The investment property tips that we are sharing is an accumulation of the knowledge we have gained over the many years of property investing. These tips are a 'straight to the point' approach of our insights.
Please be mindful that every situation is different and we highly recommend you speak to your accountant and various advisors. Please don't hesitate to get in touch if you would like to speak more about our experience and opinions.
Please be mindful that every situation is different and we highly recommend you speak to your accountant and various advisors. Please don't hesitate to get in touch if you would like to speak more about our experience and opinions.
How To Start Property Investing
1. Get educated!
-Peruse social media posts
-Listen to podcasts
-Watch TV shows on property
-Attend seminars/events The key is around learning what to do and what not to do. Sift your way through what will work for you and what will not. Also, who you can trust and who feels questionable. Education teaches you about the right questions to ask, so you can form better opinions, and take the right decisions. 2. Seek out a mentor/coach.
Find someone who has walked path, got the runs on the board, had success, and is working on property investing daily. 3. Avoid the "Get rich quick" schemes.
They could be high risk, and you could risk losing all your money. 4. Build a team of experts.
This may include - Mortgage Broker, Buyers Agent, Solicitor, Accountant, and others. 5. Take Action.
There is nothing that teaches you more than actually being in the thick of it. You will learn 10 fold as you go along. Surrounding yourself with experts will help you avoid learning from 'major errors'.
How To Become A Property Developer
1. A high level of experienced is required.
A higher risk level is required due to the higher amounts of money typically involved. 2. Education and mentors are the key to success.
It's highly advisable you don't venture into property development without learning the ropes first. Both the theory and practical from people who have been there before. 3. Do a course. Better still, do a number of courses in property developing.
Not only will you learn a lot, but you will also have the opportunity to seek out mentors, and build relationships with other developers. 4. Build your Team of Experts.
Make sure they are working in your chosen area to develop. 5. Get an understanding and focus on what type of develop you wish to work on.
There are many options to choose from. So be diligent in your research and deciphering on which direction to head in. The first one you consider may prove to be the best option for you, but you won't know, unless you research other options. Don't rush something that requires a significant amount of monetary and time investment.
How To Make Property Investing Your Main Income Stream
1. Don't NOT put in the work.
Building wealth isn’t easy. It requires commitment and hard work. Then you can reap what you sow. 2. Take calculated risks
Keep close with your accountant. Know how far is too far. Know your numbers. What revenue do you want to achieve? What is your time frame? What is the plan around achieving this? Also ask yourself 'why'.. why is this important to you? If this is not solid, then you will waiver. 3. Ongoing education.
Something we cannot emphasise enough. We are big advocates of continuing to learn. Something that we build into our weekly activity planning. 4. Have a strong mindset to keep going, even if there are issues or struggles.
This is a long distance run. We are not sprinting. Find the tenacity within yourself to continue on the path. 5. Enjoy the ups and downs.
We don't want to hear this, but but there will be downs, but there will also be ups. Downs will teach you so much if you are prepared to learn. 6. Take Action. 7. We believe its about 80% Mindset, 20% knowledge/skill. 8. Team is very important.
We are a product of our environments. Work with people who are where you want to be and who can help you. 9. Property is a Patience Game
Don't be in a rush to turn over a quick return. Balance is key. 10. 'Show up' all the time.
Attend seminars, open inspections, courses, webinars, social media. Be in the forefront of peoples minds, especially with your team.
How To Build A Property Investment Team
1. Listen to the words from experts. Are they just saying it, or are they taking action themselves? 2. Do their words and actions resonant with you? 3. Find out how many years experience they have in their profession and how many years investing? 4. What is their property portfolio like? Do they show you? Are they an open book or do they hide things? 5. Do they sell, sell, sell… or are they measured in their approach? 6. What are their clients saying? 7. Ask for referrals from one or two of your team, as you build. And ask why are they referring you to them?
