I have been bullish on property as an investment strategy for as long as I can remember. Most average Australians believe they need to win the Lotto and pocket approximately $2 million for retirement.
This is based on the premise that with $2 million sitting in the bank coupled with a 5 per cent per annum ($100,000) interest, will provide a decent retirement income.
However, by becoming financially educated and taking action with effective strategies, such as investing correctly and safely into the property market, can generate an even superior income and returns.
One of the secrets many successful investors share is their ability to think outside the box. Successful investors also have the ability to run their investments as a real business and not just a hobby.
I first started acquiring properties in the 1990’s after my millionaire mentor taught me a simple plan.
That plan initially involved buying just two investment properties to hold forever. He said that if the investments were done strategically, then within ten years I could effectively afford to retire as a self-made millionaire.
Furthermore, he reasoned that if I was ambitious and strategic with my investments I could realistically acquire as many as ten properties within a decade. These assets could easily help me grow my net worth to $10 million within 20 years.
At the time I was skeptical about the latter. However, I let my faith drive me and started by acquiring one property at a time. Two decades and 20 properties later, I have not only achieved but surpassed the set target by a huge margin.
My motive is not to impress you, rather impress upon you the viability of this plan. Although my plan was initially limited to buying two investment properties in order to secure my retirement, I was able to adapt it in accordance with my mentor’s advice. This allowed me to achieve tremendous financial success. It not only served me well back then, but continues to do so even today.
If acquiring ten properties in a decade seems far-fetched at this point in time, you could start small. Even if you were to acquire two investment properties over the next few years, you will be well on your way to becoming a millionaire.
Consequently, it could secure a comfortable retirement for you.
Has this strategy been implemented before?
Yes, many times!
However, bear in mind that if such an investment seems implausible at this point, simply focus on acquiring one property as soon as possible following a second purchase within 2-3 years.
If accumulating enough finance to buy a property at this time is difficult for you, it is highly recommended that you consult with a property expert for a coaching session and ask for a finance review, which will help guide you towards your goals.
In many cases you can acquire property with just a 5 per cent deposit and in some cases, even with zero deposit.
Any future property investments following the first can be used as your equity towards the deposits. Therefore you may only need a deposit for your first property investment.
However, if you already own a house then you may have equity in it that can be used as a deposit.
Akin to any business, at the commencement of the property purchasing cycle one is likely to find it tough. However, once some serious equity has been established, it gets a lot easier.
A strong advantage of being a property investor is that once you have established yourself as a serous property investor; real estate agents will seek you out with attractive offers as will brokers and other suppliers involved in the cycle.
Jamie McIntyre is the CEO/founder of 21st Century Education. For more information visit: www. jamiemcintyre.com.
Excerpted from an article originally published in issue 3 of Property Inc. magazine.