How do I know if a property will be positive or negative?

It is really a case of crunching numbers, and making sure you have somebody to help you with those numbers. Don't believe a real estate agent or land developer.

The people who get into difficulty get the wrong information.

If you think you are going to pay $300k for a unit and get positive gearing because the rent is $300 a week, it is not even close. If someone tells you that you will get 5% return on investment, that’s not true either. You are going to make a loss on the property.


Are real estate agents misleading people to make them purchase a property?

Well what they say is true based on the way they do the figures, but 5% is not positively geared. If you find a property that is between 7-10%, then you are getting close to positive gearing.

What investors need help with is working out every expense, including buying costs, ongoing costs and the interest you are paying. Ideally you should have, say $8k going into your bank account with only $6k going out. That is positive gearing.


What questions should I be asking myself before investing in property?

We have a free checklist

“7 Critical questions you need to ask yourself before buying and investment property”

A checklist you should go through before you think about buying a property. It helps client to  workout whether their super is going to be enough for their retirement. It does not do the calculation but it makes you aware “Is my super going to work for me?”

For most people, the answer to that question is pretty much ‘No’.

The checklist gives you an idea on how to look for positive properties as well as whether or not you have ‘serviceability’ for the bank. Some people will actually exchange the contract on a promise from a phone call they had with the bank telling them verbally that they can get a loan. They put a deposit on the property and later find they have no money when it comes to settlement and they lose their deposit.

The checklist will give client’s clarity on your current situation and what your next step should be.

To gain the confidence to take action start by visiting www.positiveproperties.biz to opt-in for our Free: 7 Critical questions you need to ask yourself before buying and investment property.


What is the 50% discount for the capital gains?

You buy a property for one hundred thousand and in five years time you sell for two hundred thousand. So you made a profit or a gain of a hundred thousand. Now currently, you can get a 50% discount on that capital gain and that 50% is in tax. So your 50,000 as being your 50% discount and the remaining 50K added to your taxable income and then you get taxed on that. So what the proposed changes is to reduce that discount to 25%. So you'll have to pay 75 taxes on that 75%.

More people are getting into rentvesting!


In this article by Danielle Cahill from realestate.com.au, she explains the term and trend of rentvesting!

“One of the growing trends seen in recent years as house prices in inner city areas have risen, is that more young people are getting into rentvesting.
Working professionals are buying properties on the outer edge of the city or in an area where they can afford to and renting that property out while renting a home for themselves closer to the CBD in an area where they would prefer to live.
“I think it’s a fantastic idea, not just for younger people. We’ve helped dozens of clients go down the rentvesting path,” says Propertyology Managing Director Simon Pressley who adds “this affordable option can help out downsizers as well as first home buyers.”
Rentvestors can be “significantly better off” renting where they are comfortable living while buying where they can afford to, says Pressley. Rentvestors should research their options and consult a qualified financial advisor to ensure that the sums work in their favour, he adds.
If house prices in areas within 15km of our CBDs keep rising, is it time for some home buyers to radically reassess their options as reintvestors ?“

For further advice call Positive Properties now on 0405 100 146 to find out more about our variety of buy and hold strategies or contact us at www.positiveproperties.biz/contact/
This can also work as an option for some people struggling to pay off a mortgage, which means that the tenant contributes to the mortgage as well as covering the rent.
Clear as mud?
Let me tell you about Kevin and Jane
Kevin and Jane’s Story
Kevin and Jane up-sized from a unit to buy their dream family home in a coveted suburb in Sydney.
Shortly after moving in they realized that, as it was situated below a cliff, it was always in shadow and during the winter it was extremely cold. Jane was at home most of the time with toddler and baby, hence their electricity bills were through the roof. They put up with this for a couple of winters as they didn’t want to go to the expense of selling and then buying a new home.
In the meantime Kevin had got a promotion at work which put him into a higher tax bracket
– which actually mean’t his take home pay was less, and they were already struggling to pay the larger mortgage.
So I suggested to them “Rentvesting”
They knew that they could get $800/wk in rent for this house.
So they moved into a lovely sunny house in a nearby suburb, paying $600/wk in rent.
This gave them an extra $200/wk to go towards their mortgage plus much cheaper electricity bills.
The added advantage is that their original home is now an investment property so they can claim depreciation and expenses against their tax.
They also keep their prestige house and will reap the benefit of Capital Gain in the long term.
What’s all this information worth to you?
If you are like a lot of other people struggling to pay the mortgage and believe you can’t afford an investment property or don’t know how to get started phone Positive Properties now on 0405 100 146 to find out more about our variety of buy and hold strategies
or contact us at www.positiveproperties.biz/contact/

