We love property and we love writing about it. Knowledge is power and we hope that the articles below can give you great insights on property and investing in general. Please do not hesitate to write back to us using the contact form below. We would really love to hear from you!

  • Building Your First Home: What You Need to be Aware Of

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    Date Last Modified: 11 Mar 2019 06:36:41PM

    Building Your First Home: What You Need to be Aware Of

    Building your first home is always a very exciting project. We bet you've already had all the various things you want to do with your home to make it super beautiful. Emotion will come a lot into it which should be the right way to go. You will want to make sure the house you'll be living in for some time, is the best one it can be, and contain all the things you really love.

    Basically, your home is what you make it to be!

    What we will be sharing in this post are the various things you need to be aware of to ensure you get the best value out of your building process, and that, you can save a lot of headache down the track. For us, putting the investor hat on is still important.

    These are the things that we think you need to be mindful of:

    On the Land

    • Land price, ensure you're not paying overprice for it. Most of the first-homeowners area will be in an estate or some sort. Often these estates price are not negotiable, but there is nothing wrong in asking the agent and see if they would entertain some form of negotiations. Check the land price around the area to ensure you're paying competitive price for the same land size (sqm).
    • The benefit of buying in an estate is often you will save in site works since the land has been retained, flattened and cleaned up (NOTE: Check with the land agent if it's the case). You'll often also get the color bond fencing. The downside of course is price, often you pay at least $30-50k more than a normal land. Living in an estate is also quieter and surrounded with nicer houses.
    • Go and check if the location you're interested in buying is close to amenities such as bus stops, train station, etc. You may eventually be moving out to a bigger house, closer to CBD, and decide to rent your house out. All these extra features will help you in getting tenants with a potential higher rent price. Also, resale value maybe higher also should you decide to sell.

    On the Build

    • Go and check out display houses and see what features you like such as high ceiling, down lights, timber decking, etc.
    • Go and check out display houses' layout and see what house layout you like. A nice layout is an "open plan" with lots of lights coming into the house. Bedroom sizes are also important.
    • Go find quotes from various vendors for installing particular features you like such as timber decking, blinds, carpets, etc. Get this info upfront so you're not up for a rude awakening.

    On the Builder

    • When finding a builder, do NOT sign with them too quickly! Show them the land you're interested in and ask the ball park figure of the building cost inclusive of site works. Get them to draw a house plan and check all these prior signing to ensure you're happy with the house plan.
    • Ask for as many inclusions as you can have from the builder and if they can add it to their base price. Do NOT wait until pre-start for all these extra inclusions because the charge can be pretty high. Pre-start is the process where, after you sign the building contract, you would then come in to determine the colors and other features you want to include. This is then used to finalise your final product. It would be nice if you can negotiate as many features as possible before pre-start just so you can save a bit more money. One of our readers get a $5k discount prior to pre-start which he can now use the money to add even more add-on.
    • Anything you sign will more-or-less bind you to the builder. And even if you're not yet fully bound legally (ie. maybe you just sign the inital Preliminary Works Agreement - PWA which you paid the initial deposit for), should you try to change builder, they may often give you a hard time and try to intimidate you to keep staying with them. This is why, to avoid all these potential headache, sign only when you're happy to go with a particular builder.
    • Get the builder to fix the site works cost whenever possible. Builder often includes a "provisional sum" where a certain amount/budget is added to cater for site works. However, there is no guarantee that this will not blow up. So tread carefully! Whenever possible, ask them to put it in writing that site works will be fixed cost.
    • Find reviews online about a particular builder you want to go ahead with, and check the feedback given to them by the customers on their latest builds.
    • Don't get too caught up with the nice sales person. That's what they're for, that is to influence you, to make you feel confident to sign with them. But, your result is actually determined by the site manager and the trade persons they use on the day of building. This is why you need to do your own research. Maybe worth visiting few houses they built previously and check if you're happy with the quality.
    • Ask for the builder's warranty policy.
    • Ask if builder will provide any incentives from delays. Some builders will actually pay you money eg. $300/week if their building schedule is delayed by more than 6 weeks.
    • Always check the fine prints and all the out-clauses of the contract presented to you. Worth getting a legal adviser to read over your contract.


    Basically, try to get as much information as possible regarding cost, upfront! Do NOT wait until pre-start before you find these out because it may have been too late by that stage and you can only add more costs. This is how you mitigate risks.

    Find a reputable builder and do not sign too quickly. Every builder wants your business, so the control is actually with you. But, as soon as you sign, the control is with them, and this is not something that you want to happen unless you're very sure and happy to go with them.

    Enjoy your first home!

  • Residential Property: Buying Existing vs Building New vs Renovate

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    Date Last Modified: 03 Oct 2018 07:49:44PM

    Residential Property: Buying Existing vs Building New vs Renovate

    In the property investing business, people are often in dilemma of whether they should build a new house, buy existing or renovate. Each has its own advantages and disadvantages. In this article we will explore a bit more what these advantages and disadvantages are and see which ones are most suitable for you.

    General Check

    Before we go further with each of the investment options, what we need to always make sure of is whether the property itself is the right property to buy. The long term goal is obviously capital growth, therefore, it needs a good balancing act between prices, growth, cashflow and how it can affect you as a person. We are a huge advocate for having a balanced life. There is no point of owning million-dollar property portfolio only to be living in a mortgage stress which you don't have enough cashflow to even enjoy your life for a short trip or holiday!

    So, as a general check, you need to make sure that your property has a good potential for capital growth. Things you can check:

    • Population, whether it's growing or decreasing
    • Closeness with CBD
    • Amenities such as closeness to bus stop and public transport, and if there are hospitals, schools, shopping malls, etc around the area
    • Check for the type of properties people demand in the area. You may think that people always like a large 4x2 house, but that's not always the case. A lot of older people prefer smaller house with easier maintenance.  So you need to know what your market is like, the age range, etc.
    • Check for demands in the area. This can be determined via the "days on market". A more high demand area has shorter "days on market" figure.
    • Check if the price in the area is growing. You can look at a 10-year trend for example and see how the suburb is performing.
    • Battleaxe lot and busy road street-front properties are often cheaper and demanded less, so make sure you're not overpaying for them.

    Buying Existing Property as an Investment

    The great thing with buying an existing property is you don't have to go through the process of building which, if you're not careful, can be quiet painful and long. Also, the property is ready for you to utilise as an investment vehicle right from day 1.

    The disadvantage is, a used property - depending on how old they are - often does not attract as high rent as the brand new counterpart, meaning, you might have to carry paying higher interest while holding onto it.

    Before you buy, you also need to ensure that you are doing your research carefully in terms of the purchase price. You want to make sure you are not buying above market price.

    With a built property, you will never know how much the seller spent on building the house. The last thing you want is to purchase a property above the market price just because the seller couldn't go any lower due to the amount he/she might have spent on it. A good rule of thumb we follow is, we want to make sure the building price is not more than the land price.

    For example, if the land costs $200,000 around the area, we want to make sure the building does not cost more than $200,000. As you're aware, building depreciates and land appreciates. Thus, you don't want to overspend on an asset that depreciates.

    So, our strategy to minimise risk when buying a built property as an investment is as follows:

    • Check purchase price ensure you're not paying above market price. You can do this by checking similar sold properties around the area. There are a lot of websites such as for you to obtain this data from.
    • To calculate how much it's worth we often calculate the land component from the selling price. For example, let's say the house was built in 2008 (10 years old) and the land size is 450sqm. The seller was asking $450,000 for it.We can then use a ballpark depreciation calculator website to calculate how much the building has depreciated for. Let's say it depreciates for $5000/year, meaning, over the course of 10 years the building has depreciated for $50,000. While we don't know how much the original building cost was, as it is a depreciating asset, we can assume that $50,000 is what it costs after 10 years.We then subtract the asking price with $50,000 = $400,000. We can assume the land component is $400,000. Now, check the price of similar sized sold lands around the area. If a 450sqm around the area sells for around $400,000 then you are paying about right.

      What if the land component sells about $300,000 around the area? Then you either overpay, or you have to make this judgement: A standard 4x2 house often costs around $200,000 to build. Therefore, a new house built would have cost you $500,000. Is the 10-year-old house you're purchasing worth $450,000, or should it worth less? Only you can answer the question. All we are demonstrating above is how to potentially calculate the right purchase price. You have to be very pessimistic with your numbers!

    • Check rent prices around the area for similar house. This can help you in determining how much cashflow you have.
    • Check for other outgoing costs such as strata fee, annual water and land tax, etc as this will be useful also to calculate the cashflow.
    • Get a property inspection done to identify any potential breakdowns so you can calculate the costs and how they will affect the cashflow.
    • Check with your accountant how much depreciation you can claim back in your tax return as this can assist greatly with your cashflow.

    Building a New House as an Investment

    Building a new house as an investment is what we prefer simply because you have total control on how much it will cost at the end. You also get a better tax benefit from the depreciation. However, building a new house also comes with its own risks! If you are not careful, the end cost can be astronomically high.

    Things we often do when building are:

    • Get a fixed final cost of the what's going to be completed house inclusive of all pavings, landscaping, etc! When building a house it will involve two things: site works (eg. the cost to "clean and prep" the land so it's ready for building) and the actual building of the house itself. As an investor, it is very-very important to know the end cost. As we always emphasize, investing is all about the numbers! You can get the builder to provide you with all these. You can even put a condition where if the cost is not fixed, you won't go ahead. What often blows out is the site works. You simply don't know what you may find in the land you purchase. It can be asbestos and other nasty things. However, it shouldn't stop you from buying and building, you just need to know these costs so you can add them into your calculation.
    • While it is not always possible to foresee the end cost, but you can at least get the builder to give you a very close idea of how much it will cost. These builders are very-very experienced thus will often know the ballpark cost of building a house in a particular area, and if the land is flat vs sloping, etc. Send them the address of the land you're interested in and they can do a quick check with local council, etc for any potential restrictions or costs. Builders will be very-very happy to assist you as they also need your business!
    • Don't put emotion into it but wear a renter's hat! You are not going to live in that investment house, therefore, there is no need of having wooden-venetian blinds that will cost you $2,000 each. At the same time, you also need to wear a renter's hat meaning that you need to make sure the house is rent-able. Renters are not thinking the same as owner-occupier. So you need to steer away from using your emotion when building a house for investment. If you're not careful, you'll spend too much money on all these depreciating add-on.
    • Build single-storey if possible. While double-storey house looks great and often rents higher, but you'll be spending around $100,000k more in the building (which depreciates). And not just that, older people with weaker legs don't prefer going up-and-down the stairs, thus, you're potentially removing some portion of the renter market segment there.
    • Don't sign contract too quickly with any builder! Again, there are many builders and you should pick the one that can give you what you want. They always try to get you to sign too early, and if you're not careful, it will be a messy undertaking if you need to get out of the contract!Get everything prepared upfront first eg. what house plan and at what price, what other offerings and add-on they can give such as evaporative aircon, stone benchtop, etc. Once you are happy then you can sign.
    • Ensure room sizes are adequate especially the master suite! If anything, what often sets a house apart to win a renter's heart is the master suite. We've had some house plans presented to us which room sizes are so small which we believe, when the renters look at them, will be turned away.
    • Ensure your house receives a great deal of light. Think yourself as a renter, would you want to rent a house that feels dark and small or large and bright? Check them window sizes on the house plan presented to you, ensure they can give the house plenty of lights.
    • Ensure the garage is heightened. By default it is 28 course which can fit an SUV, but when you try to open the boot, it may hit the ceiling. So it is best to go with a 31 course at the very least.


    Renovating is a great way of adding value to your house in a relatively short amount of time. While the theory is sound, there are some things you need to be aware of to ensure your risks are minimised.

    • Beware of cashflow when renovating. Since you can't rent the property out meaning you will have to carry the full burden of the interest rate.
    • Forecast how much you will spend on it. Get quotes from various vendors for fixing the areas you want to fix.
    • Check for potential crippling issues such as asbestos, damp, dodgy wiring, plumbing, etc as this can potentially increase your renovation cost exponentially.
    • If you're planning to sell, check average days on market of the area. You need to calculate the amount of the holding cost as this will eat up into your profit.
    • Be mindful of the capital gain tax also as this will obviously reduce your profit.


    In conclusion, whatever approach you undertake, has its own risks. You just need to minimise them as much as you can. The main thing is always to calculate the numbers. Treat this like a business!

