much is that costing you? Soon it will be too late to maximise your tax benefits for this financial year. Here are some tips to reduce your tax through property:

1. Know what your options are. The most important thing to remember around tax time is to know exactly what your options are. Your Support Member is on hand to walk you through the Club’s unique Cash-Flow Analysis Program to show exactly where you could be reaping tax benefits.

2. Avoid Older Properties. Buying an old property for a “better” return is often a trap. Consider the following when comparing an old property to a new one. What hidden costs are going to surprise you? Where does the additional money come from to keep up with the maintenance?

For example, if replacing carpet or renovating a kitchen, you will have to pay money out of your pocket. You will receive approximately one tenth of this amount as a tax credit.

3. Look for bonus rent. Use the TIC depreciation schedule to determine items that are costed into the purchase price by the builder but are tax deductions for you. Many ‘good buys’ are rejected by The Investors Club because they do not have sufficient depreciation items.

4. The greatest tax deductions will be realised in the second year. You take these large amounts off your income hence lowering your tax.

5. Do not hold off on completing your Income Tax Withholding Variation. Do your Income Tax Withholding Variation application while waiting for your depreciation schedule, as your form is simply an estimate.

6. Ensure you buy in the right percentage of ownership. As a family group purchasing property as ‘tenants in common’, do not simply put the higher income earner down as the greatest portion. This might bring that person down to a bracket below the partner, exposing them to unnecessary taxation.

Founder

Top Ten Tax Tips For Investors

Kevin Young

Join us and position your growth.

7. Avoid principal and interest repayments. ‘Interest only’ is fully tax deductible whereas a ‘principal and interest loan’ repayment will reduce your cash flow by approximately 15%. This is because the principal is not tax deductible.

8. Consider renting for tax benefit. If you own less than half of your home then move out and rent it, while you rent another house. Your take home pay is increased because the interest only mortgage, repairs, maintenance, rates, insurances are all tax deductible.

9. There is no capital gains tax if the property is willed to children or grandchildren, as long as it is never sold. Capital gains comes into effect from the time you purchase, however, if you advise your beneficiaries to never sell then they will simply borrow when they need cash as borrowed money is not taxable.

10. House vs Unit. Don’t buy a house until you have your tax to zero and then only if you would like to have a house in your portfolio. Many people find the concept of depreciation and tax credits a bit confusing, which is one of the reasons The Investors Club began and has continued to grow. Speak to your Support Member today about assessing your cash flow and potential tax savings.

8 | tic magazine

Property Millionaires Club Members

Sue and Ern Berry

Albert Einstein is often quoted as saying that the “The most powerful force in the universe is compound interest”. Whether or not Einstein was responsible for this statement, there can be no doubt that the power of compound interest is one of the most motivating forces behind the thinking of active investors.

Compound Interest

The Australian Government provides a Compound Interest Toolkit on the following website: http://www.fido.gov.au/fido/fido.nsf/byheadline/Compound+interest+calculator?openDocument.

Have a look at it and, above all, let your kids play with it - it’s a lot of fun provided you use it for purposes beyond the superannuation applications it was designed for. Other websites such as http://www.college-cram.com/study/finance/presentations/81 can also provide useful experiences through such tools as the “Bottomless Worksheet”.

Einstein is also credited with having discovered the Rule of 72 which we explained in an earlier article (Issue 134, Sept/Oct 2009).

Serious property investors apply the principles of compound interest to capital growth. For example, if the value of a property goes up by 10%, the new value creates a higher benchmark from which further growth is measured. Should the value fall by 10%, some time is lost in the value appreciation process, but over a lengthy time-span the compounding effect of the growth process will overcome such misfortunes. Such falls in value are unlikely to occur at all if (1) the property is in a tightly-held suburb or complex and (2) the location is close to attractions such as CBD, entertainment, education, transport, etc.

Our own experience as property owners for the last 30+ years has not involved any significant devaluations at all. When the Howard regime reduced public expenditure back in 1996, many Canberra suburbs suffered dramatically from falling values. Inner suburbs, however, remained stable because of their proximity to business and employment centres.

Critics of the property sector often accuse it of not “producing” anything after the houses or apartments are built. They often ask “How can the price of property keep increasing forever when it doesn’t make things like other commodities do?” The answer to this is threefold:

1. Desirability of location

2. Demand for that location

3. Inflation over time

The critics will win their point when citing the examples of one-industry towns and outlying

‘misery’ suburbs. What they fail to notice, however, is the capacity of desirable locations to produce amenity. Amenity is not usually produced by a property itself (hence the critics’ confusion), but by the accumulation of attractions around the location of that property. This is why it helps to remember that “buildings depreciate, but land appreciates”.

The process of urban renewal makes living spaces more valuable because of their attractiveness to increasing numbers of people. If you observe the development of great cities like Paris, the intrinsic value of “amenity” becomes crystal clear - your tiny pied-à-terre in town may cost as much as a sizeable suburban villa, but it provides you with access to sociable breakfasts accompanied by a beer and coffee in the downstairs cafe, exercise in the form of a short walk to work or the Metro, and proximity to charming entertainments and boutique shopping experiences. Such a lifestyle option can be very beguiling to young people (renters), too interested in socialising to waste time cooking. It is equally beguiling to the empty-nester who is too busy (or unable) to clean and cook.

In cities like Moscow and St Petersburg the reverse phenomenon of moving into larger apartments is happening. This arises from decades of deprivation followed by access to higher living standards - communism has given way to consumerism. The abiding principle of amenity still applies, however.

In their personal relationships, young people often demonstrate a fear of commitment which is paralysing. Earlier generations simply embraced their fears and lived with the consequences. We often observe young people equating their lack of interest in buying property to their lack of interest in committing to relationships. They often say “I’ll get around to it if I settle down with a partner”. Such uncertainty is understandable, but becomes a questionable opinion when it translates into declarations such as “the missus is having a

baby and we can’t afford the extra financial commitment”. When such opinions become attitudes, they become very costly in terms of lost opportunities for growth. The question to ask a Support Member is “we are having a baby - how soon do you think we can afford an investment property?”

In previous articles, we have tried to show how the fear of commitment can be embraced and used to advantage. If we understand the process of holding property ‘for life’ and observe the golden rule “never, never sell”, the negative messages of doomsayers and dreamslayers simply provide opportunities to reaffirm the merits of investing in residential property. Once members take the plunge and decide to start investing, the support of The Investors Club enables them to choose properties which will be of benefit to them as investors and attractive to their tenants. The compounding rewards over time will reinforce those early commitments, providing further opportunities for portfolio growth and many happy celebrations.

Ern’s Tip

tic magazine | 9

To reserve your position on these tours please contact:

Sharyn Bojczenko Travel consultant for the PMC Travelscene P: 61 3 9850 1046 M: 61 4 0755 1567 E: [email protected]

25 to 30 June 2010 Cruise from South Hampton to New York

3 to 17 July 2010 Scandinavian Tour

17 to 29 July 2010St Petersberg to Moscow

September 2010Cruise from Broome to Darwin

2 to 9 October 2010 International Workshop – Vanuatu

2 November 2010 Melbourne Cup

Post TIC Conference 2011 – Perth

1 – 20 February 2011 Antarctica Expedition

Friday 14 to Sunday 16 May

PMC Victor Harbor Weekend Adventure – Places Still Available

Looking Ahead 2011 – Cruise through Russia2011 – PMC International Workshop2012 – Cruise to Alaska2015 - Gallipoli

Enjoy a weekend at the McCracken Country Club, Victor Harbor South Australia, with guest speakers Kevin Young, Rael Bricker and Sharyn Bojczenko. Play a round of golf, see the penguins at dusk, and spend Sunday at Goolwa seeing the historic Riverboat Wharf and riding the cockle train. For more information please contact Roy Bettison on 0419 031 981 or [email protected]

All Property Millionaires Club members are invited to join fellow members explore the world through their property wealth.

New LeadershipWe are delighted to announce John and Wendy Priestly as Presidents of the Property Millionaires Club. The Priestlys have managed a successful for branch for many years, guiding members on their journeys to financial freedom and mentoring up and coming Support Members like Chris and Leonie Ford who will take on their new role as Branch Managers for the Priestly Branch. "During this time John and Wendy have played an important role in also developing the PMC to provide an avenue for these experienced investors to come together and continue to advance," said Jo-Anne Wilson, Executive Director of The Investors Club. "It is only fitting that these two dedicated leaders now continue to grow the Property Millionaires Club and work towards even greater achievement, reward and recognition of these valued members."

10 | tic magazine

To register for any of these events or to find out about more events in your local area follow the link below to our members’ events website which is continually updated: www.tic.com.au/events

Introductory Workshop:

The Investors Club has been helping members

to financial freedom for 17 years. This workshop

is designed to explain the TIC plan and explore

common questions, tips and traps. Come and

hear how Club members are creating their own

financial freedom. Learn how to invest all around

the country. Successful Club investors will show

you how.

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National Events

Next Steps Workshop:

Showing you how to get started. This workshop

is designed as a follow on from the introductory

workshop, after you have completed your

Financial Capacity Form. Learn what to do next:

How to choose the right property; how the Club’s

tools and services help you; how to stop work

sooner with an independent income.

FIDO:

Financial Independence Date Organiser.

Showing you when you can retire, financially

independent using your property portfolio. This

is an interactive workshop where exercises will

be undertaken to determine a financial freedom/

retirement date for you. Come along with your

current portfolio figures for real live data analysis.

