First time investors
As a first time investor, you can feel excited and nervous at the same time. We get it. Been there, had those feelings. It’s our job to understand both your vision and your fears, so we can show you how to get there and put your mind at ease.
There are many different reasons WHY people want to invest. From passive income, freedom from working for others, escaping the 9-5 grind, retiring early, or creating generational wealth to name a few.
Understanding your WHY is important to us as it helps us define the right plan tailored to you to achieve this.
When is the best time to start investing in property?
The answer is always NOW. Leveraging your money, compounding growth and time will create wealth.
The sooner you start investing the sooner your investments will grow in value.
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Buying an investment property before your own home.
Buying an investment property before your own home allows you to grow your property portfolio faster. If you live close to major capital cities, it can take years to save a deposit on a home. In the time it takes to save a deposit for your home, you could have purchased a number of investment properties. ‘Rentvesting’ is a great strategy. This simply means rent and live where you want and invest where the capital growth opportunities are best.
This also allows you to:
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Have the flexibility to move around and live where you want to
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Diversify across different areas. You can buy multiple properties eg. 3 x $400k properties versus one home at $1.2M
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Receive tax benefits (although this should not be the main reason to buy an investment property)
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Benefit from rent and cash flow each month
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Benefit from the compounding effect of owning properties
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How much do you need to invest?
You do not need a big income to start investing. And… you can invest in a property with as little as $65k in savings or equity in your own home if you have one. This will include all of the associated costs such as a deposit, stamp duty, bank fees, loan mortgage insurance (if applicable), transfer fees, conveyancing fees, buyers advocate and building and pest inspections.
What if I don’t have $65k?
If you haven’t started saving or don’t have enough yet, there are a number of ways you can go about this:
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If you do own you own home, speak to your finance provider to see if you have available equity to use as a deposit
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Start budgeting and saving now. Obviously the longer you wait the longer it will take! If you need help with budgeting, there are some great tools and apps out there that can help you.
It is really important to track how you spend your money. -
Talk to your parents about being a guarantor or ask them to help out with a deposit to get you started if they are in a position to do so.
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If you have a sibling, consider buying a property together and splitting the upfront costs.
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Why would we suggest working with a Buyers Advocate?
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They come with the know how to create a strategic plan to help you achieve your goals
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They will do all the grunt work with the planning and research giving you back hours of your time
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They have access to many properties that aren’t even on the market yet
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They know how to avoid buying underperforming
properties that will set you back -
They will usually save you money on the purchase and will ensure a great return on each investment
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They will build out a plan to acquire your next property and more
Want to know more?
We can give you the right advice and plan from the start of your investment journey, We have achieved what you are looking to. We will put you on the right path to success, helping you to become a savvy investor along the way.
Ask us about our track record, our own portfolio, how long we’ve been investing, the value of our portfolio, the income we produce from our portfolio and our investment strategy. Happy to share.
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The best time to start investing is NOW.
Existing investors
So you would like to build on your property portfolio…Great news! Understanding your WHY is important to us as it helps us define the right tailored plan.
Are you wanting more passive income, more holidays, freedom from working for others, escaping the 9-5 grind, preparing for retirement, retiring early, or creating generational wealth? We can help.
A few things to consider before making your next investment
What’s your
strategy?
Are you looking to buy & hold, to flip houses, new builds, buy & subdivide, granny flats, or commercial properties? We are the perfect partner for those looking to buy & hold. In our opinion that’s the best way to create sustainable long term growth. We target high capital growth locations & strong cash flow properties.
Why capital growth locations?
Simple really. They allow you to release equity to purchase your next property whilst improving your LVR (Loan-to-Value Ratio). Finding high growth properties is an art. It takes a clear understanding of what drives the growth and how to find them.
Why strong cashflow properties?
Also simple. Strong cash flow (high yields) are crucial to building a property portfolio. Plenty of investors get stuck at two or three properties due to banks assessment of their cash flow position. Rents help increase your income so the banks are more likely to lend you funds. Always ensure your cash flow position is strong.
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Once you have a property in capital growth locations along with strong cashflow, as your property grows in value, you can access the available equity to use as a deposit on your next investment property. Then repeat!
Understanding the importance of leverage, compound growth and time
are critical to wealth creation.
Leverage your money to get ahead
Eg. Buy a property for $500k. Use $50k (10%) from the equity in an existing property, rather than having to save it all, and borrow $450k (90%) and have a $500k asset working for you, growing in value year on year.
The power of compound growth
Compound growth is when an asset grows in value, it is a powerful concept. If you invest $500k and the property grows at an annual growth rate of 6%, after 1 year the property will be worth $530,838. After year 2 it will be worth $563,579 and after 10 years it will be worth $909,698 and 20 years $1,655,102.
Time in the market
The longer you can hold a property the more wealth you will create, using the example above after 10 years the property will be worth $909,698 however if you were to hold for another 10 years it would be worth $1,655,102
We can give you the right advice and plan from the start of your investment journey, We have achieved what you are looking to. We will put you on the right path to success, helping you to become a savvy investor along the way.
Ask us about our track record, our own portfolio, how long we’ve been investing, the value of our portfolio, the income we produce from our portfolio and our investment strategy. Happy to share.
We can give you the right advice and plan from the start of your investment journey, We have achieved what you are looking to. We will put you on the right path to success, helping you to become a savvy investor along the way.
Ask us about our track record, our own portfolio, how long we’ve been investing, the value of our portfolio, the income we produce from our portfolio and our investment strategy. Happy to share.
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