    Don't just look at the capital gain alone. If you're not careful, by the end, after all the headache and stress along the way, you only find out you're making only a little bit of profit.

  • Property Investing: Too Good to be True?

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    Date Last Modified: 11 Oct 2018 06:55:30PM

    Property Investing: Too Good to be True?

    Property investing is definitely an excellent pathway to become financially independent. Think about it, the median price of a property in Sydney in 1970 was $18,700. In 2018 this figure has become $1,150,357! And will only continue to rise in the years to come.

    However, owning a property is more than just solely looking at the capital gain numbers like above. There are a lot more things to consider such as holding costs, finding the right location to ensure capital growth, getting the right loan structure, protecting your assets, general day-to-day administration, cashflow and many others! To put it simply, investing in property is definitely not the "invest then sleep" process which a lot of people have been hoping to do.

    There are a lot of costs involved in investing in properties both financially and psychologically. If you are not careful, you can have such an excellent investment property with high capital growth, only to leave you with no cashflow in your pocket and high mortgage stress. Life is more than just numbers while at the same time, we also need to plan for our future.

    So, is property investing too good to be true then? The answer is: it is not as long as you plan and minimise the risk as much as you can.

    The basic principle is quiet easy: you buy a property with high capital growth, hold then wait for it to increase in value. Then, you use the growth (called equity) to purchase more properties. And you keep accumulating that way. Or, you can accelerate the growth through renovation for example, where you can quickly add value to your property in the tens-of-thousands of dollars, if not, hundreds-of-thousands of dollars in a reasonably quick amount of time.

    Or, you can also be a property developer. You buy a huge piece of land, subdivide them then build on each and sell the property, or just simply sell the individual land block.

    All of the above sound very simple when you look at it from the "theory" perspective. They're just theories. Let's look at each individual scenario in closer details:


    Let's say you buy a property worth $500,000. Without getting too technical with Lenders Mortgage Insurance (LMI) and all that, let's assume you put in 20% deposit: $100,000.

    You have other upfront costs such as stamp duty, settlement agent cost, etc that often sums up to 5% of the purchase price. Then, you have the holding cost such as interest rate payments, annual costs (water rate, land tax), property manager fees, insurances, etc.

    "Oh but the property will double every 10 years, so all those costs would have been covered by the capital gain". Is it really? If you use a simplistic view of the example we mentioned above about Sydney property price which median was $18,700 in 1970 to become $1mil+ in some 48 years later, sure, if you take the average, it's $239,268 increase every year. The thing is, it doesn't work that way, does it?

    Throughout the years there will be demands, population growth, etc that will drive its prices up. However, until it happens, you still have to "hold" onto your property. And with all the holding costs, they will certainly affect your lifestyle at some point.

    What if interest rate goes up? As you hold longer, the property will run down over the years, then you have all the extra costs of having to fix the broken water taps, leaking roof, etc. "Oh but we can rent the property out so renter can cover the holding cost". True, but most of the time, the rent money will never cover the holding costs. What if you don't have a renter?

    Not to scare you, but what we're saying is, we need to be aware of all these risks and don't just take a blind eye believing what a lot of spruikers say about all the "positive" things property investing can be.


    Buy a super run-down property for $250,000 in an area where median price is $400,000 , then renovate its kitchen, change floors, etc which will cost extra $50,000. Few weeks later, after the renovation is done, sell it for $400,000. Pocket $50,000+ after tax. Perfect!

    But it's not that simple!

    If you're doing renovation, you can't rent the property out. Therefore, you have to carry the burden of paying the full interest until the day you manage to sell it. You also have to be mindful of the potential renovation costs themselves. The more professionals you hire, the higher the costs. At some point, you have to do some of the renovation work yourself. If you work full time somewhere else, it would be very difficult.

    "Ah, I can do it as a weekend job". But it's also the time that need to be spent with your partner and family. The longer your renovation project goes, the more costs you have to carry financially, physically and psychologically.

    Then there are renovation money pits you really need to be careful of such as asbestos, damp, bad wiring, etc.


    Buy a big block of land, sub-divide them and sell each for a profit. All sounds good and well. Except, the price tag of this type of project is often in the millions of dollars! So, until they're all "sell-able", can you carry the burden of the interest payment?

    Then not to mention having to deal with councils for approvals and regulations, etc. We knew someone who ended up having to sell all of his 8 investment properties just because the building project he was carrying didn't get timely approval from the council and he had to keep paying for the interest.


    We really don't want to sound doom-and-gloom. All we want to express is, while property investing can provide pathway to financial freedom, at the same time we need to be careful of all the risks and try to minimise them as much as we can.

    And this is only possible by doing a proper research and calculation prior to committing. We need to properly treat this as a business, because it is indeed, a business!

    In the upcoming posts, we will be discussing the various strategies we can implement to minimise these risks.

  • How to Achieve Future Financial Security and Freedom

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    Date Last Modified: 03 Oct 2018 07:49:24PM

    How to Achieve Future Financial Security and Freedom

    Let's face it, everyone that lives in this world has fear. I for one have some fear which to this date, I find it hard to overcome, for examples: fear of spiders, fear of height. Out of all the various fear that we might have, I think it is fair to say however, that everyone has somewhat this one very same fear: fear of future finance situation. 

    Financial fear is more than just fear of not being able to provide for 'myself'. In fact, through my observations, people who have future financial fear do so because they're afraid they won't be able to provide for other people. Their children, spouse and families.

    Media doesn't help either by publishing articles such as "house prices are too expensive", "young generation can never enter the house market", "prices keep soaring higher and higher", etc. If you are not careful, feeding yourself with these news everyday is truly bad for your body, mind and soul!

    But here is the good news! You have within you, the ability to secure your future financially. Everyone can do it. There is no magic in it. The key here is investing and education. One can't live without the other. You would have heard by now the word "investing" thrown around. However, without the right education, you are only planning to fail. Investing requires hard-earned money to begin with, and without the education and knowledge around it, it would simply be a gambling exercise.

    What is investing? Investing in my opinion is the act of making your money grow more than the basic-needs' price growth (ie. inflation). For example, if inflation rate is at 2%, it means that the price of every single item in this world (milk, cars, bottle of water, etc) would have increased by 2%. A $2 milk today will be $2.002 next year. It may not sound much, but if this keep happening every year, in 30 years time, that $2 milk will become $3.55. That's 77.5% increase in price! And we're just talking about milk. How about other items and needs? 

    The problem is, we can't always rely on our salary alone. Why? Because your salary may not be growing at 2%/year. Let's face it, how many of you have had a salary increase in recent years? I for one haven't had a salary increase in the past year. If you did have an increase, how much did it increase with? If the increase is 2% it means that you're just barely getting by. If you're not getting an increase, it means that you're actually bringing home less money simply because price of every item has increased by 2%. And as you grow older, your work effectiveness also decreases, thus resulting in even more salary stagnancy. In reality, the younger ones have more time at their disposal. They are also faster and can learn quicker.

    If we're not careful, relying on job alone is a risky future planning.

    So, this is where investing becomes very important. How come? Because generally, investing gives your money an increase that is way higher than the inflation rate. There are many forms of investments. Managed funds (superannuation included), property, shares, gold and other ones. My superannuation for example, grows by 10-11%/year. Property investing returns on average 8%/year.

    As you can see above, when you invest, your money will grow way more than the inflation rate and your salary. Thus, not only would you be able to pay for basic needs, but still have "leftover" to enjoy life even further. So, write this down:

    1. THE CONCEPT: To secure your future financially, you will have to make sure your money earns more than basic needs price growth. And the vehicle to achieve this is investing.

    Now, investing alone is not sufficient. What's more important is ultimately, the amount of money we actually take home. As I mentioned earlier, the financial fear people have is the probability of not being able to provide for their family when they can no longer work in the future. It means, we have to make sure that the money we take home can cover the cost of the needs of the family. The cost is different between one family to another.

    For me, to be able to provide comfortably for my family, I would need either $100,000 (before tax) and still have mortgage, OR $70,000 (before tax) without mortgage.

    2. THE EXECUTION: How much money do I need to be able to provide for my family comfortably?

    From here, we can actually now work the numbers backwards.

    If my investment returns 10%, to earn $100,000, I have to have $1,000,000 NET worth in my investment portfolio. This can be in the form of $1,000,000 in shares, gold, commodity or, if it's a property: 5 houses fully paid off rented at $450/week each.

    For me personally, my investment choice is property. Why? Because it would take a lot longer for me to save up to be able to buy $1,000,000 worth of shares. While with property, for every $50,000 I can buy one. And this is the great thing about it, if you pay Principal & Interest, eventually, in 30 years all of your mortgages would have been paid off.

    As long as you're discipline with saving money, saving $50k wouldn't take long. Coupled with the equity growth, you can keep collecting properties. And, if you want to be super defensive, and want to stop at 5 properties, you can. I myself have 5 properties now which in 30 years I know I would have paid off my mortgage, thus giving me the $100,000 passive income ie. FINANCIAL FREEDOM!

    And as you can imagine, in 30 years time, the rent would have grown. It wouldn't be $450 anymore which means you'll get even more income.

    Is it really this simple? Yes! Does it require hard work? No. Does it require discipline? Absolutely! If you just keep spending money on useless stuff instead of saving it, then no amount of money can help you. The more you earn will simply give you more excuse to spend more.

    Easy Buyer's Agent help clients buying the right property so that you have a product that is rentable with great rental returns while minimising risks such as vacancies, etc. Get in contact with us if you want more information on building financial freedom and security.

  • Going to Property Seminar - Being Prepared and Beware

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    Date Last Modified: 03 Oct 2018 07:50:41PM

    Going to Property Seminar - Being Prepared and Beware

    It is so often would you see advertisements, especially on social media, of property seminars. Most of them are free because they want to lure you in. Does it mean they're bad people? No. They, same like all of us, want to make money through their services. Some of them are offering education, some of them are offering investment opportunities with great return on your money.

    What we need to do as a prospective attendee however, is to prepare ourselves with knowledge so that we're not easily buying into all the "success stories" that they may tell within the seminar. Remember, if you're not careful, phrase like, "If you sign up with us today, we'll give you 50% discount on all of our training courses", or, "If you partner with us today, we'll guarantee your rental income" will cause making a blind purchase which you will end up regretting afterwards.

    Again, this is not a knock on the speakers. We, Easy Buyer's Agent, from time-to-time also do free seminars in the hope that we can market our service to a wider audience. At the end of the day, people (you and me and them), are trying to make money. We as the speakers are trying to sign you up as our clients, and you as the clients are coming into our seminar with the hope that you can also get wealthier.

    So, why don't we start this article with first understanding how the seminars work.

    There are two types of seminars:

    - One that offers you training courses

    - One that offers you investment opportunities

    All of them are mostly free of charge to the attendance. But you have to understand, just because it's free for you, doesn't mean it's not at a great cost for them (the organiser/speaker). Some of these seminars go for the whole day, and they have the whole crew with them. Imagine how much it would cost them in terms of flight tickets, room hire, etc. Therefore, the organiser would have calculated all these costs and run them against the potential returns and gains they would get out of it.

    These people are business men and women, meaning, it all down comes to the bottom line: the returns and profit. They wouldn't have run these seminars had they not projected a potential profit they would get out of it. Plus, they would have done these kind of seminars many and many times before, thus, they would know what to expect.

    Point to remember: free seminar is simply a business-as-usual for them which they will make a profit from.

    This is why we, as an attendee, need to be thinking as a business person ourselves. And as a business person, you don't just go blindly "opening a business" ie. buying their service or products, without first do your due diligence on.

    Let's uncover what will be going down in each of the seminar types.

    Training Course Seminar

    For a training course seminar, the advertisement would often lure you with the "Let me show you how" phrases. Then at the seminar day itself, they would often entertain you with how property investment works. And the speaker will often talk to you about the number of properties he/she has and how he/she can now live on the passive income alone.

    Should we believe them? Maybe, maybe not. The theory all sounds interesting but I would always take it with a grain of salt. In reality, they never uncover how much debt they still have remaining. And if anything, with the current tight lending from the banks, I doubt they can exercise their equity growth to buy more properties easily. And I doubt they can already live on their passive income alone unless they have paid off some of their properties or at least reduce the debt down.

