The key ingredients to successful property investing...

Property Investing is a Business!

It is not a social-status-symbol!

To be successful in property investing, I believe that it is all about the strategy you employ to guide you. It’s about determining...

  • where you are now, and
  • where you hope to be, then
  • devising a plan that will help you meet your financial aims.

Ultimately, investing in bricks and mortar should help you become more financially secure and independent, setting you up for a bright future ahead - not less secure!

But to do that, any property investment strategy should factor in the two main investment elements of...

  • Income
  • Capital Growth

So, let’s take a quick tour of the key ingredients to successful property investing…

CLIENT CASE STUDY

Completed Dual Occupancy / Auxiliary Investment

(Family Home + Attached Rentable Granny Flat)

Combine Capital Growth and High Yields

3 Incredible Reasons You Should Consider Becoming a Dual Occupancy Investor:

  • 1. Yield & Capital Growth – These don’t have to be mutually exclusive.
  • 2. Strong Market Demand – There is a massive demand from tenants to rent these properties.
  • 3. Amazing Passive Income – The high positive yields and cashflow that this property investment type offers to enable you to create income streams.
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1 – Income versus capital growth

When you choose to invest using property, your due diligence decision-making should consider both the short and long-term implications of investing with the property.

  • On the one hand, you need to consider how you will service the mortgage and whether that property will pay for itself and earn a positive rate of return on investment each month and each year.
  • On the other, you need to look at whether that property will increase in value over time, providing you with the capital growth you will need to re-invest or enjoy a significant payout when it comes time to sell.

So, let’s dive a little deeper…

2 – Income

Ideally, your investment property should be making you money, not just be a tax deduction!

In the short-term, income is derived from the rent that tenants pay, but there are additional ways to multiply the streams of income from your property (contact us to find out how)

When considering this income, it’s important to the first factor in expenses, including:

  • Mortgage payments
  • Council rates
  • Repairs and maintenance
  • Property management fees
  • Insurance

The total income stream you receive above and beyond those business expenses is the income you get to decide how it is invested or spent.

3 – Capital growth

Capital growth is akin to the big-picture approach to your investment property. It’s the value that your property will increase by over the long-term weighed against factors like inflation.

The long term full property cycle (including the ups, downs, flutters, and sideways movements) is about 18 years!

The Australian (CoreLogic) 25 years of Housing Trends report reveals the Australian residential property market's highs and lows from 1993 to 2018.

Housing price growth in Australia over the past 25 years

Over the last 25 years, strong housing market conditions have boosted median house values by 412 per cent or $460,000.

The housing market has shown some extraordinary changes over the past twenty-five years, with conditions moving through five distinct growth cycles, which have pushed national median house values 412% higher. Over the same period, the ASX All Ordinaries index has risen by a substantially lower 261%.

Twenty-five years ago, the median house value across Australia was just $111,524, and units showed a slightly higher median value, at $123,840. Since 1993, median house and unit values have increased by 412% and 316%, respectively, providing homeowners with a significant wealth boost.

The capital gain over the past 25 years equates to an annual growth rate of 6.8% for houses and 5.9% for units; in dollar value terms, the typical Australian house's median value has risen by $459,900 since 1993 and unit values are $392,000 higher.

Of course, some years see more growth in property values than others, and some areas offer more potential for growth, and that’s what needs to be factored into any property investment strategy.

It would be best if you also considered your investing time-frame.   

4 – Property investing is all about strategy

Once you know the key ingredients to property investing - Is To DEVELOP Your Investing PLAN.

It’s all about creating the right strategy to meet your needs, looking at further factors like your timeframe, budget, risk management, and financial goals.

In other words, If you choose to invest using property - you will need to find the right property that satisfies your individual investing plan - a property that meets the right income goals and the right potential capital growth to achieve your aims within the right timeframe.

And that’s where we come in. 

5 – How we can assist

When you work with U1st Realty, we take a customised approach to assisting YOU!

We examine your individual property investment strategy, looking at where you are now, where you hope to be in the future, and the best path to get you there.

Our sole focus is to provide accurate, unbiased investment guidance and support by developing a personalised and customised strategy that will work for you while mitigating the many risks. factors of property investment

When you retain our services as your property advisory consultants, we search for the right investment property matching your strategy.

U1st Realty provides solutions for Everyday Australians aspiring to achieve financial freedom through the property ownership tool!

We will help you provide retirement choices and/or leave a legacy for others to benefit from your wisdom and sound planning.

Ready to take the first step? Book an obligation free consultancy call with us, click the button below...

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About U1st Realty

Jeff Harlow and Allan Pearson together founded U1st Realty.

We have been assisting people in making good financial decisions both personally and with their businesses for over 30 years.

Our Professional Services include Property Strategists, Buyers Agents, Sellers Agents, Property management, Home Loans, Construction Loans, Business Loans.