Date & Time Type and Topic Venue Contact Phone1-May2.30pm

Introductory Workshop The Burns ClubKett St, Kambah

Richard and Kym [email protected]

0412 487 539

6-May7.30pm

Next Steps Workshop Melrose Room, Yamba Sports ClubIrving St, Phillip (Woden)

Graham [email protected]

0427 273 823

18-May7.30pm

Introductory Workshop Gungahlin Lakes ClubCnr Gundaroo Rd and Gungahlin Dr, Nicholls

Bob [email protected]

0438 303 460

22 May 12noon to 4pm

Advanced Seminar. Retire in 8 Years. Guest Speakers: Ralph Cartwright on ‘How to set up your children’s future’; Jill Clifford on the Benefits of the Property Millionaires Club; and Daniel Mavin - Club Researcher, Club Loans Mortgage Professional, Goal Setting, Legal advice on Wills and Power of Attorney. $40 per person. Bookings essential.

Southern Cross Club Woden Register online; www.tic.com.au/GetInvolved/SpecialEvents

27-May7.30pm

Wealth Creation: Hear how two average wage earners became property millionaires

Jamison Southern Cross ClubCnr Catchpole and Bowman Sts, Macquarie

Peter [email protected]

0422 596 588

10-Jun7.30pm

Introductory Workshop Melrose Room, Yamba Sports ClubIrving St, Phillip (Woden)


0427 273 823

19-Jun2.30pm

Next Steps Workshop The Burns ClubKett St, Kambah

Richard and Kym [email protected]

0412 487 539

24-Jun7.00pm

Introductory Workshop Community Room, Belconnen Library12 Chandler St, Belconnen

Eva [email protected]

0439 947 752

29-Jun7.30pm

Introductory Workshop. Jamison Southern Cross ClubCnr Catchpole and Bowman Sts, Macquarie

Mike [email protected]

0409 718 144

6-Jul7.30pm

Introductory Workshop Gungahlin Lakes ClubCnr Gundaroo Rd and Gungahlin Dr, Nicholls

Bob [email protected]

0438 303 460

22-Jul7.00pm

Introductory Workshop Community Room, Belconnen Library12 Chandler St, Belconnen

Eva [email protected]

0439 947 752

22-Jul7.30pm

Next Steps Workshop Melrose Room, Yamba Sports ClubIrving St, Phillip (Woden)

John [email protected]

0405 534 736

2-May2.00pm

Nuts and Bolts Workshop Auditorium Central Charlestown Leagues ClubBula St, Charlestown


0411 104817

3-May7.30pm

Introductory Workshop Penrith RSL Club8 Tindale St, Penrith

Ralph and Jenny [email protected]

0416 030 872

4-May7.30pm

Introductory Workshop. Guest Speaker: Club Loans Mortgage Professional

Engadine RSL ClubCaldara Ave, Engadine

Russell [email protected]

0416 108 884

5-May6.45pm


The Nag’s Head Hotel162 St Johns Rd, Glebe

Trevor and Heather [email protected]

02 9744 2320 / 0420 859 440

6-May7.30pm

Property Selection: What sort of property suits your investment outlook

City Diggers Club - Level 1, Board Room82 Church St (Cnr Burelli St), Wollongong

Max [email protected]

02 9528 7147 / 0411 025 099

8-May2.00pm

Next Steps Workshop and Tips for Landlords Club Macquarie458 Lake Rd, Argenton

Nancy [email protected]

0416 265 767

11-May6.45pm

Introductory Workshop Club BurwoodCnr Burwood Rd and George St, Burwood

Heather and Trevor Praegertrevor.praeger

02 9744 2320 / 0420 958 440

12-May7.30pm


Stapleton Avenue Community Centre3A Stapleton Ave, Sutherland

Carolyn [email protected]

02 9548 2432 / 0433 125 422

12-May7.30pm

Introductory Workshop. Guest Speakers: Peter Oke and Deb Walton

Ryde Eastwood Leagues Club117 Ryedale Rd, West Ryde

Lyn [email protected]

0415 995 498

13-May7.30pm

Introductory Workshop. Guest Speaker: Wayne Dickerson, Club Loans Mortgage Professional

Gosford Golf ClubRacecourse Rd, Gosford


0416 265 767

13-May7.30pm

Tax Time Workshop. Bookings Essential Richmond Club6 East Market St, Richmond

Deb [email protected]

02 9626 6531

15-May2.00pm

Introductory Workshop Wagga RSL ClubDobbs St, Wagga Wagga


0427 273 823

15-May3.00pm

Trivia Night to raise funds for Variety - the Children’s Charity. Cost $10 per person. TIC Presentation before commencement of play.

The Mean Fiddler HotelCnr Commercial and Windsor RoadsRouse Hill

Ken [email protected]

02 8883 0382

17-May7.30pm

Introductory Workshop Church In The Market Place,400 Oxford MallBondi Junction

David [email protected]

02 9130 6255 / 0403 166 265

19-May7.15pm

Finance Capacity Workshop. Guest Speaker: Joe Linco, Club Loans Mortgage Professional on ‘Uncap Your Borrowing Capacity’ (Part 4 of a 4 Part series). Bookings essential.

Castle Grand Community CentreCastle St, Castle Hill


02 9626 6531

20-May7.30pm

Introductory Workshop Burnside Gardens Community Centre7 Blackwood Place, Oatlands (North Parramatta)

Alexandre [email protected]

0415 543 785

20-May7.15pm


Wattle Grove Neighbourhood CentreVillage Way, Wattle Grove

Irene and Rob [email protected]

0419 484 073 / 0425 210 416 / 02 9825 4201

tic magazine | 11


Introductory Workshop Camden RSLCawdor Rd, Camden

Chris [email protected]

043 117 3993

23-May2.00pm

Introductory Workshop Mountainview Room Illawarra Yacht ClubNorthcliffe Drv, Warrawong

Barry Hunt [email protected]

0409 048 702

24-May7.00pm

Introductory Workshop Bomaderry Bowling ClubMeroo Rd, Bomaderry

Barry Hunt [email protected]

0409 048 702

25-May7.30pm

Introductory Workshop Club WilloughbyCnr Crabbes Ave and Penshurst St, Willoughby

Nicholas [email protected]

02 9410 1697 / 0412 133 872

26-May7.30pm

Introductory Workshop Pennant Hills Bowling Club52 Yarrara Rd, Pennant Hills

David and Gwen [email protected]

0418 113 352

26-May7.30pm


Windsor RSLCnr Argyle and Mileham St, Windsor

Tony and Anna [email protected]

0419 690 727

27-May7.00pm

Introductory Workshop Theatrette21 Manning River Drv, North Taree

Gene [email protected]

0429 009 957

29-May11.00pm

Advanced Workshop with Kevin Young, Barry Seabrook, Wendy Priestly, Researchers Tim Price and Jenni Carroll, Club Loans Mortgage Professionals Anita Marshall, Scott Pfeiffer and Laurayne Walkerden, and Wayne Pratt from TIC Super. Meet Support Members Ian Dancaster (FIDO) and Melinda Petrie (YIC). A fantastic day with heaps of information. Cost and registration on request.

Mingara Recreation ClubWyong Rd, Tumbi Umbi


0416 265 767

1-Jun7.00pm

Introductory Workshop St George Community CentrePremier St, Kogarah


02 9585 1826 / 0401 034 729

1-Jun7.30pm

Nuts and Bolts Workshop with a focus on Tax Time Function Room 3, Kahibah Bowling ClubCnr Kahibah Road and Kenibea Sts, Kahibah


0411 104817

7-Jun7.30pm

Introductory Workshop Penrith RSL Club8 Tindale St, Penrith

Ralph and Jenny [email protected]

0416 030 872

7-Jun7.30pm

Next Steps Workshop. Guest Speaker: Laurayne Walkerden, Club Loans Mortgage Professional (Part 4 of 4)

Dee Why RSL Club932 Pittwater Rd, Dee Why


0416 265 767

9-Jun 7.30pm

Meeting. Guest Speakers: Wayne Pratt of TIC Super and Scott Pfeiffer, Club Loans Mortgage Professional on Finance Structure

Matilda Motor Inn - Apartment231 Darling St, Dubbo


0416 265 767

9-Jun7.30pm

Introductory Workshop. Guest Speaker: andrew Rowlatt, Member and Accountant on ‘Good Record Keeping’

Stapleton Avenue Community Centre3A Stapleton Ave, Sutherland

Ralph [email protected]

0416 030 872

9-Jun7.30pm

Special Interest Workshop. Guest Speaker: Joe Linco, Club Loans Mortgage Professional (Part 3 of a 4 part series)


Steve and Dale [email protected]

0438 742 636

10-Jun7.30pm

Meeting. Guest Speaker: Wayne Pratt of TIC Super Singleton Heights RSL ClubDorsman Drv, Singleton


0416 265 767

10-Jun7.30pm

Women in Property including live Financial Independent Date Organiser. Bookings Essential.

Richmond Club6 East Market St, Richmond


02 9626 6531

15-Jun7.15pm

Women in Property including live Financial Independent Date Organiser. Bookings Essential.



