positive magazine

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PROPERTY PORTFOLIOS

Recently we have raised over $118,000 and built 4 schools with Room To Read

smsF, taX , passive income , mortgage reduct ion, HigH perFormance investment propert y, Blue cHip real estate , development + l iFe t ime mentor ing program

TAX REDUCTION4 Quick Tips to Start Reducing Your Tax

SELF MANAGED SUPER FUNDS$3,375,000 retirement nest egg of 9 properties achieving $2,575 /wk rent

MORTGAGE REDUCTIONPaid their home off in 6 years

▲ POPULATION+1.6% growth JUN 2012 (22.7M)

▼ UNEMPLOYMENT Rate reduced to 5.3% in NOV 2012

(USA at 8.3% & EU at 10.4%)

▼ VACANCY National rate reduced to 1.8% in 2012 (suggests housing supply

levels may not be as bloated as some have suggested)

▼ INTEREST RATES RBA lowers the interest rates to

3% (avg loan repayment is reduced by $50/month)

$1.7 Million High Performance Capital Growth property portfolio that costs less than $100/year to own after tax

POSITIVE CASHFLOW$100,000 Passive Income

Capital Growth property portfolio worth $1.6 million returning $20,000/

year Positive Cashflow after tax

Hi Investors,

There’s nothing more satisfying than looking back over the past decade and realising that an idea started by Co-Founder Jason Whitton and myself in 2003, has now exploded into a leading multi-million dollar property investing company that helps thousands of every day Aussies understand and get fantastic results from property investing.

Today, Positive Real Estate is one of the longest standing property investing companies, with almost 10 years experience in delivering the most up-to-date property investing advice and profitable investment opportunities to over 30,000 Australians. In 2011 we launched in New Zealand as well!

Our team and clients are called upon month-in and out by reputable industry media publications to provide unbiased advice, cutting edge commentary and educational content and we are widely recognised for unveiling crucial hotspot locations before the crowds move in.

We pride ourselves in giving our clients direct access to some of the most experienced and specialised professionals in the property industry and also run hundreds of complimentary, practical workshops, designed to help interested investors safely build profitable portfolios.

Every investor I have ever come across has always started their investment journey with solid intentions of building wealth for their family, retiring on a passive income and having the security of a solid asset base. The sad fact is, however, only around 2% of investors ever reach financial freedom and attain the riches property investing should provide.

At Positive Real Estate, we know that education and surrounding yourself with a team of experienced investors is the key that unlocks the door to reaching this 2% club. That is exactly why we established our national Lifetime Mentoring Program.

Take a read through the pages of this booklet and you will find numerous stories of our clients, every day people like you and me, who have achieved extraordinary results through property.

You will also discover practical tips and strategies that will safely take your property portfolio to the next level while by-passing some of the most common investor mistakes.

If you are interested in positive cashflow properties, creating a passive income, tax tips, how to pay your home off fast and how to safely build a multi-million dollar portfolio, then keep reading. Happy investing and I look forward to seeing you at one of our future events.

Property Millionaire & CEO of Positive Real Estate

A Word From Sam Saggers,

Sam Saggers CEO Positive Real Estate

LESS STRESS. MORE RESULTS.

Over 9,400 likes

Over 2,900 followers

Over 212,000 video viewers

Over 9 years in operation

Brochure provided by Positive Real Estate, Corporate Licence 1217226

Please view our legals and licenses on www.positiverealestate.com.au

Brochure provided by Positive Real Estate, Corporate Licence 1217226 Please view our legals and licenses on www.positiverealestate.com.au*Conditions apply, please refer to the website for more information. These scenarios do not take into account your personal circumstances, for more information on these results see the website. All information is of a general nature only and does not constitute professional advice. Please seek advice from licensed professionals about your personal situation. This information is subject to the disclaimer on www.positiverealestate.com.au/disclaimer

Positive Real Estate is one of Australia’s longest standing and largest total solution property investmentcompanies. We are constantly sought-after by the nation’s leading media organisations to offer expert advice on the Australian property market as well as providing them with numerous client success stories.

