Property Investing Editorial
After a lot of bad news over the past 12 months – thanks a lot COVID-19 – it’s nice to be able to kick off 2021 with some good news. There’s going to be a lending boom which, if you have your property investment strategy in place, is going to make your life a whole lot easier so you can build your property portfolio faster and cheaper.
Like a fine wine, the value of property gets better over time. Traditionally, the more time you have an investment property, the higher the value will rise.
However, unlike your favourite Shiraz, property values can go up and down, and up again.
Getting to know how, why and who is valuing your property can help us understand what property to invest in.
There are three ways to value a property – and three very different people doing the valuing.
What are your Big Rocks this year? What are your Big Rocks for your property investing journey?
If you’re scratching your head and wondering if you’ve accidentally stumbled across a blog for construction workers, bear with me.
Big Rocks is a concept often used in business or life coaching to essentially describe your priorities. The theory is, if you don’t have clear priorities, or if you have too many, chances are you’ll let smaller issues distract you and ultimately fail in your goals.
Historically real estate has always been a good place to put your cash. It’s an asset you can feel and touch – unlike stocks or shares – which makes investors feel safe. And, in the right place and time, property can grow in value while you sleep, meaning as an investor you don’t have to do much to increase your personal wealth. But as investors, how can we better predict the next hot spots for real estate investment so we can get in at the right price? How do we know the best places to buy that are guaranteed to grow in capital value, return regular rent increases and ensure future personal wealth?
According to the Australian Bureau of Statistics, 99 per cent of property investors in Australia fail. In this instance, the definition of failure is failing to buy three or more properties. Failure is easy. It takes very little effort to be bad at something. Success is something you have to work for, something that takes time and effort. But if you’re willing to put in the hard yards, we know you can succeed. We know because we’ve helped thousands of Australians buy property that’s yielded millions of dollars of income. To understand how to succeed, we need to know why so many fail. People fail because …
Part of being a successful property investor is being able to stay across a lot of moving parts. From analysing the value of different areas or types of property, to understanding inflation and different kinds of loan structures. It’s information overload and at times can feel overwhelming.
Information overload can lead to something we call “analysis paralysis” meaning, with so many decisions to make, you can’t make any.
When investing in real estate, smart investors know that buying well comes down to more than just the quality of a building or property. This is because one of the key factors to affect the capital growth and rent rate potential of property is infrastructure.
You need that income! One of the primary things you need to be a successful property investor is a job. Why? Because you need money. You need a job to borrow money. You need savings or some cash to buy your first property. But the sad fact is, a lot of people...
Weigh it up - you'll be surprised. Like a lot of things in life, there are pros and cons to certain kinds of property investing and buying off-the-plan is no different. Buying a property off-the-plan means buying a house, townhouse or apartment in a complex...
Get There Faster If you are already a property investor with one or even two properties, first of all, congratulations. You’ve taken some seriously great steps in creating your future wealth and a pathway to a work-less, play-more retirement with passive...
Investing in property is a great way to secure a better financial future.
But if you don’t know how to help your investments grow, you could be missing out on cashing in.
To ensure you are on the path for maximum wealth creation, you need to understand how to add value and build equity.
Here are six ways you can do exactly that.
Should you structure your property finance as principal interest or interest only?
The reality is, there’s no one size-fits-all, especially when you’re a property investor and your needs are unlikely to be the same as a single-home owner.
In saying that, your finance set-up is critical to get right, and could make a major difference in your long-term ability to create wealth.
Here’s the basics to help get you started.