6 STAGES TO
INVESTING SUCCESS
Want to invest in property, but don’t know where to start?
Investing in property can be a bit daunting, even if you have done it before. You know you should invest. You’ve probably watched friends a family build their wealth from property… and you don’t want to miss out or get it wrong.
But where do you start? Where are the best growth areas now and over the next 10 years? How much do you need to get started? What are the risks? What will it cost? How can you maximise your tax effectiveness?
STAGE 03
STAGE 02
STAGE 01
Check your affordabilty to invest?
Choose what property to invest in wisely
Choose property you can afford long term
STAGE 06
STAGE 04
STAGE 05
Make it safe;
"The Balanced Cost System" (BCS)
Structure it right
Ongoing support
STAGE 01
Check your affordabilty to invest?
If your combined household income is at least
$100,000
and you can fund a deposit either in cash or equity in your property of at least
$50,000
and you can afford around
$100 per week
you may qualify for a loan.
​
Check your lending borrowing capacity with your mortgage broker or we can help arrange this for you.
STAGE 02
Choose what property to invest in wisely
Make it count. Look for a property with Solid Capital Growth Potential.
Only consider locations that grow well. Know where and what types of properties in their locations do. This is where many investors end up wasting investment time and money.
Seek properties that meet proven property growth fundamentals - it’s not worth gambling on hype, risky short term strategies or half baked knowledge. Property is easy to get emotional about and hard to get out of if it isn’t right.
LOCATION
What really moves property prices and how to know they are in your chosen location?
TIMING
Maximise your returns by investing at the right time - sometimes there is a better time to buy
PURCHASE PRICE RANGE
What price range is the sweet spot for better long term growth
PROPERTY TYPE
Choose what local home buyers want to own - buyers dictate property values, not tenants
PROPERTY Design
Design, layout and inclusions; effect the appeal and price you can charge the tenant and the end buyers. Know what they want.
STAGE 03
Choose property you can afford long term
Make it easy to own long term (long term compound growth is where big returns are made).
The rent and tax deductions you receive from owning an investment property usually wont cover all your costs and you will have an out of pocket shortfall to pay - Holding Cost.
​
That is why you want to choose a property that is affordable to hold on to for the long run, because that’s where the big money is made, (think of your own suburb property prices 10-20 years ago).
To do this, choose a property that;
- You can comfortably afford long term
- Offers high tax deductions
- Is in high rental demand
- Rental yield is above 4%
- Is in a low vacancy rate area
WE AIM FOR
$90 per week
A cost that is easy to afford long term, typically under
Choose a property that is easy to rent and is easy to look after. We achieve this by considering;
3. TAX DEDUCTIBILITY
1. AGE OF PROPERTY
2. RENTAL YIELD & DEMAND
Leave room for reinvestment, so don’t over do it.
STAGE 04
Make it safe;
Our "Balanced Cost System" (BCS)
"As safe as house" – is not always true
Property, especially residential property in capital cities, are relatively safe. However many have lost 10’s even 100’s of thousands of dollars on their investment because they sold out too soon. Even a poor investments can come good if left long enough to appreciate. Consider the worst performing suburb in your city to what it’s worth now compared to 20 years ago.
A key to successful property investing is to be able to comfortably hold on to the property and only sell it when its done its job!
Things change over time. Costs can add up very quickly at times, which leads investors to give up and sell out. Things such as;
TENANT VACANCY
When tenant move out, there is likely to be a vacancy period, until the new tenant is in place. If the property rents for $500 per week and it takes 2 weeks to have a new tenant in place, that’s $1000 extra the property owner pays. Vacancy periods can be a little as a day or many weeks and can happen more than once a year!
INTEREST RATE RISES
Increases your interest expense and thus your costs
BREAKDOWN & REPAIR COSTS
Plumbing, electrical, appliances, carpets, paint etc, can add up over time. Especially with older properties.
You cannot afford it any more due to loss or reduced income
Property investment is safe only if you can afford it long term!
​
That’s why we have developed the world’s first property Capped Cost System
$100 per week
Imagine owning a property that costs less than
Even when you encounter;
- Rental vacancies
- Interest rate rises
- Inflation (CPI) on expenses like rates, insurances, etc
- Breakdowns & Repair Costs
- Property maintenance expenses
- Tenant damage
- Temporary loss of your income
- Bad tenants & tenant damage
STAGE 04
Make it safe;
Our "Balanced Cost System" (BCS)
"As safe as house" – is not always true
Property, especially residential property in capital cities, are relatively safe. However many have lost 10’s even 100’s of thousands of dollars on their investment because they sold out too soon. Even a poor investments can come good if left long enough to appreciate. Consider the worst performing suburb in your city to what it’s worth now compared to 20 years ago.
A key to successful property investing is to be able to comfortably hold on to the property and only sell it when its done its job!
Things change over time. Costs can add up very quickly at times, which leads investors to give up and sell out. Things such as;
TENANT VACANCY
When tenant move out, there is likely to be a vacancy period until the new tenant is in place. If the property rents for $500 per week and it takes 4 weeks to have a new tenant in place, that’s $2000 in lost revenue. Vacancy periods can be a little as a day or many weeks and can happen more than once a year!
INTEREST RATE RISES
Increases your interest expense and thus your costs.
BREAKDOWN & REPAIR COSTS
Plumbing, electrical, appliances, carpets, paint etc, can add up over time. Especially with older properties.
Or you cannot afford it any more due to loss or reduced income.
Property investment is safe only if you can afford it long term!
​
That’s why we have developed the world’s first property Balanced Cost System (BCS)
$90 per week
Imagine owning a property that costs less than
Even when you encounter;
- Rental vacancies
- Interest rate rises
- Inflation (CPI) on expenses like rates, insurances, etc
- Breakdowns & Repair Costs
- Property maintenance expenses
- Tenant damage
- Temporary loss of your income
- Bad tenants & tenant damage
Its all covered!
Ask us how ...
STAGE 05
Structure it right
What is the best way to own the property?
There are different ways of owning a property that will provide you greater tax advantages and asset protection. Getting the right advice on this before purchasing can save you a small fortune. We work with your advisor or you can work with one of our specialist partners to help you determine what structure is best for you.
Find out how to borrow like the pros!
Most people give the lenders too much and end up with loan structures that are more difficult and costly to refinance in the future.
A finance structure that is easy to manage
Set up bank account so its easy to view and manage your property income and expenses. It will also make it easy at tax time.
Insurance that protect your property and you
Landlord protection insurance has come a long way. The right insurance can save you a lot of money and headaches.
Effective property management
A less hassle ownership can come down to your property manager and how you manage them. We will show you ways how.
STAGE 06
Ongoing Support
The better your experience, the more likely you are to invest in more.
Owning a property is like owning a small business, you are dealing with customers (your tenant) and contractors (your property manager and tradesman). There may be situation where you are not sure how to best respond.
Over the many years we have been in and around property investing, we have seen and experienced a lot, there is not much we haven't been through before.
We will not only help you be an effective investor, we will also be your calming mentor along the way.