In The Spotlight_____

Page 6

Save 15 Years of Mortgage Repayments and Own Your Home Debt Free!Why spend 30 years with bad debt hanging over your head when you can pay it off in less than half the time and save yourself thousands of dollars in the process?

Did you know that each and every day, your bank is probably bleeding you dry? If you keep paying your loan off the “traditional way” you could be stuck with a 20-30 year debt sentence!Unfortunately, the majority of Australians never learn how to effectively manage their finances and instead of eliminating their bad debt and building wealth, they live week to week and often spend more than they earn.

What if we told you that it is possible to pay off your home loan in half the time or even less? Would you be interested in finding out more? What if we also told you that you could buy 2 or even 3 investment properties to build your wealth at the same time you’re paying off your home loan?

It is possible and we have seen hundreds of clients do this exact thing. Check our Duncan and Penni’s success story on the back cover.

To take control of your future and slash your bad debt, there are a number of tactics you could employ depending on your personal situation. Below are a few simple ideas to consider.

Set your loan up as interest only and set up an offset account (also known as redraw). This gives you control of your money and also allows you to lower your interest repayments by putting any extra money you have against your home loan. The compounding effect over a period of time is massive - even Einstein was amazed at compounding interest, declaring it to be the “Eighth Wonder of The World”.

Have your salary and any extra money put directly into your offset account rather than your bank’s savings account. Since interest is calculated daily, you’re saving yourself interest just by having that money sit in your offset account.

Take advantage of the 55-day interest free period that many banks offer on credit cards. Direct all your income into your offset account and use your credit card to live and pay all the bills within the 55 days. Then at the end of that period, the money comes back out of your offset account to bring your credit card debt back to zero. By having the extra income sit in your offset for the 55 days, your interest repayments will be reduced, allowing you to pay your home off sooner.

Build a strategic positive cashflow portfolio structured specifically to eliminate bad debt quickly.

Book a complimentary consultation with your Head Coach now and find out how having the right property investments can build your wealth and pay your home off in record time. www.POSITIvEREALESTATE.COM.AU/LMPCredit Representative Number 388095 ABN: 22140317773

Page 7

Most have us haven’t realistically thought about this, but many Aussies give every cent they earn on Monday, to the

taxation department (No wonder we all hate Mondays). If you’re in a high-income bracket, then you’re potentially handing Tuesday’s and half of Wednesday’s pay straight to the ATO as well! For some of you that’s almost half of your wage handed over to the taxation department each and every week! The good news is, with a more strategic way of managing your finances and taxes, you could almost double your pocketed income… without having to ask your boss for a pay rise!

Positive Real Estate are specialists in helping clients use property as an investment vehicle to legally and dramatically reduce the tax they pay – with many of our investors using our expertise to pay ZERO tax!

4 Quick Tips to Start Reducing Your Tax:

Organise a a PAYG variation and claim your tax entitlements as soon as you get paid i.e. weekly,

fortnightly or monthly, instead of claiming at the end of the year. This immediately adds extra cashflow to your pay packet and increases your serviceability, allowing you to buy more properties and move forward easier. (Remember the ATO doesn’t pay you any interest!)

Put your reclaimed tax money straight back into your loans. This reduces your interest payments

each month and takes years off your loan.

Claim everything you are legally entitled to. Invest in a professional depreciation schedule

and find an accountant who specialises in investment property. Too many investors are missing out on thousands of dollars in tax refunds just because they don’t know what they can and can’t claim.

Invest in secure and profitable properties that match your personal financial situation. Take ad-

vantage of the HUGE tax incentives available for prop-erty investors, whereby the money you would usually be forced to pay in tax can legally be used to service your property investments and help you build wealth for the future.

Zero taxes. Interested in finding out how it’s possible - or more specifically, how YOU can pay NO taxes? We’re talking about a smart money management plan designed to keep more of your money where it belongs - in your pocket!

Get Your taxes down Potentially to Zero

Find out more about how a depreciation schedule with a PAYG variation can reduce your tax and improve your cashflow and serviceability. Find out how you can start to take proactive

steps towards paying less or even NO tax! Find out how to invest your money directly into your property portfolio, instead of handing dead money over to the ATO each week!