02 9626 6531

16-Jun7.30pm

Special Interest Workshop. Hear from Property Millionaire Club Members including Q and A

Pennant Hills Bowling Club52 Yarrara Rd, Pennant Hills

Bill [email protected]

0412 244 765

17-Jun7.15pm

End of Financial Year Workshop Wattle Grove Neighbourhood CentreVillage Way, Wattle Grove

andrew and Jenny [email protected]

0418218776 / 0414916550

17-Jun7.30pm

Introductory Workshop Burnside Gardens Community Centre7 Blackwood Place, Oatlands (North Parramatta)Oatlands


0415 543 785

19-Jun10.30pm

Introductory Workshop Contact Ron and Sue For Venue Details.North Nowra

Ron and Sue [email protected]

02 4423 3247 / 0412 324 176

23-Jun7.30pm

Special Topic: What can I claim for my properties? Windsor RSLCnr Argyle and Mileham St, Windsor

Michael and Irene [email protected]

02 4739 1251 / 0405 332 464

28-Jun7.00pm

Introductory Workshop Boardroom, Raymond Terrace Bowling ClubJacaranda, Raymond Terrace

Jenny [email protected]

0409 423 020 / 02 4942 3009

28-Jun6.00pm

Next Steps Workshop. Guest Speaker: Jacqui Williams, Club Loans Mortgage Professional

Singleton Heights RSL ClubDorsman Drv, Singleton


0416 265 767

7-Jul6.45pm


The Nag’s Head Hotel162 St Johns Rd, Glebe

Trevor and Heather [email protected]

02 9744 2320 / 0420 859 440

8-Jul7.30pm

Finance Capacity Workshop Richmond Club6 East Market St, Richmond

Deb Morgan 02 9626 6531

14-Jul7.30pm

Introductory Workshop Stapleton Avenue Community Centre3A Stapleton Ave, Sutherland


02 9548 2432 / 0433 125 422

14-Jul7.30pm

Introductory Workshop. Guest Speaker: Joe Linco, Club Mortgage Professional (Part 4 of a 4 part series)


Lyn [email protected]

0415 995 498

15-Jul7.30pm

Introductory Workshop Wagga RSL ClubDobbs St, Wagga Wagga


0427 273 823

15-Jul7.15pm


Wattle Grove Neighbourhood CentreVillage Way, Wattle Grove

Irene and Rob [email protected]

0419 484 073 / 0425 210 416

15-Jul7.30pm

Introductory Workshop. Guest Speaker: Scott Pfeiffer, Club Loans Mortgage Professional

Gosford Golf ClubRacecourse Rd, Gosford


0416 265 767

19-Jul7.30pm

Introductory Workshop Church In The Market Place,400 Oxford MallBondi Junction


02 9130 6255 / 0403 166 265

21-Jul7.15pm

Mini Meeting: 20 seats only! Mini Stocklist, Mini Cupcakes, Mini tour of the website and hear what your Support M ember does to help find the right property for you. Bookings Essential.


Robyn [email protected]

0418 447 815

22-Jul7.30pm

Introductory Workshop Burnside Gardens Community Centre7 Blackwood Place,Oatlands


0415 543 785

27-Jul7.30pm

Introductory Workshop Breakers Country Club64 Dover Rd, Wamberal


0447 677 150 / 02 43677 150

28-Jul7.30pm

Introductory Workshop Pennant Hills Bowling Club52 Yarrara Rd, Pennant Hills

David and Gwen [email protected]

0418 113 352

28-Jul7.30pm

Workshop. Guest Speakers: Ian McCulloch, Club Loans Mortgage Professional and Tony Swords.

Windsor RSLCnr Argyle and Mileham St, Windsor

Jenny and andrew [email protected]

0416 218 776

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Introductory Workshop TIC Office Darwin32/21 Cavanagh St, Darwin City

NT Branch [email protected]

08 8981 0164

19-May7.00pm

Introductory Workshop Palmerston LibraryThe Boulevard, Palmerston


0403 995 716

27-May7.00pm

Introductory Workshop Jane Aagaard’s Electoral OfficeShop 5 Pavonia Place,Nightcliff

Karen [email protected]

0438 660 653

2-Jun7.00pm

Introductory Workshop TIC Darwin Office32/21 Cavanagh St, Darwin City


08 8981 0164

16-Jun7.00pm



0403 995 716

24-Jun7.00pm

Q and A Meeting: Where should I buy? What if I cannot find tenants? What if interest rates go up? What if property values go down?

Jane Aagaard’s Electoral OfficeShop 5 Pavonia Place,Nightcliff


0438 660 653

1-Jul7.00pm

Why Property? How To Prosper and When To Retire. Catalinas Function Room, The Arnhem Club1 Franklyn St, Nhulunbuy, Gove


08 8981 0164

4-Jul5.30pm

Special Event: Monsieur Camembert performance and social get together with likeminded people. ‘UpTempo’ area seating, beverages, picnic food to enjoy. $80 per person, payable in advance. Bookings Essential.

Skycity Casino,Gilruth, Darwin

Natalie [email protected]

0450 001 621

7-Jul7.00pm

Introductory Workshop TIC Darwin Office32/21 Cavanagh St, Darwin City


08 8981 0164

13-Jul7.00pm

Introductory Workshop Diplomat MotelCnr Gregory Tce and Hartley St, Alice Springs


08 8981 0164

16-Jul8.00am

Trade stand at the Katherine Show. Introduce a friend as a new member and go in the draw for a prize. Will have current property profiles available.

Norforce Pavillion, Katherine Royal ShowVictoria Hwy, Katherine


0450 001 621

19-Jul7.30pm

Introductory Workshop. Guest Speaker Barry Seabrook Katherine River LodgeGiles St, Katherine


0450 001 621

21-Jul7.00pm



0403 995 716

22-Jul7.00pm

Introductory Workshop Jane Aagaard’s Electoral OfficeShop 5 Pavonia Place,Nightcliff


0403 995 716

4-May7.00pm

Introductory Workshop Upstairs Meeting Room At Kawana Community Centre, Nanyima St, Buddina

Ray and Maureen [email protected]

0402 236 837

5-May6.45pm

Introductory ‘Hands On’ Workshop: † Tabitha’s Place, Portside Wharf39 Hercules St, Hamilton

Greg [email protected]

0447 891 158

5-May7.00pm

Introductory Workshop Blue Mountains Hotel Toowoomba264 New England Hway, HarlaxtonToowoomba


0402 236 837

10-May7.00pm

Special Presentation and Dinner: Tax Preparation and Depreciation. Guest Speakers: Kevin Young, Bill Tomkins of Deppro and Paul O’Connor, Accountant. Bookings Essential - $15 per person including fixed menu meal.

Brothers Leagues Club99-105 anderson St, Manunda

Derek [email protected]

0429 834 770 / 07 4039 0921

19-May6.45pm

Introductory ‘Hands On’ Workshop. † Tabitha’s Place, Portside Wharf39 Hercules St, Hamilton


0447 891 158

2-Jun6.45pm



0447 891 158

8-Jun7.00pm

Why Property: Come along and meet other members who are using the Club’s services to develop strong property portfolios.

Kawana Community Meeting RoomNanyima St, Buddina


0402 236 837

16-Jun6.45pm



0447 891 158

30-Jun6.45pm



0447 891 158

11-Jul12.30pm

Murder Mystery / Xmas in July: Fun social event with overnight accommodation. Travel to Malanda, stopping for a social afternoon tea at ‘Skyberry’ coffee plantation. Starting from $90 per person. 22 seats available, bookings essential.

The Travellers Rest, Millaa Millaa Rd, Malanda Derek [email protected]

0429 834 770 / 07 4039 0921

12-Jul7.00pm

Introductory Workshop featuring members’ stories. Brothers Leagues Club99-105 anderson St, Manunda

Derek [email protected]

0429 834 770 / 07 4039 0921

26-Jul7.30pm

Introductory Workshop CWA Hall MouraCnr Gillespie and Marshall St, Moura

Ian [email protected]

0427 974 180

27-Jul7.30pm

Introductory Workshop Biloela Anzac Memorial Club94 Callide St, Biloela


0427 974 180

28-Jul7.30pm

Introductory Workshop Rocky Glen Hotel/MotelCnr Far St and Dawson HwyNorth Mackay


0427 974 180

29-Jul7.30pm

Introductory Workshop Gilbert Room, CQ Bid Leagues Club1 Lions Creek Rd, Rockhampton


0427 974 180

5-May7.30pm

Introductory Workshop. Guest Speaker Pamela Peters, Club Loans Mortgage Professional.

The Glenelg Football ClubCorner Diagonal Rd and Brighton Rd, Glenelg

Barry [email protected]

0411 414887

10-May7.30pm

Introductory Workshop Veterans and Community CentrePort Rd, Kadina

Kevin [email protected]

0412 245 767

11-May7.30pm


The Investors Club Office816 Port Rd, Woodville South

Phil [email protected]

08 8270 6647 / 0413 939 288

12-May7.30pm

Introductory Workshop Flagstaff Hill Golf ClubMemford Way, Flagstaff Hill

Roy [email protected]

0419 031 981

19-May7.30pm

Introductory Workshop Lanzerac Country EstateMenge Rd, Tanunda


0412 245 767

17-May7.00pm

An evening with Kevin Young. $5 donation to Club Cares. Adelaide West Uniting Church312 Sir Donald Bradman Drv, Brooklyn Park


20-May7.30pm

Introductory Workshop Kafe Laguna94 Essington Lewis Ave, Whyalla

Lesley [email protected]

0428 830 942

†Take part in a hands-on demonstration including understanding the importance of geographical diversification, and harvesting your investments for financial wealth. Small groups so bookings essential.

tic magazine | 13

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Introductory Workshop. Guest Speaker: Michael Wegener, Club Loans Mortgage Professional

Arkaba Hotel150 Glen Osmond Rd, Fullarton


0411 414887

24-May7.30pm

Introductory Workshop Green Room Port LincolnBehind Nautilus Theatre, Port Lincoln


0428 830 942

25-May7.30pm


Mt Barker - Hahndorf Golf ClubBald Hills Rd, Mt Barker


08 8270 6647 / 0413 939 288

27-May7.30pm

Introductory Workshop Mawson Lakes CentreMawson Lakes Boulevard, Mawson Lakes


0419 031 981

28-May6.30pm

Dinner Meeting - Guest Speaker Jeff Hart from Club Financial Services in Adelaide.

