Thursday, February 19, 2009


As Government subsidies mount there is a growing case for solar power, HERE'S HOW SOLAR POWER WORKS.

There are two basic ways of harnessing solar power for domestic use.

The first is to use it to heat your water. The second uses photovoltaic cells, known as solar panels to convert sunlight into electricity for powering lights and domestic appliances.

The amount of power generated is directly linked to the area covered by the solar panels.

The trick to solar power is to store the energy so it can be used at night. In rural areas where there are no power mains a battery system is needed. But in urban areas with power mains you can exchange electricity with the power grid.

The best part is watching your electric meter go backwards. This is when you build credits, then at night it goes in reverse. In this way, a household can use the power grid like a giant battery and the whole community benefits from having solar power generate part of its electricity.

The best part of investing in solar power is that it will always be a welcomed feature of the property and it insures against future price rises in electricity.

As time passes, government will keep raising its subsidies as well, making your investment more and more lucrative.

If you have a real estate need or question feel free to phone me, Noel Thompson, Principal, Professionals Logan Lifestyles on 0418 517 525 or call into our friendly offices at Browns Plains and Waterford for immediate assistance.


Owning a Home makes Retirement Easier

When condiseration comes to retirement, one of the problems with renting all your life is the temptation is so great to spend your money on lifestyle. Then when it comes time to retire not only do you need to think about daily spending requirements and medical bills, but you also have the monthly rent to pay. Worst yet, the rent keeps going up along with inflation, NOT A PRETTY PICTURE.

Renters don't have the fallback of a mortgage payment for savings. So they need a plan to fund their retirement likestyle and not just their lifestyle while working. Unfortunately, retirement is the one area where renting instead of buying is really tested.

People tend to think that compulsory super will make for a confortable retirement but this is a misconception. According to Ross Clare, the research director at the Association of Superannuation Funds of Australia the average earner with 30 years of continuous full-time work ahead of them will amass only $180,000 in today's dollars by the time they actually retire.

Compare that with the latest Westpac ASFA Retirement Standard which states that a single retiree needs $36,141 a year for a comfortable retirement and couples require $47,371 a year. In order to accrue an income like this, singles need to amass $500,000 as a nest egg and couples an extra $50,000 on top of that. This figure does not even include your yearly rent if you don't own your own home.

If you have a real estate question or need feel free to phone me, Noel Thompson, Principal, Professionals Logan Lifestyles on 0418 517 525 or call into our offices at Browns Plains or Waterford for a friendly chat.

Thursday, February 5, 2009


First look for a property that is well located and can be acquired at a good price. Now go to your financier and get a loan for 80-90 percent of the value of the property.

The next step is to add value to the property by renovating it or refurbishing it or by redeveloping the property (say, by getting developmental approval for multiple units on the site).

You have now added value to the property and if renovated or refurbished you can then increase the rent collected since you have improved the property.

With a tenant paying better rent and a now improved property you then can get your property re-financed, because it will bring in a higher evaluation. This may have to wait for a period of six months, however, before banks will acknowledge the increase.

Now you can take out the extra monies left over from paying off the first loan and use it to put a deposit on your next investment property.

One idea is never to sell. That way you get the benefit of the long-term capital gain.

By re-financing and recouping your deposit and most if not all of your refurbishment costs, you are in effect using the same money over and over again to buy and develop a series of properties.

Servicing your mortgages is your main concern but because the properties are improved along with higher rents being achieved and good depreciation allowances you will have a lower net cost of ownership.

If you would like to view some investment properties feel free to phone me, Noel Thompson Principal of Professionals Logan Lifestyles on 0418 517 525 or call into our offices at Browns Plains or Waterford for immediate assistance.