It doesn’t take a lot to get started - just an interest in changing your financial future. Take the first step by booking in a complimentary one-on-one

appointment with an expert Head Coach in your area, where you will learn smart money management strategies, which can help you,

among other things, cut your taxes - maybe even all the way to zero!GO TO: www.positiverealestate.com.au/lmp

Tax information provided by Lee & Lee AccountantsPage 7

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The sad reality is that a $500,000 superannuation nest egg will not provide a comfortable retirement for most Australians. In fact, most of the nation’s super will hardly sustain them for two years!According to the Association of Super Fund Research, a couple will need around $55,000 per annum for a comfortable lifestyle during retirement. This means you will need approximately $500K if you are entitled to the full retirement pension and if you are self-funded, you will need around one million dollars in your super fund to generate this kind of money.

Sound scary? Absolutely! Especially if retirement is

only a few years away.Recently it was found that women aged 55 to 64 years were estimated to have an average superannuation

balance of only $54,500, with average male superannuation balances at just $113,200, (Source: University of Canberra’s NATSEM unit).

Retirement can be scary without the right planThe good news is it is very possible to retire in a position where you can have the savings you need to live, without depending upon a government pension or allowances. How? Property investing. Whether your retirement is two or ten years away, there are some excellent benefits associated with investing in property using your super, which is where we come in. Our specialist team in SMSF planning with property can help you fast track your retirement plan and start investing strategically in property using your super for a secure and wealthy retirement.

CASE STuDYInvested in 2 Properties in her SMSF in 6 Months Positive Real Estate client, Susan Flux had dreamed about property for years but had been held back from purchasing by her own fear. At 53 she has finally taken the plunge and has subsequently bought two properties within just six months in her SMSF. Susan is powering on, buying three properties in 18 months and has no plans of stopping anytime soon. “I was brought up with a strong belief that you pay for everything outright – you have the money and pay for it straight away, rather than borrowing,” she says, explaining that this perspective made the idea of taking on multiple mortgages a difficult one to swallow.

Susan today is a changed woman and has reignited her passion in property and belief in herself. Her goal is ten properties within her SMSF for the tax advantage and retirement peace of mind. She explains, “It’s partly about being able to fund my lifestyle when I can no longer be in an office working for an employer.” And with so many opportunities Australia-wide, she doesn’t see any reason to stop buying just yet.

How to Invest in Your Self-Managed Super Fund (SMSF) for a Secure Retirement on a Passive IncomeThe thought of retirement is often associated with relaxed long days of reading, travelling, time with friends and family, giving back, and a secure and happy life. A reward for all your hard years working.

TAke bAck The reiGns!

What are the key benefits of investing in property using your SMSF; 1. You can borrow up to 80% of the property value and have the remainder funded from your superannuation. 2. Pay zero capital gains tax and ZERO income tax on rent once in retirement.3. A clever way to reduce taxes: Pay down your property using your compulsory super contributions and any salary sacrificed funds will potentially only attract a 15% tax rate – instead of up to 46.5%.4. Save hundreds of thousands in interest costs and pay off the loan in half the usual time.5. Fund your next investment property without using any personal income.

Contact the expert Head Coach in your area by booking in a complimentary one-on-one appointment here www.positiverealestate.com.au/lmp INFORMATION PROvIDED BY SEqUOIA SUPERANNUATION PTY LTD.

CASE STUDY

Apositive cashflow property puts money into your pocket before tax. All costs (expenses and mortgage repayments etc.) are covered by the rent and there is still money left over.

The good news is that it is possible to turn a negative cashflow portfolio into positive cashflow. There are multiple ways to do this, such as ensuring you have the right loan product with a split facility, performing small cosmetic renovations to boost your rental return or even recycling equity could solve the problem. Without cashflow it is extremely hard to move forward and often means your portfolio will become stagnant. It also means you will personally be out of pocket for all of your portfolio’s shortfalls – say goodbye to steak dinners and hello to baked beans!