The top five pitfalls to avoid when investing!

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The top five pitfalls to avoid when investing: Michael Kodari

The top five pitfalls to avoid when investing: Michael Kodari


Investing is a fantastic way to build your finances and generate an additional stream of income. However, when it comes to investing your money, there are many dangers to be wary of.

From my experience, there are several key mistakes that people make when investing that can jeopardise their results. Protect your investments by avoiding the following top five pitfalls.


You work hard for your money, so why gamble it away? When it comes to investing you need to talk to experts who can provide a professional opinion.

A solid investment strategy is dependent on many factors, including your personal situation and financial goals, along with a thorough understanding and assessment of the current global economic situation and key economic indicators that are crucial to forecasting future growth sectors in the economy.

A reputable, accredited financial adviser can analyse both the macroeconomics and microeconomics to asses which sectors will be outperforming and worth investing in and pick quality businesses that have a consistent track history.

Consulting a professional ensures risk is minimised, promotes capital preservation and assists you in making a more informed investment decision.

Any type of investment carries some element of risk, so it’s important to seek advice from a professional investor who understands the types of risks that can affect your investment and what to look out for.

The Australian Securities and Investments Commission conducted a study in 2014 on financial behaviours, which found 28% of people said they had heard of the risk/return trade-off but didn’t really understand it. This highlights how important it is to seek professional advice when investing.


It’s important to be wary of investment scams and remember that if it looks too good to be true, then it probably is.

Many investment scams can appear to be legitimate, making it difficult to differentiate them from genuine opportunities. Avoid potentially losing money or ending up in debt as a result of an investment scam by seeking independent financial and/or legal advice, or contacting your local office of fair trading, ASIC or the Australian Competition and Consumer Commission for assistance.

Key things to watch out for are any out of the blue unsolicited offers and get-rich quick schemes that offer guaranteed high financial rewards. In addition to losing any money you invest, if you invest in a dodgy tax scheme, you are also at risk of being held liable to pay back any missing tax, plus interest and penalties.

If someone approached you with a suspicious investment opportunity, do not agree to anything and cease communication with them.


Shares can be an excellent long-term investment strategy as you can receive potential capital gains from owning an asset that can grow in value over time, along with potential income from dividends and lower tax rates on long-term capital gains.

However, timing plays a key part in getting the best results from your investment and for most people knowing when to buy or sell their shares can be a complex and confusing process.

Accurately gauging the market can be a very time-consuming process that involves keeping up to date with how the company is performing compared to similar companies and how the overall market is performing, along with regularly monitoring the share prices and industry trends. It’s important to read all relevant pieces of correspondence sent by the company, including annual reports and statements, paying particular attention to any takeovers.


While property investment may seem like a lower risk investment option, there are several potential pitfalls to keep in mind.

High entry and exit costs along with changes in interest rates can make property investment an expensive option for those looking to invest. According to ASIC, exclusively investing in property is a poor diversification strategy that increases your risk as you will have a lot of money riding on one small market sector.

Another factor to consider is whether your rental income will be enough to cover your mortgage payments and other related expenses and if you are in a position to cover all of the costs yourself during the times you do not have a tenant.

It’s a common assumption that property prices are always expected to increase, however this is very dependent on location, and market predictions have not always been accurate. This puts you at risk of owing more than the property is worth if the value of the property goes down.


When it comes to picking the right shares to invest in, it’s important to avoid any media hype surrounding a company and instead base your decision off of independent research and analysis.