Navigators2 Normandy Plc, Port Lincoln


0428 830 942

31-May7.00pm

Introductory Workshop Victoria Hotel Conference Room16 Albyn Terrace, Strathalbyn


0438 660 653

2-Jun7.30pm


Glenelg Football ClubCorner Diagonal Rd and Brighton Rd, Glenelg


08 8270 6647 / 0413 939 288

8-Jun7.30pm

Introductory Workshop TIC Bettison Branch Office816 Port Rd, Woodville South


0419 031 981

9-Jun7.30pm

Guest Speaker: Michael Wegener, Club Loans Mortgage Professional

Flagstaff Hill Golf ClubMemford Way, Flagstaff Hill


0411 414887

16-Jun7.30pm

Introductory Workshop Green Room, Port LincolnBehind Nautilus Theatre, Port Lincoln


0428 830 942

17-Jun7.30pm


Arkaba Hotel150 Glen Osmond Rd (Cnr Fullarton Rd), Fullarton


08 8270 6647 / 0413 939 288

22-Jun7.30pm

Introductory Workshop Mount Barker Golf ClubBald Hills Rd, Mount Barker


0419 031 981

22-Jun7.00pm


Wallaroo Sailing ClubHeritage Drv, Wallaroo

Peter [email protected]

08 8298 1122 / 0408 008 407

24-Jun12noon


Mawson Centre, Uni SA Mawson Lakes CampusMawson Lakes Boulevard, Mawson Lakes


0412 245 767

28-Jun7.30pm

Next Steps Workshop Port Lincoln34 Bonanza Rd, Port Lincoln


0428 830 942

2-Jul7.30pm

Introductory Workshop The Old School BuildingTorrens St, Victor Harbor


08 8552 4500

7-Jul7.30pm

Introductory Workshop Glenelg Football ClubCorner Diagonal Road and Brighton Rd, Glenelg,


0419 031 981

11-Jul2.30pm

Introductory Workshop. Guest Speaker: Di Jackson, Club Loans Mortgage Professional

Seaford / Moana Neighbourhood CentreBeechwood Grove, Seaford

Darryl [email protected]

0415 837 116

12-Jul7.30pm

Property Investment Secrets Lanzerac Country EstateMenge Rd, Tanunda


0412 245 767

13-Jul7.30pm


TIC Bettison Branch Office816 Port Rd, Woodville South


0411 414887

14-Jul7.30pm


Flagstaff Hill Golf ClubMemford Way, Flagstaff Hill


08 8270 6647 / 0413 939 288

15-Jul7.30pm

Introductory Workshop Arkaba Hotel150 Glen Osmond Rd, Fullarton


0419 031 981

21-Jul7.30pm

Introductory Workshop Green RoomBehind Nautilus Theatre, Port Lincoln


0428 830 942

22-Jul7.30pm


Mawson Centre, Uni Sa Mawson Lakes Campus Mawson Lakes Boulevard, Mawson Lakes


08 8270 6647 / 0413 939 288

24-Jul11.30am

The 7th Annual Adelaide Researchers Road Show. Talk to five TIC Researchers. What property?, where? and why?

The German Club223 Flinders St, Adelaide


0411 414887

27-Jul7.30pm


Mt Barker-Hahndorf Golf ClubBald Hills Rd, Mount Barker


0411 414887

23-Jun7.30pm

Introductory Workshop Elizabeth College256 Elizabeth St, Hobart

Ric [email protected]

0417 348 573

14-Jul7.30pm

Introductory Workshop Elizabeth College256 Elizabeth St, Hobart

Ric [email protected]

0417 348 573

4-May7.30pm

Investment Workshop. Guest Speakers: Pam Fallon and Paul Pisasale, Club Mortgage Professional. Bookings Essential

Watsonia Library Community RoomCnr Watsonia Rd and Ibbottson St, Watsonia

Pam Fallon [email protected]

03 9435 7780

5-May7.30pm

Introductory Workshop Best Conference Centre26-28 Saint andrews Ave, Bendigo,

Paul and Cheryl [email protected]

0414 252 638

6-May7.30pm

Introductory Workshop Narre Community Learning Centre1 Malcolm Court, Narre Warren

Roger [email protected]

03 9017 0206 (H) / 0427 523 761

11-May7.30pm

Introductory Workshop. Guest Speaker: Phil Byrnes Box Hill South Family Centre1228A Riversdale Rd, Box Hill South


0417 126 974 / 03 9874 4482

12-May7.30pm

Introductory Workshop. Guest Speaker: Club Loans Mortgage Professional and Anne Greening

Northcote Town Hall189 High St (1st Floor), Northcote

Anne [email protected]

0409 389 752

13-May7.30pm

Introductory Workshop The Cottage, Dingley Village Neighbourhood Centre31B Marcus Rd, Dingley

Roger [email protected]

03 9017 0206 (H) / 0427 523 761

24-May7.30pm

Introductory Workshop. Guest Speakers: Phil Byrnes, Peter Freeman, Laurie Watson

Ballarat - Central Highlands Regional LibraryCnr Doveton St and Market St, Ballarat

Laurie [email protected]

03 5335 7628 / 0423 775600

25-May6.30am

Introductory Workshop Caroline Springs Library/Civic Centre193-199 Caroline Springs Blvd, Caroline Springs


0401 116 884

27-May7.30pm

Introductory Workshop. Guest Speaker: andrew Morel, Club Loans Mortgage Professional and Tony Lewis

Alvie HallCnr High St Rd and Alvie Rd, Mt Waverley

Tony [email protected]

0411 705 857

1-Jun7.30pm

Introductory Workshop. Guest Speakers: Pam Fallon and Paul Pisasale, Club Loans Mortgage Professional

Watsonia Library Community RoomCnr Watsonia Rd and Ibbottson St, Watsonia

Pam Fallon [email protected]

03 9435 7780

2-Jun7.30pm

Introductory Workshop Best Conference Centre26-28 Saint andrews Ave, Bendigo,

Paul and Cheryl [email protected]

0414 252 638

9-Jun7.30pm

Introductory Workshop. Guest Speaker: andrew Morel, Club Loans Mortgage Professional and Anne Greening

Northcote Town Hall189 High St (1st Floor), Northcote

Anne [email protected]

0409 389 752

23-Jun7.30pm

Introductory Workshop including Finance Presentation and Guest Speaker: Tony Lewis

Old Shire HallCnr Anne and Alfred Sts, Warragul


0411 705 857

Vict

oria

Tas

14 | tic magazine

Wes

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iaDate & Time Type and Topic Venue Contact Phone24-Jun7.30pm

Introductory Workshop. Guest Speaker: Club Loans Mortgage Professional and Tony Lewis

Alvie HallCnr High St Rd and Alvie Rd, Mt Waverley


0411 705 857

28-Jun7.30pm

Introductory Workshop. Guest Speakers: Phil Byrnes, Peter Freeman, Laurie Watson

Daylesford Town Hall76 Vincent St, Daylesford


03 5335 7628 / 0423 775 600

14-Jul6.30pm

Introductory Workshop Caroline Springs Library/Civic Centre193-199 Caroline Springs Blvd, Caroline Springs


0401 116 884

15-Jul7.00pm

Introductory Workshop Barclay On View Motor Inn181 View St, Bendigo


08 8981 0164

16-Jul7.00pm

Introductory Workshop Function Room, Campaspe Shire Council ChambersHeygarth St, Echuca


0447 136 441

26-Jul7.30pm

Why Property? How To Prosper and When To Retire. Guest Speakers: Phil Byrnes, Peter Freeman, Laurie Watson

Central Highlands Regional LibraryCnr Doveton St and Market St, Ballarat


03 5335 7628 / 0423 775600

3-May7.30pm

Introductory Workshop Kingsley Football ClubroomsKingsley Dr, Kingsley

Allana [email protected]

0417 961 360

4-May7.30pm

Level 2 Workshops: Run monthly covering a range of topics including, finance, property selection and tips and tricks for cash flow management.

The Investors Club Albany Clubhouse above The Golden Town Chinese RestaurantCnr Frederick and Aberdeen St, Albany

Liana [email protected]

08 9842 5957

11-May7.30pm

Introductory Workshop Lotteries HouseForrest St, Esperance

Nola [email protected]

0429 008 056

18-May7.30pm

Introductory Workshop Canning Vale Community Centre - PerthEucalyptus Boulevard, Canning Vale

Robin [email protected]

0419 942 595

24-May7.30pm

Introductory Workshop Busselton Family CentreBusselton Family Centre 19-21 Kent St, Busselton


08 9842 5957

25-May7.30pm

Introductory Workshop Bunbury Art GalleryCnr Wittenoom St and Wellington St, Bunbury


08 9842 5957

26-May7.30pm

Barry and Marilyn Atkins story on how they became property millionaires in 7 years

Laguna Venetto Club49 Homer St, Dianella


0411 691 843 / 08 9375 3936

26-May7.30pm

Introductory Workshop E2c, Old Coast PlazaShop 10, Old Coast Plaza, Mandurah Wa


08 9842 5957

28-May5.00pm

Come along for a social get together and meet like-minded people



08 9842 5957

1-Jun7.30pm

Introductory Workshop Joondalup Business Centre15 Barron Parade (Off Collier Pass), Joondalup

Chris [email protected]

0439 672 630

1-Jun7.30pm

Introductory Workshop Willetton PavillionApsley Rd, Willetton


0417 918 277

1-Jun7.30pm




08 9842 5957

7-Jun7.30pm

Introductory Workshop Girl Guides Hall MelvilleCnr Stock Road and Kitchener Ave

Kristen [email protected]

0412 114 547

8-Jun7.30pm



0429 008 056

9-Jun7.30pm

Introductory Workshop Karrinyup Community CentreDavenport St, Karrinyup

Sandra [email protected]

0411 107 452

16-Jun7.30pm

Advanced Workshop. By Invitation Only. Please contact your Support Member for further details.

