August 2009

Growing your portfolio


How do you get more finance to purchase more properties when in
our situation? We owe $58,000 on our home, which is valued at
$450,000, and we have a positively geared investment property ($70per week) valued at $150,000. Our newest investment property is valued at $265,000, and it is neutrally geared.

I’d like to know how we could get more properties under our belt?

We are both work full-time and have a great finance track record.

Regards – Karen

Karen, it sounds like you are in the perfect position to continue
investing. You are both working full time and you have equity up
your sleeve, so you are ideally positioned to take advantage of the
current real estate market.
You have plenty of flexibility in terms of your LVR, and you have so
much equity in your own home. In terms of finance, there are many
options available to you, such as borrowing against the equity in your own home, or taking out a line of credit. The right finance solution for you depends on the leverage you have against your investment properties, your combined income, and the direction you want to take in terms of actual loan products.

I would recommend that you speak to an experienced finance broker
who specialises in dealing with investors, and ask them to set you up
with a five or ten year plan.

Published by Henry Sapiecha 27th August 2009


I was wondering who was the first-ever millionaire.
It was a curiosity thing for me, as well as an opportunity
to do some research online to see what would come up.

I was amazed at what I found.

It gave me a real kick up the butt. Up until that point, I
thought I was an action-taker. Unfortunately I was driving
with the hand-brake on.

It's funny how these old secrets come up all of the time and
really shift your paradigm and get you going again.

OK, let's get into it. This is a 161 year old secret that
once you read this - it'll put "making money" into a whole new

Success leaves clues, so I dug around and found the name,
John Jacob Astor.

Interestingly enough, he was an American from German

Astor got rich in the early 1800's trading furs, tea, silk
and fine china. Principally a business person to start off
with, but that was not where his real fortune was made.

He invested his trading profits in something that would
prove to be even better...

Real estate.

His most profitable investments were in New York City where
he built a reputation known as the "Manhattan Landlord."

Before he died, he left these powerful words. Astor said,
"Could I begin life again knowing what I know and had money
to invest, I would buy every foot of land on the island of

Astor passed away in 1848 leaving $20,000,000.00 to his

$20 million is a lot even today but converted @ todays values it would be around about...

Wait for this...


Now that's an insane amount of money.

This brief story about a person you've probably never heard
about has many powerful lessons, doesn't it?

Let's go through them quickly...

#1. Increase your cash flow
#2. Invest in real estate
...I did say quick and simple, it really  comes down to just
the above 2 things.

The parting words of John Jacob Astor should be written up
an posted somewhere where you can see it every day.

Sure, Astor is talking about Manhattan, but don't let that
limit you. Pick any major city around the world (even
Australia) in that time frame and you'd see a similar story.

This real estate thing isn't a fad or a passing-trend, you
would want to live for as long as you can and see as many
cycles as possible.

The sooner you start, the better.

NOTE> Imagine creating an empire that in 100 years time could
be worth $1 billion... The legacy that you would leave for
your family. Begin now.

Sourced and published by Henry Sapiecha 21st August 2009

House prices start to take off


SYDNEY house prices have shown growth in the three months to June since the global financial crisis struck in late 2007, figures show.

The value of the Sydney’s average  home rose 3.7 per cent after five quarters in a row of flat prices, Australian Property Monitors said in a report to be published today.

The result supports other signs that low interest rates, the lowest in 40 years, and a shortage of homes could help Australia avoid house price falls of up to 20 per cent seen overseas.

Property: hottest suburbs in Oz


BRW magazine’s national property survey is out on Thursday. Editor-in-Chief Sean Aylmer lists the most affordable areas to buy.

And in a possible sign that growth in the market was spreading beyond government-backed first-home buyers, the top half of the market grew nearly twice as fast as the more affordable half.

Meanwhile, separate private-sector figures added to fears of a housing bubble fuelled by a shortage of new homes and apartments coming on to the market.