Positive cashflow property is more common than you think, however the reason you don’t often see them, is our clients typically snap them up before they are advertised in the public arena! We have clients earning over $100K in passive income from their property portfolio – want to know how?

You end up with a multi-million dollar portfolio. So can this really work? You bet it can! We show our clients all the time. When you have acquired your 10 properties, it then becomes time to consolidate – to decide which properties to sell and which to keep. If you own 10 properties you may decide to sell five with an aim to reduce your LvR and increase your cashflow to make your portfolio positive cashflow. The ultimate goal is to owe no mortgage debt with your properties now producing a passive income.E.g. 5 (unencumbered properties) x $500,000 = $2.5 million total value. Assuming a modest 5% rental return on each of these properties, your yearly passive income would be $125,000. we can show you exactly how to put this plan into place!

BOOK A COMPLIMEnTARY OnE-On-OnE APPOInTMEnT wITH An EXPERT HEAD COACH nOw TO FInD OUT MORE: www.POSITIvEREALESTATE.COM.AU/LMP

The benefits of having positive cashflow in your property investment strategy are clear:

Positive Cashflow, Passive Income of $100K and Retire Early

1. The property PAYS YOu to own it (everyone loves passive income) 2. Your serviceability increases and makes you more attractive to lending institutions

3. It can take up the slack of other negatively geared, capital growth properties in your portfolio (it balances your portfolio)4. Low financial stress

Looking for the BEST positive cashflow opportunities across Australia?

CASE STuDY Living the Dream; $104,000 Passive Income!

10 PRoPERtIEs In 10 YEaRs What happens when you buy one property a year for the next 10 years?

Emma and her husband have achieved amazing success in property, amassing a property portfolio of 8 properties worth $3.993m dollars generating a passive income of $104,000 (positive cashflow) after all expenses. These two hardworking, very focused and dedicated people are Positive Real Estate clients. Funnily enough when chatting with Emma she explained, “The biggest hurdle for me was getting started and having faith in myself. I kept telling myself I wasn’t educated enough but I’d been to all these seminars and was doing what I needed to in terms of due diligence and I had done nothing. However once I started I couldn’t stop!”

want to know more about how you too can create a passive income of over $100K or a multi-million dollar property portfolio like Emma and her hubby? Why not book in a complimentary one-on-one appointment with an expert Head Coach to learn the same things that this couple did to achieve their goals.

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5 Year Executive Lease Blue-chip in API HotspotPrice: $333,000Weekly Rent: $515Gross Rental Yield: 8% After Tax Cashflow: $4,943 p.a

10% Rental Yield in Sydney House and New Granny Flat GoldminePrice: $320,000Weekly Rent: $650Gross Rental Yield: 10% After Tax Cashflow: $5,978 p.a

$60K Instant Equity gain Massive Discount in YIP Top 100 HotspotPrice: $475,000Weekly Rent: $660Gross Rental Yield: 7.1% After Tax Cashflow: $3,838 p.a

Positively geared Dual Income House and Land; $Billion Mining HubPrice: $486,000Weekly Rent: $750Gross Rental Yield: 8% After Tax Cashflow: $5,580 p.a

Page 10

Both Peter and Karen alongside their expert Head Coach have created secure and profitable million dollar property portfolios that suited their personal situation and goals.

PETER’S HIGH CASHFLOW PORTFOLIO IN GROWTH AREAS WAGE = $100,000

Peter’s Head Coach has strategically helped him invest in secure, high yielding properties in good growth areas, and he achieves $20,348/year positive cashflow after tax.

$1,614,000 PORTFOlIO vAlue; $133,900 gROSS RenTAl ReTuRn

PETER’S 4 PROPERTY PORTFOLIO POTENTIAL AFTER 5 YEARS:BASeD On 6% gROWTH:

$2,177,044 portfolio value; $563,000 in new equity

BASeD On 8% gROWTH: $2,404,610 portfolio value;

$790,610 in new equity

BASeD On 10% gROWTH: $2,655,528 portfolio value; $1,041,528 in new equity

PETER’S PORTFOLIO AFTER YEAR 1

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KAREN’S SELF-SERVICING BLUE-CHIP PORTFOLIO WAGE = $100,000Karen’s Head Coach helped her create a blue-chip portfolio that costs ONLY $98 per year after tax to hold!