Haydan Williams Lecture TheatreHayman Rd, Bentley


0412 114 547

16-Jun7.30pm

Introductory Workshop The Investors Club Albany Clubhouse above The Golden Town Chinese RestaurantCnr Frederick and Aberdeen St, Albany


08 9842 5957

16-Jun7.30pm

Introductory Workshop Atwell Parklands Community CentreLombe Gardens, Atwell

Paul [email protected]

0417 969 848

22-Jun7.15pm

Introductory Workshop John Dunn Hall Third Ave, Kelmscott

Jeff and Tania [email protected]

0407 998 190

25-Jun5.00pm




08 9842 5957

5-Jul7.30pm

Introductory Workshop Girl Guides Hall MelvilleCnr Stock Road and Kitchener , Melville


0412 114 457

5-Jul7.30pm

Introductory Workshop Kingsley Football ClubroomsKingsley Dr, Kingsley

Allana [email protected]

0417 961 360

6-Jul7.30pm




08 9842 5957

12-Jul7.30pm



0429 008 056

20-Jul7.30pm

Introductory Workshop Canning Vale Community CentreEucalyptus Boulevard, Canning Vale

Robin [email protected]

0419 942 595

21-Jul7.30pm

Introductory Workshop The Investors Club Albany Clubhouse above The Golden Town Chinese RestaurantCnr Frederick and Aberdeen St, Albany


08 9842 5957

26-Jul7.30pm

Introductory Workshop Busselton Family CentreBusselton Family Centre 19-21 Kent St, Busselton


08 9842 5957

27-Jul7.30pm

Introductory Workshop Bunbury Art GalleryCnr Wittenoom St and Wellington St, Bunbury


08 9842 5957

28-Jul7.30pm

Barry and Marilyn Atkins story on how they became property millionaires in 7 years

Laguna Venetto Club49 Homer St, Dianella


0411 691 843 / 08 9375 3936

28-Jul7.30pm

Introductory Workshop E2c, Old Coast PlazaShop 10, Old Coast Plaza, Mandurah


08 9842 5957

30-Jul5.00pm


The Investors Club Albany Clubhouse above The Golden Town Chinese Restaurant Cnr Frederick and Aberdeen St, Albany


08 9842 5957

Unless otherwise stated, workshops generally run for 1 1/2 to 2 hours

tic magazine | 15

NT State Conference Saturday 12 June 2010 Novotel Atrium on the Esplanade

This will be a full day conference loaded with valuable information on TIC Property Hotspots, up to date Finance Strategies, TIC Superannuation and Club Insurance. Several TIC interstate researches will be presenting on the day. What is their criteria is for listing properties for the club, why are they targeting these areas now and which builders do they work with? Tune into their first hand knowledge on these property hotspots and visit their trade displays to see what they currently have available to purchase.

With the finance market changing almost daily you may find that your borrowing capacity is out of date, We do suggest club members submit a new finance capacity form and receive an up to date result in order to take advantage of any special conference offers .

This will fully catered event and includes morning/afternoon tea and a hot buffet lunch. Cocktails and happy hour at the bar will be available afterwards to all attendees.

Early bird registrations are available only until Friday 7 May 2010 Early bird pricing $65 per person Standard registration $75 per person (until Friday 28 May 2010) Non club members and $100 per person late registrations

For further information contact Mel Heinicke, Darwin Branch Office [email protected] / 08 89810164

The Investors Club QLD State Conference - Pay Less TaxSaturday 26 June 2010 Brisbane Convention and Exhibition Centre

With only five days remaining until the end of financial year, this conference is centred on taxation for property investors and in particular, how to minimise your tax. Be inspired and informed by iconic speakers including Tim Lawless, RPData; Kevin Young, Club Founder; Club Accountants; Tax Depreciation Experts; Club Loans Mortgage Professionals and Wayne Pratt of TIC Super. You will also have the opportunity to talk to some of the top Club Researchers and find out first hand about their stock and opportunities in 2010.

For more information, please contact Danielle Francisco, Events Manager [email protected] / 07 3456 4205

Upcoming State ConferencesSaturday 3 July 2010 NSW State Conference

Saturday 11 September 2010 VIC State Conference

Sunday 24 October 2010 SA State Conference

To register and participate in a webinar logon to:http://www.tic.com.au/GetInvolved/Workshops/Online/tabid/183/Default.aspx.

Introductory WorkshopsToo busy to get to an Introductory Workshop - no worries, we will come to you. Join us for an online workshop and hear how The Investors Club helps ordinary Australians to build large property portfolios. Register at:

4 May 7.30pm EST https://www2.gotomeeting.com/register/592882810

19 May 7.30pm EST https://www2.gotomeeting.com/register/578059555

1 June 7.30pm EST https://www2.gotomeeting.com/register/900693698

16 June 7.30pm EST `https://www2.gotomeeting.com/register/155907698

Young Investors Club WorkshopsFinance options for first time and young investors

4 May & 6 July 7.30pm EST

Guest speaker: Club Loans Mortgage Professional. Before we delve into the world of finance we will briefly discuss how The Investors Club operates and how we can assist you to create financial freedom through property. We will outline current lender savings and equity requirements, and discuss a variety of options if you are savings challenged but have access to family property equity. We will also cover simple steps to increase your borrowing capacity.

Property ‘Hot Spots’

12 May & 1 June & 21 July 7.30pm EST

Guest speaker: A Club Researcher will discuss current properties they have extensively researched which are currently on The Club’s stock list. They will provide a detailed analysis on the properties and provide details on current ‘hot spots’.

Introductory workshop

20 May 7.00pm EST Achieve the lifestyle you dream of through the support of successful young investors and The Investors Club’s range of free services. Use the Young Investors Club’s knowledge and expertise to guide you on your own financial journey. Register today to participate in an online workshop run by Young Investors Club Branch Manager Ian Townsend to discover how to get started in property investment.

Learn about your inheritance now

10 June Guest speakers: Kevin Young, Barbara Clifford and Ian Townsend will discuss ways in which parents can encourage their children to use their inheritance and what to do if you receive an inheritance. They will outline some simple strategies parents can use to assist their children to get started in property investment now and things you need to know if you receive an inheritance.

Introductory workshop

16 June 7.30pm Guest Speakers: YIC Support Members

Managing your portfolio

15 July 7.30pm Tips on how to efficiently and effectively manage your properties to ensure you get the most out of them with very little time and effort. Topics covered will include banking, book keeping and dealing with tenants, on-site managers and body corporate

Online Seminars

tic magazine | 15

16 | tic magazine

Yarra CallingThe Galway Branch hosted a Young Investors event in Melbourne on Sunday 21 March, in the beautiful Darling Gardens nestled discreetly on the banks of the Yarra River. Melbourne’s uncertain weather thankfully provided a sunny day, which was the perfect backdrop to an informative session and BBQ.

Guest speakers Troy Gunasekara, Ian Townsend, Brett Sheppeard of Crystal Finance, Roger Galway, Maureen Collins and Rebecca Sikhali all shared their knowledge, experience and expertise with short presentations which was well received. Discussions centred on how to can use your parents’ equity to get started in investing in property.

Through events like these The Young Investors Club can build a social and educational network of young people who want to share and gather more information about property investment.

Brisbane BBQQueensland Young Investors got together for a social BBQ in New Farm Park, Brisbane, in early April.

Young Investors Annual EventInvestors of all ages came together at the Q-deck on the Gold Coast on the eve of the annual The Investors Club conference for a networking event sponsored by the Young Investors Club.

Young Investors are invited to attend an information yet social experience at Falls Creek. The trip will include a workshop on Property Maintenance, five days of skiing and/or sight seeing activities, plus social get togethers each evening to listen to live bands and take in the atmosphere. For more information or to register for one of the limited spots, please contact Ian Townsend on 0427 974 180 or [email protected]

YIC Ski TripSat 7 to Sat 14 August 2010Falls Creek

Pedal Away From The EverydaySat 4 to Sun 12 September 2010 Yeppoon to BundabergImagine exploring the Capricorn Coast, Callide Valley and North Burnett on your bicycle, enjoying the welcoming locals and rural townships full of character. The Young Investors Club is holding a cycle over nine days (570km) that will see 1,500 friends come

together for a social ride. We will also conduct a series of fun initiatives to raise money for Club Cares.

YIC is aiming to have a group of cyclist take up this challenge. The cost starts from $850 including meals and accommodation. Nominations close 1 July 2010. For further information please contact Ian Townsend on 0427 974 180 or [email protected]

Young Investors Take On The RiverIn April, Young Investors Club members of South Australia, came together for a weekend of water skiing at Morgan (2.5 hours from Adelaide). Host Branch Managers Phil and Judy Hill and Young Investors Club Support Members, Ben Dempster and Louise Testen, were joined by some YIC members embarking on their first property purchase. With other Branch Manager and Support Members present, the opportunity to impart knowledge (even while being flung around the river on many a water craft) was invaluable. The weather held out to allow for a action packed weekend of skiing and swimming, followed by a BBQ and movies by the stars. Thanks to the Hills for providing their ski boat and branch members Kym and Debbie Olson for their hospitality, use of their shack and ski boat as well.

