If you make the wrong decision when you first start investing in property it could set you
back in a number of years, or may live you so discouraged and so deflated that you never
go ahead and invest again, and you never build a successful investment property portfolio.
Today I want to talk about some tips if you're just getting into property investment that
you can get started off on the right foot and you can go on to have a very successful
investment career.
There's a lot of work that you need to do in the background both on yourself and your
education, and also on the research before you go ahead and become a property investor.
You can become successful by just jumping into the market and hoping for the best in
the same way that you can become successful by betting everything you have on red at the
roulette table, just because you may win doesn't mean it's a good idea, I believe that a better
strategy is to go out educate yourself first, understand exactly what you need to achieve
and have a plan to go out there and achieve it.
I believe with that in mind you are more likely to achieve success than to go out there and
you bet on red or you but the first property that you happened to like when you are looking
at the property market.
What are some things that you can do and what are some tips that you can take away with
you if you're just getting into property investment today.
Tip number one id to read the following books, or listen to the audio books if you do a lot
of driving, I love listening to audio books and I listen to them on three times speed,
so I can get through a book in a couple of hours, where's all those reading a book it
will take me many, many hours to read it because I'm not a very fast reader, audio books can
be great.
I recommend the following three books to get you started:
One is specifically about property investment and two more about your finances and understanding
finances better.
Book number one is Steve McKnight book 0 to 130 properties in 3.5 years, this is an amazing
book because it shows you how Steve and his business partner went on to as you can guess
by 130 properties in 3.5 years.
Steve goes in through a great amount of detail in the calculations that were done many properties,
why they were great investments and even talks about how he did a renovation and how he worked
out how much unit per hour and that he'd actually be better off spending that time working in
McDonalds than he'd have been doing the renovations.
I love this book because it shows you an actual experience of what someone achieved but it
actually teaches you the numbers and how he became about achieving it, it's a great read
and helps you understand property a lot better.
Book number two is by Robert Kawasaki, and that book is rich dad poor dad, this book
is a very easy read and Robert uses a lot of stories in this book but the biggest take
away that I got from this book was redefining assets and liabilities and in essence turning
this into new words, he talks about an asset been something that flows one into your pocket
and a liability something that takes money out of your pocket.
While these are technically the correct definitions according to the oxford dictionary, they have
helped me increase my passive income not just in property but in other areas of my life
as well.
Book number three is again by Robert Kawasaki that again is the cash flow quadrant, what
this book shows you is the four different ways that people earn money.
People earn money as an employee, as small business of self-employed, as business owner
as investors and it encourages you to think about which quadrant you wanted to be earning
your money in, I think this is a great book because it forms a solid foundation as an
investor about how you want to go earning your money.
Those are three books that I recommend that you start with if you are just getting into
property investment.
Tip number two is to read investments blogs and books, at positive cash Australia every
single day we release a new video a new pod cast and a new blog post, either you like
watching, listening or reading we have content that is suitable for you, you can checkout
positive cash flow Australia if you want more information every single day and I also have
a list of the 12 top property investment blogs that you could check out for more information.
You can also read property investment magazines there's Australian property investor or your
investment property which are both great reads and what these investment properties magazines
generally show is real life examples of people who have gone out and then they've invested
in property and they've been successful.
Its great and inspirational to see how people have done it sometimes it's a little bit demotivating
because you can see they've millions of dollars in equity and I don't necessarily have that
much but it's really great to see that people are out there doing it and how they're becoming
successful.
Always beware of property magazines like money magazine is a great magazine but it appeals
to the mass market therefore it might not necessarily talk about investment strategies
that you want to use, it may talk about ways for getting rich very slowly and very risk
adverse ways that may not be suitable to you, just read the magazines but take them with
a greener soul because they obviously have to be careful in what they say because I don't
want to get sued, just a saying I want to be careful in what I say.
Tip number three is to set your financial goals, I believe this is important before
you go out and start investing in property, is to actually understand what you want to
achieve financially in your life, there's so many people who go out and then invest
in property and they don't know their financial goals they just want to make more money, they
want to be rich they want to be millionaires but they don't actually understand how it's
going to impact their lives and how that's going to flow through in their lives.
I do think it's important to set your financial goals, for me I set financial goals in terms
of cash flow and how much passive income I want to come into my bank account each and
every month, cash flow to me is more important than having equity because if I have millions
of dollars in equity but I'm negatively geared I'm paying money every month and I'm tied
to a job, well that's not the life that I want, that might be great for some people
but it's not great for me.
I set my goals in terms to cash flow and how I want to achieve that you can set your goals
in whichever way its suitable for you but I do believe setting your financial goals
before you go out and invest is an important step to take.
Tip number four is to decide on the strategy that's best for you, there's so many different
ways to invest in property in Australia, you can use negative gearing, you can use positive
gearing, you can look for capital gains or capital growth, you can do sub division, you
can do renovation, you can do development, town houses, units, strata tiddling, there's
so many different things that you can do as an investor and different ways you can make
money while investing in property and they are all great ways but one way is probably
going to be more suited to you than another way.
I believe that's important to understand which way of investing that you think you're most
likely to be able to achieve your financial goals, and then go out and learn more about
that specific investment strategy.
I love positive gearing and I believe that's the best investment strategy for me, not development,
not necessarily sub division, not property options or anything like that but positive
gearing investment property.
I've gone out and I've learned a lot about positive gearing investment properties, find
the strategy that works best for you, and then go ahead and learn about that so you
can become an expert in that one investment strategy.
Tip number five is to practice and prepare when the time comes you will be ready to invest,
I take this again from Robert Kawasaki, he practiced and prepared and built his business,
and all along he wanted to invest in real estate but the time wasn't quite right, him
and his wife practiced and prepared they learned about investing in property, they visited
a property they spoke to real estate agents they did the cash flow analysis on a bunch
of properties when the time came and the market was right they went out and they invested
and became financially free quite quickly.
Go out there prepare and practice, speak to a real estate agents go to open houses, do
the cash flow analysis on properties prepare to invest that when the timer comes and the
market is right for you and the right property comes along you're ready to act on it because
you know the steps that you need to take to invest in property.
There you have some tips if you are just getting into property investment some tips and tricks
about things you can do before you go out there and invest, and before you go out there
and bet the house on red at that roulette table, I hope this has helped you, if you
want more videos, podcast and articles like this just head over to positivecashflowaustralia.com.au,
if you are on your mobile phone you can type in pca.im which is the short link that will
redirect you, until tomorrow which is when the next episode comes out stay positive.