What Beginners Want To Know About Investing … But Have Been Too Afraid To Ask
If you’ve seen people creating wealth and income from real estate, but you’re not sure how it works then this is for you.
And that’s because a lot of people want to invest.
But they’re unsure about some of the basics.
So to make sure you don’t miss your chance to invest, here are the basics of property investing, based on the questions you may have.
Let’s start with:
Is It A Good Time For Me To Invest In Property?
The short answer is yes.
Prices are driven by supply and demand, which is basic economics.
With real estate, there is enormous demand from people who want to buy houses.
Immigration continues to surge and our population growth is one of the highest in the western world.
This means more and more demand for houses.
At the same time, supply continues to get tighter.
Not long ago, the government body Housing Australia recently predicted we’d be 115,600 houses short by 2027.
Recently they raised its predictions … to 197,847 short by 2027.
This means we’ve got extremely high demand and extremely low supply.
Add to this falling interest rates and it’s certain that house prices will continue to rise.
The sooner you begin, the sooner you take advantage of what’s happening.
Remember, it’s not about timing the market, it’s time IN the market.
How Much Do I Need To Get Started?
You need two things to get started.
One is equity of $100,000 or more. All this means is your home should be worth $100,000 more than the amount you owe on it.
Most people who have owned their house for 3 years or more will probably have this.
The other is a household income of at least $120,000.
If you tick both boxes, chances are you can start.
How Do I Minimise Risks And Mistakes?
Nothing teaches you better than a swift kick up the backside after making a mistake.
The second best way is by getting help from someone who knows their stuff back to front.
Personally, I think the second way is much nicer. Not to mention faster.
As you probably know, property investing can be extremely lucrative.
But only when you get everything right.
Your strategy, location, property and finance setup all need to be spot on.
This is why you should get help from people who know what they’re doing.
Why make mistakes and take risks you don’t need to?
What If You Get Stuck With A Dud Property?
The first rule of investing is Don’t Lose Money.
Your investments should be in high growth areas which won’t lose money over the long term.
And in popular areas so they’ll always be rented.
After this, your biggest risks are tenants who might damage your house, or damages from natural causes.
And this is what insurance is for.
Sure, there are risks with anything. But the great thing about property is if you do it the right way, the risks can be tiny.
How Do AllianceCorp Help People Like Me?
We have a service to help people like you with every part of the investing journey.
And we start by creating a road-map to help you achieve your goals in the shortest time with the lowest risk.
Then we map out what you should buy and when.
Then we can help you select where to buy and find investment-grade properties in these areas.
Plus we can help you with the finance, conveyancing, construction and property management components too.
We set this service up so you don’t need to be an expert to achieve excellent results.
And if we can secure a property for you which grows just 2% more than the average per year, this will make you over $300,000 wealthier in 10 years.
What Kind Of Property Should I Buy, And Where?
Everyone wants to know where they should buy.
But I’m going to disappoint you.
Where you should buy, and the type of property you should buy totally depend on your personal circumstances and financial goals.
The strategy is different for everyone.
Go through the process with us (I’ll show you how to get started in a moment) and we’ll give you an answer on what to buy and where which is specifically for you.
How Do You Get Past 1 Property?
Around 80% of investors never have more than 1 property.
And that’s weird because almost every investor begins by intending to build a big portfolio to replace their income.
Yet they never get there.
Why?
The big reason is they don’t have a strategy which guides them.
They buy a property randomly, and expect everything to fall into place for them.
Unfortunately, what usually happens is they either 1) max out their borrowing capacity on the first purchase or 2) buy the wrong property type in the wrong location.
Or they simply lose focus because there’s no end-game to shoot for.
Without a clear strategy and expert guidance, it becomes almost impossible to go past one house.
Instead, start by defining what you want and when you want it. Take into account your current financial position which is different for everyone.
Then build a plan with specific steps on what to do and when, so you achieve it.
I hear so much about positive gearing and negative gearing. Which should I go for?
This question is asked far too often.
The right question is …
“What kind of property should I invest in to achieve my goal in the shortest time
with the lowest risk after taking my budget into account.”
And of course, this answer is going to be different for everyone.
The question isn’t whether your first property should be positively or negatively geared.
It’s what kind of property suits your strategy perfectly.
Should You Speak To Your Accountant, Your Financial Planner Or Mortgage Broker First?
Anyone who advises you NOT to talk to your accountant, financial planner or mortgage broker first should be avoided.
They’re trying to hide something from you.
You need advice from as many qualified people who know what they’re doing as possible.
The way I see it, you should … ask for advice but make your own decisions.
Don’t blindly follow the advice anyone gives you.
Get the advice, consider it all and decide on your own path.
Your Next Step?
Hopefully this has covered the basics on how investing works, and what it really takes to be successful.
Your next step should be to spend some time with one of our senior wealth planners.
They’re happy to sit down with you to clarify the process, and 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.
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.