Now that you made the decision to become a property investor, where do you go from here? How do you get started?
There could be a range of reasons why you want to get into property investment. You want to retire early, pay off your mortgage, achieve financial freedom, or create a portfolio for your kids’ inheritance.
Whatever the reason, you can create the right portfolio to meet your needs. How you do it depends on your starting point and your destination.
The path to your destination depends on a range of factors- your personal situation, life experiences, financial position, and skills.Are you single? Married with a family? Approaching retirement? If you can do your own renovations, you are in a different position to someone with no building skills.
The time it takes you to get to your destination will depend on how risk averse you are. Ultimately, it is about choosing the best propertiesto help you build long-term growth.
Do you have the cash flow or the ability to build up value through renovations? Even if you don’t own a property and are renting, you might look at renting differently. For example, you may want to consider sharing a house with several people, until you can afford a deposit.
Joint ventureis another option. When I purchased my first property, I had no deposit, but I had job. My flatmate had the deposit, but I was able to get the loan. So we formed a joint- venture to buy a property together. There is always a way forward – but it depends on your mindset.
A positive mindset will change the way you think about investing. It will open up your vision – so that you can see more options moving forward.
The trick is be asking better questions. Are your questions projecting you forward or are they limiting you? “How can I do it?” “ What can I do?” are examples of open-ended questions that move you forward to where you want to go.Questions are the answers – always.
Start with the end in mind. The person with a clear direction ends up where they want to go. If you don’t have any direction, you will be drifting aimlessly- like a boat in the middle of the ocean, without a rudder to move it forward.
I teach my clients how to look at property and how to think like an investor.You will learn how to select the right property for growth. Every property should have a return on investment and strong capital growth potential. We can design a short-term strategy to secure your equity immediately.
Despite the housing affordability crisis, there is always a way to break into the market. According to the Reserve Bank of Australia, the long-term economic fortunes of buyers and renters have not changed much since 1955. Despite rising rents and property booms, renters and buyers are in a similar financial position.
You may consider rentvesting- to rent somewhere you want to live and buy an investment property in an affordable area. This allows you to break into the property market sooner with a smaller deposit.
Whether you choose rentvesting, air bnb cash flowing, joint ventures, you can find the right path– the one you are most comfortable with, that will not push you out of your comfort zone. The question is – are you ready to move forward?