Are You at Risk of Losing Millions?

by | Jun 4, 2021

Shocking Factors That Could Affect Your Investment Wealth

Predicting what could affect our investment wealth, and where the smart buying opportunities exist, is getting more complicated.

A 2020 news article suggested that Australian home owners could face millions of dollars in losses if their homes are affected by sea damage or coastal erosion due to the fact that most major insurance companies will not insure properties against environmental damage.

Considering that all major Australian cities are coastal, and most of the richest neighbourhoods are beachside, the growing threat of severe weather incidents due to global warming throws a serious spanner in the works when considering where to buy and invest.

If you’re a climate change sceptic, we’re not here to judge. But that position isn’t going to help you if the institutions you rely on to protect your assets won’t have a bar of your $3 million beachfront house.

While you can’t single-handedly stop climate change, you can gain a greater understanding of the other factors at play in what can affect your property investment wealth in both positive and negative ways.

INDUSTRY

Areas that are rich in industry is one good indicator that capital growth will happen. This is especially important to investigate if you’re looking at regional towns. While you may get more for your money than in a major city, will the area continue to thrive and survive? Does it have more than one industry that will attract jobs and people? While some regional towns are more like ghost towns now, others, such as Mudgee in NSW, are thriving. The tourism, mining, agriculture and wine industries that exist there are sustaining the region and allowing it to grow. Do your due diligence and make sure you know the region you’re buying into has a future.

INFRASTRUCTURE 

Infrastructure investment and development is another key influence in property investment wealth. If billions of dollars are being poured into local schools, transport and hospitals, the region will be supported by employment opportunities. The more people who come to work, the more homes will be in demand, and so the rent rates rise. 

LIVE, WORK, PLAY

One of the effects of COVID-19 has been an acceleration in the pre-existing shift of more people wanting to live, work and play within a 20-minute radius. Suburbs adjacent to CBD’s, with easy access to exciting social activities and green space, offer the renter or buyer much more than just a dwelling.  

The Third Space – the area close to your home that gives you a lifestyle you crave – is a significant factor on what will continue to grow investment wealth. Check out the walk score of a neighbourhood, investigate the health and well-being benefits of the community and find out if people are starting to see the area as a “place economy”. If people want to be seen and live there, property prices and rent rates will rise.

INSTITUTIONAL DUE DILLIGENCE 

Lastly and most importantly, make sure you fully understand your level of coverage and vulnerability risk.  

The institutions that support us as property investors by underwriting and protecting our assets are a vital part of our ongoing success and wealth creation. We need them on our side. 

Minimise your risks by doing your due diligence and making sure you can get the right protection for a property before you purchase it. 

 

SAFETY FIRST

Setting your property portfolio up for success from the get-go is a crucial factor of safe investing. With so much money on the line you need to ensure you have the knowledge and a strong strategy in place that supports your long term financial goals. 

To learn more about how you can do this, join our free property investing seminar and make sure you have the key fundamentals in place to achieve prosperity and wealth. Afterall, no one becomes an investor to stay stagnant or lose money. 

Limited spots are available. Book here now

Click here to like us on Facebook and see more updates like this.

Hey there, do you enjoy the Positive Real Estate Blog? If you did, why don’t you book into a Property Information Night in your area and get more information from our team. You can do so here.

Turning $80k into $800k

Turning $80k into $800k

Welcome to the first episode of Property Investor Tales – Stories From The Front Yard!

Each week I get to speak to property investors from around Australia about their investing journeys. As the head of coaching at Positive Real Estate, I’ve been fortunate to connect with thousands of investors who have a story to tell. My hope is that from these incredible investors, your own investing journey is made that little bit easier. 

Abe Pasilidis is my guest today and he has an inspiring story to tell. I won’t give too much away but listen out for an $80k investment has turned into $800k, plus a hilarious story of property management gone wrong (when you DIY). 

Enjoy this conversation with Abe!

Once you’ve listened to this episode, I’d love it you hit the subscribe button  so you get notified every time a new episode drops. 

As you can guess I love hearing people’s property investor tales so if you’d like to share yours then please get in touch with me via email at  propertyinvestortales@positivementor.com.au You can watch all of these podcasts over on YouTube at Positive Mentor or at positivementor.com.au
Today, I am talking about some key lessons I learned from Dr. Andrew Wilson, a housing economist and a funny bloke. He is a member of the Chartered Surveyors Community, a wealth of knowledge, and a voice of reason when it comes to real estate investment. I’ve adapted his predictions into my strategies and share them with you today!

The Biggest Lie of Investing Revealed

The Biggest Lie of Investing Revealed

You have been lied to… by you! Today we are talking about the biggest lie you have been telling yourself about real estate investment and your wealth creation journey. Want to know what it is? I could just TELL you, but then you wouldn’t learn. It’s embedded in this podcast – feel free to DM me when you think you’ve found it!

Today, I am talking about some key lessons I learned from Dr. Andrew Wilson, a housing economist and a funny bloke. He is a member of the Chartered Surveyors Community, a wealth of knowledge, and a voice of reason when it comes to real estate investment. I’ve adapted his predictions into my strategies and share them with you today!

20 Investing Lessons from COVID-19

20 Investing Lessons from COVID-19

What do you need to know about corona economics? We have learned a lot of lessons through investing during the pandemic, and I want to highlight some of those today. I have a list of 20 however I don’t think I’ll get through them all! I want you to walk away from this episode understanding what happens when real estate markets transform and what will happen if we don’t take advantage of the lessons that are right in front of us.

A Property Investors Guide To Guaranteed Rental Increases

A Property Investors Guide To Guaranteed Rental Increases

Rent is your weekly or monthly incomes from your property. And it’s an income you don’t work for. It’s the absolute key to good cash flow and passive income, so it’s essential you are able to keep raising your rents at regular intervals. But, what makes it possible for property investors to do this?

My Real Estate Pet Hates

My Real Estate Pet Hates

This episode is about all of the things in the real estate community that piss me off. From investors consulting clickbait on social media to predatorial real estate agents giving themselves fake awards, we are going to talk about everything that is wrong with the real estate industry that you need to know about as a property investor. Hopefully, after listening to this you will be able to avoid some of the most common pitfalls that property investors fall into during their wealth-building journey.

Why Do You Want to be Financially Free?

Why Do You Want to be Financially Free?

Will you survive the emotional roller coaster that is property investing? It takes time, money and commitment to create a portfolio, but sadly most who start out don’t make it, why? Well, let’s Wealth Coffee Chat!

The Only Time You Should Sell An Investment Property

The Only Time You Should Sell An Investment Property

The golden rule of property investing is to buy well and NEVER SELL. However, there are always exceptions to the rule… Firstly, let’s look at why you would keep an investment property? If you buy a great piece of real estate, in the right location, it will always create a passive income for you, so there will be no reason to sell it.