The Wealth Power
of Property
by Fred & Brett Johnson
(Published: 1997 - ISBN 0646316354)
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Introduction
Background
and History
Chapter 1: Why Residential Property?
Is Superannuation The Answer?
The Property Alternative
Historical Growth Repeated
How Safe Is Residential Property?
Owner Occupiers - The Safety Valve
Is Vacancy A Problem?
Chapter 2: Why Do Property Values Rise?
Measuring Property Values
How Property Cycles Develop
Are Property Markets Predictable?
The Supply / Demand Equation
Types Of Property Investment
Chapter 3: Predicting Property Market
Growth
The Sydney Residential Market Model
A Fundamental Approach
Supply Demand
The Impact of Household Formation
Natural Population Increases
Interstate Migration
Immigration
The Balance
Investor Activity
Vacancy Rates
Interest Rates
Yields and Rents
The Buying Opportunity
Chapter 4: A Simple Philosophy
Why Do Some Investors Fail?
Avoiding Negative Gearing Pitfalls
The Buying Decision
Don’t Follow The Leader
The Three Most Important Elements
Chapter 5: The Enormous Potential Of
Leverage
Residential Property is a Wealth Hazard
Why Property Outperforms Shares
Using Other People’s Money
How Multi-Millionaires Start From Small Beginnings
Chapter 6: Become A Property
Multi-Millionaire In Fifteen Years
Escalating Growth By Leverage
How One Couple Created a Multi-Million Dollar Estate - Conservatively
A Case Study
The Next Ten Years
Adding To Growth Potential
Avoiding Blue Sky
The First Five Years
After The First Five Years
After Ten Years of Escalating Growth
A Multi-Millionaire After Fifteen Years - A Reality
Slowing The Pace To Retirement
The Key Principles
Getting Started From Nothing
Money Management
A Foot In The Market
Chapter 7: The Tax Advantages of
Residential Property
A Case Study of Building Depreciation
Allowances
Tax Deferred Income From Residential Property
Tax Savings From Additional Depreciation
Interest Tax Deductions
The First Time Investor
Negative Gearing Needs Growth
The Total Tax Savings
How To Find The Cash Shortfall
The Retirement Alternatives
Keeping Investment Within The Comfort Zone
Interest Only versus Principal and Interest Borrowings
Interest Only
Principal and Interest
Misconceptions About Investment Loans
Allocation of Disposable Income
The Answer How Much Can You Borrow?
Chapter 8: Depreciation - The Big
Sleeper Page
Buildings Lose Value
Government Interference In Market Forces
A Window Of Investment Opportunity
Why Depreciation Is Such A Strong Tax Benefit
Depreciation Schedules
Chapter 9: How To Establish Net Yield
Have Your Cake and Eat It Too
Establishing A Net Return
How To Calculate Outgoings
Maintenance
Management Costs
Miscellaneous
Rates
Insurance
Depreciation - Prime Cost & Written Down
Body Corporate Levies
Land Tax - How To Assess
Vacancy
Years Purchase and Yield
Chapter 10: Capital Growth - The Number
One Consideration
The Two Most Common Misconceptions
The Most Asked Question
Subsidising The Cost
Chapter 11: Always Buy Never Sell
To Have And To Hold
Why Do Investors Sell?
The Property Time Clock
Picking The Peak
Timing Maximises Growth
The Story Of One Investor Who Never Sold
Using Government Planning
Another Happy History
How $6,000 Grew Into $3.840 Million, or Growth of 64,000%
How Can You Ever Realise A Profit If You Don’t Sell?
How To Enhance Lifestyle
Chapter 12: Will Property Keep Rising In
Value?
The Next Thirty Years of Growth
Demographics Drive Growth
Baby Boomers
Supply - The Other Half of The Equation
Limited Land Supply
Chapter 13: Does Inflation Affect
Property Values?
Does Low Inflation Mean Low Growth?
The Invisible Boom
Land Delivers Growth
Low Inflation - Low Risk
Chapter 14: Selecting The Best Property
What Makes One Property Better Than Another?
The Twenty Five Key Points
Not To be Treated Lightly
Chapter 15: Other Types Of Investment
And Why To Avoid Them
The Real Gain
Staying In Control
Diversification
Liquidity A Problem
Losing Leverage
Chapter 16: But Could I Live In It?
Luxury, Leisure or Low Range
Buying With Emotion
How To Make A Sound Buying Decision
Chapter 17: The Biggest Mistake You Can
Make
Three Steps To Success
Knowing Your Capacity
Chapter 18: Finding The Property
Some Good Examples
A Western Waterfront
Olympic Fever
The Hidden Opportunity
Detailed Analysis - An Example
Chapter 19: Resort Property
It Can Be A Disaster
The Two Best Examples
Tourism Depreciation Allowance
Resort Property Is Different
The Emergence of Strata Titled Resorts
Tourism Demand - The Wild Card
Chapter 20: No Hassle Property
Management
The Electronic Property Investor
Keeping Up With Change
Selecting The Right Tenant
Property Inspections
Maintenance and Damage Control
Avoiding Bad Debts
Tenant Disputes and The Tribunal
A Long Term Relationship
Taxation & Finance
Client’s Rights
A Twelve Point Property Investment Check List
Professional Fees
Transfer Of Management
Chapter
21: Appraisal Methods of Investment Performance
Internal Rate Of Return
Present Value Analysis
The Value of Present Value
The Flaw In Present Values
The Advantages of I.R.R Over Present Value Analysis
Comparing Three Investments
Not A Matter Of Indifference
IRR Safely Used - In Conjunction With Good Sense
Chapter 22: Future Trends In Property
New Economic Forces At Work
Technology In Property Terms
Future Demographics
Property Maintenance and Leisure
Retail Shrinkage
Electronic Shopping
Future Planned Communities
City Living
To The Next Millennium
Chapter 23: The Property Optimizer
How to Subscribe
How to Assess Your Property Investment Options
