Simple Project Management 101

Project management is the discipline of planning, organizing, motivating, and controlling resources to achieve specific goals.

 

Project management is the application of knowledge, skills, tools, and techniques to a broad range of activities in order to meet or exceed your renovation or property development needs…perhaps including stakeholder needs and expectations from a project.

Project management ensures available resources are used in the most effective and efficient manner.  It is a combination of steps and techniques to keep a project’s schedule and budget in line.

The project management process is the planning, organisation, monitoring and control of all aspects of a project and motivation of all involved to achieve project objectives safely within agreed time, cost and process criteria…

project management
Project management consists of five stages…

Here’s how to apply these five project management tips for scheduling resources and achieving maximum end results:

  1. Initiating
  2. Planning
  3. Executing
  4. Controlling
  5. Closing

Projects are best allocated or managed by a group of people. As project manager, you need prepare, plan and allocate tasks to the right people on your project team.

What happens if you try to do all tasks yourself or if you don’t allocate right tasks to right team members? You can seriously slow down your project progress and success, however you can avoid this by scheduling resources more effectively…

project management
Project management use processes and techniques designed to minimise the chances of delays or budget over-runs.

Project management tip 1 – assign resources to tasks: The first step is to assign people to work on your project tasks. Create resource profiles for each of your team members and allocate right tasks to right people.

If you don’t know who should be taking the lead on a task, simply ask. Talk to the individual or their manager and if you do get it wrong, they will no doubt tell you and you can quickly assign someone else.

Project management tip 2 – check who has time available: Using the resource planning features makes it easy to see who has time available to take on more tasks.

These team members are under-allocated, so they have some slack in their day to do additional work. That can either be on your project, or on another project.

Project management tip 3 – check who has too much work because some people on your project team may have too many tasks allocated to them. Again, you can use the resource planning reports  to check which people on the team are overstretched.

Having too much to do can put additional stresses on your team members and reduce morale in the team, so it is good to know you can see who might be struggling with a large workload.

Project management tip 4 – monitor progress regularly: Tasks change on projects all the time, and someone who had too much to do last week may have made lots of progress and is now managing their tasks effectively within the available time.

Equally, someone which was under-utilised may find they have a lot to do as a task has turned out to be bigger than they expected.

Check your resource scheduling reports regularly to ensure the team is making progress and everyone has a good understanding and balance of work. You’ll also be in a better position to identify if someone becomes available to pick up new tasks.

Project management tip 5 – reallocate tasks as necessary: If a tradesman or professional consultant has too many tasks, you can reallocate some of their work to another person which has the experience to do the job.

Talk to both people before you make the change online in your project management software, so they know what to expect when they next check their task allocations.

Reallocating tasks is a way of spreading workloads across all the members of the team and any other experts, so it is a good way to keep morale high and make the best use of everyone’s skills.

Preparation, planning within the processes of project management means proper scheduling which enables you to easily allocate tasks to the right people, plus you get confidence in knowing they are all working on the right tasks at the right time.

Project management is a professional discipline which combines systems, techniques and people to achieve a renovation or property development objective within defined parameters of time, budget and quality, employing creative problem solving processes designed to recognise and solve problems as they arise, and also to proactively anticipate and avert potentially detrimental situations…

Project Management

Property Investment Loans?

What You Need to Know About Investment Loans?

 

Investing in property? There are a range of residential investment loans to meet the varying needs of property investors. In fact, property investment loans are not too different from any other type of home loan.

Property Investment Loans for when deciding on the right investment loan most people only consider the interest rate.

Property investment loans include many other considerations like (hidden) fees you pay which can include:

  • Application/establishment fees, range from $0 to $1,000 and more depending on lender and the type of loan you need
  • Ongoing fees can range between nil to $550 per annum
  • Early exit fees/penalties from $0 to thousands
  • Fixed rate loan and economic costs
  • Discharge fees in order to get your title back you need to discharge any mortgage held over it, lenders charge differing fees
  • Mortgage insurance fee depending on lender/insurer, which is calculated using a percentage of loan amount (LVR)
  • Additional lending costs, charged to access any additional funds you have paid on your loan (redraw)
  • Fees charged for changing the security over loan and switching loan products also vary between lenders
  • Valuation costs and legal fees should also be considered…

Property Investment Loans, it’s important to tailor the correct product to suit your investment needs.

property investment loans
Property investment loans

 

Property investment loans example…let’s say you want to maximise the most suitable finance structure by using the best tax structure discussing the options with your tax professional.

Property Investment Loan Types: Property investment loans are no different to home loans. Interest rates, fees and lending policy are very similar:

  • Variable rates
  • Fixed rate loans
  • Line of credit
  • Construction loan
  • Low doc loan

All these types of loans are available for investment property loans.

It does not really matter what type of loan you choose just as long it fits your investment strategy using an interest rate which is competitive and fees (as discussed above) are not excessive.

Property investment loans considerations: professional packaged loans that allow you to put multiple loans under the one package which can help to save on establishment costs and ongoing fees.

Line of credit loans can be used to access equity from an existing home, used as a deposit or to purchase an investment property. If you already own a property, a line of credit is a good way for you to tap into any equity you’ve built up in property which can be used as a deposit for buying investment property.

A line of credit loan allows you to draw from a fixed amount at any time to pay for whatever you want. It’s kind of like a credit card with a big limit but the equity in your home acts as security for the loan.

