Own It

There are people who want to be helped and there are people who don’t. That’s just the way it is. I totally get that.  I can’t help everyone to OWN IT, because Not Everyone Wants To Be Helped.

Some people are content drowning in their own misery and staying put in a life that they don’t really own. And there’s nothing wrong with that. Everyone’s different.

It’s a simple fact of life that it’s easier to have an average, boring life devoid of purpose and passion than it is to create a wonderful life that’s extraordinary, inspiring and meaningful. One where you regularly push yourself beyond your comfort zone to achieve new standards and break free of the constraints of a normal life.

It Takes Real Courage To Stand Out.

But more than that. It takes commitment and determination. And a lot of  work. You don’t just wake up one morning with a massive dream of buying an investment property and have achieved it by the next day.

So when you are thinking of getting expert support to achieve your property and lifestyle goals, think about it like this.

It is for people who get that change is possible, progress CAN be made and the chances of success are much bigger when you have somebody by your side:

*Someone who has already done what you are wanting to do
*Someone who believes in you, even on those days when you don’t,
*Someone who will kick your butt with love, when you need it most.

For me as a Property Coach it’s like this:

Theoretically, it’s ridiculously cheap to get started in property these days. Interest rates are low and there are plenty of great deals around.  You can even pull it off with little or no knowledge, and many people try.

But what most forget is that a small investment now has the potential to make you hundreds of thousands of dollars down the track.

People tell me they want to grow their property portfolio when they’re ready, in a few years or so.  What they are really saying is: ‘hey, I don’t care how long I take to do this. I’m happy doing the hard yakka for years and years. I just don’t want to get out of my warm and fuzzy comfort zone.’

If that’s how you really feel, you’re absolutely entitled to. But what I’ve learnt is that to make an impact, it’s vital to create some momentum. And if you’re not getting anywhere fast right now, then you have to change something.

I can only help people who understand that there’s no progress without some form of investment. If you want to make more money, you have to invest in your education and the protection of your own future.

If you want to dramatically improve your investment results, you have to make some dramatic changes. You CAN do it. You might even be able to figure it all out on your own. But you’re a lot less likely to make it on your own.

If you are serious about buying property, you have to invest into it. You have to learn how to create momentum, make the best decisions and make profit, so you can start calling the shots and have control over your own future, creating leverage and even more of a solid future with the profit you have made.

Only when your properties are profitable, and the profitability becomes sustainable will it start to give you the life that you set out to create…a life that has more freedom, more choice, more meaning and creativity, more alignment, more fun and more passion.

It is then that you will truly OWN IT!

No Soul Mate Required

Today’s post is inspired by a friend’s comment on facebook about not needing a soul mate or relying on chemistry to build a relationship.  She is glad that she was chosen by her husband, that he didn’t have some irresistible, chemical urge to have to have her, but that he made a conscious decision to pursue her and that therefore they both work hard to keep what they’ve got.  They feel they have earned their relationship, not that it’s ‘meant to be’.

I know, I know, you’re already thinking I’m on the wrong page.. What does the lack of a soul mate have to do with property.  Of course it has everything to do with property.

How often have you said (or heard others say)” I love the house, it’s so me, I just have to have it. It’s like it was made for me and if I could have it, all my dreams would come true”?

OK, so that might be a slight exaggeration.  But you know what I mean. 

My message here is that real estate, whether it’s your family home or an investment property designed to help you create wealth, is not a must have at all costs commodity, with some kind of intrinsic chemical link to your bank account.  It’s a massive financial commitment which should be carefully considered.  It should be understood for what it is and it should be yours because you made a rational, practical decision to buy the best property to suit your individual circumstances.

Of course when you’re choosing your own family home you will have some kind of emotional attachment to the place.  You want it to feel like a home, and so it should be.  If it isn’t already suitable in its current state, then you need to be confident you can make it a home where you will feel safe, secure and comfortable.

If however you are choosing an investment property, then you must leave all these feelings at home – (the nice warm fuzzy home).  Look at your options in a factual manner.  Weigh up the statistics of the area, the property and the demographic.  Look at the figures and how owning that property will bring you closer to your financial goals and ultimately create you wealth.  If you buy the ‘love at first sight’ property as an investment, chances are you will have been blinded by the fake personality, or the false smile or the perfect figure and you guessed it – that doesn’t always end well!

When you want to buy a property that is the right one for you, for the long haul;  One you know you will be proud to own;  One that will work for you, not against you and one you really feel you deserve, then don’t wait for all the starts to align so that you make a one off connection and it feels perfectly dreamy.  Go out, do your research, compare your options and choose the right one.  You will be rewarded!  Just like my friend.