    They would then go on and invite some of their students with their success stories. Should we believe the students' stories? Maybe, maybe not. Remember, as with anything, not everyone will be successful. Those ones who are successful have gone further, done more work, taken more risks. It's like looking at Roger Federer and wishing how nice it would be becoming a tennis player earning millions of dollars.

    The thing is, there are tens of millions other tennis players who never make it to the level of Roger Federer. Same here. With the success stories, take them with a grain of salt. Always remember that success takes hard work.

    Once they make everyone excited with the potential substantial amount of money the attendees can make, here comes the sales pitch. "I would show you how, etc etc etc. We're running a training course at such-and-such date, and for you all tonight, the price has been slashed by such-and-such amount".

    Now, education is important. We should never stop learning. So, it all comes down to how much you think the education will work. But always remember, that education means nothing if you're not taking any actions. We've known people who have spent dollars to get into the high-end training courses (and we're talking about $30-50k spend), and not yet taking a single step to execute the strategy.

    Don't let this be you. Have I ever signed up for any of these training courses? Yes, the one that cost me $40 and not the $5000.

    My suggestion is, before you coming into these kind of seminars, do your research first on both the speaker and the material they're presenting. Or maybe the run-down of the event experienced by other people. There are tons of information on the net for this. Remember, these seminars don't just happen once. The organiser has done this many many times, therefore, the chance is, there are people out there who have done it and share their story online.

    Investment Opportunities Seminar

    This one is often bigger and more "flashy" in nature. The reason is, they're trying to sell you their property products. Therefore, they have to make you believe that there is a ton of money to be made if you partner with the organisation. This is the seminar where you have to be really careful, otherwise, you'll make blind decision and will regret later. Remember, buying a property is not like buying a laptop. You can end up with hundreds-of-thousands of debt which you may never be able to repay and may send you bankrupt.

    In this seminar the speaker will often start with how property investment works, and how you can grow your portfolio so you can eventually achieve financial freedom. "Property prices go up by 8-10% on average, so a $500,000 house today would be $550,000 in value next year. You can then access the $50,000 to buy more houses, etc etc". "Then in 10 year guys, your $500,000 now become $1,000,000 so imagine if you have 5 of these because you've bought 1 every year, how much money you have, etc etc".

    All sounds great in theory. Problem is, do you really think banks would easily lend you money to buy property after property every year without first assessing whether you can serve the debt or not? Do you really think that bank would just go blindly believing that your property has increased 8-10% every year? Absolutely not!

    And not just that, they even go further with, "We have a really great investment opportunity for you guys to add more into your portfolio. This is the estate we're currently building which 3/4 have sold. It's close to this and that amenities, few minutes away from train station, etc, and we can even guarantee you with a rental income for the first 12 months. So it's really low risk. Imagine the capital growth due to the location, etc etc etc".

    Does it mean they're wrong? Maybe not, it all depends on the numbers. They also never uncover if the sold ones were really sold. 

    What they're trying to get you to do is to make a rush decision, thinking that it's a good idea to purchase that investment property. Think about it, how much advertisements cost you think they've spent to market that estate in the first place? Who will be paying for these? YOU as the potential investor. How? By adding it into the sale price and influencing you to buy.

    Even with the rent price guarantee, you really have to check the terms and conditions. These people are running a business, so if it's not going to give them profit, they wouldn't have done it in the first place.

    At one seminar the speaker said the property he was selling was appraised for $420/week rent. I went on the net and checked the property that actually get rented in that very same suburb was actually renting for $390/week only. So that's already an inflated statement right there.

    You see, but no one did what I did in the seminar. They just blindly agreed with the speaker just because they've been lured into all these get-rich-quick scheme by showing them the potential life they can have by buying the properties from them, etc.


    As a conclusion, I always attend these seminars with grain-of-salt mentality. I never sign up for anything they offer until I've done my due diligence. Especially if you're on the property investment seminar, do your calculation during the seminar. Check the suburb of the property they're trying to sell. Check the surrounding areas for prices and make sure it's not elevated.

    Then, check the kind of inclusions you get when you sign up with them. Remember, these are all off-the-plans scheme so you actually never know what you're getting. You don't get to deal with the builder, they can promise you the world but in the end they may strip some things away without you knowing.

    Remember guys, NEVER EVER go blindly with anything. After all, everybody needs to invest, but property investment is not the only way, and it may not be the right vehicle for you anyway.

    Beware and be prepared!

  • Why Using a Buyer's Agent to Buy Property

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    Date Last Modified: 05 Oct 2018 08:47:25PM

    Why Using a Buyer's Agent to Buy Property

    Someone rang me from a marketing company asking me if they could offer their service to help me with promoting my website. As someone who came from IT development background, I knew how to do it all myself. But I thought, "Let's just listen to what he had to say". After all, you could have learnt all the skills in the world and done it all yourself. Problem is, do you have the time? Just like you're going to a dentist to fix your teeth instead of doing dentistry course yourself for 10 years, same principle applies here.

    So anyway, we chatted and he was so curious about the business I'm running. The very first question he asked, "What is a buyer's agent and how is that different from a real estate agent?". Wow....what a great avenue it was to hone my marketing skill! That was the exact same question that my potential clients have asked me!

    I explained, "Well, Real Estate Agents are seller's agent. They help people selling properties. While for me, I help people buying properties. Why would you use me? It's because buying property is a very daunting and time consuming exercise, isn't it? Think about it. You have to first do your research, do your numbers, project your profit, then after that you have to deal with real estate agents, do the negotiation, do the inspection. And if you're building, you have to manage your builders right, otherwise you may end up paying a lot more than what you were promised initially. So, instead of having to go through all this, what if I can minimise all that pain away from you? Let me do all the hard work while you keep doing what you enjoy doing with your life, and in the end you know you would be settling on the right property. How does that sound?".

    "Wow, I didn't know that kind of service exists! That would be really helpful". From his tone, I actually felt he was interested himself. Who's selling here? Hm...

    For you who are reading this article you might have the similar question yourself. Why would you pay someone to buy a property? Can't I do it all myself? It's a really good and fair question!

    Buyer's Agency service is not for everybody. I'll tell you that straight away. This service is for someone who want to settle on the right property but not having the time to do it all him/herself. Everyone can buy just any property. But it takes a lot of time and effort to find that "gem" ie. the right property!

    What is the right property? To me, the right property is a property that:
    1. Has demand of purchase
    2. Has positive cashflow

    Location, location, location determines if a property has demands. However, if you're just looking at location alone, and yet you have to fork out tens-of-thousands of dollars every year to hold, then you're buying a bad property. Negatively-cashflowed property is ALWAYS a wrong property to buy. Why? Because not only will it reduce your profit line by a lot, the banks can't also lend you money to buy more properties. It's like running a business that needs daily money injection because its revenue can't keep up with the cost. Negatively-cashflowed property is a losing business and you can never win!

    I published my personal story here on how I lost $50,000 on negatively-geared-and-cashflowed property, just in case you're interested.

    Just like with anything. If you just want to do anything, everything at a mediocre level, then you'll be mediocre. It takes effort, time and talent to be a Roger Federer. Same with property. If you just buy any property then you'd just get mediocre return. It's a waste of time, money and effort. Owning a property takes a lot of admin work, from having to deal with the bills, then the property manager, the tenant, the paperwork, the tax, etc. And if after all these, you only find out that you're still forking money out of your pocket, to me that's just a waste of of your life.

    This is why, having said all that, a Buyer's Agent's service would be very helpful. For us, we charge 2% of the final purchase price. Meaning, if in the end the seller agreed to sell his property and settle for $500,000, you as the buyer would be paying us $10,000. "What..that's a waste of $10,000", you might say. But remember, what if I tell you that the original asking price was $550,000 and the median price was $520,000 and yet, we managed to negotiate down to $500,000? What if I tell you that the property was in a golden location: in a suburb that is growing, glowing affluence score, close to freeway, schools, hospitals, and 200m from the nearest bus stop; that the rental yield around the area was high and the property would give you positive cashflow?

    You see, I don't know about you, but the $10,000 you pay is nothing compared to the value you're getting out of the property that you settle. Furthermore, imagine how many hours you would save in order for you to find that property in the first place?

    As a Buyer's Agent, because we do research everyday, our process is very efficient. Especially here at Easy Buyer's Agent, we have developed a lot of automated systems that can source data from various places very quickly. Therefore, as far as research goes, we can turn around a lot quicker than you would normally do by doing manual process.

    There is no magic in buying properties. You all know that. But again, it all comes down to how quick and efficient you can go about it. You can spend all the time looking for deals only to find out that you're missing out simply because you're not quick enough to snatch them.

    It's like trying to save $4,000 doing your own house painting. A professional can get it done in 5 days. While normal people like us, in the midst of our busyness, may take 4-5 weeks to finish. Then, our quality may not be as good. Think about it, how many hours you would have burnt along the way? Isn't it actually worth paying the person in the end?

    I know I'm super biased here because I'm running a Buyer's Agent business, so of course I want your business. However, having worked as an IT Consultant, I knew exactly the very reason why a company would pay me $150/hour to build their website. It's the expertise that comes with it. You want to make sure your website to be scaleable, secure, user friendly, accessible, according to standards, etc. You see, if you want to be mediocre, you'll get mediocre. But if you want to get a gem, paying a professional is worth the money.

    So, having said all these, the ball is now in your court. Whether a service like us would worth your money or not, it's for you to answer. All we can offer is our expertise, an assurance that you would be settling on the right property. And not just that, especially for us at Easy Buyer's Agent, having peace of mind is the forefront of our value offering. We would try our very best to shelter you from all the stress of property buying.

    Thanks for reading!

  • Off-the-Plan Purchase and Their Risks

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    Date Last Modified: 07 Oct 2018 06:55:58PM

    Off-the-Plan Purchase and Their Risks

    I noticed several times on my Facebook feeds a developer advertised an Off-the-Plan development opportunities where the end valuation would be almost twice the development cost ie. 50% return. The advertisement went onto something like "Invest now in a vast growing suburb. Total development cost including site is $2.7mil and the end valuation will be at $5.5mil, it will be a 50% return on your money". A 50% return means, if you invest $100,000, by the time the project is finished, your money will be worth $150,000.

    Sounds good to be true? Maybe, maybe not. This article is not about knocking people who are trying to do business like this, but rather, try to remind you of the risks. Investing in an off-the-plan purchase like this is almost the same as using a crystal ball to predict where the property market is going. Basically, you're buying into the promise where it would be valued at $5.5mil. The question is, how do you know it would be valued at $5.5mil? Yes, they can say they have done all the research they can, but at the end of the day, they're building a product which nobody would know if they would sell or not. 

    "What's the difference between this and your own house-and-land package investment property though?", you might ask. It's a good question, isn't it? While you're also bidding on people liking your product, the difference is, with house-and-land you can actually have more control over the build. You get to choose what features it needs to have and its cost. When I'm building my own house, I get to decide how my end product needs to look like. While with off-the-plan purchases, a lot of the times you don't get to do this.  By the time it's finished building, you'll end-up with multiple similar-looking products competing with each other. Again, why would yours be valued higher or why would a renter choose yours over the others?

    Other off-the-plan examples are apartment builds. This is even a riskier venture, especially if it's a high-rise apartments. When it's finished building, you'd end up with hundreds of properties all looking alike to each other.

    Advantages of off-the-plan purchases

    1. You leave the stress to the professionals. Let them do all the calculations, the build, etc. After all, you yourself wouldn't know what the market might want anyway, would you? Same as managed fund or superannuation. You just leave your money to the professionals who will give you a good return.

    2. The areas which these off-the-plan properties are located are often great ie. close to amenities, shops, etc.

    Managing risks

    Off-the-plan or not, either way property is a long game. If you can hold that property for a long time, you're always in it for the win. So, my tips when you're purchasing off-the-plan:

    1. Check the location to ensure that economy is strong in the area. Prices and growth are always driven by jobs and financial situation of the area. The last thing you want is for the end product to be valued the same (worse, lower than) the original build price due to economy downturn.

    2. Check for selling price of similar products in the area. It would take up to 2 years for an off-the-plan build to finish. And remember, the developers are mostly NOT using their own money (that's why they try to lure you to invest in the first place), yet they have factored in their margins in the build price. Then on top of it, the marketing costs, etc. Therefore, often, the build price is already increased way more than the current market price. This is why you have to make sure that the purchase price (and the projected evaluation/profit) is according to what it should be.