The property figures come after comments on Tuesday by the Reserve Bank governor, Glenn Stevens, that surging housing demand must be ‘‘translated into more dwellings, not just higher prices’’, which some economists saw as a warning of the next housing bubble.

But an economist with Australian Property Monitors, Matthew Bell, said the strength of the top end of the market showed growth in house prices was a well-rounded recovery, rather than a first-home buyer-fuelled boom.

‘‘When you’ve got the top end participating like that, it’s a good indication that you’re getting back to the levels we saw before prices fell heavily in 2008,’’ Mr Bell said.

After being pulled down by its large financial sector, Sydney was the fourth-fastest growing capital city after Darwin, Hobart and Melbourne. ‘‘Sydney and Melbourne have come back very strongly and really are leading the country, in terms of price rises.’’

The mining state capitals, Perth and Brisbane, are the only cities where house prices were lower than they were in June 2008.


Housing Industry Association figures, published yesterday, also pointed to a recovery in the property market but hinted at a looming supply shortage.

Detached home sales rose by 18 per cent in the past six months, the report said, but apartment sales had fallen by 20 per cent because developers struggled to access sufficient credit.

The chief economist at CommSec, Craig James, said: ‘‘While more first-home buyers are building their dream homes, investors and developers are either not interested or not able to participate in building new apartments’’.

Sourced from Sydney Morning Herald.

Published by Henry Sapiecha 10th August 2009


I've got some shocking news for you if you're a property
investor, and hopefully this will put the confusion to rest
as to whether the market will go up or down in the next 12

Many of the negative views that relate to real estate are
coming off the back-end of what is happening in the U.S.

Despite the information that we have put out recently about
our prediction, some folk are still not convinced.

I suppose the reason why there is a strong focus on the U.S.
real estate market is that it was the catalyst that started
the ball rolling and has led us down this uncertain economic
climate. Confidence is coming back - but not quick enough.

So I want to have a conversation with you as to where the
U.S. is at and how we differ here in Australia.


Many experts in the U.S. still see housing prices as too
high to attract buyers and too low for sellers who have got
negative equity to get out with their dignity intact. 

With such a crazy scenario, there is obviously going to be
more problems in that market. The question is, will it
effect you as a real estate investor?

Let's have a look at it closely...

The first obstacle the U.S. have got is a simple one...
They've got too many houses that no one wants. I read a
report recently that said that nearly 10% of all homes built
this decade are sitting empty.

You're probably wondering how many are actually empty? Over
600,000 homes.

Who owns them? Well, it's probably a bank or a fancy
financial institution that was silly enough to buy the
mortgages two or three years ago.

So the guys that hold the asset have got a problem, don't
they? If they flood the market the prices of those homes
will come crashing down, which further destroys the value of
the asset on the corporate balance sheet. 

They don't want that - they would rather hold it and call it
an un-performing asset at a reasonable valuation rather than
what it's really worth.

These are the games that big companies play - it makes them
sound smart, but it's a dumb move.

Anyway, so yes, it's bad over there and likely to get worse.

But I know what you're thinking... 

What about us here in Australia?

Well, we have no such problem. In fact, we have the reverse.
In Australia, there is a shortage of housing that is quickly
adding up to 100,000 dwellings.

With no immediate solution...

It's really as simple as that... What forces prices down is
something that most property investors don't think about.
Supply and demand.

We're not going to experience the same fall-out that the
States has suffered - that should be obvious to you by now.
But I keep hearing these stories of how it's going to get
worse in the States and how we're going to be dragged along
and suffer the same circumstances.

It isn't going to happen.

To date, the US market generally speaking has fallen by 34%
based on the Case-Schiller Index. It'll probably fall
further, so if you're thinking about investing in the States
- here's what you should do...

Research the market for the next 3-6 months and then
consider buying some of the bargains of the century. Not
many of you would consider that, however there is a real big
opportunity emerging. (Best leave that for another day).

So what about Australia?

Well, here's what I'm doing. I'm looking for value in the
market and a vendor that's a little bit worried as to what
may happen in the next 12-24 months. 