First Time Investor Fears

You’ve got your pre-approval, now the fear really sets in…or does it?

Don’t be scared.  Make informed, calculated decisions and be proud of your progress.  Seek support for the questions you need answered, find yourself a mentor, a professional or a supportive, experienced friend, who has had success with property.

There are so many different ways to make money with property.  The specific details of the property you should buy will vary hugely, depending on many, various factors.  You can renovate structurally or cosmetically and sell, renovate and rent, rent and hold or any combination of these.  You can buy a strata unit or a house on acreage.  There are properties in mining areas or the inner city.  You can spend two hundred thousand, or two million dollars.

As a first time investor, here are some general tips I would recommend you consider when purchasing your first investment property.

What you are looking for is a property that earns you money.  That means it is positively geared, that the repayments and expenses are less than the rent.  (Yes, you can also negative gear, but personally, I can’t see any benefit in losing money!) And, you obviously want it to increase in value, over time.  Simple really!

The absolute most important thing you can be aware of at this point is to remove your own emotions from the property search.  That is rule number one of property investing.  It doesn’t matter if you don’t like the shade of cream on the walls or if the kitchen bench isn’t the right height for you.  All that matters are the numbers.  How much of the mortgage will the tenant pay, how much will the tax man pay and therefore how much will you pay?  Think of a property purchase as a business transaction devoid of emotion and you will already be on your way to success!

Don’t over-commit financially.  It’s all well and good to spend a lot of money on a property that earns you big, positive cash flow dollars, but if the market drops or something changes in the area and you can no longer achieve the sky high rent you are relying on, then don’t buy it!    Such scenarios are typical of mining towns which perhaps don’t have a diverse industry base and markets change quickly.  You could be left with no tenant and nobody wanting to buy your property either. 

Instead, I would suggest looking at larger regional areas where you can purchase a house for under $300,000.  Look for areas with good population and housing price growth, where industry is varied and infrastructure is growing. 

Obviously rental property has to be in demand in the area.  Look at the vacancy rates for the suburb.  I recommend finding somewhere where vacancies are under 2%.  This means that of all the properties rented, less than 2% of them are empty at any point in time.  Many areas are currently running at below 1%, which is a great indicator of a reliable area to invest.  Obviously, supply and demand plays a big role in determining the asking rents, so low supply, high demand is an ideal scenario for the landlord.  Be sure to check long term trends too, not just the current month.  An upward trend could indicate many things, so make sure you research properly to avoid unexpected vacancies.

Look at the demographics of the area. There’s no point buying a 6 bedroom house if the majority of the population in that area are single retirees.  Also be conscious of your ability to keep up the maintenance.  A family of four kids will usually create more wear and tear than a professional couple.  (Note – general wear and tear is to be expected and the tenant cannot be held liable for reasonable wear and tear).

Another factor which is not always considered are the social issues affecting the area.  Now, this is where it can get exciting.  If you find an area where perhaps there are many social problems, then you can safely assume that property prices will be lower than down the road where there are less problems.  The secret here is to be able to forecast the areas which you believe will recover from their social issues and therefore where property values will rise in the future.  As long as you are confident you will be able to reasonably rent the property in the meantime, this is a strategy used by many successful property investors, for creating long term wealth.

If you live nearby and you have the time, energy and the money to renovate, then buy the worst house in the best street.  You’ve heard it before, but it hasn’t changed!  Renovating can add you instant value, if done correctly.  Don’t renovate to your own personal taste though.  Keep it simple.  Neutral colours, hard wearing surfaces and low maintenance materials and gardens.  Don’t overcapitalise, but stick to a realistic, pre-determined budget and time frame.  Remember, time in this instance is money.  The sooner you can get a tenant in, the sooner you can start making money. 

There are many intricacies of property investing for each individual to consider. Once you are comfortable that you have the ability to choose a property wisely, then go for it.  Be confident in your decision making process and proud of yourself for taking the leap into the world of property investing.  You might not make the prefect decision, but nor should you strive for perfection. Perfection is the enemy of getting things done.  It is the friend of procrastination and of not moving forward.  If you put it off and put it off and never actually commit to buying property, then you will look back with regret at the profit you could have made during the time you were procrastinating.  If your first property purchase is not what you wanted it to be, you will learn from it and use that knowledge the second time around.  Don’t procrastinate for fear of making mistakes, for they are more often than not, the key to a brilliant and successful future.