Nobody wants to live the 9-to-5 lifestyle of the past: slogging through a miserable commute every morning just to sit in a cubicle and toil away at menial tasks, working for somebody else’s dream. But what if there was a way to sit back and let your money work for you? Property investment, when done smartly, could be that vehicle to personal freedom and an escape from a rigid, stressful career.
Recently on the Get Invested podcast, I was lucky enough to chat with Property Investment Specialist Josh Masters, author of Why Property Why Now and a Buyer’s Agent at BuySide Buyers Agency in Sydney. As someone who has been investing in the Australian property market for nearly 20 years, Josh had a lot of wisdom to share about how property can be used to grow considerable wealth over time.
Examine long-term trends
Property prices can be fickle, dipping and rising within the short-term. It’s important to look at how an area you are considering investing in has fared over longer timelines: 5, 10, even 20 years. By taking a long-term view you see a more reliable indication of where local property prices are likely to go. This approach can also be a good guide for the best time to invest in an area by taking advantage of short-term ups and downs to maximise your investment potential.
Look at the neighbourhood
Has there been population growth in that area? New infrastructure coming in? Gentrification? How long have properties in the vicinity been on the market? All these things will affect where property prices are headed. The better you understand the area your potential investment property is in, the more informed your choice to invest will be.
A buyer’s agent is someone who works with the buyer to find them the best deals. The fees you pay upfront will likely be paid back tenfold over time, as these experts have the experience, know-how and analytics that you, as a layman, simply won’t have. Smart investors seek the assistance of a buyer’s agent along with other experts that can help them build their investment portfolio such as a property investment advisor, an investment savvy finance broker, a residential project manager or a local property manager.
Get out there!
Too many people get what’s called “analysis paralysis”, where they are so overwhelmed with facts and figures that they end up doing nothing. Rather than making an informed decision and purchasing a good property, they sit around waiting for the perfect property, which will likely never come. Instead, set a timeline for yourself of three months. Do your research, talk to experts, but don’t get stuck.
Property investment is about using time instead of labour. Rather than working hard, it’s better to put your money in sound investments and let them compound organically. If all goes to plan, maybe you can finally purchase your dream home on the beach and never step foot in an office again.
Listen to my entire conversation with Josh here.