Professional investors offer the benefit of experience and in-depth knowledge when choosing shares and can help steer you in the right direction. Sometimes the companies that yield the best results for shareholders may not sound the most exciting or glamorous.

Remember, that it’s in the best interest of a company that is launching its IPO to build as much media frenzy to boost its own shares. This does not necessarily provide a reflection of its position in the market or predict how successful it will be.

MICHAEL KODARI is the founder of KOSEC – Kodari Securities.

This article first appeared on SmartCompany.

One Hour Discovery Session

                                    Neal Petersen- Round the World Yachtsman!

How would you feel if your financial planner told you …….. That to achieve Financial Freedom you would have to sail around the World single-handed?

  • Would you feel fear and trepidation?
  • Would you think  “I don’t even know how to sail. “?
  • Would you ask yourself  “ What sort of boat should I buy?”
  • Then start to panic “I don’t know anything about prevailing winds and ocean currents!”
  • Unrealistic? Yes,

but what if he/she told you……..

That to achieve Financial Freedom you need to own 10 investment properties within the next 10 years?
  • Would you feel the same fear and trepidation?
  • Would you think  “I don’t know how to invest.”?
  • Would you ask yourself  “ What sort of property should I buy?”
  • Then start to panic “I don’t know anything about buying cycles or demographics!”

If you answered Yes to those 3 questions and feel you need someone to guide you through the process between Financial Planner and Real Estate Agent to a Lifestyle Retirement, then contact Positive Properties for a discovery session on how you can fulfill your Financial Planner’s dreams for You!

Book in now for your Discovery Strategy Session to discuss your needs, goals and where you are now! Build your property portfolio with solid foundations!
In this 1 hr session you will:
  • receive clarity on your goals and current situation
  • learn how to create a deposit of $30,000
  • discover how you can invest in  Positive Cash-flow property and look forward to a brighter, more secure future and retire doing the things you love!

Normally $245
Now Only $197.00

Less with coupon code. SAVE a further $100

Neal Petersen

“Don’t Let Your Money Retire!”

Discover how to find positive cash-flow properties to secure a “Lifestyle” retirement.

5 Simple Steps to Starting to Invest with Positive Cash-flow

Don’t Let Your Money Retire!


 Learn how to tell in less than 10 mins if a property is a potential Debt Trap or Goldmine!

Thursday   10th September   6.45-9.30pm

Kaimea Room, Gymea Tradies Club, The Kingsway

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$37.00 Bring A Friend for FREE!                                                             EARLYBIRD SPECIAL – SOLD OUT!

                                                                               Find out the Do’s and Don’ts of Real Estate

                                   For anyone who wants to get started in Real Estate Investment or add to their portfolio.

Do you get confused – not knowing what to look for?

See how Anita has replaced her income in just a few short years and is “transitioning to retirement.”

Come along and have some fun whilst learning to be a smart investor!

                                                                “DON’T LET YOU MONEY RETIRE!”

Don’t know where to look or how to get started?


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Attention: Small and Medium Business Owners

Attention: Small and Medium Business owners!

I recently found this article by Mark J Kohler and wanted to share it with you. He states the benefits of wise property investing so well.

(I couldn’t have done it better myself)

As entrepreneurs find success with their primary business ventures, many search for the proper investments for their profits.

Of course, we can and should all start with traditional tax preferred vehicles. These are the bedrock of good ‘benefit’ planning for ourselves and our employees. I’m also convinced more entrepreneurs should consider rental real estate as an important part of their portfolio,
so let me list a few reasons that may change your mind:

1. Gain more leverage. Real estate is one of the few investment vehicles where using the bank’s money couldn’t be easier. The ability to make a down payment, leverage your capital, and thus increase your overall return on investment is incredible.

2. Grow, tax-free. Buying rental property based on speculation of its value is a dangerous tactic since cash flow is the key. However, appreciation over the long-run is certainly realistic and at the least you should be considering a tax-deferred strategy. In the future, you may even consider a charitable trust, or an installment sale to lesson your tax liability further.