How To Improve Your Investment With Good Strata / Body Corporate Committee
1. Owners have the right to nominate themselves to the Committee at the Annual General Meeting. 2. A voting process may take place if there are multiple nominations. 3. Being on the Committee allows you to have an impact or influence the running (repairs, maintenance, planning, etc) of the building. 4. Get closer to the action, if you wish to be more hands on and/or want to know more about what happening. 5. Take the opportunity to create a harmonious building. Which is desirable for all residents and landlords. 6. Having a strong committee that are involved with inspections, tradesman visits, quote preparation and review will help the building to minimise costs and better great value from works. 7. Efficient involvement will save costs and time for the building (Preparing all residents for inspections of fire safety, pest inspections, etc). 8. You can keep the Strata Manager, Tradesman, other owners and tenants more accountable for their actions when the building is monitored well. 9. It will also help with the safety and security of the buildings when the committee is proactive
How To Have A Difficult Conversation With A Tenant
1. Get the property manager involved in this process as it takes away the emotion. Avoid personal interaction with the Tenant. If you don't have a property manager, think in terms of facts not emotion. Try to see both sides of the equation. 2. Make sure all the legal obligations/rules are followed in order to prevent delays the eviction process. 3. Keep the property manager accountable in the process (remember it is your property, even though most people will say - “that’s what I pay them for”). 4. Prepare a good strategy with the property manager. 5. Make preparations on the organising of another tenant, and any necessary repairs.
How To Fire Your Property Manager
1. Are there any outstanding matters to be resolved? If there are, is it wise to move prior to the issues being fixed? 2. Review your agreement, what is the notice period you need to give before leaving? 3. Firstly, speak with another agent about the process of moving - rules or conditions, they could check the agreement for you, and give you suggestions. 4. Call the agent to explain the issues that have been raised previously, and not rectified - advising that you will be organising another agent to manager the property. 5. Ensure there is written advice give about the termination of the agreement, and make sure they acknowledge this in writing. 6.Once the termination has been agreed to, organise communications between both property managers so that books and records. 7. Keep the relationship in tact if you can. You may experience the 'grass is not greener' situation.
How To Win At A Property Auction
1. Know the market
-Other properties selling
-Length of time on market
-How many people inspecting this property and others in the area that are similar.
2. Study how the auctioneer operates
They might have post social media videos, or go to their live auctions. 3. Have a strategy for the auction.
Are you going to wait? Or go hard early and continue to bid aggressively? 4. Every auction will be different
-Personalities of the auctioneer
-The agents roaming to prospective buyers
-Visitors who might comment during. 5. Judge how others are bidding
Can you read others body language? 6. Catch other bidders off guard
Strategies others have used:
-Bid twice in a row
-Stand next to auction
-Quicken the process
You must ensure Auction rules are followed. 7. Know your top price
And if it goes over, look to stop bidding, as there might be others willing to overpay.
Remember there are other properties. Losing can also be winning!!
How To Approach Property & Tax
1. Work with an accountant that has a property portfolio of his own, and works with other clients with property portfolios. 2. Look to organise structures - trust, companies, etc. 3. Constantly review (e.g. every quarter) and ask questions to your accountant. 4. Preparation of numbers, paperwork and accounts can be very helpful - and cost you less at tax time. 5. Ask questions of experienced property investors.
What do they do? Who do they use? How have they set up their accounts? What processes do they use? How would they do it differently?
How To Not Get Emotionally Attached In Property Investing
A property investment is a channel to get you from A to B. 1. Be emotional and motivated about the reason why you are investing in property.
For your family? For more choices in life? To leave your 9-5 job? To travel more? 2. Have a property manager involved. 3. Treat it like a business.
Are you making profit? What areas need work? How do you improve? Remember investing is a business. 4. Constantly remind yourself: Investing is about wealth creation, Increasing savings, The vehicle to improve savings.
5. Be inspired or influenced by other like-minded, 'unattached investors'. If that is what you want, talk to them more, listen to them even more.
