What does Dawin have to offer leads to a sound investment opportunity. The more you look the more excited you will get! The Northern Territory is the third fastest-growing of all Australian states and territories behind WA and Qld; it is no wonder the world is starting to pay attention. Did you know that the huge investments being poured into the region is drawing a large workforce now and into the future and the rate of home building has been well below the level demanded by a rapidly growing population.
I am an avid property investor with a keen interest in helping young people get into the property market. I have successfully helped my children get into investing in property, with no capital to give them any handouts.
1) Why Darwin?
Darwin is at the cusp of a huge boom, nothing like Australia has seen for a long time and investors are flocking from all over the world to invest in this vibrant city. Darwin is one of the world’s most popular travel destinations.
Did you know that Darwin has:
• A Harbour six times the size of Sydney harbour
• 31 cruise ships visiting (2009)
• A convention centre that has attracted more than 94 conventions since opening in June 2008 with overall economic impact of $66 million
• An airport processing 2 million passengers p.a. that can progressively expand to handle up to 40 million
• Vibrant multicultural young population
• The BEST FOOD
• It is a capital city with a multi-level economy
• NT Tourists: 1.395 million (2009/2010), aver. stay 7.3 night
• Pastoral industry
• Government administration, both Territory and Federal
• Defence Forces – Army, Navy, Air Force, Northern Command All of which provide the basis for well-paid tenants. Economic Indicators Population Growth 2.2% third highest in Australia. Total population of the Northern Territory: 229,675 at December 2010 (ABS Cat No 3101) Infrastructure includes Inpex – Prelude – Darwin Gaol – Abattoir – Housing Construction – Marine Supply Base Employment Trend unemployment rate 3.7%, lowest in Australia (this has been true for 21 months) Labour force participation rate in the NT is 5.9% above the national average Growth in residential building approvals Year to May 2011, growth in NT was 10.8%, second highest growth rate in Australia To date there has been $200 million worth of development committed at the Darwin Business Park.
2) What got you into real estate?
I was always interested in investing in property but was afraid of losing money. One day I was talking to a colleague; an auditor for a very large public organisation. He told me about his huge portfolio of properties and after I told him that it was always my dreamto do thesame, but I did not earn enough money, no money saved in bank for deposit and no knowledge of how to do it anyway; he said I was letting my fear steal my dream and that I did not need a deposit and a big wage. I asked for the contact of the person he was dealing with who turned out to be the best mentor I could have wished for and he got me started that was about 15 years ago.
3) How did you get the money to start?
What surprised me is that you do not need a deposit. I just used the equity of my house for what they call a deposit bond AND I swapped tax for the property in other words I used what I would normally have paid the tax office plus the rent to pay for the loan.
4) Tell us about why you are so passionate about being a mentor for other investors?
I had help, now I can help others. I enjoy it and represent my mentor, so all I do is give people the advice and confidence and steer them into the right direction. I don’t want fear to stop people from setting themselves up for their financial future.
5) Do you have advice for a young adult interested in looking into real estate?
I am especially passionate about helping young people because if I had have known then what I know now, I would be in an even better financial position now. Young people can get into investing in real estate even if they do not have equity in their own home. They can invest and then when they are ready to buy a home of their own they have an asset to sell for a deposit on their own home. I have three young adult children and from the age of 18 they have been investing in property and I did not hand out any money to them, I just gave them valuable advice and their properties did not stop them from going overseas, buying the latest technology and fast cars and they have multiple properties.
6) Is real estate investing for everyone?
Yes real estate investment is for everyone. Whether you are a couple waiting to build a nest egg for the future, a single man or woman or even if you are in your 40’s it is not too late to start investing and the exciting thing is that you can set up a trust fund and have a self-managed super fund and invest in property through that, simple as anything!
7) Anything else we should know?
Have a goal, work towards that and stop listening to negative people.
8) What strategies do you use when investing?
Spend less than you earn, pay extra automatically into your mortgage or property investment and pay it off quickly. Get a mentor you can trust and stop letting fear from at least getting lots of information, you will be surprised how easy it really is.
For free tips, advice and updates visit Elly Graham website.