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How Many Properties Do I Need to Own?

29/8/2021

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If your goal is financial freedom, then the straight answer is…More than one.

Owning only one property that you live in is potentially slowing your journey.

I’ll explain why.

Let’s say ‘John and Mary’ currently live in a $700,000 house and have a goal to work hard and upgrade to the neighbouring  suburb and buy a house worth around $1000,000.

The market moves 20% and their house goes up in value, they’re feeling pretty good right?

But realistically everything else around them has gone up in value at the same rate.

This is called inflation.

Now their $700,000 house has gone up to $840,000 and the house they planned to upgrade to in 5 years time, has gone from $1M to $1.2M.

So the upgrade gap has widened from $300k to $360k. Effectively, John and Mary have moved $60k further away from their goal.

So how do we stop falling behind inflation?

To move closer to your goal, you need to outpace or ‘outsmart’ the market. Accumulate carefully selected property assets that increase in value to bridge the gap between where you are now financially and where you want to be financially.

Understand that your home is not an income producing asset.

To repay your home debt requires your time and labour. If you stop working every single day to pay down your debt, then eventually you will have to sell your home because no one else will pay it off for you.

That sounds like a treadmill to me.

So how can you plan to get off the treadmill? Have a tenant that runs the race for you paying down your debt while your asset increases in value.

Then, rinse and repeat.

So what’s the next step?

You need a defined goal, a defined plan and strategy to achieve that goal and a professional team to help you implement the plan.

That’s the short of it. But there’s more detail.

As I always say, property is a long term game so the best time is to start now.

If you’re interested in learning more about how owning an investment property can help you achieve your goals, then feel free to reach out for a chat at anytimeHow many properties do I need to own?

If your goal is financial freedom, then the straight answer is…More than one.

Owning only one property that you live in is potentially slowing your journey.

I’ll explain why.

Let’s say ‘John and Mary’ currently live in a $700,000 house and have a goal to work hard and upgrade to the neighbouring  suburb and buy a house worth around $1000,000.

The market moves 20% and their house goes up in value, they’re feeling pretty good right?

But realistically everything else around them has gone up in value at the same rate.

This is called inflation.

Now their $700,000 house has gone up to $840,000 and the house they planned to upgrade to in 5 years time, has gone from $1M to $1.2M.

So the upgrade gap has widened from $300k to $360k. Effectively, John and Mary have moved $60k further away from their goal.

So how do we stop falling behind inflation?

To move closer to your goal, you need to outpace or ‘outsmart’ the market. Accumulate carefully selected property assets that increase in value to bridge the gap between where you are now financially and where you want to be financially.

Understand that your home is not an income producing asset.

To repay your home debt requires your time and labour. If you stop working every single day to pay down your debt, then eventually you will have to sell your home because no one else will pay it off for you.

That sounds like a treadmill to me.

So how can you plan to get off the treadmill? Have a tenant that runs the race for you paying down your debt while your asset increases in value.

Then, rinse and repeat.

So what’s the next step?

You need a defined goal, a defined plan and strategy to achieve that goal and a professional team to help you implement the plan.

That’s the short of it. But there’s more detail.

As I always say, property is a long term game so the best time is to start now.

If you’re interested in learning more about how owning an investment property can help you achieve your goals, then feel free to reach out for a chat at anytime
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TIPS on how to buy in a HOT market!

1/8/2021

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A lot of people are coming to me because they are continuously missing out on properties, tired of burning their time at home opens and property hunting or are just having trouble navigating the entire process.
 
There’s no denying it, the market is still hot and most properties that sell are leaving a wake of disappointed buyers back out in the market looking for the next property to bid on.
 
So, I thought I’d dish out some tips to help you if you are currently looking to buy or thinking about buying.
 
Get finance pre-approval
 
Before you step inside your first home open, you should be stepping inside a finance brokers office. You need understand your financial boundaries so you can confidently make offers knowing that you won’t lose the property in the case that your finance fails.
I’ve snapped up numerous properties where the initial buyer has failed finance, other buyers have moved on and my finance ready client has won the deal. Don’t be that guy who misses out.
 
Be ready to pull the trigger
 
You need to know the market. Look at what similar properties have been selling for in past so when you are placing your offer you know what the true market value. Many buyers are overpaying in this market and many buyers are missing out as their offer is falling short of the mark due to lack of knowledge.
 
Work with the agent, not against them
 
The agent holds the key in the whole transaction and your goal is to have them hand you the keys. Don’t play hardball, it doesn’t work in this market. Find out the sellers motivation and build your terms and conditions to meet with their expectations. They might want a longer settlement or maybe they want to rent back until they find a house they can move into. You need to create a win win situation for all parties.
 
Build relationships
 
Get to know the agents in the area you want to purchase in. Build a connection, so when they do an appraisal on a property that suits you, they are calling you straight away.
 
Get in early
 
If there is an opportunity to inspect a house early, then jump onto it.
Most homes will go through the home open cycle but some agents don’t want the hassle of dealing with opens and will be keen to close the deal early if the price is right and the seller is also willing.
 
You need to have your finger on the pulse and be flexible to get the deal done. You need time to build relationships and time to research and educate yourself  on the market. If you don’t have the time or patience for this, then maybe you are better off outsourcing the entire process to a Buyers Agent. An industry professional. Someone who is working full time on the search mission and has already built up the connections from years of searching.
 
Reach out if you need some help or want to have a chat about anything property!
 

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    Written by Adam Nyeholt

    The Founder and Director of Rise Property Buyers, passionate property investor and lifestyle designer.
    ​

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