    3. Check if you need to pay strata fee or not. If you do, check how much you have to pay. I can't stress this enough, but strata fee is a cashflow killer! And often, these off-the-plans purchases are in the likes of townhouses and apartments, which are attracting strata fees.

    4. Check the inclusions and features you get with the property you're purchasing and make sure you're comfortable with them. Remember, the end products wouldn't always look like what they were promised at the beginning. This can be due to an increasing cost, thus, at the builder's discretion they get to change some of the specs. So you have to keep this in mind also.

    5. Check demands for similar products in the area eg. rent price and purchase price.

    6. Get a solicitor to run through the contract papers to make sure you're comfortable with everything that is set in there. To minimise risk, you always need to have control, meaning, you always have to understand what you're getting yourself into.

    7. Check cashflow, check cashflow, check cashflow! This what allows you to hold your property for a long time.


    Buying the right property is the only way. Off-the-plans or not, you need to be able to hold onto the property for a long time. And the only way to achieve this is to maximise your cashflow as much as you can. Therefore, you need to understand the costs that are involved with your property. I hope this article helps!


  • When Market Crashes, Who's Crashing With It?

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    Date Last Modified: 11 Oct 2018 11:35:21PM

    When Market Crashes, Who's Crashing With It?

    60-Minutes has released an episode about how Australian property market will crash. It's not IF it's going to happen, but rather, WHEN. That episode has drawn a lot of attention (obviously), as most people either invest in or own properties. And not just that, imagine the ripple effect towards Australian economy in general. 

    Some people label it as fear-mongering and choose not to believe it, but some actually do believe. Either way, based on historical data, market correction always happens. And when it happens, prices will drop. I remembered a good quote about shares investing which it said, "A company's shares is only worth by how much people are willing to pay for it". How also true is that for property investment?

    What drives property price is supply and demand, basically, it's how much the buyers are willing to pay for the properties that are selling on a particular area. Bubble or not, nobody knows. As long as there are buyers who want to buy a particular property at a particular price, so will it become the price of the similar properties in the area.

    So, what's causing the market to crash then? Is it the property prices that are getting too expensive? Like I mentioned earlier, as long as there are buyers who are willing to pay for it, no one can say it's too expensive. What's causing market to crash in my opinion is mortgage stress. Humans are humans, there are always greed and fear. We often bite more than we can chew. We buy first and worry about the repayments later. People are always jumping into the money bandwagon ie. where the money goes, so go the people. And many will do anything to get a slice of that "promised equity". 

    The problem is, in NSW and VIC especially, property prices are very-very expensive. If you go to and look at their heatmap, literally 40kms radius from the CBD, property prices are in the $800,000+. That's just crazy! I for one wouldn't live further than 20kms let alone 40kms+. I would say I'm lucky I live in Western Australia where there are still a lot of $300-500k property within 20kms radius. But for NSW and VIC, my God...are they expensive!

    Let's take a $800,000 Principal-of-Residence (PPR) property. Let's say you have 80% loan on it eg. $640,000. At 4% interest, your annual repayment would be $25,600 = $2134/month. And you would need to pay this using your after-tax income. Then on top of it you have annual water rates, land tax, etc. So before you know it, property expenses alone are around $3,000/month. Depending on how much you earn, to some people this can represent 30-50% of their household income. That's very risky. And this is if you own an $800,000 house. Imagine if you own a $2-3mil house, which in NSW and VIC are not a rare occurrence, the mortgage stress risk will even be higher.

    What if you have an investment property and receive rents? I for one won't buy an investment property for more than $500,000 simply because the risk of negative cashflow is too high otherwise. You can argue all day long about the capital growth and such. But, betting on capital growth alone is very risky. If you can't service the loan, you'll be in trouble. How much do you think a $800,000 can rent for? There is only so much a renter would be willing to pay. Unless you start getting creative ie. renting it per room, etc then the yield would be very small, thus, your negative cashflow will be too great, so much so it puts a lot of pressure on your monthly repayment.

    As soon as someone is going through a mortgage stress, he/she will no longer be able to see the "light of capital growth". Why? Because capital growth is all "on paper". It's not liquid. What's liquid is, your monthly repayment. That's what you can feel straight away. And when this happens, people begin to get worried and wanting to get out straight away. Thus, start selling properties at cheaper price. This is when crash happens.

    Now imagine the snowball effect. People around the area will start noticing their neighbours are selling their properties at a lower price which they have paid $100-200k more at the start. This would be a psychological blow and causing people to be in fear. When fear grows, panic grows. When panic grows that's when crash happens.

    So, in this opportunity I would like to share with you the type of investors/owners who will be mostly affected by a crash, and how to mitigate the risks ourselves.


    Who are these people? These are the ones who bring in 6-figure household income but also live in a relatively-high lifestyle "on loan". They'd be driving in BMW and what not, but not fully paid off. They would live in a $800,000-$2mil house but  have 80-90% mortgage on them. They may own investment properties but all of them are negatively geared. I had friends who bought a $600,000 investment house which was rented only $450/week at the peak of the market! Now the rent went down to $350.

    They can be a small business owners running a consulting or service businesses. When market is good, they can be paid high hourly rate. But when market is slow, their rates would have to go down a lot. This happened a lot in WA during the mining downturn where they used to charge $150-200/hour, now they can only charge $60-70/hour. As soon as interest rate goes up, or their employment becomes unstable, these people would be the ones to experience huge level of stress.

    Basically, the repayments on mortgage will be very high, 50%+ of their household income.


    How many times do people buy property with the pure basis that "it will double in value long term, and, you can also offset your tax"? The problem is, if it keeps bleeding money out of your pocket, you're running a losing business there. And eventually, you'd be running out of cash.

    When the interest rate goes up, this can push you way even further down in the red and people who own this kind of properties would be experiencing a lot of mortgage stress.


    Properties in mining town and regional areas have a very high risk of collapsing in value. The reason is, as with properties in general, price is often determined by population and job growth. And as soon as there are no jobs, which in the case of a mining town, as soon as the the mine closes and the project is finished, the population and job growth will quickly fade away. In this instance, you can see a property value slashed by at least 50%. That's just madness! And not just that, the rent price will quickly fade away also and it would just leave your investment properties down in the super negative cashflow territory.


    Commercial properties are only as good as there is someone willing to rent. Yes leases will be longer, but as most of the renters are small businesses, the chance of them collapsing in the first 5 years is great also. During market downturn (such as in WA, during the mining downturn), a lot of small businesses couldn't survive. Thus, leaving the vendors in limbo with their rent income. Thus, if you have a lot mortgage remaining in your commercial property, you're in it for trouble. Not only will you find it hard to find the next tenant, even if you do, you might have to reduce the rent price by quiet a lot. Thus, reducing your cashflow.


    So, what can we do to mitigate the risks of market correct or collapse or whatever you want to call it? I've got few strategies:

    1. Buy positive cashflow property. And I'm not talking a regional property where you would receive super high cashflow, but I'm talking about a normal passive investment property which you can receive positive cashflow after your tax return. Even better, as interest rate is at record low, if you put in a bit more deposit eg. 20%, you can potentially get a positively geared property.

    2. Don't buy high risk properties. Or at least if you do, milk it during the good times and have the courage to sell as soon as you sense the market is about to have a correction. Just because you're milking it currently, you'd be thinking it will always do it for you in the long run. These high risk properties only exist for a short period of time, and you have to keep monitoring it to ensure job growth still exists in the area.

    3. Don't buy a property that costs you too much. Keep the mortgage repayment of all your properties to 30% of your household income (inclusive of rent income). Remember, interest rate can always go up and you have to be prepared for it. If it goes down, treat it just like a bonus.

    4. Have a buffer account. Always save for a rainy day. When money is good, things are easy. But the season is not always sunny everyday. Sometimes it becomes windy and rainy. Ensure you have at least 6-12 months worth of money staying in that buffer account to cover all your costs.

    5. Don't live beyond your means. The middle class always have the tendency of showing off with all the luxury stuff. The thing is, nobody cares. I used to be the same person whom thinking too much about what people say about me and all the stuff I have. I have now found out that no one actually cares. No one actually cares what cars I drive and all. If anything, it's me who is carrying the burden of the loan and stress!


    Eventually things will bounce back. The thing is, it would take years before it does. So, until then, you have to have enough buffer and mitigate the risks as much as you can. As for me, I like it low risk. Who cares if I'm not making millions of dollars fast, as long as I can live my life with a lot of peace.

    I love my life, my job, and I have passive investing on the side which I know, through it, combined with the super I keep building, by the time I retire, my financial future is secured. I ask nothing more of this life.

  • How Property Passive Investing Can Secure Your Family and Children's Future

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    Date Last Modified: 17 Oct 2018 06:36:32PM


    I currently own 5 properties with 1 being Principal-Place-of-Residence (PPOR). If I keep paying Principal-and-Interest (P&I) on all of them, we all know that all mortgage would have been paid off in 30 years.

    I'm now 35, therefore I know that by the time I'm 65 ie. retirement date, my 4 properties, if they're rented at a very modest $400/week will generate $1600/week passive income. That is $6400/month = $76,800/year.

    So, if I'm being super defensive with my investment and decide not to buy any more properties, by the time I'm retired and can no longer be as productive as I'm now in terms of my job, I still know that I'm set financially. $76,800 is sufficient to pay my bills. And on top of it, I can decide to work on something light like part-timing at supermarket or driving Uber.

    And as you know, in 30 years time, rents would have increased so I'm confident it would be more than $400/week.

    I can also use these investment properties as a "capital gift" to my children, to prepare them for their future. Lets be real, everyone needs every help we can get to get us started, and I want my children to be in a better position than I am.

    I don't want to use property as a vehicle to make me rich. I'm already rich ie. I have a good paying job, I'm healthy and I'm enjoying my life. I ask for no more. My only plan is, as I grow older, I may not be as productive. Therefore, I might not be able to bring in the same amount of salary as I am right now. When this happens, I know my investment properties can help me with passive income.

    Plus, the superannuation I have, which I estimate would be about $500,000 by the time I retire, can be used to pay off any debt remaining on my investment properties. Or even, I can use it to buy even 1 more property fully-paid-off and downsize. At this time I would have 5 investment properties + 1 PPOR all fully paid off, which would have given me at least $100,000 in passive income.

    However, all of these can only happen if we buy the right properties in the first place. If your properties keep bleeding money, there is no way you can hold onto 4 properties for a long time. It would give you grief. You would suffer from mortgage stress. This is where we Easy Buyer's Agent can help, to ensure the property you buy doesn't bleed money, or even if it does, it would be very-very minimal, thus, allowing you to hold them for a long time and put strategies around them.

    Please, please, please BEFORE you buy anything, get in contact with us. We don't want you to go down the wrong path and buy money-bleeding properties anymore. Let us be your buyer's advocate. We have a lot of insights we can share with you.

    PS: Guys, please ALWAYS remember, your job is temporary. Never rely on it 100%. As you grow older, you won't be as efficient, and you will not be as valuable as the young ones who have more time to learn, are quicker and brighter!


  • Property Purchase Gone Wrong for First Home Buyers

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    Date Last Modified: 17 Oct 2018 08:28:11PM

    Property Purchase Gone Wrong for First Home Buyers

    DISCLAIMER: This is just our personal opinion and story, and is not intended to undermine or offend anyone in any way.

    To this date, a lot of people still have that desire of owning their own house. I don't know if it's cultural, but from what I've observed, owning our own property somehow gives us a sense of security. Especially for people from the country I'm from: Indonesia, we have been taught since we were little that owning a property is a must. It's even a way for people (and yourself) to measure your success.

    Because of this culture, a lot of my friends and families, when they have started working, are in the market straight away looking for a house to buy. Most of the time, they're looking for a Principal Place of Residence (PPOR) ie. the house they would live in. For those who are already in a longish-term relationship, this is a great opportunity for them to start planning for their future.

    As someone who just started working, obviously they wouldn't be able to buy in a posh suburb, unless of course they get "fund injection" from their parents. I have friends who were able to buy in the $800,000-$1.5mil price range with the help from their parents on their downpayment. I should say though that, this is a rare occurence. Most people I know are FHB in the FHB' price range.

