Learn Property Investment In 2022 – Where To Start!
So, you want to find out how to educate yourself on property investment? Well, you have come to the right place. There are millions of free resources out there that claim to “help you get rich quick,” this is not one of them. In this blog you’ll find out exactly how to learn property investment, as well as the best ways to actually get started.
Real estate is a fantastic wealth creation vehicle if you’re wanting to create lasting long-term wealth. To become a part of the 1% that succeed in this industry you have to exhibit patience and persistence. If it was easy, everyone would be doing it.
With a commitment to learn property investment and all its ins and outs you’ll be able to grow a booming property portfolio, enjoy passive income streams and eventually create financial security for retirement.
Here’s a list of how you can get started:
GO TO OPEN HOMES
Creating wealth through property investment is 100% a numbers game. We all know this in theory but it rarely gets put into practice when people start investing in property.
Here’s a challenge – go to an open home and see how many people will be buying real estate based on an emotional decision. You’ll hear weird comments like, “It’s got a lovely kitchen,” or, “This master will get great afternoon sun”.
These comments are purely emotional and often people end up over spending due to buying with their heart not their head!
You need to ensure you’re making decisions based on the numbers, and the economic returns of the property. Once you’ve eavesdropped on the conversations of emotional buyers, you’ll have a better understanding of how NOT to approach real estate.
UNDERSTAND HOW THE NUMBERS WORK
Buying real estate based on the numbers, or a strategy, is a far better way of looking at the market. There are four strategies behind buying a winning property.
It takes endurance and commitment to create a deal that “stacks up”. Most real estate is sold to illiterate buyers who are impatient and consider themselves too time-poor to show persistence and conduct proper due diligence. These four simple strategies are a great place to start learning about property investment.
1: Return on deposit
Cash on cash is a term all investors should acquaint themselves with when they analyse a deal. The return on deposit percentage gives you the most accurate indicator of how fast you can do this. Here, your goal is to ensure your capital is in and out of the market within two years at the latest.
For example, if you were to put $30,000 in the market, accumulate the asset and achieve growth over 12 months to gain a further $30,000, this is considered to be a 100 percent cash on cash return.
2: Property finance
Understanding what the typical finance requirements are in an area is critical. Mortgage insurers and banks have classifications for various areas in the property market regarding how risky they believe it to be. If a particular market is very flat or does not look desirable the bank may ask you to put more skin in the game to protect themselves.
Properties can often look wonderful until you consider how much capital is required as a deposit. You need to run feasibility on lending when you are buying.
3: Market value
To determine the sale-price range of properties in a particular area, it’s best to organise them by price.
This will identify the lowest priced property compared to others in the suburb which establishes a guide for how much discount to seek or when to walk away. If a property is priced well below others in the area, asking for a discount is not necessary. The best thing to do is snap it up! Money will be made “on the way in” due to good research and knowledge of the market.
4: The returns
Running the numbers before purchasing a property is of huge importance. A property could look great on the surface, but until you measure the rental return, the outgoings and associated costs, you won’t know how much the true cost is per week.
As a rule of thumb, no more than 30% of the property income should be lost to expenses and rent should be no lower than four percent return.
LISTEN TO PODCASTS
Podcasts aren’t only good entertainment, but also great education. They are a fantastic way to integrate productivity into mindless tasks such as cleaning or exercising.
Nowadays podcasts are very accessible. They are a way for the common person to communicate their expertise to the masses without the use of mainstream media. What this means for you is that you have access to experts from millions of industries, usually for free.
There are thousands of podcasts that will help you to educate yourself on property investment. Ideally, as an investor in Australia you want to seek Aussie-based shows. Here are two of our faves:
Positive Real Estate Founder and Chief Education Officer, Jason Whitton hosts a ground-breaking and inspiring podcast series about the true meaning of wealth. Jason interviews world-renowned leaders who have achieved extraordinary levels of abundance. Some of whom are the very experts and advisors that have impacted and contributed to Jason’s success as a property investor and coach.
Sam Saggers – Positive Real Estate CEO, hosts the UPI podcast where he brings together the latest news, strategies and ideas to help grow your personal wealth from investing in real estate. With a major premise to help you join the 1% of people who achieve financial independence, Sam advocates ways to replace your income, invest in property and retire rich using trends that form part of the urban landscape. The podcast uncovers the answers to the critical “what” “why” “where” and “how” of investment using behavioural economic insights into how everyone can prosper in the cities of tomorrow as investors of today.
