3 reasons people think investing is risky

1. They have very little financial education.
2. They invest in investments where they have no control. Investments such as savings, the share market, managed funds and retail or industry Super funds.
3. They take investment advice from salespeople who also have no control over the investment.

Develop a plan for your future

‘Fail to plan, and plan to fail’ so the saying goes. If you had to drive from Sydney to Brisbane, you’d probably grab a map, look up the destination and then back track through the available roads and freeways. Then, would likely debate about flying or driving to the destination, flying being faster yet more expensive, and driving being slower but a cheaper option for your whole family to go. Together you’ll discuss (perhaps argue), about driving there in one day, or stopping overnight along the way, the list of options and opinions goes on and on. This situation is the perfect analogy to investing in property for your future. There’s more than one way to the destination of financial freedom, and you’ll be bombarded with hundreds of differing opinions as to which way is best, fastest and more effective.
Prowealth looks at this problem differently. What if you had the same situation, but you were equipped with a GPS navigation unit? Firstly, you put in the destination, tell it which options to take, e.g. fast route, scenic route, with or without freeways and tolls, and the GPS unit would then commence instructing you as to when to turn left and when to turn right, all you have to do is follow the directions based on your input. What if you took a wrong turn? The GPS would either tell you to turn around, or recalculate the time and distance to the destination based on the new route.
Prowealth would like to provide you with a GPS for your financial future. We’ll help you work through your goals,
when you want to attain them, and the things you want to do along the way. Then, using our experience in property, finance and accounting, we will ‘program’ a GPS
for you to follow, it’s that simple. If you get off track, you
can always refer back to it to put you on the right path, safe in the knowledge that if you follow the plan, you’ll reach
the destination on your terms.

Should I pay off my home first?

Most people are under the impression that they have to pay their home off before they can afford to purchase a portfolio of investment properties. In fact, this is probably what your parents told you - along with ‘don’t buy anything unless you pay cash’. Whilst there is nothing wrong with this, you need to expand your mindset if you are to get to the next level. The wealthy continuously use the leverage of other people’s money to produce massive wealth, so if you are to invest like the rich, you must learn to invest and think as they do. To achieve this many people fall into the trap of trying to pay extra on their home loan payments each month, in an attempt to pay out the home faster. Five to ten years later they try to enter the investment market, but realise that the entry price has risen dramatically and some times, so much so, that it can put them off purchasing an investment property all together. Many people don’t realise that by redirecting their extra home loan repayments towards holding one or two investment properties, that it can actually pay off their home loan years earlier. Consider the following scenarios:

Scenario one.

Mark & Emily have a home loan of $200,000, which costs them $333 a week in repayments. By paying an extra $120 per week they will be able to pay their home loan off in 12 yrs & 10 months. (Based on remaining on the same average interest rate for the period.)

Scenario two.

Mark & Emily redirect their extra repayment of $120 per week to purchase and hold two investment properties worth $520,000 ($260,000 each). They hold them both for 10 years, and since history has shown that property values double approx every 7-10 years, we’ll assume the new combined value is now around $1,040,000. They could choose to sell one property with net profit of around $200,000 after paying capital gains tax, real estate commissions and legal fees.  This means they could now pay out their home loan yet still have another income producing asset that they could continue to hold and draw equity from, or sell and take the profit.
So which scenario do you think is better? After 10 years in scenario one, they still owe approximately $56,000 on their home loan and have no other assets.  After 10 years in scenario two, they paid out their $200,000 home loan and retain an investment property with around $260,000 in equity.  It’s a significant difference.

Property Trading

Most property investments have a long term strategy for future security or retirement. However Property Trading is a Quick Cash Strategy to help you enjoy life today and benefit from short term investing or maybe to fund future investments. With Property Trading you get in and out of the investment in a short amount of time.

Whilst Property Trading is short term and will bring in some extra cash Prowealth Investments believes that you must have some foundation properties (long term investment properties) in place first before entering into Property Trading. Your portfolio should be diversified and made up of different types of investing when building your Property Portfolio.

Property Trading includes buying and selling off the Plan without owning the property
- Put and Call Options
- Buy, Renovate and Sell
- Property Development under 12 month period

Prowealth Investment's Information Evenings cover all these topics and more.

Syndication

Syndication is a form of investment where more than one party will finance the purchase of a property. This can range from a simple structure involving a group of friends to a more complex arrangement where an investment manager offers the public the chance to buy shares in a managed syndicate.

A couple of advantages with a managed syndicate is that you have experts choosing and managing the property. Also you are able to buy into these syndicates for a small outlay, often as little as $5,000, but still benefit from being part of group that has access to better performing properties.

Syndications are used to purchase and sell
- Development Sites
- Resort Apartments off the plan
- Property Management Rights
- Build and Sell Small Developments

Prowealth Investment's Information Evenings cover all these topics and more.