    The way property world works is, the closer you are to the Central Business District (CBD) ie. the place where jobs are often located, the more expensive the property price becomes. Therefore, as you would imagine, FHB' property price range is quiet low (so that they can afford it), thus, location-wise, is often located in an area that is very far from the CBD. For me personally, it would be very inconvenient for me. Yes, the price might be affordable and all, but if I have to spend 1-hour one-way to my workplace every single day, that would get to me eventually.

    But here is the thing. A lot of FHB don't mind that - initially. I've seen so many FHB just buy any house in any location for the sake of getting into the property market without thinking further what the impact would be. If they're not careful, that house that they thought would be a dream house, can turn into a nightmare.

    With FHB area, most of them are sold as land only. Therefore, they have to build. And not just that, the First Home Owner's Grant (FHOG) benefits new build. Thus, would make sense for them to build new anyway. The problem is, FHBs are often inexperienced. Not only are they not experienced in negotiating a good price for the land, they are also not experienced in dealing with builders. Therefore, as you can see there, the price they're paying for their property can skyrocket very-very quickly.

    Think about it this way. As a land developer, knowing that you would have a lot of demands from First Home Buyers (FHB) + the FHOG, wouldn't you bump up your selling price? Same with the builders. I'm not saying they're bad people, it's just everyone is thinking about their own pocket. I mean, why shouldn't they?

    FHBs are buying houses like there is no tomorrow. And just sign up with builders like there is no other builder. These builders will put up advertisement like, "Home and land package starting from $300,000", or, "With $200/week you can now own your own house", etc and FHBs will be drawn to them like crazy. The problem is, ads are ads. Ads are like screensavers on your desktop. They look awesome at the beginning, but as soon as you get into it, you'll see the real thing. As soon as they sign up with a particular builder, then costs start to add: siteworks, other add-ons, etc. Before they know it, they would have paid $50-$100k more than the original advertised price. Combined that with the land price that hasn't been negotiated, FHBs can be settling for a $420-$450k house in an area that should just be at $350,000. And no, I'm not even exxagerating.

    So, these are some of the risks that FHB need to be aware of:

    FHBs are thinking with their emotion. I mean, why shouldn't they? After all it's their dream house, right? But little do they know that builders make their money from all these addons. Do you really need a beautiful-looking sink tap that cost $700 each in an FHB suburb that is 35km far from the CBD?

    FHBs area are full of other FHBs. Therefore, the salary of the people that live there is pretty much an FHB salary. How would you think that would help driving the property price up? As soon as they're promoted at their work and earn higher salary, they would have moved out from that suburb because they can now live closer to the CBD.

    These suburbs are often far from anywhere. Therefore, a lot of FHBs will eventually find it very inconvenient for them to live there. Yes they might be paying a relatively cheap price for the property, but everything else becomes very expensive eg. petrol, mileage. And plus, think about the stress consequence of having to drive that far from your workplace every single day.

    Worst of all, the investment risk. Now that FHB wants to move out from the area and thinking of renting their place out. Do you really think they can earn a good rental income? As I mentioned earlier, generally people who live in FHB areas are other FHBs. So income is already quiet modest. If anything, those who decide to rent can even be someone of a lower income. And, since they've spent too much on the property purchase initially, their equity growth will be very minimal. So add everything together, FHBs are now left with a property that just keeps bleeding money.

    If you are a First Home Buyer who is thinking of buying a property, please please please get in touch with us before purchasing anything. We are confident we can give you a lot of valuable information. There are a lot of suburbs to choose from and we can put various strategies to help you with your property purchase. You don't have to buy in a FHB suburbs just because it's affordable!

  • Property Purchase Gone Wrong for First Investors, Just Because You Have Money, Doesn't Mean...

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    Date Last Modified: 19 Oct 2018 07:30:09AM

    Property Purchase Gone Wrong for First Investors, Just Because You Have Money, Doesn't Mean...

    In 1970, Perth's median house price was $17,500. Let me just stop there right away and ask you all, "Who would want to would have lived in this era?". In 2016 that median became $566,000. In NSW it was even crazier! In Sydney, 1970's median was $18,700, and at 2016, that median became an eye-watering $1,124,000. Looking at this statistic, no wonder everyone wants to jump into the property bandwagon. A lot of people have this perception that property can make you wealthy. Sorry, let me rephrase that. Not just wealthy, but SUPER wealthy. I mean, some of the world's richest billionaires were coming from real estate industry.

    And I must admit, I, too am tempted to do the same. Even though I might not shoot for being a billionaire, but at least I live with the believe that property can somewhat help improving my financial situation a lot. Well, truth be known, yes it could have been - had I not just blindly gone with purchasing any property and hoping it would double in value. The problem is this: property investing is very much running a business. And to run a successful business what matters is the bottom line: profit. Or should I say: ROI - Return of Investment. No matter how good your product is or how good you think you are, if the bottom line is not realised, then you haven't run a successful business. And unless we have that sort of mindset, our property investing is doomed to fail.

    I used to think that a billionaire was just purchasing a footbal club for the sake of having fun. I mean, he's got money, right? He could have just spent on whatever players he wants and does whatever he wants with the club. His business would have earned him money even faster than what he would have spent anyway, right? This is where I was wrong. A billionaire just doesn't throw money away just because he can. He runs everything like a business. He has to get a return from his investments. Sure, the investment might not just money. It could be time or enjoyment. Either way, nobody throws money away for free.

    Do you really think that someone who runs a non-profit organisation does it by throwing money away for free? Surely not! They have KPI to meet. They run it like a business. They have to measure the ROI, etc. Therefore, unless we think this way, we would never be successful in property investing, or in life in general I should say.

    Without running things like a business, we would simply be wasting time!

    So this is a case study of an investor property purchase gone wrong. I know someone who is very wealthy. One day, he chose to buy a property for $600,000 cash. The problem was, that property only rented for $450/week at the height of mining boom. I personally would have steered away from that property in the first place. Think about it... if you do a raw calculation, annual rental income is $450*52 = $23,400. Then if you divide this by $600,000 you get 3.9% yield, which in my opinion is a very-super-modest return! I mean, at the height of the mining boom interest was up to 10%+, so, had he put the money in the bank, it would have given him a lot more return than the property would.

    "Well Tommy, you haven't accounted for the capital growth". True that. Fast forward few years later to 2018, the property is currently valued at $480,000. And, to add insult to injury, it is currently rented for $350/week. Sure, it is still a 4% yield, however, it's a missing opportunity for him. He could have used the money to be invested somewhere else that would have given him better return on his investment. There is not much he can do at the moment other than just trying to keep the property and let it tick a long. And as the years go by, more maintenance needs to be made to the property, thus, more costs, meaning, less yield, etc etc etc.

    Am I saying he made a wrong decision? Well no one had a crystal ball. He got cash, he took the risk. Who would knew that mining would go bust? What I'm saying though was the type of asset he purchased. The fact that it cost him $600,000 with only $450/week rent. That was the kind of property I would have avoided in the first place. But hey, the good news is, it's all paid off. He's got no mortgage on that meaning the situation wouldn't have affected his personal life whatsoever.

    But what about the rest of us, investors who might not have the same amount of capital as he does? What if we need to borrow money from the bank and yet our property keeps bleeding money? This kind of scenario is what would have added to our mortgage stress. All this highly negatively-geared, negatively-cashflowed property is what's problematic. I know people who buy $1mil+ house as an investment. You can never recoup the cost on a purchase like this. There is only so much you can earn from rental income. And for a $1mil+ property, the interest + outgoing costs would have been a lot more than the rent income. Straight away, you'd be in the red.

    I for one never bet on capital growth alone. It's a risky preposition. And especially now with banks are tightening their lending, a lot of investors can't access the equity anyway, nor can they sell the property. Market is slowing down and you're only left with one option: that is to hold onto that money-sucking asset. And worse, if you borrow money from the bank and the bank reckons the valuation comes short, they can force you to sell your property and your other properties just to recoup their cost. This is how one lives under mortgage stress.

    So, the take away from this is: just because you have money, you shouldn't give it away just like that. Be vigilant as an investor, treat everything like a business. Can I invite you investors to talk to us before you purchase any investment property? We are confident we can give you a lot of insights and information so that you are minimising your investment risk as much as possible.

  • The Property Clock - What is it? And What Do You Need to Know?

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    Date Last Modified: 21 Oct 2018 06:04:45PM

    The Property Clock - What is it? And What Do You Need to Know?

    Have you heard the saying, "In Australia, property prices double in value in every 8-10 years"? While the statement might be true if you look at the property market holistically for the past 30+ years, in reality, every year, property prices are going up-and-down based on economy cycle. Put it this way, some years your property will grow by 1-2%, some will be -10%, some will be +30%. But on average (over 30 years+), they should grow by 8-10%. I hope this makes sense?

    Unlike putting money in the bank which it is guaranteed to grow annually by whatever interest rate they're giving for that particular year, with properties, you have to look at it from a long-term point of view. If you look at it year-by-year only, it would go up and down depending on the market condition.

    This market condition is what I call "The Property Clock". My mother used to say, life is like a wheel. Sometimes you're at the top, sometimes you're at the bottom. And market condition is exactly like that. Sometimes it's at the top, sometimes it's at the bottom. Sometimes jobs are really growing, government decides to put in a lot of resources to build the city/country, other countries decide to import a lot of resources from Australia, etc. Thus, creating a lot of demands for properties ie. price increase.

    However, at some point, all development needs to finish. Governments can't keep building without being able to manage them. When this happens, everything cools off. Jobs are not growing as much. Salary stalls. Some jobs need to even be cut off. People are not earning as much. Thus, putting a lot of downward pressure on property market. Demands are low, banks are tightening, etc. Thus, price decrease.

    But, all downturns need to finish also. At some point, as population grows, demands on infrastructure, etc will increase. Thus, pushing governments to start building again. And, there would be more businesses open, more start-ups, etc. The cycle then starts again.

    Even though market goes up and down, one thing that always happens for sure is: prices will always go up. And it will never go back to what it was 20-30 years ago. Think about it, my dad used to buy Toyota Corolla for $2,000. Now it would cost you at least $15,000. Same with property, prices will never go back to what it was in 1970.

    So, being able to identify these events in the cycle is very important. We need to know when we need to buy and we need to sell. Or, if you are like me who decide to hold onto properties for a long time, being able to determine where we are in the "clock" will help me putting strategies around my investments so that I'm weathered from the storm.

    Let's look at the clock below:

    We've put down the events that generally happen on each hour of the clock. This will be able to help us in determining when to buy or when to sell. Why is this important? Because we want to buy low and sell high. When we don't buy at the right time, we might be paying too much. If I'm a buyer during Seller's Market for example, sellers won't budge with their prices. It would be harder for me to negotiate. And vice versa. If I'm a seller during Buyer's Market, it would be really hard for me to get a good price on my sale.

    And not just that, if you don't know when storms are coming and you don't put strategies around you, you might get caught and be in financial stress. During downturns, everything slows down: jobs, market, economy etc. People who used to earn so much money and being able to sell their products and services like peanuts, are no longer able to do the same during a downturn. Thus, they might have to let go some of their employees. Now, their employees's confidence are low. People who used to be able to afford drinking coffee once a day, now they can only afford once a week. This brings pressure to local retailers, etc etc etc. Do you see the snowball effect? And this would certainly affect you as a property owner.

    Being able to identify the events in the clock would help us putting strategies around them. Maybe we can look at refinance at the top of the clock so that those extra cash can help us weather the storm for years to come? Or maybe we can decide to sell some of our properties and decide to keep cash? Whatever the strategy may be, what I'm saying is, this Property Clock is very-very important to be recognised. 

  • Should I Hold or Should I Sell?

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    Date Last Modified: 24 Oct 2018 06:33:54PM

    Should I Hold or Should I Sell?

    We have all heard by now that property is a long game. Basically, if you can hold it for 30 years, you will always win. The problem is always "in the middle", it's in that holding period will you have market ups and downs. It's just inevitable. Economy can't simply keep going up. At some point there will be corrections. As I would like to call it, "there is a time to build, there is a time to manage". It's during that "time to manage" will government spending and/or overseas investing/purchase be reduced.

    As an example is this: There might be some particular years where government is spending a lot of money building infrastructure to cater for a projected huge migration or population growth. But this can't keep going, eventually all projects will need to stop so that the government has time to manage these built infrastructure. During this time obviously jobs will be reduced and a "downturn" chain reaction towards every sector in the economy kicks in. Because there are less jobs, there are less coffee purchase, so now the coffee shop owners have to reduce their number of staff, which in turn causing them to cut back on their clothing purchase, etc etc etc. When this happens, economy is in the correction phase.

