This stage of the property cycle isn’t as much fun as the last couple of years when things were booming – is it.
Many investors are having difficulty getting financing buying their first property while others are stuck growing their portfolio.
And capital gains aren’t assured, so where do you buy?
By the end of this show, you’ll have more clarity about what’s ahead and where to buy .
Top Tips for getting finance in the changing landscape
Seek professional advice
Be prepared to justify and articulate your expenses
Consider principle and interest loans rather than just interest-only loans
Interest-only loans can have benefits as well
Set up an offset account
Choose the right investment-grade properties
Make sure that you have financial buffers in place
Being turned down is sometimes for the best – regulations exist for good reasons
Avoid misreporting or misinformation and be prepared for heightened scrutiny
Have your properties re-valued regularly
Have a property strategy, an ownership structure strategy, and a finance strategy in place. Treat you r property investment like a business.
3 Success tips
To succeed in business or investment, you need to model successful people. Find people who have achieved what you want to achieve and follow what they do.
Most people overestimate what they can do in 12 months and underestimate what they can do in 10 years. It takes time to gain traction.
Most people are not successful. Identify the wrong strategies that most people are using and do the opposite.
Not all land is created equal
Overall, the inner and middle ring suburbs of big capital cities are the best places to invest.
Most of the jobs are in capital cities, so that’s where migrants want to live. It only makes sense to invest in areas where people who want to live.
Properties closer to the CBD and closer to water increased in value faster than those further from the CBD and further from water.
Suburbs with better infrastructure, shopping and amenities tend to be close to the CBD and the water. That’s where the wealthy want to and can afford to live, and they’ll pay a premium to do it.
Links and Resources:
Some of our favourite quotes from the show:
“So one of the things you should do when you go to your finance strategist or the banks is to actually understand what your income and expenses are, have your tax returns done, have all your paperwork ready, because they’re looking at it much more carefully.” – Michael Yardney
“Going to the bank and asking for the biggest loan you can at the lowest interest rate possible isn’t a finance strategy. You’ll buy a property, and then you’re going to get stuck. – Michael Yardney
“If you’ve got your ladder against the wrong wall, every step you take will get you a step further away from where you want to go.” – Michael Yardney
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Read more: propertyupdate.com.au