Ian, Cameron, Kendall and AaronDanielle, Hayley

and Emily

Young Investors listen to Kevin YoungJay, Danielle and Adrian

Ben

Kevin Collins

Nikki

Ian and Rebecca

Ian, Roger and Terence

tic magazine | 17

Variety With Club CaresIn March this year The Investors Club announced a partnership between Club Cares, The Investors Club and the Variety Club of Queensland to sponsor the annual XXXX Gold Variety Bash.

Over 200 thirty year old cars will make their way from Southport to Port Douglas in this year’s bash, which will run from 29 July through to 7 August and track from Southport to Port Douglas, Queensland. The fun filled adventure that will help meet the needs of thousands of sick, disabled and disadvantages children.

The event, which will be televised later in the year, will give Club Cares an opportunity to contribute in a unique way to Variety and transform the lives of special children. Not only will Club Cares, through The Investors Club, be recognised as an overall sponsor, but we will also be entering a vehicle in the Bash itself.”

The Investors Club Bash team will be headed by Greg Prussia of The Investors Club, who will be rallying support from branches across the country in an effort to raise additional funds for the cause. “It is a great way to meet the local communities, many of them smaller and more remote, as we

How Variety BeganInitially the group would get together after performances to play cards at a social gathering they called the “Variety Club”. One night in 1928 they heard whimpering from the empty Sheriden Theatre and when they investigated the source of the noise, they discovered an abandoned baby. The baby’s mother had pinned a note to the child’s clothing which read:

“Please take care of my baby. Her name is Catherine. I can no longer take care of her. I have eight others. My husband is out of work. She was born on Thanksgiving Day. I have always heard of the goodness of showbusiness people and pray to God that you will look after her. Signed, a heartbroken mother.”

A police search to find the mother failed, but the theatre owners’ hearts had already melted. They took the baby in and named her Catherine Variety Sheridan. They set about raising money to buy items needed for her care and were so successful that they decided to widen their view to offer assistance to local orphanages. Their philosophy was that they would not give money – only goods and services. This ideal remains pivotal to the ethos of Variety today. Variety spread throughout the entertainment industry and today there are 80 branches worldwide.

Catherine’s story became an inspiration to help children everywhere and since those early beginnings, Variety has become an international organisation, operating in 14 countries and raising over $2 billion to help children in need throughout the world. The original ideals are maintained by a strict charter, which dictates how money is raised and distributed. The Charity has kept its theatrical tradition alive by the use of quaint terminology where branches are called Tents and Chairmen are Chief Barkers.

Lord Louis Mountbatten brought Variety to Australia in 1975 with Paul Hogan as the first Chief Barker (Chairman). Today it is represented in all states and territories, reaching tens of thousands of special children each year.

Club Cares, The XXXX Gold Variety Bash, And YouYou can assist the efforts of this year’s Bash and The Investors Club’s entry in the Bash in a variety (excuse the pun) of ways including:

Join the support team at one or all of the stops to assist in additional fund raising and further promoting The Investors Club’s Club Cares;

Make a donation to the rally team to assist in their fundraising efforts.

Please contact Greg Prussia to register your involvement or interest on [email protected] or 07 3456 4207

travel through town,” commented Greg.

Variety is a nationwide and worldwide charity that

first began in Australia in 1975. To date they have

delivered over $112 million to help Australia’s sick,

disadvantaged and special needs children.

The XXXX Gold Variety Bash started 21 years

ago in an effort to raise funds for children in need,

and also raise awareness of the work of Variety

Queensland. This year’s Bash will see cars retrace

the very first route of the Bash, to the delight of

local communities.

All money raised by Variety Queensland helps

children in Queensland. Funds are usually spent

on goods and services, such as the Variety

Sunshine Coach Programme, the Freedom

Program, hospital grants, schools, youth clubs,

and individual children.

“Their philosophy was that they would not give money –

only goods and services.”

18 | tic magazine

Branch Manager

Troy Gunasekera

The Bigger PictureIn this current financial climate, one of the main concerns that we are finding people have, is Cash Flow and how they handle this. At the time of writing this article, the Reserve Bank has just lifted the Cash Rate at their April meeting to 4.25% and most mortgage holders at the moment are paying around a 6.5% variable interest rate on their Home Loans.

2 Worchester & Bailey St, Wakerley - $515,000 (Club Median Price Property)

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Rent 25,735 27,588 29,574 31,703 33,986 36,433 39,056 41,868 44,883 48,114

Interest -35,031 -35,031 -35,031 -35,031 -35,031 -35,031 -35,031 -35,031 -35,031 -35,031

Expenses -5,121 -5,275 -5,433 -5,596 -5,764 -5,937 -6,115 -6,298 -6,487 -6,682

Gross Pre-Tax Cash Flow -14,417 -12,718 -10,890 -8,924 -6,809 -4,535 -2,090 539 3,365 6,401

Tax Credits 8,132 8,296 7,250 6,218 5,278 4,000 3,103 2,185 1,425 260

Nett After Tax Cashflow -6,285 -4,422 -3,640 -2,706 -1,531 -535 1,013 2,724 4,790 6,661

Investment Property Cash Flow Summary (10 Years)

Cash In

Rental Income 358,940

Tax Credits 46,147

$405,087

Cash Out

Interest Payments 350,312

Rental Expenses 58,708

$409,020

Total Nett Outlaid over 10 Years -$3,933

Average Per Week -$8

13/149 Duffield Road, Kallangur - $315,000 Property

Nett After Tax Cash Flow After 10 Years $-20,490

Average Cost Per Week $39

Investment Growth

Initial Property Value $315,000

Property Value after 10 Years $630,000

Average Growth Per Week $608

59/2 Bourton Road, Merrimac - $395,000 Property



Investment Growth


Property Value after 10 Years $790,000


2 Worchester & Bailey St, Wakerley - $515,000 Property



Investment Growth


Property Value after 10 Years $1,030,000


Assumptions Used

Property Prices double every 10 years

Rentals double every 10 years

Property Expenses go up at the rate of inflation (3%)

Wages/Salaries go up at the rate of inflation (3%)

Incomes - $65,000 and $45,000 (50/50 ownership)

One of the key services that The Investors Club offers its members is Cash Flow Analysis Reports. This is a key differentiator to purchasing a property from a Real Estate Agent. Most people understand and agree that the level of detail and research that goes into our Property Profiles sets The Investors Club apart.

For example, it is very beneficial to know what the indicative Council Rates and Body Corporate levies are for the property/development but just

as importantly it is imperative to know that the rental returns projected in our property profile are realistic and achievable. These are always backed up by at least two independent rental appraisals. It is also helpful to see comparative property sales in the area, so you know that the price is realistic, compared to others in the area.

Once all of this information is to hand it only becomes useful if you then use it as a tool, which means putting the numbers to work with

The Investors Club Cash Flow Analysis Reports. An example comparing three properties valued at $315,000, $395,000 and $515,000, is set out in this article. (The Property Profiles and detailed workings for these examples have been placed at the following web link http://tinyurl.com/tic-may-jun-newsletter which readers are encouraged to view).

In Depth AnalysisMost people (us included) in the early days always thought that a more expensive property would be more expensive to hold however, in looking at the following summary over 10 years this is not the case. If you look at the below summary of the Wakerley property you will see the positive net after tax cashflow evidenced over time.

From these numbers it is evident that you actually secure a much better return from buying a higher priced property, along with the key benefit of having a higher dollar value of property growing, which is helping you achieve your Financial Independence much sooner.

Investment Property Growth Summary (10 Years)

Investment Growth

Initial Price of Property 515,000

Property Price in 10 Years 1,030,000

Change 515,000

Average Per Week Growth over 10 Years $990

$8 average per week out of pocket

$990 average per week capital growth

1 2

3

tic magazine | 19

The treatment of Capital expenditure can be confusing to many property investors. To understand the tax implications of each, it is first necessary to understand how they are defined and what category they fall into.

Capitalising Your Expenses

TIC Accounting

Tom Hackett

Capital expenses are separated into 3 categories:

1. Depreciating Assets

2. Capital Works

3. Acquisition and Disposal Costs

Capital expenses are not immediately tax deductible; however expenses in category one and two above may qualify for tax deductions. In relation to a rental property a tax deduction is claimed where the property is being rented or was available for rent.

1. Depreciating AssetsCapital expenses include those incurred on the purchase of assets, known as depreciating assets. The cost of a depreciable asset includes the initial purchase price and any installation costs. Depreciating assets are separately identifiable, and as such are considered to have a limited effective life, eg oven, furniture, hot water system, beds etc.

Depreciating assets are allocated to a depreciation schedule which calculates depreciation for the financial year using the effective life of the asset and calculation methods provided by the Australian Taxation Office. Depreciation can be claimed as a tax deduction in each financial year until the asset is scrapped, sold or replaced.

2. Capital WorksCapital expenses include capital works which is the name given to construction expenditure such as substantial improvements, additions, alterations

and modernisations, eg kitchen renovation, adding a room, removing a wall or installing solar electricity. Capital works include all costs for construction, such as architects fees, engineering fees and tradesmen. Capital works also include the cost of initial repairs on a property prior to it being rented, eg painting chipped walls, replacing broken tiles. It however, does not include the cost of land, cost of demolishing existing structures or cost of landscaping.

Capital works are allocated to a capital works schedule, which calculates the capital works claim for the financial year, generally based on an effective life of either 25 or 40 years. Capital works claims are only calculated from the date the capital works are completed.

3. Acquisition And Disposal Costs Costs of acquiring and disposing of a rental property are capital expenses, eg legal fees, acquisition costs, commissions, stamp duty etc. Acquisition and disposal costs are not deductible, however are included in the total cost of the property for capital gains tax purpose.