It can be tough cutting through the clutter to find the property investment strategies and tips that are right for you. Books are a great source of education when it comes to learning more about property investment. The problem is, some books are good, some are outdated and many give advice that doesn’t work for real estate investors in Australia.
Well you’re in luck because Sam has authored three books on property investment that will get you set up for investing in the real estate industry in Australia.
This is the book for first-time investors. The most important first step for novice investors is to change your mindset, so in Property Success in 7 Lessons Sam begins by dispelling some of the property myths that often hold people back. He then focuses on the basics, such as setting challenging yet realistic goals, saving more and spending less, and understanding the market.
Developing the right mindset is only the first step; to fast track your wealth, you also need a plan and the right tools, which is why part II of this book is about putting everything into practice.
A timely read, first published in 2017, this book sets out to explore the rapidly changing Australian property market and explains how property investors can capitalise on emerging trends. Whether you’re just starting out or buying your fiftieth property, this book will change the way you look at real estate. With a sensible and easy-to-follow approach, Sam gives you a proven path for your property investment journey. This is your ultimate guide to cracking the code for what type of property makes a great investment and what properties you should avoid. There are no excuses with this one, because it’s FREE.
The latest addition to Sam’s writing repertoire; in this book he advocates ways to replace your income, invest in real estate and retire rich. This book is about investing beyond 2020 and tackles ways to bulletproof your investment plan.
It is very common for investors starting out to experience ‘analysis paralysis’ which is when you over analyse and overthink all the information you’ve consumed to the point where you cannot take action. Listening to podcasts and reading books is all well and good but the best teacher is experience.
Once you’ve got a basic understanding on property investment it’s time to bite the bullet and get into the market. Learning through your own personal journey will be the quickest and easiest way for you to understand what works for you.
This is because everyone’s journey is different and therefore your strategy needs to be customised to suit your needs. Here are four powerful lessons to help you take action today:
- Stop waiting until the time is right
If you are waiting for the ‘right’ time you will be waiting forever. There will always be something that is not right or could be better. The best thing you can do is take action now and make adjustments as you move along.
- Stop, get up, and do it
Turn yourself into a doer. A doer is someone who has an idea and moves forward with it immediately. When you pause and wait, you lose the will to move forward and allow doubt to creep into your mind.
- Take continuous action
Once you get started, continue to take continuous action. It is often mistaken that motivation is a prerequisite for action taking, however motivation actually comes from taking action. The more you do it, the more your confidence will build to keep going.
- Focus on the present
There is an old Chinese Proverb that says, “The best time to plant a tree was 20 years ago. The second best time is now.” Yes, if we had planted those seeds 20 years ago we would have a lush and vibrant forest to provide us with shade. But if we do not plant that tree now, 20 years in the future we will still be standing in the sun. Focus on what you can do in the present.
ASK THE EXPERTS AND ATTEND INVESTMENT WORKSHOPS
Good property investors are nimble and adapt fast. They stay informed and enrol a team of experts to help them excel. The Positive Real Estate 6 star team is who you need to create wealth through real estate. The 6 star team includes;
- Mentor, coach, investor or advisor
- Lending specialist
- Property deals team
- Property management
- Financial planner
You’re the average of your five closest peers so it’s about time you start mixing and mingling with the elite of the real estate industry if you want to learn about property investment. The 6 star team at Positive Real Estate are real world investors and qualified experts who stay up to date with the news and market changes, and implement real-life strategies for long term investment and financial sustainability.
With all the support you need to retire rich under one roof, a great place to start educating yourself is with our free masterclass. This is a high value two hour event that will show you how to reach the next level in any type of market conditions.
KNOWING WHERE TO LEARN PROPERTY INVESTMENT IS THE FIRST STEP
Now that you have a wealth of resources at your fingertips it’s time to start learning about property investment. But remember, knowledge is only potential power. It’s now up to you to take all these learnings and put them into practice.
Starting your real estate journey can be overwhelming and stressful and the key factor that successful investors do is they get support and they stay relevant. Without a good team behind you to guide the way, it can be incredibly overwhelming to own property!
If you resonate with that at all, come along to one of our FREE property investing masterclasses. Our coaches and mentors have real life experience as investors and give you the tools, resources and knowledge to help move you through each phase of the investing cycle.
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