Principles of Property Investment

When investing in property, successful people strive for Financial Security, Lifestyle Choices or Generational Wealth … which are you fighting for?

If you are fighting for one or a combination of the above then your investment decision needs to come from being informed, as you would want to get it right

Getting it wrong at the outset will literally cost you hundreds of thousands of dollars over the life of the investment, why risk it?

Determine your purpose and reason why you want to invest; what your intended outcome is and then match the right vehicle, in this case Investment Grade property to your goals. Start on the right foot because the implications of getting it wrong are immense when compared to getting it right.

When you don’t know that you don’t know

Your selection of a ‘best fit’ property must be devoid of emotion, you are not going to live in your investment are you. And if your intention is to create wealth you would want to build a property portfolio of investment grade properties furthering your potential of achieving your financial goals

More often than not, those that go it alone select a ‘nice to have’ so called safe option in an area they live in because “they know the area.”

Astute investors match the investment vehicle to their goals and research growth locations with healthy rental yields, if their investment strategy is to grow a portfolio through investing and holding.

Getting your property selection right at the outset will have a positive effect on how soon after you can secure your second and next properties. Getting it wrong will delay your opportunity of investing again … thus costing you more $’s; and lost time equals lower compounding returns over your investment journey.

The numbers are vital to your success

Do the numbers because this could be the difference between retirement “living the life you want and deserve” OR “having to continue working.”

Not all property is equal! Understand the fundamentals in the location you choose to invest in, as the required fundamentals will underpin your investment decision. Understand the numbers which drive your investment, as numbers do not lie. Numbers determine your cash flow and return on investment. Vital to get this right at the outset you would agree?

Most of us know what we know BUT we do not know what we don’t know (unconscious incompetent). In order to become a conscious competent it makes investment sense to partner with someone who is, partner with an industry professional who has your financial wellbeing at heart and who cares about your success.

Going it alone is easy, but when you don’t know what you don’t know you remain ignorantly comfortable. Working with a professional may cost you something upfront but over the life of the investment when you get it right, it could ensure you come out hundreds of thousands of dollars ahead and is guaranteed to save you time, stress and thus money!

The table above clearly demonstrates how important it is to ensure that you invest in an Investment Grade property using market related financials for demonstration purposes only. Numbers will differ from person to person and property to property but the concept remains the same. Getting it wrong (unconscious incompetent) could lose out on close to Half a Million Dollars over 10 years + missed opportunities by not being able to invest again when they needed to further impacting their investment outcome.

What if you knew upfront that the difference could be $450,000 to half a million dollars? Would you now want to ensure you get the investment decision right upfront … or still go it alone?

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