Capital expenses, like many areas of the taxation legislation, is a complex matter and we recommend that all tax payers seek specific independent advice tailored to their personal circumstances. TIC Accounting is property tax specialists and can assist you in minimising your overall taxation liability.

A new home for your super

The future is in your hands www.ticsuper.com.au

TIC Super is a public offer super fund, focused on long term capital growth. It offers access to all major asset classes, including property, which is a first for Australian super funds. Invest in an asset class with TIC’s proven property investment strategies and put your super to work for your future.

Investors who believe in the value of buying, holding and developing residential property as a part of a secure investment strategy, can now take control of their own superannuation.

The information provided is of a general nature only and does not constitute financial product advice or an offer to invest. It has not taken into account your individual objectives, financial situation or needs. Therefore, you should consider obtaining professional advice from a licensed financial adviser before making any decision to invest in TIC Super fund. For further information about TIC Super go to www.ticsuper.com.au

A lot of investors are initially alarmed because of the initial negative cash flow however, it is always important to look at the bigger picture. For example, 30 years ago, people were able to buy their home for around $30,000. This property would now be worth around the median price of $400,000 and upwards. If the owner were to rent this property out now and achieve a rental of $400 per week (median price) then they would be deriving approximately $20,000 of rental income. If they still had a $30,000 interest only loan against their own home not only would the property be cash flow positive, but the owners would almost clear the loan debt in over a year!

The thing to take away is that the dollar amount does not actually change, it is what you can do with today’s dollar that does, and this is because of inflation.

Concerned about interest rates rising? As of Monday 5 April 2010 the National Australia Bank have a 10 Year Fixed Rate Home Loan at 7.99%! A pretty good indicator of where the variable rate should be at over this period.

Editor’s Note: In future issues of The Investors Club Magazine, Troy Gunasekera, VIC Branch Manager, will be looking at capitalising your property expenses and seeing how this strategy can assist your cash flow. We will also look at analysing a portfolio of properties to see how your overall portfolio is performing. If you would like more information on Cash Flow Analysis please contact your Support Member.

20 | tic magazine

Principal of Cleary Hoare

John Ioannou

The primary aim of your lifelong hard work is, of course, to provide a suitable, secure lifestyle for you and your family. The valuable assets you accumulate to achieve this aim make up your Estate and are extremely important. It is unfortunate that many people do not take appropriate measures to protect, utilise and benefit from them.

Estate Planning Explained

Unlike many areas of life, you can strategically plan your Estate to ensure you retain control over your assets both now and in the hands of future generations. If you own valuable assets, such as land, business property or a share portfolio, it is important that you know what an effective Estate Plan encompasses and what benefits it can deliver.

Basically, an Estate Plan is one that arranges your assets so they pass to the people you would like to receive them during your lifetime and after your death, in an asset protective and a tax effective manner. At the heart of any Estate Plan is a Will.

When you make your Will, you are called the testator. If you die without a valid Will, you are said to have died intestate. With no instructions as to how to deal with your estate, State laws will dictate who receives your assets. Obviously, the law will not take into account any of your specific wishes, asset protection or tax effectiveness. Many people are of the misconception that if they don’t have a Will, everything will go to their husband/wife. This is not necessarily the case.

A Will can only deal with assets owned in your own personal name. For assets that are owned in other structures (eg companies, unit trusts, discretionary trusts, family trusts or super funds) a customised well thought Estate Plan is required.

Family HomeMost couples jointly own their family home as joint tenants. This means that upon your death, the

property will automatically pass to the surviving joint owner, regardless of the terms of your Will. If you wish to pass an interest in an asset that is held as joint tenants, to someone other than the joint owner, the tenancy must be changed to tenants in common, prior to your death. Your interest in the asset can now be gifted under your Will.

Trust AssetsOwning and operating a business in a family trust is a very common business structure. Any assets held in a discretionary/family trust, however, cannot be gifted under your Will as you do not personally own them and do not have the power to dispose of the assets. You need to pass the control of the discretionary trust to the intended beneficiary. The control points for a discretionary trust are the shareholding in the trustee company, if any, and the position of principal/appointor in the trust. Generally, the principal/appointor of the trust has the power to appoint or remove a trustee. You need to nominate a person who is to be the new principal on the current principal’s death. This is achieved by amending the trust deed to enable the appointment of a successor principal.

Blended AssetsIf you have several assets in the one entity it will be necessary to separate those assets into different entities. The separation will have capital

gains tax and stamp duty implications. You need to consult a specialist Estate Planning law firm with taxation expertise.

Superannuation BenefitsIt is not possible to gift superannuation benefits under your Will. The trustee of your fund has the discretion to decide whom the benefits are to go to. It is, however, possible to add more certainty to your superannuation benefits by preparing a binding death benefit nomination.

Special considerations are required before implementing binding death benefit nominations. It is also possible for benefits to be distributed without any tax consequences, if they are distributed to certain people. Usually monies held in superannuation must be paid out in cash. If you have assets in a self managed superannuation fund, it might be desirable to transfer the asset (eg investment house) to the intended beneficiary. To do so will require a number of legal aspects to be addressed, not the least a review of your super deed.

Each situation is unique as every family has different requirements. The risks associated with not having an effective plan are real and can be large. Once misfortune has struck, it is often impossible or more difficult to remedy the losses and always less effective than implementing an effective estate plan before any such event. There are many tools available to you if you see a specialist Estate Planning law firm.

tic magazine | 21

JBC Branch Manager

Derek Jones

Much financial literature actively encourages Australians to use Superannuation as the primary means of funding their retirement years despite the fact that, for most of us, superannuation seems to fail the ‘proof of performance’ test.

Slaying The Beast

OPINION

At the time of writing, the University of Canberra reports that the average super account balance for males aged 60 to 64 is just $135,000. For females, it is less than half that – just $62,000. If you would like an income of at least $50,000 in retirement, then this would fund less than three years for most men and not even 18 months for most women, before leaving you solely reliant on government benefits.

What is worse is that these figures are skewed by those few people who have very high superannuation balances; the median account balance for men is $33,000 and for women it is zero. That’s right - at least half the women in this age group have absolutely no super. The figures for 50 to 59 year olds are not much better. The

median account for men in this group is $44,000 and $10,000 for women. It makes a mockery of superannuation’s role in providing an income in retirement.

Given compulsory superannuation was initiated around 1988 one wonders why many Australians have not woken up to the ‘performance’ of their superannuation fund. It seems clear the average Australian is going to struggle to make ends meet from a typical super balance.

Just maybe there are options other than more superannuation even if it means ‘killing a sacred cow’. Why then is there a general aversion from the finance industry towards direct property as an investment of choice?

As the Director of TIC Super I must be the “Chief Sacred-Cow Farmer”. So let’s see if I can add to Derek’s thoughts in some ways to help make the best of your super.

Derek kicks off his article with two very good points:

1. Most of the financial advice industry consistently tells us that “Your superannuation fund is a pool of money which, if invested wisely could allow you a financially independent retirement.”

2. That the average super account balance for males aged 60 to 64 is just $135,000, which gives the lie to point 1. because $175,000 is NOT financial independence.

The Investors Club is built around the idea that you must focus on your own wealth creation and that

Do not rely on your meagre superannuation resources but take a moment a find out how ‘direct property investment’ can be the foundation of your financial future. Speak to your Support Member today and don’t rely on the finance industry for meaningful direction.

Historical facts

In 1997 the Australian median house price was $183,100. At the time only 6.5% of all tax payers owned an investment property.

At the end of 2009 the Australian median house price was $481,300. If the same 6.5% did nothing else but buy and hold their property for 12 years they would have enjoyed a $300,000 gain.

Interestingly, if the same growth rate is maintained over the next 12 years the same property could then be worth almost $1.25m. The wise investor from 1997 has a possible total gain of over $1m.

Even more interesting, someone could have started their property investment journey in 1997 by purchasing a median priced property with as little as $45,000 equity (that is not cash). In some cases it may have been possible to get started for less.

Someone on an average wage could have owned the same median priced property for a small weekly contribution, especially after allowing for the tax advantages and rental income available to property investors.

TIC Super

Wayne Pratt

you can do this. While you will never hear me say that superannuation is all you need for a financially secure retirement (the figures Derek presents speak to that) the fact remains that, for most of us, 9% of what we earn from now until our retirement will go into super.

There is always a lot of public debate on how to improve super, which is mostly focused on lower fees and nicer service. Both useful, but where are the industry voices pushing for better investment choices and improved performance?

If you think there is no way to offer Australian’s a better investing alternative for their super, ponder this:

Australian Super now totals more than $1,200 billion dollars.

Until TIC Super there was no public super fund in Australia that would allow any of this money to be invested into the residential property sector, despite the fact that it is an asset class worth over $3,000 billion dollars.

The best performing balanced super fund in Australia currently has a three year return of 2.1% per year and the best five year performance is 7.0% per annum. In

comparison, Rismark Home Value Index, Australian residential property has returned 7.6% over the past three years and 6.8% over the past five years (annual figures based on compound growth).

While super alone will not guarantee financial independence, it can and should be a useful piece in the overall picture of your financial plans. TIC Super was built to offer TIC Members a choice for their super that they should have been given decades ago – the right to invest superannuation into residential property.

Given the average five year return for a balanced super fund is 4.0% per annum (that is both capital growth and dividend income) while Australian residential property has returned 6.68% per annum in the same time frame (that is capital growth without including rental returns), it makes sense to look at how investing your superannuation into residential property can assist your drive towards financial independence.