$1,780,500 PORTFOlIO vAlue; $110,760 gROSS RenTAl ReTuRn

Property That Pays You Positively Geared in Sydney’s Eastern Suburbs!Price: $450,000Weekly Rent: $500Gross Rental Yield: 5.7% (well above the 4.5% average) After Tax Cashflow: $1,715 p.a

YIP & API Magazine Hotspot HuGE Equity Gain with Duplex Dual IncomePrice: $570,500Weekly Rent: $680 ($340 each side)Gross Rental Yield: 6.1% After Tax Cashflow: $1,751 p.a

Mining Boom Town 4bdrm Discounted Land & Build PackagesPrice: $380,000Weekly Rent: $520Gross Rental Yield: 6.8% After Tax Cashflow: $371 p.a

Blue-Ribbon Brisbane Absolute Waterfront with Stunning ViewsPrice: $380,000Weekly Rent: $430Gross Rental Yield: 6.7% After Tax Cashflow: -$3965 p.a

THE PROPERTIES USED IN THESE ExAMPLES ARE all REal dEals THAT POSITIvE REAL ESTATE HAS

FOUND AND NEGOTIATED FOR CLIENTS.

KAREN’S 4 PROPERTY PORTFOLIO POTENTIAL AFTER 5 YEARS:BASeD On 6% gROWTH:

$2,401,627 portfolio value;$621,127 in new equity

BASeD On 8% gROWTH: $2,652,670 portfolio value;

$872,170 in new equity

BASeD On 10% gROWTH: $2,929,472 portfolio value; $1,148,972 in new equity

KAREN’S PORTFOLIO AFTER YEAR 1

Page 8

API Top 100 Hotspot/ Off-the-plan Positive CashflowPLUS Amazing gross Rental Yield of up to 10.7%

• Price: 1bdrm from $305,000/ 2bdrm from $410,000• Market Rent Potential: 3 year fixed $620pw (1bdrm)/ $810pw (2bdrm)• Gross yield: Approximately 10.2% to 10.7%• Strategy: Positive Cashflow/OTP Growth• Market Timing: Bottom of the Market• Growth Drivers: Huge infrastructure development of approximately $25B underway, with $400M slated for gentrification projects; population expected to increase by 61% over the next 20 years.

• Fixed lease for 3 years; positively cashflow from $3,000 p.a• No council rates, management costs or BC rates payable during the lease

• Huge gross yield of up to 10.5% guaranteed for 3 years!• Stylish apartments in central Townsville, within metres of every conceivable amenity, including shopping, cafes and restaurants• Small development of only 44 units

MEgA HOTSPOTYIP Top 100 & API Hot 100

Average capital growth rates of 12.8% over the last 10 years and $8B infrastructure injection

• Package: From $432,300• Weekly Rent: $480-$520• Gross yield: 5.7+%• Strategy: House and Land/ Capital Growth• Market Timing: Start of Recovery• Growth Drivers: $8 Billion worth of infrastructure projects including $1.65B expansion of the F3 motorway/ $1.2 Billion expansion of Newcastle Port/ $1B rail upgrade for mining services/ Severe undersupply

• PoTeNTial equiTy GaiN oF $50K oR MoRe oN CoMPleTioN on these enormous 4 bdrm House and land packages

• Set in the fast-growing Newcastle fringe roughly 18 minutes drive from Newcastle CBD• 3 minutes to the F3 Highway and only 15 mins to lake Macquarie - families flocking to the area • a lifestyle community; ideally located close to all necessary amenities including schools, shops, cafes and restaurants

RECENT BENCHMARK SALES $50K MORE

world Class Blue Chip Off-The-Plan Potential Positive Cashflow of $21pw

• Price: From $391,000• Market Rent: $450 - $750pw (furnished)• Gross yield: up to 6.8%• Strategy: Capital Growth/Blue Chip• Market Timing: Bottom of Market• Growth Drivers: South Brisbane and Southbank Railway Stations within 1km, as is Brisbane CBD and the Queen Street Mall/ $4B infrastructure spend/ Extremely low vacancy rate of 1.5%/ 120,000 students nearby