    Same with overseas investing or imports. There might be particular years where countries such as China purchasing a lot of iron ore from Australia. Because of this, a lot of projects start. However, China can't keep building. Eventually, they need to "breathe" and manage. At this point, the projects will stop and the similar chain reaction happens.

    Whatever the events are, market correction will always happen. I'm sorry to break this to you, but "the next great depression" will always happen. It's inevitable. It's just the way the world works. We as investors however can always put strategies in place to minimise our risks. From my years being in the property investing industry, the only way for us to be able to ride through the storm is by getting ourselves ready in the first place and plan an exit strategy.

    These exit strategies can be in the form of keep holding onto the properties we own, or sell them and put the cash somewhere else. So, in this opportunity I would like to share with you my thoughts on whether we should keep our properties or not. As much as I would like to live by the principle of "never sell properties", if in the end it gives me mortgage stress then there is no point. Life is too short to be stressed!


    As an owner occupier the decision to sell or to hold depends on their personal finance, and/or the price and whether you're happy to sell at a lower price during the downturn or not. You would have liked the place you're living in anyway when you first purchased it. Sure, it could have been better or bigger. However, it wouldn't "kill" you should you stay in there.

    We have had clients who were considering to sell in the downturn at a lower price than the price they bought it for simply because they just wanted to move to a bigger house. Period. No further questions asked.

    But at the same time, we also had clients who were forced to sell just because they couldn't afford the repayments. They were initially buying with the hope of flipping for profit. So straight away from the get go, their strategy was to hold for a short term and sell as soon as they could make profit.

    We always see this strategy as a risky preposition. We don't like to only relying on capital growth alone. The problem is, we never know when price is at the top or at the bottom. Therefore, when it goes up, people tend to hold even longer hoping that it would increase even more. But, as soon as it starts go do down, people still hold onto it hoping that it may bounce back. We call this: The Demon of Investing. This applies to any form of investing, especially shares!


    As a first home buyer you have nothing to lose. When the market is at the top you might be better of renting and saving for buying either your first home or an investment property (rentvesting). We have a great webinar on this. When the market is at the bottom, you can then buy at an excellent price.

    If you already live in your own place then the decision should be similar to an owner occupier. It all depends on your personal finances and/or if you're willing to accept the sale price at the time.


    As an investor, the decision to hold or to sell should always depend solely on the numbers. If you own a too-negatively-cashflowed property and bleed a lot of money to hold, you might be in trouble. For me personally, I've ever owned an investment property which cost me $10k/year to hold. The property was purchased for $440,000. It's a relatively small house in a mediocre suburb. Therefore, if it takes let's say 20 years before it to doubles in value, should I choose to hold it, it would have cost me $200k. That's a lot of money considering the price of the property. If that property is $1mil in value doubling to $2mil, the $200k losses might look very minimal.

    The problem with negatively-cashflowed property is missing opportunities (and potential mortgage stress depending on how many negatively-cashflowed property you have to hold). The banks won't lend you money if you own a money-bleeding property because they would see it as a losing business. And because of it, you can't get a finance to buy more properties.

    Let's do a bit of math: a $500,000 property that goes down by $50,000 in value means it's a 10% loss. However, for a $450,000 property to go up by $50,000, it needs to increase by 11.1%. As you can see, it's harder for price to go up than for it go down. 

    Therefore, in this instance, the decision should be about the numbers. When you sell in the downturn, the risk is, you will lose your initial capital. And yet, if you keep holding onto it, it might keep bleeding out money; and while you're in the red, you can't get finance to buy more properties, which, in the downturn is actually an excellent time to buy.

    My strategy as an investor is, if the property I own is an A-grade property, I would get my property revalued at the top of the market and use the refinance amount as a buffer to weather me through the storm. Or, to get it refinanced so that the rent covers the repayments. Whatever I can do to allow me to hold onto that property without affecting my personal lifestyle.

    If the property I own is a B-grade property I would try to sell to at least cover my initial investment. If I still can't do so then I would sell for a loss. Take it as a bad choice of investment. There is no other way. I can't afford keep bleeding money hoping that one day it would at least go back to the value I first bought it for.


    Whenever possible I wouldn't sell the properties I own. I will put strategies around them to get them protected from the storm. And most important at all, it was the selection of asset in the first place. Without buying the right property we simply fail to plan. That's my motto in property investing.

  • How to Find a Really Good Investment Property

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    Date Last Modified: 27 Oct 2018 08:15:43AM

    How to Find a Really Good Investment Property

    We all need to invest. Period. Unless we have a job which the salary can go up by at least inflation rate annually, we all need to invest. Otherwise, we would need to work harder in the future to be able to afford the same stuff we buy today. Now, the investment vehicles can be different. As for me, I like investing in property. If you have already read my other articles, I like property investing simply because of the leverage capability ie. the fact that with only 10-20% of my money, I can control 80-90% of asset. And if that asset moves by 8-10% (which what property investing in Australia is averaging over long term), my money grows a lot bigger than if I would invest in shares and other vehicles.

    And not just that, investing in property is generally a lot less riskier than if I would invest in shares or commodities trading. I mean, put it this way, everyone needs a roof above his head. Sure, not everyone needs to own a property, however, everyone needs a property to live. And based on this principle, I still think property investing, as a vehicle, is very safe.

    "But what about the sub-prime in US? After all property investing is not safe, is it?", you might ask. Well, from what I observe, it's not so much about property investing as a vehicle that is risky as such. Rather, it's what people do with it. It's the type of asset they buy and the strategy that is used - which most of the time is determined by greed. The greed always kill. For US sub-prime especially, I couldn't fathom how people could buy properties with 110% leverage. That's just madness. They borrowed more than what they could afford. They were betting on capital growth alone without thinking about the affordability and serviceability. A lot of people defaulted on their mortgage payment and that's what caused all the crash and panic.

    I still think that if you're a savvy investor, and not just "gambling" on capital growth alone, but rather making a calculated decision on the type of asset you purchase and properly calculate your cashflow, I reckon you'll be safe. I mean, that's what I do anyway that I have been able to ride through the storm because I don't use that "capital growth alone is sufficient" strategy. I want to make sure that the property I own bleed as little money as possible. And as of the writing of this article, Australian property interest rate is at all-time low ~4%. So, this is a really great opportunity to just pay down the mortgage on the investment properties as much as possible, as well as getting neutrally-geared, if not, even positively cashflowed situation.

    Therefore, in this opportunity I just would like to share with you one thing or two on how to find a really good investment property. If you've read my other articles I often mention, "everyone can just buy any property". But really, it's true, isn't it? You can just go to and just pick any property you want. The problem is, mediocre purchase results in mediocre results. And worse, before you know it, you might be bleeding a lot of money buying the wrong property.

    What is a good investment property? My understanding of it is easy: it's a property which gives you at least neutrally-geared cashflow, and it's located close to amenities and as close to CBD as possible.

    Throughout my research, ALL suburbs grow. Sure, some properties grow more than the others. However, if that "high growth" property costs you a lot of money and stress, then there is no point betting on the growth alone. If you look from a long term perspective, every suburb (including the bad ones) grows. So, why do I have to worry about buying properties that are so highly negatively-cashflowed for the sake of growth alone? If I can hold any property for 30 years, it will surely at least double its value.

    What I'm worried now is my cashflow position. Especially with current bank tight lending, if you can't refinance your highly negatively-cashflowed property, you're stuffed. I have read an article where someone purchased a $800k property, and after renovation, it's receiving a rent increase of $150/week from $350/week to $500/week. You know what, with all due respect, I would stay away from that property in the first place! While the renovation project can be called successful, the purchase itself in my opinion, is a bad one. Depending how much the buyer borrowed for that property, but a $500/week will never cover the running cost of a $800k property.

    So, to buy a good investment property we have to find ways on how to make positive (or at least neutral) cashflow on it. And to do this successfully, it all comes down to the revenue and cost calculation. Remember, don't worry too much about capital growth just yet at this stage, as I've mentioned earlier, all suburbs would have increased in value anyway long term. So capital growth is a 2nd priority for me. What's more important is if I can hold it that long in the first place.


    The very first thing you have to analyse is the purchase price vs rental income ratio. This calculation is called "rent yield". To do this, simply times the weekly rental income by 52 and divide it by the purchase price.

    For example, this is one of the properties we purchased. It's a house-and-land package and the total building cost after literally every cost calculated was $402,000. The rental income is projected (according to property manager in the area) at $420-$450/week. So let's be defensive and use $420.

    ($420 * 52) / $402,000 = 5.43%.

    I personally would not entertain anything less than 5% yield. Therefore, if your purchase price is a lot higher eg. the $800k in the story I mentioned earlier, then the you would need an a lot higher rental income. Unless this is the case, leave it alone! Do NOT buy that property as an investment unless you want to start bleeding money out.


    Find a property where there is a potential to boost your rental income. An example is buy 4x2 instead of 3x2 because you can then do room-by-room rental. 4x2 will also bring more rental income anyway compared to 3x2. Buy a new property since you can charge more rental income.

    Also, consider buy a bigger land of at least 450sqm, that way you can think of building a granny flat or dual occupancy. Thus, giving you combined income. A dual occupancy house is where you can have 2 houses on 1 title. It's normally setup as 3x2 and 2x1 or 3x2 and 1x1. If let's say you rent the 3x2 for $380 and 2x1 for $280, that's $660/week income for you!

    Think of AirBNB? It might give you additional cashflows.

    Basically, the cashflow is what allows you to hold the property for a long time. This is what you need!


    People rent for location. So make sure you check amenities, transport, schools, churches, etc around the area and how accessible they are from your property. You don't want to buy too close to these places due to traffic and noise. But you definitely want to give renters convenience. This way you can charge higher rental income and will attract more tenants.


    Check how secure and noise the property is. Is it located near big roads? How about the neighborhood? Are they good? Check the kind of people that walk around the area.


    Property investing is like running a business. And a successful business always have methods to reduce their risks! While the list is not exhaustive, but it should be start for you to start qualifying the right properties for your investments!

    Remember, property purchase is a big commitment. You want to make it right! If you have any questions please reach out. 

  • Message for Property Investors

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    Date Last Modified: 29 Oct 2018 08:14:49PM

    Message for Property Investors


    Western Australia property market has been well known for its stability. Yes, while there are always corrections in the market, however, long term, WA property market has produced an average of ~8% annual growth. In 1970, median house price in WA was $17,500. And in 2016, the median price was $566,000. As you can see from the graph below, the property market in Australia is always trending up:

    This presents a great opportunity for investors. As you're aware, with property investing, you can benefit from the "Power of Leverage". What does it mean? With $100,000 you can control a $500,000 asset (ie. 20% deposit and 80% borrowing). Which means, if the asset moves by 8% from $500,000 to $540,000, your money grows from $100,000 to $140,000 = 40%* return (* minus costs).

    While you probably can achieve similar result with other investment vehicles, it is the stability of property that other investment vehicles often fail to provide. Take shares for example, within every minute and every day, prices can fluctuate. Therefore, if you use leverage approach for trading, it can prove to be very risky.


    The challenge for an investor is to buy the right type of asset/property in the first place. A lot of our clients came from an experience where they just simply bought any property with the hope that it would increase in value. Let us tell you, that believing in capital growth alone is simply the quickest way to send our money into a pit. It is the same as saying, "Let's open a restaurant because we can sell a burger for $20 which only costs us $1 to make". Have you thought about the salary, running costs, outgoings, electricity, gas, downtime, holidays, etc? 

    Same with property. One can't simply blindly buy any type of property and hoping to make money out of it. As an investor we need to understand what the running costs are and all the risks.


    Easy Buyer's Agent has access to information on more than 300+ suburbs in Western Australia. We also have access to PRE, POST, ON, OFF-market properties. Therefore, we can help you investors buying the right type of asset. You don't have to rely on just what you know.

    We offer end-to-end service solution where you as an investor just stands behind us, and let us do all the hard work: the research, asking all the right questions, negotiations, etc. We will also present you with a very detailed Investor Report. That way, you know straight away, the profit projection and ROI position of the asset we're about to purchase.


    Please, don't just blindly buy any property. Talk to us now on +61 404 457 754 or email We are more than happy to help and we're confident we can provide a lot of insights and information.