Nearly all of us have super – whether we want it or not. As you can’t escape it, make the best use of it. Leave the sacred cow, grab your bull by both horns and put your super somewhere useful.

Source: RP Data and ABS.

22 | tic magazine

Q&AQ. What is QCAT?

QCAT decides a range of residential tenancy disputes between tenants, and landlords (lessors) or agents. These disputes may relate to rents, bonds, holding deposits, service charges, standard of premises, entry onto the premises, transfer or sub-letting by tenants, termination of tenancy agreements, compensation, tenancy databases and other disputes. All disputes are heard by a Magistrate and a legal Order set in place once the matter is heard.

Q. What is TICA?

TICA is best known as the “Blacklist”. TICA is Australia and New Zealand’s largest tenancy database that collects, uses and discloses information about tenants. The information includes if the potential tenant has defaulted or mistreated a property, it also shows where they have rented and where they have applied to for properties. This information assists property managers and owners in making informed decisions before approving a tenancy.

Q. What are my obligations regarding Smoke Alarms?

Your property must comply with the new legislation and the Building Code of Australia. This is not just establishing that a property has a smoke alarm, but you need to ensure that the property has the required number of smoke alarms; that they are located correctly as per the legislation and the Building Code; that they meet Australian Standards; that they are working; that they are not past their expiry date. Before the commencement of every new tenancy, you must ensure that smoke alarms are inspected, tested, cleaned and the battery changed (if necessary). The legislation prohibits you from transferring this responsibility to the tenant.

Q. What are the new pool laws?

Queensland’s swimming pool safety laws have undergone the most comprehensive review in nearly 20 years. The proposed new legislation will

consist of two stages – the first coming into effect on the 1st of December 2010. From this date all new pools must meet the latest pool fencing standards, with clear and strict non-climbable zones above and adjacent to the fence. One of the key changes that will concern your investment property is in the second stage, which will come into effect in late 2010. This will make safety inspections before a property is leased mandatory. Safety inspections are expected to cost between $90 and $130 per inspection.

If you have any questions you would like to have included in the Magazine, please email [email protected]

Q. Should I take out Landlord Protection Insurance?

Landlord protection insurance is vital for any professional investor and it is strongly recommended you take out this cover. It can cover unforeseen circumstances like:

Accidental damage or breakage

Malicious damage or vandalism caused by tenants

Deliberate or intentional damage caused by tenants

Public Liability

Loss of rental income

Rent default and theft by tenants.

Q. How does TIC Realty handle rental arrears?

There are different ways of handling arrears depending on the circumstances, including:

If the tenant is five days late with their rent, they are personally phoned, faxed, emailed or sent an SMS message.

Tenants who are seven days late with their rent are personally phoned and issued with a Notice to Remedy Breach. You will also be notified.

If the outstanding rent is then not paid within the seven days remedy period, TIC Realty will contact you to update you on the situation and seek your instructions regarding the possible termination of the tenancy.

Once the tenant is 14 days late with the rent and, subject to your instructions, we serve the tenant with a Notice to Vacate requiring the tenant to vacate the property within seven days.

Q. When TIC Realty find an applicant for my property, how do they qualify them?

TIC Realty strive to provide you with the calibre of tenants that you want in your rental property. This includes:

A 100 point identification check

A detailed tenancy database search

Verification from current/former landlords/agents

Verification of employment

Verification that they can afford the rent and all other monies payable under the tenancy agreement

Verification of personal references (not family members)

In addition to the normal financial qualifications, TIC Realty always try to accommodate the housing needs of tenants to ensure the property they rent is convenient to their work, shopping and desired school district. This will help to ensure that they will settle quickly into the area and remain longer. Unless you instruct otherwise, all tenancy applicants, once interviewed and reference checked, will be presented to you for approval before any tenancy documentation is entered into.

If you have any questions you would like to have included in the Magazine, please email [email protected]?

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tic magazine | 23

Q&AQ. Does my Body Corporate need to pay GST? Not every Queensland community titles scheme is required to be registered for, and therefore accountable for the goods and services tax. The threshold set by the Australian Taxation Office is currently $150,000 total revenue per annum (administration and sinking funds combined). This has been increased from the previous limit of $75,000.

Q. Who is responsible for public liability insurance in a complex? A body corporate is legislatively bound to hold insurance against public liability for a minimum of $10 million for a single event, and at least $10 million for a single period of insurance.

Q. Is a duplex classed as a community title scheme? A duplex is also a community title scheme and must comply with the provisions of the Body Corporate and Community Management Act 1997. A community title scheme is in existence if there are at least two lots and there is common property (possibly then allocated to one of the lots as exclusive use). If a Community Management Statement has been registered with the survey plan, a body corporate will exist.

Q. Should I take out Landlord Protection Insurance? Landlord protection insurance is vital for any professional investor and it is strongly recommended you take out this cover. It can cover unforeseen circumstances like:

Accidental damage or breakage

Malicious damage or vandalism caused by tenants

Deliberate or intentional damage caused by tenants

Public Liability

Loss of rental income

Rent default and theft by tenants.

If you would like more information please contact Karen and the team on [email protected]

Support, Service And Value For Money

www.clubbodycorporate.com.au

Club Body Corporate offer owners and developers a different style of body corporate management that provides exceptional value for money without compromising on service.

Karen joined Club Body Corporate during its inaugural year in September 2009, after three years as Branch Manager for a body corporate management company based in Fortitude Valley, Brisbane.

Previously, Karen spent 16 years in a prominent Brisbane Law Firm as the Manager of Settlements, Stamping & Registration within the Banking and Finance arm, dealing with residential and commercial securities and lending.

The portfolios that Karen has managed have included unit and townhouse developments, large residential apartment buildings, mixed use developments, hotel/resort complexes, layered schemes and schemes registered under Building Units and Group Titles Act and Southbank Corporation Act. Karen’s experience and knowledge of property, accounting and body corporate management ensures Club Body Corporate is experienced in all aspects of the industry.

Experience Shines ThroughIn just over six months Karen Horsfall, Club Body Corporate Manager, has steered one of the newer member services to new heights. In February Karen attended her first annual The Investors Club conference and had the opportunity to meet many of the members and answer some of their queries. We feature just a few of those queries here.

24 | tic magazine

South Australian resident, Sue Carter, was introduced to The Investors Club through fellow members of the Blakebrough Branch, Louise and Shane Maloney. She had been looking to invest in property for a few years after building up equity in her own home, but she had not had the courage to go it alone, until she joined The Investors Club.

New Beginnings For Single Mum

“Lou and I met at LeFevre High School, Semaphore where we were both studying Year 12 as

adults to get into University to reach our goals of attaining better, higher paying careers. We

were both single, divorced Mums to young children of similar ages with a lot in common,

including struggling on the single parent pension for many years to make ends meet.”

Sue, now 48 years of age, is a proud mother of two children and Nanna to three

beautiful grandchildren. She now lives comfortably while enjoying her work as a

Senior Environment Advisor for a mining company. “Despite my financial security

right now,” says Sue, “one of my biggest fears has always been that I will one day have

to return to a pension and once again struggle financially, knowing that my super,

together with my savings, will not be sufficient to maintain a comfortable lifestyle.”

In two short years Sue has seen Lou and Shane put their trust in The Investors

Club and, with the help of their Support Member, Kevin Kobelt, purchase

two properties and make a smooth transition to property investors. She

was still sceptical and often asked her friends what the catch was.

“I still remember the look on my friend Sue’s face, one of complete and abject horror, recalls

good friend Louise Maloney. “My husband and I had just been telling Sue she could be

doing the same thing with The Investors Club that we were despite being on her own.”

After some time Sue decided to investigate for herself. In January this year she attended a BBQ,

where she met Support Members, Kevin Kobelt and Jeanette Gower. “I became very interested

in what they presented and decided to attend a ‘Next Steps’ workshop,” commented Sue. “I

was so pleased to see others in the group were in the same boat as me, all asking questions.”

Sue then attended the Inspirational Property Millionaires seminar at Adelaide’s Arkaba

Hotel and left inspired to push ahead and make her first property investment purchase.

The Maloneys have introduced her to similarly situated people within the club that are

doing it on their own as well. Through the friendships that can be made within the club

Sue will be able to have access to positive ongoing support and encouragement from other

people that have been in her positions and have already built a successful portfolio.

“TIC has given me the confidence that I won’t be alone and that I can achieve

financial security,” said Sue. “Most of all TIC has given me choices. The meetings and

round table discussions are invaluable, as is the support from Kevin Kobelt.”

Sue has taken her first tentative steps to begin her own journey to financial independence

by getting involved with The Investors Club. She has now learned she does not need

to be part of a double income, nor does she need a spouse to support her financially

or emotionally. With great Support Members and more experienced members in the

club, she is learning for herself about the unlimited pool of knowledge, resources and

experiences to help guide her through the maze that is investment property.

“Sue was one person in a group of good friends we have managed to enlighten

about The Investors Club. Of all our friends we thought Sue would be the one that

would not overcome her fears and scepticism, but to our surprise she has taken that

leap of faith even though her stomach was in knots,” said Louise Maloney.

Sue is currently finalising her line of credit for her first purchase and commented,

“the prospects are very exciting – not just for me but for my growing family. I am now

very enthusiastic and looking forward to the purchase of my first property.”

Louise and Shane Maloney are working towards a role of Support Members

in an effort to help more members. “By getting our friends started in The

Investors Club we feel we’ve given them the greatest gift,” said Louise. “We can’t

wait to help Sue celebrate her first TIC investment property purchase.”

Louise Maloney and Sue Carter

TIC Shakes Hollywood

Gala Photo Book

www.tic.com.au

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TIC Magazine - May June 2010