I wont be rushing in just yet, I think the free money out
there that the government is throwing around has created a
short-term spike in prices. Once some of the free money is
taken out of the market, which begins in September, I'll be
opening up the check book again. 

For now, I'm doing my home work, researching, planning and
getting ready to strike after September and through the
early part of 2010.

I know some of the more astute property investors look to
two other fundamental indicators that may suggest where the
real estate market is going and they are... Unemployment and
Interest Rates

Let's deal with them both... 

Naive investors have got really short memories. It's handy
to look back in history and at past recessions to see what
the effect was on real estate.

In the 1982-83 and 1991-92 recessions, falling interest
rates actually boosted Australian house prices as
unemployment rose.

So can you see what happened back then? Cheap money
out-weighed fears of job losses, reinforced by strong banks
and a critical shortage of housing.

The governor of the Reserve Bank (Glen Stevens) said it
himself, most missed it, "If new supply, now at long-term
lows, doesn't improve, fresh demand will further inflate
existing housing prices."

...I know that's grammatically wrong - but he's got 4 MBA's
so he can say anything he likes. The bottom line is, he's
worried about real estate prices going up.


That means profit to you if you know what you're doing...

As a real estate investor that owns a substantial portfolio,
I'm not worried - I'm looking to pick up more deals whilst
the rest of the market is asleep at the wheel. If you've
read this far, don't sit on the fence. Either you're going
to get serious about real estate or you're not.

This article was posted here with input from an astute market
investor here in Australia.If you need further input from us please
email us or comment on this posting where we will make further
comments or make contact with our info source for you.

*If you are in the real estate business, then use this article
to promote sales.
*If you are an investor/buyer, then take this opportunity
to review your property buying options

Published by Henry Sapiecha 5th August 2009
bright blue dividing line



We somehow have allowed those that we elected in trust to manage our country and its affairs to dictate what is good for us and protect us from our enemies…. and ourselves.?

Mass medication by poisonous fluoride is good for us say the beaurocrats and their consultants.

What next-Formaldehyde to offset old age.?

What next?-a terrorist or mentally deranged individuals attack on the water supply by introducing potassium cyanide into the populations drinking water.

Perhaps yet again another substance that will allow us to be controlled and dociled by those that govern us to the point where we become zombies to do their bidding.

Accidents do happen.

So what if the dose is somehow mis-judged or goes wrong despite all security measures being in place.
We as a population are then dead or at best mentally retarded or physically damaged on a grand scale.
The person/s or government responsible says
‘I am sorry, it was an accident. It will not happen again”

These bastards need to be put into their place.
Most mean well.

I for one am DEAD [pardon the pun] against such compulsory introductions on a mass scale where we have NO CONTROL and NO NEED..

I’m sorry, I am far from convinced on fluoride benefits

We the people………

Next we will have mass sterilization of the population because some clown/s in government decides we have too many people on the planet or in the country.

Yet again we may be told not only do we have to have mass treatment for perfect white teeth but it is now mandatory to be medicated on a grand scale for having shiny hair, so therefore we have decreed that now the poisonous chemical.[……….]will be introduced into the water to ensure this will happen and we your elected representatives and our offsiders know what is good for you.

Next on the agenda will be…stronger bones and we will discuss the benefits of adding cremated body parts to the water supply to ensure that you get the benefits of all that


calcium and nutrients and think about the recycling benefits for the planet…and so it could go on.

We will now introduce compulsory gassing of all peoples over the age of 70 years because they are a drain on the country’s resources. We shall call it…


[More nutrients for the water supply]



Now next, the plan to create a master race…


Those who want to ingest the poison let them do so at their own choice and risk.


I want my drinking and personal use water left alone.

It took us long enough to accept Chlorine as an additive.

I like cocktails, but…..



Henry Sapiecha

*It is not like AIDS, Cholera or Swine flu etc where there are issues of disease transfer



Published by Henry Sapiecha 5th August 2009

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