How To Build A Granny Flat
1. Use Experts who do this as the main source of income for their company. 2. Look out for the cheap granny flat builds, as it might cost you a lot more in weeks, months or years to come. 3. Check that the area is suitable for a granny flat. Are their potential tenants interested in living granny flats in this area? 4. Research the granny flat market in the area. How many are available for rent? What are the agents saying: easy or hard to rent? 5. Assess the potential resale value with and without the granny flat? 6. Do the numbers with your accountant.
How To Buy A Property Without Seeing It
Don't be afraid to do it. It's a common occurrence. You just need to have the knowledge and the right people around you. 1. Work with proven experts. Make sure that the experts have a process for reviewing the property - both the numbers, the area, and the 'street' knowledge (i.e. on the ground talk). 2. Ask who is buying he property for you, if they are buying or have bought themselves in these areas. 3. Do your own due diligence on the property, street, area. 4. Have someone do a video walk through and photos of the property. Also check out google maps. You might detect changes that you should consider discussing.
How To Choose A Property Buyers Agent
1. Review how they operate. Ask them, ask their clients, and their partners. 2. Get a very good read on the entire client experience. Ascertain potential gaps in support you may require. 3. Find out what they are buying themselves. Are they property investors? How do they buy for themselves? 4. Ask powerful questions and gauge responses. Meet them in person to get a feel for what type of person they are? Do you feel like you can trust them and work with them long term? Would they put your interests ahead of their own? 5. Ask them to take you through the client journey. 6. Read through material they provide. 7. Review written and verbal testimonials. 8. Review past and current deals they are working on.
How To Rentvest
1. Review the numbers to ascertain if it is better to rent or own the property you wish to live in. 2. Decide whether you are looking for flexibility or stability. 3. Understand that even a home purchase might not provide stability if you can’t pay the mortgage. 4. Consider the extra costs of owning versus renting - e.g. in strata building, levies need to be paid. 5. Understand that the interest repayments on your own home is also dead money, as it is not tax deductible. 6. If it is cheaper to rent than own, and you may look at saving a deposit for an investment property. 7. Start the Property Investing process - Team, Action, Patience When renting, some strategies to adopt: 1. You might wish to request a longer lease. 2. Sometimes it might be better not to hassle the property manager or agent for a new lease, as they might look to increase rent. 3. Look at rental properties with little competition for rental demand or in slow periods - like Christmas/New Year period. 4. Sometimes, renting above the median price of the area will see less competition.
Top 10 Things To Look At When Searching For Property
1. Where is the growth going to be in the next 3-5 years. 2. What is the cashflow of the investment. 3. Research the areas in regards to jobs, infrastructure, economy. 4. Assess the rental vacancies and rent prices. 5. How many properties on the market -i.e. for sale. 6. What is the buyer demand like. 7. Develop a relationship with the agent to assist with negotiations. 8. What repairs are required, and get quotes. 9. Are you dealing with a motivated seller? Assess buying strategy accordingly. 10. What is your ability to add value to the property in future.
Top 10 Reasons To Start Investing In Property
1. Look to retire from your 9-5 job early. 2. Set up a secure retirement plan, as people are living longer. 3. They’re not making any more land - demand will impact supply. 4. Set yourself up to buy your dream home with investment wealth. 5. Learn and experience more with money, finance, investing. 6. Improve your future lifestyle. 7. Protect yourself for future financial hardship, e.g. job loss, illness in family. 8. Ability to make more choices in future. 9. Spend more time with family, rather than at work. 10. Travel the world when you want to.
Top 10 People To Have In Your Property Investing Team
1. Buyers Agent - of course. 2. Solicitor for property transactions. 3. Accountant for tax returns and set up of structures. 4. Pest & Building inspectors. 5. Tradesman for renovations, repairs and maintenance. 6. Property Manager. 7. Property Mentor/Coach. 8. Financial Advisor. 9. Property Insurance Broker. 10. Personal Insurance Advisor/Broker.
