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BRISBANE-based author and property Investor Leonard Barnes is predicting a long awaited property boom in and around Brisbane and the Gold Coast.

Mr Barnes said history shows that south-east Queensland benefits around 18 months to two years after similar booms in Sydney and Melbourne.

“What we are seeing is a ripple effect.” he said, an opinion shared by other industry observers including BlSShrapnel and Paul Clitheroe.

Mr Barnes has just released a new book, Property Power, in which he explains a Short Term aggregate gain (STAG) approach to property investment.

He argues that this approach will produce earlier and better returns than the “hold and hope” strategy others may prefer.

The book explains his 27 principles of buying and selling real estate, a strategy that made him a millionaire in just eight years.

Not surprisingly, in a STAG approach, the key concept he emphasises is one of timing and working the property cycles.

Barnes can point to the last property boom in south-east Queensland, around 1989 to 1991.

“At that time, cashed up interstate investors had just made a bundle in Sydney and Melbourne.” he said.

“They came to Queensland for lower cost property that had not been maximized”

“They were effectively twice dipping and looking for that double whammy of another capital gain. This was no longer feasible in Melbourne and Sydney because that bubble had already burst.”

“After 1991 the developers produced too many homes in south­east Queensland and the window of opportunity was lost. Going back further to the previous boom cycle back in 1981 to 1982, there was once again a ripple effect occurring just after the property boom in Sydney,” he said.

Barnes is recommending a hold and buy strategy for south-east Queensland property for the next two years.

“After two years it may be, opportune to cash in. Then investors could even consider buying into what is likely to be a depressed market interstate.” he said

In a time when many purport the stock market to be the only real way to secure financial independence, Property Power turns eager eyes back to the potential of property.

Leonard is decidedly selfless in his quest to share his wealth-creating secrets, presenting all aspects of the process that helped his family achieve their first million.

With detailed, incremental steps, Property Power is more of a guide (and less of a get-rich-quick scheme, so alongside careful planning and unwavering ambition, you will be well on your way to securing a fiscal fortune.

by Ellisa Jenkins

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Australians love to put their money into property. Bricks and mortar are a solid investment that appeals to many. The attractions of the property market are espoused in a book by Leonard Barnes called Property Power.

Barnes and his wife say they set out to make one million dollars in 12 years – and met their target in a mere eight years, by putting the equity in their home to work. The secret is in the timing, claims the author, who theorises about the macro and micro cycles of the market.

Property Power advocates buying and selling right and early. You don’t get wealthy by paying off a loan – it is better to buy smart and pay a minimal interest-only loan. Barnes says. His principle is to use the conservative property market in an aggressive and informed manner over a short period.

“Every dream home you think you may wish to spend the rest of your life in may one day need to be sold,” the author says.

The book contains information on the type of property to buy for maximum profit, the importance of position, selecting the right real estate agent, value multipliers and diminishers, stamp duty and tax, Maximizing profits by adding value, avoiding unnecessary expenses and presenting a house for sale.

The author has a science degree, majoring in geography and specialising in demographic studies. He also has a graduate diploma in strategic marketing.

“Property Power is not only for the multiple property buyers and sellers, but also for those who wish to get their major transaction ‘right’,” Barnes says at the outset.

Most of the book is taken up with an explanation of his 27 principles of property power. He gives a case study at the end to show how a typical couple with $36,000 deposit can end up with more than a million dollars in 10 years.

It all sounds very possible. The theories put forward aren’t new and remember, it’s always easier to spot property cycles in retrospect rather than when they’re happening.

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Mr. Barnes set out to make a million dollars in l 2 years by investing in property, mainly in Brisbane and Sydney. He achieved his target four- years earlier than scheduled. So what’s his secret?

A supportive partner comes top of his list. He also did a lot of research into property and its cycles, a medium he feels comfortable with.

“It wasn’t really that hard. You need to work, study books, scan the newspapers – if it’s something you enjoy, it’s not a burden.

“You need to be a calculated risk taker – do your research and be confident it will payoff”

Mr. Barnes favors the old-fashioned value of frugality. “I still drive a Io-year-old car worth about $10, 000,” he says. He loves his old Ford Capri convertible and thinks it is just as much fun, but a lot cheaper than a new Saab convertible.

“There are two sorts of affluence: income affluence and asset affluence. The income affluent burn their money on holidays, restaurants, cars etc.

They’re really consumers – they don’t accumulate assets.”

Mr. Barnes admits one of the downsides of making money through property was having to move house so regularly. “My daughter had, at the age of seven, lived in six different houses. It was tough on her.”

And now that he’s a millionaire, what next? “A million bucks is not enough to stop at,” Mr. Barnes says. ”l’d like to put another million together.”

“At my age, l’m too young to retired says the 45-year-old entrepreneur, who still holds down a part-time day job. He plans to devote more time to writing, in the current cycle, Mr. Barnes believes there is nothing further to be gained from property and he has diversified into shares and bought part of a hotel.

He also admits to loosening the purse strings a little now. He, his wife and daughter took a trip around the world last year and had a stint on board the QE II. ”We are starting to reward ourselves . . . but you can spend it pretty quickly.”

He has always had a fondness for sailboats. He owns a boat that costs less than the average family car but is big enough to spend weekends on. It was during his honeymoon on the boat that he and his wife made a pact to make their fortune. They were inspired by the wealthy people they met on the high seas.

Mr Barnes says his philosophy is to achieve and have fun but not to do it at premium prices. How long will it take to make that next million?

Mary O’Brien