The 3 ‘Big Rocks’ of Property Investment Success
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.
By assigning Big Rocks, or priorities, you’re focusing your energy on specific outcomes. Make sense?
It works for property investment too. There are some Big Rocks that you need to have, cultivate and nurture to reach the desired outcome of passive income and the life you desire. Lose sight of one of those Big Rocks and the outcome is jeopardised.
So, what are the Big Rocks of property investment success?
Being a successful property investor is at least 50 per cent reliant on your income. Without an income, you can’t borrow money, or at least have limited borrowing ability. The higher, and more stable, your income, the more you will be able to borrow. What then follows is lower interest rates, and a high loan to value ratio. The better your income the more choice of lenders you have, so more competitive rates and terms become available. Taking time to do some extra training to ensure a promotion or pay rise, shopping around your industry to make sure you’re earning as much as your counterparts, or negotiating a contract over a casual or freelance arrangement, can all help increase and stabilise your income from a lender’s perspective. Look after your income, and it will look after you and your investment plan.
Get this into your DNA – you have to give property investment time. And we’re not talking about weeks or months or even a few years. We mean 10, 15 or 20 years of time to let your properties do their thing in terms of capital growth and rent rate increases. Property investing success is born out of a buy and hold strategy and it takes TIME! If you’re buying properties, doing quick renovations and flipping them, that’s a different ball game. If your aim is to have a booming portfolio that generates enough cash flow to supplement or replace your current income, then you have to invest the time it takes to build up that kind of business.
As soon as you start to tell people you’re going to invest in property you’ll notice that pretty much everyone you know has an opinion on it. While many of these people will be family and friends, most of whom will be well-meaning with your best interests at heart, the fact is that 99.9 per cent of their advice will be based on absolutely nothing.
Unless they are successful property investors themselves, their chatter will be based on nothing more than their own opinion, and much of it will be negative. ‘It’s too risky, the market is too unstable, I knew a guy who lost his life savings….’ – you get the gist. Smile, nod and say thanks very much, but ensure you’re getting your information on the market, lenders, interest rates and everything else investor-related from people who have the knowledge and expertise. That way you will go into each investment with the self-belief that you’re making the right decisions and believe in your own strategy and plan.
Self-doubt will stop you from seeing opportunities when they arise. Get educated and informed so that you can keep your self-belief where it needs to be.
SET YOUR BIG ROCKS STRAIGHT
Learn more about the Big Rocks of property investment at one of our free property investing seminars.
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Rules are an important part of life. And rules in most cases, are really just another word for common sense. They give us a clear framework around many important aspects of life, so it’s no surprise when it comes to selling your investment property, there’s a number of rules you need to follow in order to get the best result.
If you want to know when to sell an investment property, or even if selling an investment property is a good idea, all you have to do is read the rules.
Most of us were raised with the idea that debt is bad. Debt drags you down. Rich people are never in debt.
While that may have been true for our great grandparents, it’s no longer the case. Debt is one of the keys that can unlock future wealth as a property investor. The more good debt you have, the more income you can create.
But, before you go out and put yourself $1 million in the hole, let’s talk about the right kinds of debt. The debt that’s going to lead to success, not ruin. This is called…
I’m sure you’ve heard – data is the new currency. It’s the next big thing for business and it will be a catalyst for driving the world forward over the next few years. Learning how to harness the power of data in property investing, will be a secret weapon all investors can use to create more wealth.
So, what is data? It’s information, insights and predictions that property investors can use to help them make smart property purchases.
This could be data around what’s happening in regions in terms of infrastructure and growth. Figures on what type of property is selling well in a particular location. Information on industry or employment opportunities in a city or regional town.
All of this kind of data can give property investors an edge into what, where and when to purchase in order to create wealth.
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.
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...