If now is the time, how do i get started?

I recently came by a saying that amused me, it goes “The only bad time to buy property is LATER”.  While i don’t fully agree with this, since the Lockdown, there has been an increased focus on creating multiple sources of income to protect against the shock of having one source of income which I call the “single income risk”. 

Property investing is how a lot of people now diversify that risk, and to get started, you need a roadmap from where you are to where you can buy your 1st investment property. 

Over the next few blogs , I’ll be covering the following topics.

1. Take stock of where you are – wake up & smell the coffee
2. Getting prepared for the journey – it’s a long road
3. 5 ACTUAL ways to get your first cash deposit
4. Other CREATIVE strategies to own property 
5. Why LEVERAGE beats CASH every single day

Which brings me to the 1st point.

Take stock of where you are now.

I say “wake up and smell the coffee” as a slightly dated saying that means you need to face the facts concerning where you are, and how you plan to achieve your goals. It goes without saying, that you need to master your finances. Granted, we were not taught much of personal finance in our formal education, but unfortunately this is no longer a good excuse for not coming to terms with where you are and really assessing your current financial situation. You can then create a roadmap to get you to where you want to get to.

3 “Where am I” Questions to ask yourself:

1. How much money can I raise as a deposit & over exactly what length of time?
2. Do I need to build more income through a second job, business or side hustle?
3. What short term sacrifices do I need to make and create a savings plan? 

One thing Covid19 has taught us is we don’t have to spend so much on luxuries (i have bags withering away in my closet that haven’t seen the light of day since the lockdown).

However the most fundamental thing to think about is:

Because you don’t know what you don’t know. 

My husband says that is a “non-statement” but it is so true, and my 1st lesson in this truth was when I bought my 1st few properties. I thought “just buy a property at a discounted price and wait for the market to pick up and then sell”. That sounds sensible in theory, right? and is no doubt what a lot of people do when starting out.

However, I discovered quite by chance that is certainly NOT how to maximise the value of my investment. With the limited resources we have, maximizing the value of the assets we buy is the only thing we owe to ourselves. 

So, one glorious day, I had gone viewing with an investor I was partnering with at the time. During the viewing, we happened to overhear what another investor was describing as their blueprint plan to refurbish the property. 

It was a WOW moment! 

This “secret” to sourcing the right property completely changed my entire view of property investing and transformed my property journey.

Now, when buying for investment, I need to see the profit when I BUY and not wait for years to SELL. If you’re a moderate investor just looking to “buy and hold” and wait for the market to pick up, then you always need to ensure you’re buying in a down market when prices are generally low. For me, the “Make Money When You BUY” strategy works in every single market. 

This means you take control of the price of the property and add value to it so that there is an immediate uplift within a few months. You don’t need to wait years for the market to tell you that the property is has now gone up in value. 

“You really don’t know what you don’t know” 

The point is you can only act in the knowledge that you do have, so it’s vital you get yourself outside your comfort zone fast and start learning. Assess where you are now and fill in the knowledge gaps and get ready for the next stage.

Next blog, I’ll talk about how to prepare yourself for this long haul journey into real estate. Honestly, it shocks me how many people don’t fully appreciate the pains they need to go through to get themselves and their documentation completely in order to raise the funding to buy property. Without really paying attention to the fundamentals of your credit report, spending patterns etc, the journey will completely flatline before it has even began.

But there is hope, so your assignment for now is to:

• Work out how much you want to raise and establish a time frame.
• Review the 2 other “Where I am” Questions above and set a plan!

As always, I aim to keep property as simple to grasp but with good useful information, so do feel free to message me for any questions or if you want to find out more information about this post. Do seek out specialist advise for any investments you make that takes your personal circumstances into consideration.

Disclosure: This information is provided to you as a resource for informational purposes only. It is being presented without special consideration of your investment objectives, financial circumstances or risk tolerance of any specific investor and might not be suitable for your investment. Investing involves risk including the potential loss of the principal capital. This information is not intended to, and should not, form a primary or single basis for any investment decision you make. It is good practice to always consult your own legal, tax or investment advisor before making any investment, financial planning and tax considerations or decisions.