API-006 - October/November 1998

COVER STORY - SMART FINANCE

Whether you're buying a home or investment property, the type of loan you get - and how you manage it - will have a significant effect on the performance of your investment. Manage your loan right and you could cut many years off of your home loan. Do it poorly and you could end up 25 years later still owing the original amount! David Wheatley cuts through the marketing hype to look at the various loan products available in Australia, and show you how to choose the one that best suits your particular circumstances.

CASE STUDIES

How the winners do it... Australia's most successful property investors share their secrets and strategies.

    * LESLEY GILLIGAN - From a modest starting point, Lesley Gilligan created a carefully-designed financial plan to provide her with an increasing cash income and a substantial property portfolio. Within a decade she had achieved both goals...

    * ALF DIP - Gold Coast builder and investor Alf Dip offers his tips on how to select the right investment property

REGULAR FEATURES

BRICKS AND MORTAR WITH GRAHAM AIREY (Readers' Forum)

Bestselling author Graham Airey's book The Property Investor's Handbook is one of the most comprehensive books on the business of property investing. In this column Graham answers readers' questions about residential property investing.

SOLICITOR'S COMMENT

Managed Investment Schemes - One of the aims of the Managed Investments Act 1998 is to provide increased legislative protection for investors in managed investments. David Atkinson discusses the implications of a policy paper released by the ASIC on further possible legislative changes that would affect investments such as first mortgage investment schemes.

ACCOUNTANT'S COMMENT

Capital Gains Tax - Composite Assets. Many investors believe that assets acquired prior to 20 September, 1985 are exempt from capital gains tax. However, that's not always true. Peter Dawkins looks at Section 190P of the Income Tax Assessment Act, which outlines how, if expenditure result in the creation of separate assets for CGT purposes, a capital gains tax liability may arise. Investors take heed!

SMART INVESTING WITH JAN SOMERS

You're never too young to start investing in property. In this issue, Jan profiles two investors who started young... Alexander, who bought his first property at 19, and Len, who bought his first at 18. After a successful career in property investing, Len recently sold part of his portfolio to buy a new toy - a Learjet.

SPECIAL FEATURES

WHEN IS A BID NOT A BID?

Purchasers at property auctions face many unknowns, one of which is the use of 'vendor' or 'dummy' bidders to create an illusion of greater competition and achieve a higher price. Monique Wakelin shows how to spot 'dummy' bidders and how to handle them at auctions.

WHEN IS A CHANGE IN HOUSE PRICES NOT A CHANGE IN HOUSE PRICES?

Successful property investors know how to use property statistics to help identify areas where properties are likely to appreciate in value. However, median and average price trends can be misleading if they arise from changes to buying patterns rather than across-the-board price changes. By Residex.

INVESTING ON QUEENSLAND'S GOLD COAST

The Gold Coast has always been a mecca for investors, offering outstanding investment opportunities combined with a great lifestyle. But it's an easy place to lose money as well. David DeMoor shares his personal experiences, tips and predictions as an out-of-state investor.

RE-STUMPING: GETTING IT RIGHT THE FIRST TIME!

It's a common problem - up to 30% of the timber-stumped homes Archicentre inspects require immediate re-stumping (partial or complete.) We'll take you through the many potential pitfalls in this procedure to help you get it right - the first time.

PROPERTY NEWS AND STATISTICS FROM AROUND THE COUNTRY

    * NEW SOUTH WALES

    * Market Comment

    * Sydney's Olympic Corridor - reinventing the inner west

      VICTORIA

    * 1999 Residential Property Forecast

    * Melbourne's year may be the envy of other cities

      QUEENSLAND

    * 1999 shaping up as a good year for property

    * REIQ identifies housing growth patterns

    * Buyers beware: Marketers place unfair prices on Queensland property

    * An undersupply of inner city units in Brisbane?

    * Unit resale market to become competitive

    * Moggill the star performer in Brisbane's westside acreage

      WESTERN AUSTRALIA

    * 1999 guide to home buying in Western Australia

    * Review of Perth's 1998 real estate market

    * Mixed signals in September quarter

      SOUTH AUSTRALIA

    * House prices end year with a rise

      TASMANIA

    * Increasing activity in Hobart

      NORTHERN TERRITORY

    * Solid markets in the Top End

This is only a sample of this issue's contents... don't miss it!