Back to the home page Welcome to our March 2009 newsletter We are living through volatile times. (Yes, that's almost a cliche, but it's true!) How the events in this market affect you depends partly on (1) your attitude in response to the stream of bad 'economic news' and (2) who you listen to. Without being nasty about it, it's clear some people have recently found out the hard way that those from whom they took investment 'advice' really didn't have the goods when it mattered. In some cases they were crooks or spruikers, in others the 'guru' simply simply didn't have the road-tested experience to offer useful guidance in a changing market. People got slammed -- sometimes for 'only $1,000 down'. Next month (2nd April, in Auckland) we're offering you the chance to get alongside three genuinely wise heads: Olly Newland, Mark Withers and Tony Steindle for a special Property Investment: Your Q&A™ session. Given what's going on, this impartial evening -- which isn't designed to upsell you to something else -- will be valuable. [Details below or online here.] We'll start with a quick update: 'what's happening in the market, what are the influences, what other investors are doing, what's crossing my desk' from each expert speaker -- then the rest of the evening is devoted to Questions and Answers. As always, you will learn from the responses to your questions and (sometimes more) from other people's ... and the discussion that follows. We aim for relaxed atmosphere, with plenty of time for follow-up. These are always worthwhile. Come and join us if you can. Robert Kiyosaki's 2-day event in Auckland in June in drawing closer -- check this high-powered event out for yourself and please note: there's an earlybird special which expires 31 March. While there are challenges and stresses and strains in our economy which affect many, it's NOT panic stations everywhere. There is activity in some sectors of the market, and some investors who have been waiting for conditions to ease are taking action -- cautiously. Investor Olly Newland told TV3 News he's aware the low end of the market has picked up. (There's a link to a video of the item below.) It's still early days, however, and the full picture is yet to emerge, he says. It's not like a slump has never happened before. That's the property cycle. It follows confidence in the broader economy. See the article A tale of two mental states for my view of the almost bi-polar personality that can afflict us. But we'll get through. Getting the help of more seasoned players is always a help. And further, in a 'blasts from the past' vein, I came across a letter I wrote in 2007 which makes interesting, almost spooky reading (if I may say so myself) given the banking sector's mood at present . Read 'Managing your funding relationships through a crunch' in the Article archive section below and see if you agree. Last word: If we can help connect you to the useful experience of other investors and experts, whether through our books, audio sets or live training courses, it would be our pleasure. Let us know how we can assist via our feedback form. In the meantime, go well. Best wishes, Peter Aranyi Empower Education 9/3/09 Property Investment: Your Questions Answered™ An evening of real-world, relevant advice from three property experts. Get your questions answered with no hidden agenda. Thursday 2 April 7:00 - 9:45pm Rendezvous Hotel (was Carlton) Mayoral Drive, Auckland A changing property market presents new challenges, risks and opportunities Join us for a straight-talking, feet-on-the-ground Q&A session with three genuinely experienced property investors and experts. This special evening is a chance for anyone interested in today's property market (owners, investors and those intending to be) to get the benefit of broad experience. If you have questions or concerns about your own property, the market, or the direction you should go in, this informal evening gives you the chance to get impartial answers based on real experience. What does the 'global financial crisis' mean for NZ property? What's going right and wrong for investors in the NZ market? Where are things at? Is 'survival mode' good enough? What about profit? The rules around finance have changed: what do you need to know about raising finance in a tight market? Is there a way around the new loan ratios? High break fees? Where and what is good buying now? Which markets are still falling (and not)? Will winter bring more 'bargains'? What are some strategies for dealing with the changes in the market? Find out what other investors are doing and how some 'rules of success' have changed. Keeping safe right now -- some steps you must take as a property owner, landlord and investor. IRD is making noises about LAQCs, cracking down (auditing) property trading and big proposed changes to the tainting rules. How should you respond? Dealing with financial pressure, market pessimism, and the ongoing credit crunch restricting mortgage finance -- how long will it last? How do you cope? Is commercial property a better risk? What about the increased vacancies and tenants falling over? As an investor, where should you put your focus now? We can't promise to answer every single question on the night -- but we will make the most of the time available, we'll take your questions seriously, and we'll get through as many as possible. Join us for a relaxed evening of practical and useful information. Visit our website to book your seats or download a one-page information sheet about this event. (PDF 200 KB). (Earlybird discount for bookings by Monday 23 March.) Robert Kiyosaki LIVE in Auckland 3-4 June 2009 The internationally best-selling author of the book “Rich Dad, Poor Dad”, with 6 years on New York Times best seller list, plus 18 books with sales of over 26,000,000! Logan Campbell Centre, Epsom, Auckland 9am-9pm Wednesday & Thursday. Register here.