Investment Property Australia Wide Investment Property Blogg Fundamentals for a successful Investment

Fundamentals for a successful Investment

So why are we sharing this with you?

“Because if you are earning an income, you can improve your financial position in life by taking action!”

“If you want to of course”

Investing in property is not rocket science and if you follow the guidelines below you will guarantee yourself to be in a better financial position, than the one you are heading towards today by continuing to do what you have always done

 

  • Work out how much you want to have as an income at retirement
    • If you want $6,000 pm you will need around $1.300.000 working at 5% to give you this $6k. Plan for more as inflation will erode this $6k
    • Click here to see calculation
  • Calculate how many years you have left to reach this age
    • Multiply this number by 12 = how many pay day’s you have left until you retire
  • Complete this form to give yourself “Your Own Reasons Why” you want to commit to take action today click here
  • Work out how much the banks will lend you to determine your Investment Budget for the property
  • If you have Equity in another property access some to cover the 10% deposit required for your determined budget
  • Once you have taken the above steps, you would want to “Match the Property you select to your Goals”
  • Work out what is the best type of property to suit your strategy which will give you capital growth and high rental yield
    • House, Townhouse, Apartment etc
    • New or Existing
    • If a house (single dwelling or dual income dwelling such as a duplex or dual key)
    • View further information on property types and expected yields click here
  • NB!! Because such a small percentage (some say less than 10%) of all property makes for an Astute Investment, you would want to make use of a professional service to help you find a selection of properties which could ‘best fit’ your end goal
    • If you are investing in an asset of half a million dollars would you not want help in ensuring you are making an informed decision?
    • A high percentage of investors attach emotion or choose a ‘nice’ property – this is not an investment (rather keep your money in the bank)
  • Today you can acquire properties in Growth Locations which are Cash Flow Positive
    • Meaning you can achieve Capital Growth + being Cash Flow Positive
    • Banks prefer to fund cash flow positive portfolios making it easier to secure your next property that much sooner
  • Undertake your own due diligence and research to ensure the location and recommended selection make investment sense having sound fundamentals underpinning your investment strategy
  • Understand the numbers which underpin the Investment and if the fundamentals and the numbers stack up jump on the opportunity
  • Commit to yourself
    • Make an informed decision and commit to yourself, your family and your goals
    • Remove emotion, don’t over complicate, keep it simple, the property will never tick 100% of your boxes
  • Time versus Risk
    • The longer you are in the market the higher your compounded return on investment will be
    • The more time you have the lower the overall risk of your investment
    • The less time you have, the more calculated risk you may want to or need to take
  • Procrastination and over complicating
    • For every day you Delay committing to yourself will result in you eventually needing to take a higher risk or make an ill informed decision … because your time in the market will now be shorter
    • People who are risk averse procrastinate. Why, the result is you now need to take a higher risk because you now have less time in the market?
  • It is not a Property
    • Once you consciously remove emotion you will soon have clarity that what you are actively doing is securing an Investment Vehicle. Getting your own money to work as best for you as possible
    • Hence matching the Investment Vehicle to your Goals, giving you every opportunity of coming out with more funds as a direct result
    • Why wouldn’t you?

 

Famous quote by those in the 80% of society who don’t have enough  … “I should have!”

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