Should I invest in property?

We often get asked this question. In response, we ask: why do you want to invest in property?

Many people aren’t clear about why they want to invest in property.

Is it because:

• you’ve seen other people become wealthy from property investing and want to do the same?
• you want to be wealthy in retirement so you can travel, spend time with family and friends?

Investing in property and the type of property you invest in should be determined by how it fits with your financial plans and goals.

Where do I start?

Once you know why you want to invest in property, ask yourself what you want and when you want it?

In other words, what does your property portfolio need to deliver to set you on the path to achieving your financial goals?

Write this figure down and focus on it. Stick it on your notice board or bathroom mirror so you see it and read it often. Be specific, for example, I want to own seven properties and have a net worth of $3million by 30 June 2020, or I want a passive income of $200,000 by 2020.

Knowing what you want and when, helps us to find the right properties for you.

For example, if you are looking to build a property portfolio that will deliver a future income in retirement, say 10 years from now, then you may be more focused on property with high capital growth.

Alternatively, if you are nearing retirement, positive cash flow property may be more important than growth.

Property is not a one size fits all strategy. So take the time to be clear about your goals.

Paralysis by analysis

The key to successful investing is more than making the decision to invest, it’s taking ACTION.

Did you know that there are more than 28 million websites devoted to property? This mass of information leaves many people feeling confused, and worried by the stories of what could go wrong. So it’s understandable that many people think about investing but less than seven percent of Australians take the next step.

The important point here is not to over-analyse and become paralysed by what could happen. If you do you’ll be left behind wishing you’d taken action!

Investment does involve a level of risk but with a good system in place, solid research and planning and good professional advice, the risk can be considerably reduced. In fact, the biggest risk is to do nothing! There is a saying we can all relate to – if you sit still, you are going backwards…and we have all been guilty of procrastinating…so what are you waiting for?

Learn and play!

We will organise for you to attend one of our interactive workshops, or for a personal consultation with us, the owners of the business.

In the meantime, dust off the Monopoly board. Monopoly is great training for the novice investor because the intention of the game is to create a property portfolio. What do you do when you land on a monopoly property and you want to buy it? You find out if you have enough money to buy it!

Money matters

If you have a long-term investment plan it’s important that your finance structure fits with those plans. This is because finance is the biggest factor influencing your strategy and your returns. Amongst other things finance will determine:

• what type of property you can buy
• up to what amount you can invest
• the geographical areas you can buy in
• how quickly you can build a portfolio
• what entity you can use to buy the property
• what rate of return you can achieve from your investment