The Armchair Guide to Property Investing

caught by industry ‘professionals’ who go straight to the sell because they want your money. Or worse still, we see the DIY investor who thinks they know what they are doing and they go ahead and risk their financial future on a ‘hunch’ purchase.

portfolio: Clarify your position and identify your short-, medium- and long-term goals; Evaluate the sort of tactics you need to adopt that suit your investor profile as it relates to debt and retirement; Establish a plan that models your cash flow in the future as well as for today; Implement the plan with an understanding of what makes an investm

All of these professionals will be equipped to help you get the ball rolling, but you’ll also need to think about where you sit as a long-term investor. In our experience, the mindset of the long-term investor is often based on fear or greed and both present a high risk to wealth creation. Why? Because fear leads to inaction or procrastination and

The important thing to note here is to buy the best property you can comfortably afford in the highest land value area. If you can afford a house then great, but if you can only afford a townhouse or an apartment then don’t see this as the booby prize. See it as a great opportunity to stay in the location and buy the best investment-grade property

How do you create wealth? Creating wealth has several components and variables, but essentially it’s created by: Accumulation. This is your ability to acquire more assets, income and savings, which builds greater wealth for you over time Growth/return. The measure of the increase (or decrease) in value of

producing assets outside of your family home, returning 5 per cent p.a. to generate a passive income of $50,000 per year, on-going. Therefore, you need $2,000,000 to generate an income of $100,000 without touching the capital base. And that’s in today’s terms – not accounting for inflation!!!

Their financial literacy and understanding is below where it needs to be.

You probably think you’re pretty good at choosing a property to live in for yourself, but what’s difficult to acknowledge for the amateur investor is that buying a property to live in is simply a game of bricks and mortar. Buying a property to invest in is a game of finance – and there is a big difference – and the two are not to be confused. So th

(Sites like walkscore.com.au measure an amenity within walking distance of the actual property and rank that score. A high score means it has a great amount of amenities close by.) A