Top 10 Ways To Ascertain Trusted Partners
1. Body language. Don't be fooled by appearances. Anyone can put on a suit and tie. Look beneath this. If you are not great at tapping into your intuitive self, then ask someone who is to give you their take. You don't want to be on the end of a 'dirty john' scenario. There are people out there who have perfected the 'BS' spill. Find this out quickly. So you don't waste your time or money. 2. Customer service and being the best client. This is a two thing. Like trust. If you are respectful, honest, clear then receiving this in return is a lot more likely. That's why when it comes to great customer service, I say be the best client you can. People love working with great people. And just by default, without even realising, they will be more drawn to helping you get to where you need to get to. 3. Responsive to requests. Do you feel they are responsive in relation to what works with your personal requirements / values. Responsive without quality isn't necessarily the answer. So it's their way of responding. For example, "I'll need more time to thoroughly investigate this for you". 4. Deliver on promises. A true sign of a trusted person is that they deliver on what they say they will. They also make sure that it's very clear upfront what the deliverables are. 5. Being Genuine. If they don't know something, they'll say so. If they make a mistake they will say so. They also put themselves in your shoes. This allows them to work various perspectives which is rare and genius in itself. Anyone that cannot see various perspectives - keep listening to them and asking questions to see if they are someone you would want to work with. 6. Abundance mindset.They open themselves up to more and different and don't limit themselves to narrow thinking. 7. Transparency. In the sense that they never feel like they are not telling you everything. We all know that feeling being around someone and they feel like they are holding something back. It might be nothing, they may just lack confidence, but if you have a funny feeling, explore it further. 8. Empathy and Kindness. Observations of people behaviour are priceless. They give you so much intel without you even realise. How do they interact with different types of people, are they consistent, are they patient, are they kind, are they all about what they can get out of every moment? 9. Hard work and Hustle. A willingness to go beyond the call of duty. A no stone left unturned kind of person. 10. Walk the Talk. How someone behaves in one area typically follows how they behave in all areas. How are they with their own property investments for example.
TOP 10 Reasons Why Property Investing Is Fun
1. You can work on it from anywhere in the world. 2. Being around with like-minded people with growth aspirations. 3. Doing deals. It's a game. 4. Negotiations on terms and price. 5. Building a future. 6. Make money. 7. Learning the different property strategies. 8. Obtain financial freedom. 9. The results it can bring - time with family and friends. 10. Creativity - with so many options available.
TOP 10 Reasons Why Property Is The Best Investment
1. Proven strategy - 90% of millionaires make their wealth through Property. 2. Leverage - 80% or 90%+ lending available. 3. Tax deductions available. 4. You are controlling the investment (as opposed to companies on the share market). 5. Opportunity to increase value through renovations/development. 6. Use multiple strategies on the same property. That is, you have options. 7. Majority of people are emotional about property, and emotion often impact prices. 8. Everyone needs a place to live. 9. Lower volatility of prices of property (generally, compared to other asset classes). 10. They’re not making any more land.
Top 10 Reasons Why You Wouldn't Get Into Property Investing
1. You don’t wish to take on the risks of investing. 2. You don’t want to experience tenant issues. 3. You don’t review portfolio regularly. 4. You don’t educate yourself. 5. You try to do it on your own without having any experience or knowledge. 6. You don’t want to make mistakes. 7. You don’t want success (fear of success). 8. You have a fear of failure. 9. You don’t like change or uncertainty. 10. Have a lack of patience.
Top 10 Reasons For Having A Long Term View To Property Investing
1. Lower the risk. 2. Lower your expectations (avoid overwhelm and investing anxiety). 3. Develop relationships over time. 4. You can have a little patience when buying and selling. 5. You don’t feel rushed or pressured. 6. Overtime, 'investment grade’ property has seen good growth. 7. Impatience and short term views often lead to sufficient losses. 8. Enable you to use different strategies at different times of the market (renovation, development). 9. Learnings you can gain overtime while having your money in the investment. People often are more active when their using their own money. 10. Enables you to do other things in your life, while the portfolio growing. (There tends to be less involvement than most other investments).