3. Tax free cash flow. It’s no secret that because of depreciation and mortgage interest deductions (if you leverage your capital), your cash flow should be tax-free. That’s right! The far majority of the time an investor will never pay taxes on their cash flow and can wait for capital gains on the sale of the property in the future.

4. The tax write-offs against your other income. Depending on your classification as an Active Investor or Real Estate Professional and your income level, there is a good chance your rental property will not only give you tax-free cash flow, but an overage of tax deductions you can use against your other income. With that said, this is something you want to discuss with your tax professional before investing so your expectations are realistic.

5. Increased tax deduction strategies. Rental property affords investors with another incredible opportunity to convert personal expenses to potentially valid business deductions. Don’t forget that rental real estate is a business. This means that travel expenses to check on your properties and payments to family members who manage your properties (such as students away at college) can be deductible and increase the tax benefits when it comes to cash flow and the future sale of the property.

6. Rental real estate is a forced retirement plan. Australians are terrible savers. We lack the self-discipline to put a monthly deposit into our accounts. However, buying a rental property is a significant commitment that you are required to commit to and maintain. You will always be grateful in the long-run when you don’t give up on it and build future cash flow and wealth.

I meet with a lot of successful entrepreneurs, and almost every one of them has taken profits from their businesses over the years to invest in rental property. Based on this fact and the list above, I have consistently urged my clients to buy one rental property a year and already have clients with rental properties earning them money they never imagined they’d have.

The far majority of us will never get rich overnight. It takes long-term investing and a diverse portfolio to build true wealth. Don’t forget Real Estate as an important part of the equation!
Entrepreneur Coaching – Mark J Kohler

Amanda’s Story

2Andrew and Amanda are a young couple I helped through the experience of buying an investment property.

They asked me to go with them to see a property at Helensburgh, just south of Sydney, which they really liked but were undecided as to whether it was a good deal.

Although it was a fairly new home there were many things demographically wrong and the eventual rent would have been much lower than their mortgage repayments.

They were looking for somewhere they could live in but rent out in a few years when their family outgrew the house. They were both working in the City and they also had a toddler. I pointed out to them that it was a very long commute to the city and neither day care nor the railway station was conveniently located.

They needed someone to take the emotion out of the situation.

I suggested they look at Holsworthy where, at the time, there was an over-supply of low cost housing. There was also a lot of new development in that area. They bought a small 3 bedroom place which was an easy commute to the City with shops, medical centre and pre-schools within walking distance.

They now have 2 young children and have recently moved to a 5 bedroom house. Their 2 rental properties are a very solid start to a portfolio which should see them in good stead during their retirement.

“How can I run when I can’t even stand up!”


How can I run when I can’t even stand up!

At the end of last season I went to watch my 5 yr old grandson play football at his  Gala day .

The first game was very successful, then he played in the sun on the lunch break with his ‘grown up’ friend who had come to watch him play.

After lunch, for the second match, he was not keen to play and collapsed in tears by the fence. His mother tried to persuade him to go out on the field, as did Nanna and one of the player’s mother. We all know kids are resilient and if only we could get him on to the field he would forget about the pain in the back of his knees. Eventually I managed to persuade him to sit on the bench and watch with us.  After a bit of coaxing his reply was,

“I really want to play, but how can I run when I can’t even stand-up?”

Eventually at half-time the coach said to him,

“I think you would be able to get a goal in this match, why don’t you just stand by the goal mouth and your team can kick you the ball.”

He then allowed himself to be picked-up off the bench and taken out on to the field. After a minute or two he was running around with the others and eventually he scored a goal.

Is this like many of us? We know that we can run, but we don’t know how to stand up and take those first steps towards the goal.

If you feel overwhelmed about  finding  your own Investment Property and don’t know how to get started or where to look, Download my  FREE  Tips “7 Questions you need to ask yourself  before buying an Investment Property!”

The Difference between Positive and Negative Gearing!

The Difference Between Positive and Negative Gearing

“Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.”~ David Copperfield

Whoever thought that two hundred years ago Charles Dickens would be describing the difference between positive and negative gearing!