  • A Letter to First Home Buyers

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    Date Last Modified: 29 Oct 2018 08:14:22PM

    A Letter to First Home Buyers

    Buying your first house is always very exciting! We are sure by now that you have already had in your mind all the things you want to put inside your house. You would have driven around the suburb of your choice, going into various display houses, planning all the beautiful stuff for your soon-to-be home.

    As of the writing of this letter (30 Oct 2018), a lot of experts agree that Western Australia property market has hit the bottom. We have had some good years through the mining boom and peaking at about 2014/15. It has since gone through a correction. What does this mean to you as First Home Buyer? It's a good time to buy! You can get a lot of bargains in WA.


    A lot of our First Home Buyer (FHB) clients came from an experience where they just buy anything that they can afford. Without further research and consideration, FHBs often just go straight looking into the suburbs they're familiar with, or suburbs which price range is within their budget. This can present a lot of potential problems for them. Let us explain:

    • Location Risk
      • A lot of FHB areas are located so far away from the CBD which most of the jobs are located. Travel time can hit 1 hour if not more. While you might be able to afford the area, the potential accumulated stress by travelling that long day-in-day-out can put a lot of pressure on you. 
    • Neighborhood Risk
      • FHB areas are often located in the "cheaper" areas, meaning, you might have a lot of people with low income, or having jobs in the first place if at all. This can present a higher risk of increased crime rate and social disturbances.
    • Growth Risk
      • FHB areas are generally populated with other FHBs who might be earning basic-medium level salary. Generally, as soon as an FHB gets a promotion, he/she would be considering to move to a better suburb, closer to the CBD. Because of this, there might be not much salary growth in the suburb, which, can put a ceiling on the growth of the property price in the area.
      • Put it this way, why would someone pay a premium price in an FHB area which, with the same amount of money, the buyer would have been able to buy in a better suburb closer to the CBD.

    And further, a lot of FHBs are doing home-and-land packages ie. purchasing a land then building a new house. Dealing with a builder for the first time can present a huge risk for FHBs. They really need to know the right questions to ask, otherwise, they might be paying way too much for their house.

    We have had clients who used to build a $440k house in a $350k area. Straight away, they lost money. The problem was, they didn't know the right questions to ask.


    Easy Buyer's Agent has access to information on 300+ suburbs around Western Australia, including PRE, POST, ON, OFF-market properties. You as First Home Buyer doesn't have to rely on just what you know. We have developed a property selection system whereby we can profile you so that we can match you with the best property in the best area possible.

    Further, we get you to simply stand behind us and let us do all the research, talking, negotiations, dealing with Real Estate Agents, etc. That way, you're sheltered from all the risks and potential money pitfalls we mentioned earlier. Unless you know what questions to ask, you have to be really careful. We have worked with a lot of good REA and builders, however, honestly, they are never on your side. They are people selling products. Once they get paid their commission, the onerous is on you!


    You don't have to be alone in the property purchase journey. We have a lot of insights and information we would like to share with you. The last thing you want is for your dream home to turn into nightmare. Please get in contact with us now by calling +61 404 457 754 or email

  • The Best Month to Buy Property in WA

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    Date Last Modified: 03 Nov 2018 06:05:16AM

    The Best Month to Buy Property in WA

    We all know the rule of economy: supply and demand. When there is more demand than supply, price goes up. And vice versa, when there is more supply than demand, price goes down. Therefore, I've been thinking if it's worth considering buying property at a particular time of the year just so I can utilise that very law of economy, thus, allowing me to properly form a proper buying strategy.

    So, this is what I've done: I took a sample of 10 suburbs, ranging from top end class suburbs to medium and low. I collected the number of properties sold from the year 2014-2017.

    Albeit the sample is very small, however what I'm hoping is, I'll be able to see basic patterns. And by plotting the different suburb class, I want to prove if a certain suburb class has a different buying pattern than those of the other class.

    Below is my results:

    Basically, there is no difference in patterns between suburb classes. December is somehow the "driest" month, and February-March seems to be  the "hottest" month. Regardless of "posh" suburbs vs medium or low class suburbs, the pattern remains the same.

    So, there you have it. Is December then, the best time to buy property just because there is the least amount of demand? If you're looking at the stats alone, yes you can say that. However, property buying is a lot more complicated than that.

    Instead of focusing on the "when", we prefer focusing on the "what". What you are buying is more important than the when. The "what" encompasses everything: property type, purchase price, demands on the area, etc etc. The "when" is nice to know so that you're not buying at the height of the market. Having said that, if you're buying right then you would always win.

    People who often lose in the game are the gamblers. They simply buy any property believing it would just increase in value. The asset type selection is already wrong, then, the purchase price is also not justified. We still stand towards our belief that, if you bet on capital growth alone, you would lose!

    We like cashflow because cashflow allows us to hold the property for a long time. Thus, allowing us to ride through the storm. When cashflow is good, it will not matter if the property value goes up or down. As long as you can hold it, and it doesn't bleed, you would win eventually.

  • Is There Such Thing Called A-Grade Properties?

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    Date Last Modified: 05 Nov 2018 05:24:09PM

    Is There Such Thing Called A-Grade Properties?

    I heard so many times about this thing called "A-Grade vs B-Grade" properties. Basically, the premise is centered around, it is better to buy one A-Grade property compared to multiple B-Grade properties. What they often refer to is on the capital growth of these properties. 

    To achieve capital growth, three things matter: location, location, location. Basically, capital growth is determined by demand. When there is more demand than supply, price increase. And, an A-Grade property, that is often positioned in a very prime location, often attracts huge demands, thus, capital growth.

    So, I decide to prove it on my own. I really want to be very scientific. There is no point of just talking opinions without actually seeing its results. If people are really concerned about buying an A-Grade property, I really want to compare its capital growth performance with the B-Grade properties.

    Below is the exercise:

    • I took a sample of houses and units from 10 Posh suburbs (which are often the A-Grade properties are located eg. near water, near CBD, etc)
    • Then I took a sample of houses and units from ~12 Medium-Low class suburbs (the ones so-called B-Grade due to its location, distance from CBD, demographic of the population, income, etc)
    • I then compare its capital growth percentage within 5, 10, 15 years 

    Below are my findings:

    Easy Buyer's Agent Analysis

    The first 10 suburbs from the left are Posh ones. The rest are Medium-Low.

    Posh suburbs price range are in the 800k+, less than 10km from CBD, near water.

    The Medium-Low ones are in the $500k and below, and can be up to 40km from CBD. They are not close to the water and are populated with medium-class workers.

    If you look at the 5-Year growth, it is suffice to say that Posh suburbs have more growth than the Medium-Low ones. With 10-Years and 15-Years however, the Medium-Low definitely show similar growth! This is really-really interesting!

    As for me, I personally have debunked the myth! If you can hold the property for 10+ years, then you're actually experiencing similar growth regardless of suburbs! This is why, by looking at these facts, I'm no longer bothered with A-Grade or B-Grade. Basically, if I can purchase the right one and can hold onto it for a long time, I will always win!

    A-Grade properties are so expensive! These are often the money-bleeding ones. If you buy as an Owner-Occupier then it's a different story since you would enjoy the location and lifestyle. However, if you purchase it as an investment, be prepared to bleed lots and lots of money unless you are able to fully pay it off, or at least have a chunk of the mortgage paid off. 

    As for me, I would buy multiple B-Grade properties as an investment. Not only are they cheap, with current low interest rate I can definitely get positive cashflow, or even positive gearing which will allow me to hold onto them for 10+ years.

    So, from our observation, the B-Grade properties still double in value long term. The $100,000 property will become $200,000. And so will the $1,000,000 ones. The difference is in the holding cost! If you have one $1,000,000 property and it gives you so much mortgage stress, then what's the point? As for me, I would rather own few of the B-Grade ones but positive cashflowed. That way, I don't bleed any money and I can enjoy my life more!

    To close this off, if you haven't read, we have purchased some positive gearing properties. Yep, you read it right. Not only is it positive cashflow, we can actually find positive gearing ones! Click here for more info.

    Thanks for reading!

  • Why Chasing Capital Growth Means Planning to Fail

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    Date Last Modified: 06 Nov 2018 03:26:11AM

    Why Chasing Capital Growth Means Planning to Fail

    I wrote an article entitled "Is There Such Thing Called A-Grade Properties?". Basically, the premise of the article was centred around comparing the capital growth of A-Grade properties (ie. the ones which people believe have huge capital growth, those ones close to CBD and water) vs B-Grade properties (ie. the opposite, basically). If you have not had a chance to read, I strongly suggest you do because what we found through our research, long term ie. 10-15 years+, the B-Grade properties still also increase by as much as the A-Grades.

    What makes the huge difference however, is the holding cost. All of the A-Grade properties are obviously very expensive. Based on our data, in WA, they're at least in the $800K+. In Sydney and Melbourne, they are easily in $1.5m+ range. Their rental yield is really-really small. We're talking gross 3% and lower. I mean, put it this way. How much do you think you can afford renting a house in front of the ocean for? Would you be willing to pay $1000/week? $1000/week is a lot of money. That equates to $4000/month = $48,000/year just on rent alone!

    And you have to fork this money out of your after-tax dollars. Well, if you earn so much money then it's a different story. However, for the majority of the population, this doesn't seem to be an affordable approach. The problem is, if you're somehow the owner of that $2mil property, and you have 80% mortgage, and yet, you can't earn that much rental income, straight away, you're in the red. Your cashflow will always be negative, big time! All you need to do is to own 1-2 of this kind of properties and you'll send yourself into mortgage stress.

    This is why we never suggest this kind of approach in property investment. If you're chasing for capital growth alone, you would always lose. It has been proven over and over again as being a very risky strategy. We call it, "The Evil of Investing":

    When price goes up, you don't sell hoping it will go up even further. When it goes down, you still don't sell hoping it might recover. In the end, you'll lose it all.

    It is harder for price to go up than to go down. For example:

    If price goes down by $50,000 from a $500,000 property, it means 10% decrease. However, for a $450,000 property to go up by $50,000, it requires 11.1% increase.

    Therefore, you would lose money faster than gaining it should price go down.

    We know people who purchased a land for $2.2mil that became $11mil in 15 years time. The thing is, so did the B-Grade suburbs. If what you're chasing is capital growth, then you need to be thinking long term. And when you look at long term, ALL suburbs grow at the same pace!

    So, if from the beginning you're already in it for the long haul, why would you ever buy expensive properties as an investment in the first place?

    For us, our strategy is simple. Investment properties should not be more than $500,000, unless the rental yield can justify it. If the gross rental yield is less than 5%, we're not even considering it. It's that simple.

    As of the writing of this article, interest rate is at the lowest in Australia. What happens to those owning $1mil+ investment properties when interest rate goes up? Like we said earlier, if you have paid off the chunk of the mortgage and you only have 50% LVR, then good on you. For the rest of the people who are not in that situation, they're only in it for the stress!

    With property price goes down all over the country, they can't sell their properties nor getting a refinance. The only thing they can do at the moment is to hope that they have enough money power to hold onto their properties. Hopefully their job is secure which from what we've seen, in a downturn market, is not likely the case.

    And, we also don't know how long before price goes up to what it was before so that they can let the properties go. Furthermore, they also have to consider the holding cost during the period, that negative cashflow that needs to be factored in into the purchase price.

    So, ladies and much as we would like to support capital growth, this has now become a thing in the past for us. Number one rule is BUY RIGHT + CASHFLOW. Then, we can consider capital growth next.

    Positive Cashflow is the only investing strategy we've seen so far that can ride through the storm.

  • Does Population Income Have Anything to do with Growth and Crime Rate?

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    Date Last Modified: 08 Nov 2018 05:19:42PM

    Does Population Income Have Anything to do with Growth and Crime Rate?

    OK, another data analysis. This time I want to prove if income of the population determines the growth of the suburb. As you realise, people with higher income obviously live in these so-called "A-Grade" suburbs. So I really want to prove if their income determines growth.

    Also, I would like to check if higher-income suburbs have less or more crime rate as this will determine how much headache I might have should I rent my property out in these suburbs.

