If there are 4 words which break my heart, they are …
“I didn’t realise that.”
Because when I hear these words, it means someone had the opportunity to do something great, but they missed their chance.
And it’s all too common when it comes to money and wealth.
Most of the people who utter these words are just keeping their head above water, getting by day to day without anything substantial saved up for their retirement.
Yet if they’d started earlier they could have a portfolio of property which was on its way to matching their income.
And the reason they hadn’t started?
They Believed A Myth About Investing … Which Wasn’t True
And it’s only when I, or one of our team gave them the truth did they realise how much their mistake has cost them.
You can see it hit them like a thunderbolt out of the blue.
The hurt, the pain, the opportunity which slipped through their fingers.
Then the fierce determination to catch up and not let it happen again.
So while there are lots of myths people believe which keep them on the sidelines, here are the 5 most common ones.
Take a look and see if these are one of the reasons you’re not investing.
MYTH: I Don’t Have A Deposit
This is a big reason people don’t invest.
They think they need a massive deposit to invest, usually 20%.
And yet it’s not true.
The reason 20% is often talked about is because you can invest without paying Lenders Mortgage Insurance (LMI).
LMI is an extra fee you pay to the banks if your deposit is under 20%.
But guess what?
LMI isn’t that much, and you just add it to your loan. And if it gets you into the market sooner, you’ll have property going up in value earlier.
Most of our clients invest with a 10% deposit instead.
And some qualify for a loan with just 5%.
Better still, you don’t even need the money up front in cash.
You can use the equity in your home to get your deposit.
I wrote an article on this here which show you how.
To keep it simple though, as long as your house is worth at least $150,000 more than you owe on it, you’ve likely got a deposit.
MYTH: Investing In Real Estate Is Tricky And Too Much Work
Surprisingly, investing in real estate is one of the most hands-off investments there is.
Not to mention stress-free.
Once you’re up and running, you barely have to lift a finger. Your property manager (you weren’t planning on managing it yourself were you?) pretty much does everything.
They find you tenants.
Collect the rent.
Deal with any maintenance or other issues.
And if you get a long term tenant, you’ll probably barely hear from them.
Of course, I’m not going to lie to you.
There’s quite a bit of work getting your investing strategy completed first. And then getting your finances done.
Paperwork to sign, figures to work through. Loans to set up.
But you only do it once for each house you buy, and it gets easier each time.
MYTH: Investing Is Only For The Rich
I come from a wealthy home in a leafy street in a blue chip suburb.
I went to an expensive private school and my family never drove the same BMW for more than 2 years.
Common people can’t invest.
None of this was true.
For a while I was sleeping in the St. Kilda Gardens, staying awake all night dodging drunks, drug addicts and perverts.
And this was better than the horror of state care which is a whole story of hell on its own.
And yet, here I am.
So no.
Investing is not reserved for the ultra rich.
Our clients are everyday people – think office workers, factory workers, teachers, nurses and everyone in between.
The key isn’t to have money.
It’s simply knowing how to exploit rising house prices by leveraging real estate. That’s where you can buy a house with a small deposit, then when it goes up in value you do it again.
Quite devious, isn’t it.
And it’s how anyone with a house to their name can create wealth and replace their income.
You don’t have to be rich.
You just have to know how the game is played.
MYTH: Investing Is Only About Saving Tax
Oh dear. This is one which comes up far too often.
So let me be absolutely, 100% crystal clear on this.
You do not invest for the tax benefits.
You invest to create a new income, and you use the tax benefits to make it easier and faster.
That’s it. Tax breaks are a means to an end, nothing more.
The end game here is to create the kind of wealth and income which gives you ‘I’m outta here’ money where you don’t need to work any more if you choose not to.
It’s not to save tax.
MYTH: The House Market Could Crash
Will the housing market go down?
Probably.
Have a look at this chart of Australian house prices from 1988.
There’s dips for sure.
Check out the one during the GFC.
Then another one back in 2017 and 2018 when the government ran a royal commission into banking practices and gave them all a smack on the wrist.
They tightened their lending practices, lent out far less money and prices went down as a result.
Of course, then we had Covid and the government quickly changed their tune to … Lend Baby, Lend!
But you can’t deny that the real direction of the chart is up!
Every time the market fell, it only fell for a short time.
And then it roared back, growing many times higher than it fell.
Right now we have a situation where demand is simply outstripping supply, meaning everyone wants a house and there aren’t enough to go around.
The result is house prices keep going up, and if you have the right type of house in the right area you’re pretty safe. And long term you’re going to do very well.
Put Us To The Test.
So, was one of these the reason you haven’t invested yet?
Or is there another.
I bet we can crush any ‘reason’ there is for you holding off.
As long as you have a full-time job or a business, and your house is worth at least $150,000 more than you owe on it, I reckon you can get into the market.
So, put us to the test.
You’re invited to spend some time with on a Google Meet with one of our Senior Property Wealth Planners to show you what’s possible.
Tell them why you’re hesitant to invest, and they’ll give you a different perspective on it.
If what they say makes sense then maybe you should consider it.
They’ll even map out an overview of what you should do, and when.
And of course answer any questions you have.
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.
And promise me, you won’t beat yourself up when you realise you could have done this earlier. The main thing is you’re on the right path now.