Over my years of investing it has really surprised me to discover how many people do not know the difference between positive and negative gearing.

It really is as simple as Charles Dickens explained of making sure that the entire income from any Rental property is more than the expenses.

When weighing up the expenses you must include everything: the sale price, stamp duty, solicitor’s fees, land tax, council rates, water rates, renovations & repairs and, if it’s a unit, strata fees. Strata fees can be a killer. Many people have got out of holding a unit just because the strata fees were too expensive.

Did you know that only 10% of people in Australia have an Investment Property and of that 10% only 5% have more than two?

If you would like to have a positive Cash-flow investment portfolio to give you a secure retirement then I suggest that, as this is close to the beginning of the year, you should plan to buy at least one investment property this year.

In my coaching program I help people build up their portfolio over their working life so that they have several properties bringing in a positive cash-flow, passive income to secure their retirement.
How many properties do you think you could buy if your properties were negative geared? Because you’re paying for them, out of your salary, you will probably only be able to afford two. However if you have positive geared properties and you can show the bank that the loans can be serviced you should be able to afford an indefinite number!

Nowadays, with interest rates below 5%, it’s a lot easier to find positive geared properties, where the rent will cover the mortgage repayments. However, what if interest rates increase? How would you cope when they do go back to 7, 8 or 9 percent if your property is already negative geared?

So if you plan to retire before you are 70 on more than the aged pension, I strongly recommend investing in property with some expert advice.

Discover the 7 questions you need to ask yourself before buying an investment property go to the  opt-in box at the right of page NOW for your Free Tips!


Anita Fursland
Positive Properties
02 9545 5005
0405 100 146

Attention Novice Property Investors!

“Be fearful when others are greedy…..”

A few days ago a student of mine asked me “Is this the right time to buy?”

A great question!

House prices have been rising at a rapid rate over the last 12-18 months and the seasoned investors are taking their profits from purchases they made 2 or 3 years ago in readiness for the next dip. In my family alone we have sold 3 properties in the last 3 months.

So are you about to buy at the peak of the market?

Are you confused about what to buy and where to look when it comes to buying an investment property?

Book in now for your Discovery Strategy Session to discuss your needs, goals and where you are now!

This situation reminds me of an old army story my dad used to tell. After a particularly hard day he dropped by the officers’ mess and asked the barman, “I suppose it’s too early for a Gin and Tonic?” The barman replied, “Well the sun is behind the Yardarm somewhere in the world, sir!”

That doesn’t mean you have to go to Queensland or the USA to find ‘hot’ deals but it may mean you need some guidance to find them locally.

Checking back recently on a would be potential client, who had decided not to go with my coaching, he told me he had “gone it alone” and bought half a duplex for $520,000 and the rent was $400/week. My heart bled for him because, although he seemed to be totally happy with this negatively geared investment, I wondered if he had worked out how long he would be losing money on this deal and how he will cope when the fixed interest period stops and interest rates go up.

The funny thing is that when this scenario comes up on a card in Robert Kiyosaki’s “Cashflow” game most players won’t touch it with a barge pole, but in real life people make this mistake all the time!

  • It is a well-known fact that if you increase your education you lessen your risk.
  • Do you know how to find properties brining you in at least $200 per month?
  • Let me save you from losing a fortune on a weekly basis.
  • Learn how to find positive geared properties even in this current market.

Book in now for your Discovery Strategy Session to discuss your needs, goals and where you are now!

Call 0405100146.  

In this 1 hr session you will:  

  • receive clarity on your goals and current situation 
  • learn how to create a deposit of $30,000
  • discover how you can invest in  Positive Cash-flow property and look forward to a brighter, more secure future and retire doing the things you love!

These sessions are limited as I only have a few spaces left in my coaching program for this year. So get in touch with me NOW on 0405 100 146 to book your appointment, or click “make an appointment” to leave your details so we can call you back.

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If you feel like you’re swimming upstream, take a boat!

Let me help you, call Anita Now 0405 100146!