• Directly across from Brisbane riverside - an exclusive development by aria Property Group• Sleek, contemporary designer aesthetic - well suited to the tastes of the area demographic

• Commanding a significantly higher rental premium than neighbouring suburbs • a world of shopping, dining and entertainment venues at your tenants’ doorstep• Stunning resident’s rooftop terrace, spa, entertaining and BBq facilities

YIP 100 #1 HOTSPOT

Success Stories

Brad & Kelly PaasThis Savvy Young Couple Amassed a Portfolio worth $1.7 Million Spanning 5 properties!

The Lifetime Mentoring Program has given them the knowledge, confidence and access to exclusive deals to explode their portfolio into the millions within a few years.

Bridget ReesA Million Dollar Portfolio in Just 15 MonthsWithin just 15 months of joining the Lifetime Mentoring Program, Bridget owns 4 properties and has established a diversified million-dollar property portfolio throughout Australia. Confident and knowledgeable, she is now looking forward to building further wealth and financial freedom through property.

CONTACT AN EXPERT HEAD COACH IN YOUR AREA NOW TO FIND OUT HOW YOU CAN START MOVING FORWARD!

www.positiverealestate.com.au/lmp

Duncan BuchananPaid Their Home Loan Off in Just Over 6 Years and Built a Multi-million Dollar PortfolioHead Coach Duncan Buchanan puts into practice what he preaches, “You have to walk your talk!” he says. Duncan and his wife Penni are both in their 30’s and have paid their mortgage off in just over six years whilst raising two gorgeous children. They have also used sophisticated strategies in multiple entities to invest in many properties Australia-wide.

Terry Clarkenine Properties and a Retirement nest Egg of $3,375,000To build his nest egg, Terry took advantage of the pre-negotiated discount properties from Positive Real Estate’s Investor Agency. As a member of the Lifetime Mentoring Program, he also benefits from the wealth of information and one-on-one guidance, and alongside his coach has planned well, to retire on a passive income.

OUR ReSUlTS SpeAk FOR THeMSelVeS

“An investment in knowledge pays the best interest” - Benjamin Franklin

Positive Real Estate can take the stress out of your investing

Let Us show YoU how to:

1. Pay your home off in less than half the time2. reduce your taxes potentially to Zero legally3. replace your income in as little as 5 years4. retire on a passive income of $100,000/year 5. own over $3,000,000 of real estate (debt free)

HeLd aroUNd aUSTraLIa BooK YoUr SeaT aT

positiverealestate.com.au/or CaLL

1300 365 886

Leave YouR cRedIt caRd at HoMe. It’S

all free

• In 9 years we have helped our investment community successfully invest in over half a billion dollars worth of property. (These clients lacked either the time or the expertise to locate and negotiate a good deal)

• We use tailored 1on1 support to help clients get started and navigate the minefiedofpropertyinvestingormoveuptothe2%ofthefinancialeliteclub. (Learn the secrets & loop holes used by the wealthy when it comes to tax, mortgage reduction, interest, cashflow, debt & retirement)

• 5% of Australians invest in property, but only 2% of them structure their investmentsproperlytoachievecompletefinancialindependence. (Source: ATO & ABS population numbers)

Get StaRtedfREE 2hR EduCatIonal sEmInaRs

saM saGGersCEO & Successful Investor for 15 years

quEEnSland - nEw SOuth walES - vICtOrIa - auStralIan CapItal tErrItOry - SOuth auStralIa - taSmanIa - wEStErn auStralIa - nOrthErn tErrItOry - nEw zEaland

Brochure provided by Positive Real Estate, Corporate Licence 1217226 Please view our legals and licenses on www.positiverealestate.com.au*Conditions apply, please refer to the website for more information. These scenarios do not take into account your personal circumstances, for more information on these results see the website. All information is of a general nature only and does not constitute professional advice. Please seek advice from licensed professionals about your personal situation. This information is subject to the disclaimer on www.positiverealestate.com.au/disclaimer

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