[Earlybird special EXPIRES 31 March 2009] Not knowing about money, not what it is but what it can do for you, is probably the biggest and most critical gap in knowledge today. Education is, without question, a key to making it in the world. But after getting your academic and professional education, who is really prepared with the necessary financial education? Most people have never had any formal exposure to the fundamentals of this critical area of learning. How do you pick it up in later life? How can you be confident about what you gather in bits and pieces along the way? Thanks to his ‘Rich Dad’ who started teaching him from the age of 9, Robert Kiyosaki got a great grounding in financial education and understands its power. In the process building his system of wealth, Robert has mastered an education process so powerful and so effective that it has radically accelerated the money-making abilities and lifestyles of millions, worldwide. Robert is dedicated to your financial future. His mission is giving you the opportunity to teach yourself to predict your financial future by creating it. Free Multimedia: Preview the Principles of “Rich Dad, Poor Dad” Watch Robert Kiyosaki in these eleven short videos as he explains some of the fundamental principles behind his unique system. New Zealand/Australian visit full details and bookings here (Prices are in Australian Dollars.) In the news... Olly Newland was interviewed briefly for TV3 News on a faint upward 'blip' in Auckland house sales. Having pummelled us day after day with news of job losses, business failures etc, the news media seem equally desperate to trumpet any 'positive' change. You can watch Olly's comments in the news item and read his recent columns (including The Great Reckoning Parts 1, 2 & 3) here. Send any feedback, comments and questions to Olly ... see the link at the bottom of his articles or use our feedback form. A handbook for perilous times ... How to Survive and Prosper in a Falling Property Market Get the inside story on what happens as the property cycle turns... and how to invest for profit and safety in a changing property market. $39.95 + P&H In How to Survive and Prosper in a Falling Property Market, veteran investors and expert authors Andrew King, Mike McCombie, Mark Withers and Tony Steindle share essential facts, advice and wealth-building strategies for today's property investor. Clear and accessible, this up-to-date and comprehensive handbook will show you how to both safeguard and increase your real estate values as the market changes. Visit our website to download the table of contents and a free chapter. Check out our New & notables page for recent arrivals and recommended resources. from the Article archives Managing your funding relationships through a crunch -- from Oct 2007 Many people think it's a drop in investor or home owner confidence that shocks the property market but a key factor is also LENDER confidence. How do you keep lender confidence in you? Let's face it, one of the beauties of real estate as an investment class is the fact that you can borrow so heavily against it. 'Leverage is your friend.' Banks and other lenders know that over the medium to long term, properties go up in value. Maybe there'll be the odd bump or trip along the way, the odd cowboy who does it wrong, the odd fraudster who jacks up a valuation, but lenders know that these are fairly rare cases. Like any business, they want more customers and to gain market share. But in a property slowdown or slump a definite a personality change takes place. When the cyclical slowdown occurs, lenders can 'suck the lemon', cut back, and become even more risk-averse than usual. In a slower market, they're much more cautious. They don't know where the slide will stop. They hear about other banks losing profit, finance companies falling over, they may have even had a few loans go sour or a few developers default and go under. The command structure of most banks and lenders is bureaucratic. Things are sent upstairs -- or to the 'approvals' department who run their ruler over the deal, scrutinise the details and, with one eye over their shoulder the other re-reading the latest email from head office, make a decision. In a slump, it can be much harder to get that decision to go in your favour. (I know, it's hard to believe. But wait and see.) Lines of credit are cut back, funds not drawn down get sticky, new valuations and rent statements are called for, and up-to-date statements of position required. Things get tighter. Not impossible, just harder. In some cases, under pressure themselves, banks and lenders can become unreasonable, even obstructive. It's not personal, they don't hate you. It's just how they manage their risk. ... It's very important to be willing to look at these things. This is not a time to put your head in the sand and hope everything will work out. In tough times the people who succeed are those who stop denying potential problems or weaknesses and look for solutions. With a change in economic 'season' the formula for success changes. Come and hear from experienced investors and experts -- people who've learned first-hand (over decades) about how the winds of change blow through the market. To read more on this important subject see chapter 7 'The changing face of your lender' in How to Survive and Prosper... Other articles... A tale of two mental states (continued) ... a lesson from Barack Obama Nov 2008 TIME to be Optimistic or Pessimistic? Oct 2008 ----- Empower Education - Empowering You For Success PO Box 39-155 Howick Auckland New Zealand. Phone 09 535 2415 info@EmpowerEducation.com www.EmpowerEducation.com Copyright 2009 Empower Education. All rights reserved.