If you are anything like most Aussies you have the dream of getting your mortgage sorted out sooner rather than later, and you also wouldn’t mind going on a few more holidays, becoming more independent financially, and living a bit more instead of just surviving. Right?
The realistic truth of the whole situation is that you will need some help in addition to your superannuation and your wage in saving for your retirement. Many people have chosen property investment as the vehicle as a means for setting themselves up financially both now and into the future. Many people choose property investment because it has a certain tangibility to it that shares and stocks just don’t have. There is something to be said for property as well in that you can reach out and touch it, you can drive past it and show it off to friends, and you can look at picture of it online and share it via email.
You can also identify with property as a vehicle for wealth, because at some point or another we all need shelter for ourselves and for our families. This is a key component of the emotional pull that we all feel towards property investment and when you put it like that, it kind of makes a lot of sense.
While many people do succeed and have a lot of fun getting towards their dream of owning one or two houses as investments, many people think they’re going to be ok in retirement with one or two. They’re not! People who have one or two properties are not going to have enough money for retirement – one or two is just not enough financially. Many property investors will never realise the dream of owning many houses simply because they just don’t get what it takes to make it work.
The hard reality of it is that you need to own multiple properties in order to be truly financially successful, and in conjunction with this dream, there is a whole industry dedicated to spruiking beautifully presented off the plan apartments and houses to people. These companies who focus on selling house and land (for which they get a tasty commission) also never work on educating people, so ultimately without a long term plan, these people fail. Sure, some investors own one or two properties, but they’ll never be financially independent or wealthy.
There isn’t a guarantee of succeeding in property investment but for optimum chances of success you should try and do some of the things below which will optimise your chances of success.
- Have a plan in place and stick to it – this way you’re going to know what you need to do to succeed and you’ll be able to do it better because you have it set out before you. A good way to get a plan is to consult with a property company or investment specialist before you get started. They can help you figure out the finer points of everything that you’re going to need to consider.
- Have a mortgage broker who knows your goals. This one is vital, because although you can do a lot of the research for home loan online, the real value will come from when you actually go in and see a professional who can advise you on the best course of action.
- Don’t stop at two. The best way to move towards mediocrity it to be underprepared and to stagnate. You need to review your purchases often and thoroughly, and to work to ensure that your finances are always in tip-top condition to ensure your success. This means you can keep borrowing money to buy more properties.
Categories: Real Estate