Can You Only Afford One Investment Property?
Join The Club!
If you can only afford one investment property to start with … join the club!
It’s where I started.
It’s where most of our clients started.
It’s even where many of our staff who invest through us started too!
So I asked my team the other week, if they had a client who could only afford one property, what outcome would you want most for them?
And I got heaps of good answers.
Lots of juicy capital growth.
Cashflow from day one.
A brilliant location.
Heaps of depreciation so they can save tax.
OK, Great answers.
But if I could have one wish granted, I’d simply wish for …
A Great Result
Because here’s the thing.
Most investors in Australia, and I’m talking 7 out of 10, only ever own one investment property.
And according to research by the Australian Housing and Urban Research Institute and Curtin University, 55% of investment properties are only held for 2 years.
That’s right.
Half of all investment properties end up back on the market within 24 months.
Why?
Well, the biggest reason is simply that, even though they might have had a good result, they didn’t have a great enough result to make it worth keeping.
Or more to the point, they didn’t have a great enough result … for them.
Maybe it went up in value, but the holding costs were poisonous.
Or perhaps it was cashflow positive, but when they had it revalued it hadn’t gone up a cent.
Or maybe it was so old there weren’t any tax benefits like depreciation.
Maybe it attracted tenants so horrible they were on a first names basis with the local A Current Affair crew, who chase them at least once a week.
Or it was so run down, the old galley kitchen fell over on the first day because the gaffer tape holding it onto the house got wet.
Who knows.
Whatever the reason, it wasn’t a great result for them.
So, What Is A GREAT Outcome?
A great outcome is one which keeps you in the game, heading towards your goals.
It’s where you get great capital growth so you can invest again sooner, but with enough income coming in so you’re not hurting financially.
In other words, an affordable sacrifice with enormous gains.
Something which attracts great tenants who look after your house and can pay you reliably every month.
And of course, the best way to describe this property is…
Tailored To Fit Your Strategy Like A Glove.
Because if you can only afford one, by crikey you’re going to want to make it perform.
You want it to go up like the clappers and attract a flood of tenants.
This means making sure it’s in a high growth area, close to infrastructure and transport, and everything people want like great shops, schools and entertainment.
Plus it has to be affordable so you’re not over-extended with a massive loan.
And your cashflow position has to be good as well.
After all, you don’t want to be so cashflow negative that two years down the track, you’re forced to choose between selling your investment … or paying the school fees.
Also, you don’t want to be taking a wild swing at the fences here. You can’t diversify with just one property.
Be a little on the conservative, low-risk side. Bank the money and go again.
And what’s this strategy I talk about?
It’s your personal Property Wealth Plan which maps out how you’re going to go from where you are now, to where you want to be 10 and 20 years down the track.
How much income you want to retire on, even potentially retiring early.
And what properties you need, when, and in what order to achieve it.
This is the type of plan we create for our clients.
And it’s only when we have this plan for you that we begin to look at properties.
Sound boring?
Well, maybe planning and mapping out your steps is boring.
Perhaps you’d rather be house hunting every Saturday, racing from open house to open house.
But we think creating a plan which maps out a future where you no longer have to work, where your entire income (and more) has been replaced by rental income, and where you know you’ll never have to worry about money again is a lot more exciting.
Agree?
Curious About What Your Personal Wealth Plan Looks Like?
There’s no doubt that having a personal plan will make your journey faster, easier and safer.
And everyone has an ideal wealth plan which is perfect for them.
But if you haven’t got yours yet, you don’t know what it looks like.
You’re invited to spend some time with on a call with one of our Senior Property Wealth Planners to show you what’s possible.
They’ll help determine your ability to replace your income by investing in real estate.
They’ll map out an overview of what you should do, and when.
And of course answer any questions you have.
The best part is it will show us exactly what kind of property you should invest in first.
And if you can only invest in one house now, make sure it’s going to get you to #2 as quickly as it can.
There’s no cost for this either.
We do it in the hopeful expectation that if you decide to invest, you’ll ask us how we can help you.
No obligation, no pressure.
First things first.
Enter your details below, and we’ll contact you to book in a time.