Interest only loans and principal and interest facilities may be better utilized depending on your personal circumstances and investing objectives. Interest only loan the principal remains the same.

You only pay the original amount you borrowed when you finally sell investment property as this type of loan is useful for investors because your monthly repayments are less than they would be if you were paying off principal as well.

Fixed or variable rate loans also depend on borrowers risk profile and property investment strategy.

Long term property investors with a long term views prefer fixed rates so they know exactly what their repayments are.

Interest Only or Principle and Interest: Interest only loans allow you to only repay interest on the loan without reducing the principle loan amount.

This can assist in allowing a borrower to reduce non-deductible debt or bad debt more quickly. Principal and interest repayments allow debt to be reduced and more equity to be established.

Most property investors prefer interest only loans for the following reasons:

  • Investment interest repayments are tax deductible
  • Principle payments are not tax deductible
  • Principle payments are better utilised via personal non tax deductible debt which reduces amount paid each month freeing up cash flow…

Property investment loans like other loans means you can choose fixed, variable or split interest rates with flexible features like redraws, etc…

Property Investment Loans

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The Right Property Solicitor For Your Needs?

How to Find Expert Legal Advice Experienced in Property!

It is essential when engaging a property solicitor which always acts in your best interests, you can openly discuss your needs without the fear of upsetting or offending someone else in the property transaction, particularly the real estate agent…

You need to know the job’s going to be done properly and quickly with the confidence of knowing that a property solicitor is overseeing all work diligently, right?

property solicitor
Property solicitor for checking land contracts…

Here’s how to tackle this problem:

  • Contracts for Sale
  • Disclosure Statements
  • Leases
  • Loan Documents
  • Guarantees
  • License Agreements
  • Transfering Titles
  • Town Planning
  • Subdivisions
  • Joint Venture Partnerships

Ask around among your circle of friends and fellow investors for the name of a solicitor that they have used personally for their real estate investments.

If you cannot find the name of someone your acquaintances or friends can vouch for, ring the Law Institute or Law Society for your State and ask them to recommend a property solicitor who has at least ten years experience in handling property transactions.

Ask them to recommend someone in the suburbs or in a regional area you can get access to and not in the CBD (rents are a lot higher in CBD, hourly rates property solicitor charges you are higher).

Ideally the property solicitor should be someone who is an accredited Property Law Specialist (Law Society in each state accredit solicitors and specialist Property Lawyers in the same way the medical profession has specialist doctors).

Interview the solicitor personally, (of course, don’t tell them you’re interviewing them).

Any property solicitor worth their salt already has plenty of work to do and if you tell them you want to interview them to decide whether you’re going to select them as your solicitor, they won’t be interested.

To put it simply and from their perspective, why should they spend valuable fee earning time talking to you when they already have fee paying files sitting on their desk that they could work on?

Suggest you tell the property solicitor you have been recommended to them (give the person’s name) and you would like to make an appointment to talk to them about your property investments.

If you’ve found their name from the Law Institute of Law Society, tell them as point of reference as well…

First question you should ask the property solicitor is “Do you invest in real estate yourself?”

If the answer is no, you are dealing with the wrong professional. How can they be expected to understand and appreciate issues with your real estate investments if they have no such investments themselves.

Next step…find another property solicitor.

If the answer to the first question is yes, ask whether they do the work personally. If they don’t do the work personally, ask to speak with the person who does and go back to question one.

Ask the property solicitor whether they handle the work on a daily basis. What you DON’T want to do is be dealing with a middle aged professional who over the last 20 years has been a family law specialist and has lost the last five major cases in family law arena.

The point is you don’t want to engage a property solicitor which is learning on the job (your job) whilst handling your file.

Ask the property solicitor whether they accept referrals from real estate agents you are dealing with. If they receive 20 referrals from that real estate agent every year, should some issue arise where they have to stand up for you without fear or favour?

Are they the real estate agent’s friend and looking for some simple quick fix solution which allows the matter to proceed so the real estate agent collects their commission?

The cynics and sceptics might be thinking “haven’t property solicitors got ethical standards to stick to and they always be acting in my best interests if I’m paying the bill?”

If this is what you’re thinking, you are in one word…naive. Reading this is a wake up call.

The reality is property solicitors they’re in business and survive by building and maintaining relationships and associations.

Preserving relationships may be more important to them than standing up for your rights.

Property solicitor vs property conveyancing lawyer…if something turns ugly in context to legal matters (contracts etc, go wrong) its better to use a specialist property solicitor who only does property law, you’ll find their costing is not far off a conveyance lawyer.

Purchase and Sale of Real Estate:

  • Preparation of Contracts of Sale
  • Urgent preparation of s32 Vendor Statements
  • Pre-contract advice
  • Pre-settlement searches and enquiries
  • Referrals to Loan and Finance Brokers

Building Contract Advice:

  • Advice on Building Contracts
  • Resolving Building Disputes
  • Referrals to Building Inspectors and Land Surveyors
  • Town Planning and Subdivisions

Leases:

  • Preparation of Leases
  • Transfers of Leases
  • Renewals of Leases
  • Detailed Lease advice

Loan and Guarantee Documents:

  • Advice on Loan and Mortgage Contracts
  • Solicitor’s Certificates
  • Drawing of Loan Agreements and Mortgages

Property Solicitor