    This is how I carried out the analysis:

    • I took 10 Posh Suburbs, 10 Medium Class Suburbs and 10 Low Class Suburbs
    • I took the crime rate of each of the suburbs above and divide by the number of population
    • I took the growth percentage of each of the suburbs above for 1, 5, 10 and 15 years

    Below is my findings:


    Easy Buyer's Agent Analysis

    When we're talking about growth, I don't think income has a direct effect per-se. Obviously income indicates the type of people living in those particular suburbs. However, I believe the growth itself is actually influenced by the qualities of the suburbs more than just the population's income itself. The higher the income, the more they can afford living in these nice suburbs ie. A-Grade suburbs where they are closer to CBD and water.

    For short term (1-5 years), these A-Grade suburbs grow better than the Medium-Low counterparts. However, I definitely strongly advise not to gamble in this market. The reason is, you have to time the market correctly. Otherwise, you might be holding a very expensive property. If you have so much cash which you can reduce your LVR to let's say 50%, then it's a different story. Otherwise, for the most of us with standard wage, you'll be looking for financial suicide.

    In these Posh suburbs however, the crime rate is very-very low. So, if you live there or own an investment house there, then be at peace knowing that your property won't be ransacked. Having said that though, rich people often have their own eccentricity. 

    For Medium-Low class suburbs, as you can expect, crime rate is higher. These are the suburbs where mid-class working people are located. For short term growth, these suburbs are not as good as the Posh ones. However, for long term (15 Years+), they actually grow the same if not more than the Posh!

    So, as a conclusion, if I would to invest, I would buy in Medium-Low suburbs. That's for sure! Not only are they cheap, long term it looks like they produce the same amount of growth, if not more. I myself will not buy an investment property for more than $500,000 - or around thereabout. With these sort of investment grade properties, I can definitely achieve positive cashflow, or even positive gearing.

    Buying in the Posh suburbs are very risky. While they provide short term growth, however holding cost is way too expensive. It's a gambling exercise in my opinion. If you're looking for a place to live in, then fair enough. I would definitely want to live in a safe and nice suburb. Having said that, buy only what you can afford!

  • Beware of Money Pitfalls and Traps in Property Purchase

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    Date Last Modified: 16 Nov 2018 06:32:30PM

    Beware of Money Pitfalls and Traps in Property Purchase

    While it is true that there are a lot of money to be made in property, the traps are many also. For one to believe solely on capital growth means he/she is making his/her way to a financial suicide. It is the same as deciding to open a burger chain simply because you can sell a burger that costs $1 to make for $20. If you look at it from that perspective alone, it is true. However, it is not that simple, is it? What about the running costs such as salaries, ongoings, rents, downtime eg. during school holidays, etc?

    It is the same with property. Unless we, as a property buyer know how to minimise risks, and recognise all the traps and pitfalls, we are simply planning to fail.

    Therefore, Easy Buyer's Agent is running a Facebook Group dedicated to share a lot of information on managing risks for property buyers. We encourage you to join our group so that you can avoid falling into these traps and money pitfalls. Please join us below:

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    Date Last Modified: 20 Nov 2018 04:27:25PM

    PM Scott Morrison Plans to Cut Population Intake, Our Take on it and What it Means for Our Property Market


    Australian Scott Morrison plans to cut migration intake to limit the population growth. The reason being is, roads are clogged, buses and trains are full. Not too long ago, there was a plan to settle migrants in regional areas. In a nutshell, at least for the short term, Australian government is planning to limit population growth. What would this mean for our property market since we all know that property market is very much determined by population and jobs?

    I personally think that this initiative was somewhat caused by property prices that were so inflated for the past few years especially around Sydney and Melbourne. And yes, according to Australian Bureau of Statistics, over half of permanent migrants were home owners ( So, migration definitely affects house prices.

    However, skill shortages is still an issue in Australia. Being too restrictive on migration will not be good for Australian economy. After all, skilled occupations are generally earning good wages, thus, government can benefit from the tax of these workers. And not just that, think about the potential "property crash" when there are a lot less people buying. By limiting migration, there is still no guarantee that the locals will be able to support the economy.

    If anything, government needs to ensure that locals are trained to ensure the skill shortage issue is resolved. And the locals themselves need to have the willingness to retrain. Otherwise, limiting migration will only introduce more problems. For businesses that require these skilled workers, if they have to retrain locals, it will certainly incur more costs. And who will pay for it?

    In our view, the restriction on migration will have a very negative impact to the economy if it's imposed too strictly. Until skill shortage is addressed, we can't see how Australia can benefit from doing it. What we think will actually happen is, the government will be very selective on the type of migrants that are allowed to get in into the country - which actually is a good thing. We want to make sure the migrants are the good quality ones ie. the ones who can support the economy and are actually needed to fill the skill shortage. Those who want to only benefit from the social welfare system such as CentreLink will definitely be restricted from coming.

    Therefore, coming back to the property situation, obviously restriction on migration will reduce the number of demands. Thus, price will either be stagnant or even go down. But hey, from our view, prices in Sydney and Melbourne especially are already too expensive anyway. Restricting or not restricting migrants, the property price in our view is already in the non-affordable level. I mean, you're looking at $850-900k range for a first home buyer! Who will be able to afford such properties?

    As far as other states are concerned, places like WA where prices have bottomed, we can't see how the property market will be affected by the policy.

    So, after all, the restriction on migration might actually be a good thing? However, government needs to be smart about it so that only good quality migrants are allowed.



  • 20+ Strategies to Make Money in Property. Part 1. Renovate and Flip

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    Date Last Modified: 11 Mar 2019 06:19:52PM

    20+ Strategies to Make Money in Property. Part 1. Renovate and Flip


  • 20+ Strategies to Make Money in Property. Part 2. Renovate and Hold and Increase Rental Yield

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    Date Last Modified: 11 Mar 2019 06:47:02PM

    20+ Strategies to Make Money in Property. Part 2. Renovate and Hold and Increase Rental Yield


  • 20+ Strategies to Make Money in Property. Part 3. Land Flip

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    Date Last Modified: 11 Mar 2019 06:34:12PM



  • 20+ STRATEGIES TO MAKE MONEY IN PROPERTY. Part 4. Subdivide, Build, Flip

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    Date Last Modified: 11 Mar 2019 06:47:19PM

    20+ STRATEGIES TO MAKE MONEY IN PROPERTY. Part 4. Subdivide, Build, Flip

    Read on ⬇️

    This strategy, similar to the Land Flip, except this requires you to build one or more buildings on your subdivided block of land. The choice of the buildings can vary, from free-standing houses, duplexes, triplexes, basically do what's profitable. Then, you sell these buildings for profit.

    This strategy obviously requires a larger capital. However, with the building standing there on the block of land, can attract more customers comparing to just an empty land.

    If you're thinking of exploring this strategy, do talk to us. We can help you find this type of opportunity.

  • 20+ STRATEGIES TO MAKE MONEY IN PROPERTY. Part 5. Property Options - Rent-to-Buy

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    Date Last Modified: 11 Mar 2019 06:47:34PM

    20+ STRATEGIES TO MAKE MONEY IN PROPERTY. Part 5. Property Options - Rent-to-Buy

    In this strategy, Investor is acting as the vendor/seller of the property. It works like below ⬇️

    - Vendor and Tenant/Buyer agrees on an Option period eg. 5 years
    - Vendor and Tenant/Buyer agrees on purchase price eg. $450,000
    - For the period of 5 years, Tenant/Buyer will be paying market rent + rent credit which will bring down the $450k balance eg. $400 + $100 which $100 will bring down the balance.

    At the end of 5 years, let's say the Tenant/Buyer has been able to accumulate $25,000, thus, bringing down the balance to $425,000. When the Tenant/Buyer exercises the purchase option, the $425,000 is the remainder of the balance needs to be paid to the Investor/Vendor/Seller.

    The benefits of this strategy:
    - Can help people who can't get finance from the bank, the opportunity to get their foot in property market
    - Great cashflow for the vendor/seller

     Keen to learn more? Do get in contact with us.

  • 20+ STRATEGIES TO MAKE MONEY IN PROPERTY SERIES - Part 6. Property Options - Control for Renovation

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    Date Last Modified: 11 Mar 2019 06:38:59PM

    20+ STRATEGIES TO MAKE MONEY IN PROPERTY SERIES - Part 6. Property Options - Control for Renovation. 

    ⬇️ Read more

    The heart of Property Option is to buy the property in the future using locked-in agreed price. But, let's extend this further so that using Option, we control someone's property for renovation.

    For example, Seller wants to sell at $400k. We say to him, in 12 months, we'll buy the property for $450k. In return, we want to have full access to the property to renovate it at our cost, knowing full well that after renovation, we can actually sell the property for $800k.

    After renovation, we sell the property straight away. Let's say, we receive $800k, minus agent fee and renovation of $100k, then we need to pay the seller for $450k. We then take the difference as our profit.

    Using this approach, we don't have to buy the property upfront, and yet, getting full access to it right from Day 1.

    Keen to learn more, get in contact with us.

  • 20+ STRATEGIES TO MAKE MONEY IN PROPERTY SERIES - Part 7. Property Options - Adding Value e.g Development Approval (DA)

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    Date Last Modified: 11 Mar 2019 06:40:01PM

    20+ STRATEGIES TO MAKE MONEY IN PROPERTY SERIES - Part 7. Property Options - Adding Value e.g Development Approval (DA)

    ⬇️ Read more

    Still in the vein of Property Option. With this strategy, we want to control someone's property by obtaining Development Approval and on-sell it without ever owning it.

    For example: Susie is selling her property for $500k. We put an Option where we will be buying the property in 12 months time for $600k. Of course Susie will be happy. As soon as Susie agrees and signs the Option agreement, we go to council to obtain Development Approval to allow the build of 4-storey apartments which can potentially earn us $4mil revenue.

    Once we receive the approval, if we have the capital to build the apartments, then we can execute the Purchase option, pay Susie $600k and build the apartments ourselves.

    If not, we can sell this Option to a Builder for $700k and let the Builder buys the property for $600k from Susie. We pocket $100k, Susie pockets $600k, the Builder can potentially pocket $4mil revenue. Everyone is happy.

    And for us, we never own the property.

    Keen to learn more, get in contact with us.

  • 20+ STRATEGIES TO MAKE MONEY IN PROPERTY SERIES - Part 8. Other People's Money (OPM)

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    Date Last Modified: 11 Mar 2019 06:41:28PM

    20+ STRATEGIES TO MAKE MONEY IN PROPERTY SERIES - Part 8. Other People's Money (OPM)

    ⬇️ Read more

    You might identify a great opportunity where you can make money from, either sub-division, renovation, buy-hold for growth, etc. However, your capital might be very tied maybe because you've owned few other properties, thus, you can no longer get a loan from the bank.

    Using OPM (Other People's Money) is a great way to make profit together. In this joint-venture arrangement, you can find someone who has the capital, and you provide the expertise. 50% of something is still better than 100% of nothing.

    There are people with strong capital who simply don't have time to look for opportunities, invest, etc. All they need often is just someone who can bring the opportunity to them. That someone can be you.

    Easy Buyer's Agent has been helping investors by joint-venturing with them. We bring the expertise, they bring the money. If you're interested in JV-ing with us, do get in contact.


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    Date Last Modified: 11 Mar 2019 06:43:35PM



    Subleasing or subletting is where you rent a property, and then you re-rent it out to someone else and you take the profit difference. You can be the "master tenant" or the "manager" so-to-speak.

    Why would a vendor allow subletting? Well, a vendor might want to save on property management fee, and use your service instead. And because you sub-let, the vendor can potentially earn higher income, too.

    With this strategy, you can either be the vendor/investor or you can be the renter.

    Keen to learn more? Get in contact with us.


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    Date Last Modified: 11 Mar 2019 06:44:41PM



    AirBNB is a great platform to market your property to the world. The great thing about it is, you can rent out your property at a daily rate. Instead of earning 400/week, just like a hotel, you can earn $150-250+/DAY! This method will increase your cashflow so much.

    If you have a property close to amenities, and you don't mind running it like a hotel e.g changing towels, soaps, shampoos, making the bed daily, etc then AirBNB is a great way to increase your cashflow.

    For more information on executing this strategy, do get in contact with us.

About the Presenter

Tommy has had more than 10 year experience in property investment. He currently owns 5 properties worth more than $2 million dollars and is in the process of acquiring a few more.

Throughout his life career, he has also worked as an IT Consultant for more than 15 years, which, during the period he has had the privilege to work with various CEOs, CIOs and executive management teams.

He has a passion in property as well as IT, cycling and singing. In his spare time you would find him cycling or singing at church events and professional bands.



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