SOLUTIONS TO COMMON QUESTIONS
I Cannot Afford To Buy Property In Sydney
1. There are many options interstate and regional areas, where prices are sufficiently lower than Sydney. 2. Where you live, is often the wrong place to buy an investment property. 3. Speak to experts and experienced investors about why they might not be buying in Sydney. 4. Speak to other investors to find out why they might be buying in Sydney (Is it because they live there). 5. If you have affordability issues, imagine what the majority of the market has? What will be a result of future price growth in Sydney? 6. Your investment shouldn’t be about the price you pay, or the level you can borrow, it should be about the potential growth and cashflow.
I Am Nervous About Buying Property Interstate
1. This is pretty common for people that haven’t ventured across the border before. 2. Speak to people who have and to experts that are buying there. 3. Remember that investment is about the numbers rather the geographic location (away from where you live). 4. A team of experts will assist you prior, during and after the purchase. 5. Excellent Property Managers are an important part of the team. They are your eyes and ears on the ground. Helping you with repairs and maintenance and monitoring the tenant. 6. You may wish to spend a day understanding the areas before purchasing, then use the team to assist in the purchase. 7. Asking questions and chasing team members about the property is crucial whether it is close to home or interstate.
What If I Don't Have A Deposit to Buy A Property Investment
1. You may choose to be patient, and build the deposit overtime. 2. You can looking for a joint venture partner - family member or friend (you might be able to get the loan, they might come in with the deposit). 3. Ensure you have legal documents draw up before purchasing a joint venture deal. 4. You could look to boost your income by starting a side business, working overtime, selling items online, reducing expenses.
I Have Been Thinking About Property Investing But Still No Action
1. A strong Mindset to taking action is probably where most get stuck. 2. Explore your fears. Talk to others about their experiences. Ask questions to help you evaluate your own thoughts. 3. Working with a trusted team will help in the process. 4. Listen to others stories - the ups and downs, and how to avoid issues. 5. Educate yourself to minimise your risk. Knowledge is power. 6. You have one life, make the most of it… you are going to make mistakes - we all do. Remember 'inaction' is also a decision. 7. You will learn so many lessons, even some of the greats have lost a lot of money, and come back to gain millions.
I Don't Know Where To Start When It Comes to Property Investing
1. Education - seminars, webinars, books, social media. 2. Talk to experts and experienced investors. 3. Find out who resonates with you (not just excites you by promising the stars). 4. Attend open inspections. 5. Avoid the Get Rich Quick Schemes. 6. Meet up with Like-Minded individuals. 7. Find a Mentor / Coach. 8. Intern with an Expert.
I Am Getting Bored With Property Investing
1. Property is a patience game, and often people are frustrated waiting around for growth. 2. Look to other property strategies that will get you more active - renovations, developing. 3. If you upgrade your strategy or risk - make sure you upgrade your knowledge, skill and the property people you meet with. 4. Boredom can result in some poor investing decisions, as people are often chasing the quick wins, the instant gratification. Don't be fooled by boredom. Steady is the operative word in this situation. A great position to be in.
I Think The Market Isn't Good To Buy
1. There is always an investment opportunity available. 2. Sometimes you will find it is more important to have an ability to get finance then get the perfect deal. 3. If you are thinking it is a bad market, maybe others might too, which will result in less competition, and a higher chance of a bargain price or better contract terms. 4. Where are you getting these thoughts or information from? Is this a good source of information, or do they have an agenda or spreading fear into the community. 5. Maybe you feel it isn’t a good time to buy (for your circumstances). Just sit on the sidelines. Ensure it isn’t about procrastination.
I Am Nervous About About The Time Required To Look After The Investment
1. When doing it yourself, it could take a long time, especially if it is your first time. 2. A team of experts will make the process more efficient in dealing with the property and tenants. 3. Are your skills and knowledge better spent on what you do best? (If so, use experts). 4. A book keeper can set up your portfolio from the start - using spreadsheets or a software package to keep account of expenses, income, and due dates. 5. A property manager will look after the tenant, repairs, payments on your behalf. 6. Your role is more about monitoring the experts - supervising their work, building rapport with them. 7. Yes it will take a bit of time - but time well spent in nurturing your investment.