The 12 days of Christmas.
On the first day of Christmas, my true love sent to me…
While we have nothing against birds, pipers and milk-maids here at Binvested, we feel that the 12 days of Christmas could be put to better use … So we came up with our own version – the 12 days of Christmas (Property Edition).
Which is why we came up with 12 things to focus on during the festive season that will help you to streamline your financial position so you can build wealth in the new year.
(And then, once you have done this, you can purchase as many geese a-laying as you want.)
On the 1st day of Christmas – educate yourself about the GFD.
Did you hear the latest news? The Government is reportedly fast-tracking $3.8 million in infrastructure projects in order to boost the economy.
This comes after three interest rate cuts in the course of 5 months; the cash rate now standing at a record 0.75%.
These are just some of the signs Nathan Birch told us to watch out for when he first warned of a GFD in September 2016.
Those who have been following his predictions on BirchFEED saw these events as no surprise, yet the majority of the population wouldn’t have suspected that a recession, and then a depression, were about to occur.
Before you can start building wealth, you need to know what is going on in the global economy.
Luckily you can pick Nathan’s brains by tuning into BirchFEED or signing up for his mentoring program.
On the 2nd day of Christmas – assess whether you achieved this year’s goals.
Nathan says the festive season is a great time for reflecting on the year that has passed. If you haven’t achieved your goals during this time, ask yourself why?
Be honest and practical in order to figure out how you can improve things.
Having the right mindset can really go a long way. It can help you stay focused on taking action and using volition to get stuff done.
On the 3rd day of Christmas – plan your goals for 2020.
Once you have figured out whether this year was successful, it is time to set new goals for 2020.
Reverse engineering can be a useful strategy. Begin by asking yourself where you want to be in ten years’ time. Be specific about this. Do you want to be earning enough passive income in order to retire? How much would you need to retire on?
Once you have the finer details in place, it is simply a matter of working backwards to figure out how you will achieve this.
Assess the options you have available, and break down your goal into a to-do list. What can you do next year to bring you closer to achieving your end goal? Set tasks and set them in stone.
On the 4th day of Christmas – book a portfolio review with Nathan.
If you already have a few properties, and are unsure where you are heading, Nathan wants to help.
He has committed himself to looking at the portfolios of others who are trying to improve their financial situation. By assessing your position and goals, he may be able to suggest a few things you can change in order to take you to the next step of your journey and beyond.
If you have no assets to your name and want to get cracking, Nathan can also help you get started on your journey.
On the 5th day of Christmas – map out a purchasing strategy for 2020.
Once you know where you are heading, you can map out a strategy.
Nathan says, every property purchase should serve a purpose – which is why you should ask how each one you buy will help you achieve your end goal.
Depending on your goals and the options available to you, you may need to buy something with strong capital growth first. Or, you may need to purchase a property with a good cash flow to improve your serviceability. Either way, make sure you come up with a plan of attack that is in line with what you want to achieve.
On the 6th day of Christmas – see if you have equity available.
While you may not be able to take out a new loan at this time of the year, you might be able to access some equity just in time for Christmas.
It is important to have this lined up before you start house hunting, so you can take advantage of the Christmas bargains when they come up.
It’s good to have a trusted finance strategist on board who knows about building portfolios. They can help when it comes to equity, as well as choosing the best loans for your situation.
On the 7th day of Christmas – buy a property with PIA.
Just because it is Christmas, it doesn’t mean you will definitely get a bargain – unless you have an excellent negotiator on board.
Nathan has lined up so many properties under market value for his clients, you would think real estate agents would stop taking his calls. But, the reality is, he has a network of agents who are happy to offload properties for less than they are worth.
The other point to remember is that a lot of agents won’t take any calls over Christmas. Nathan, on the other hand, has lined up purchases for his clients on Christmas day while the clients were on holiday – a pretty nice Chrissie present, don’t you think?
On the 8th day of Christmas – revise your superannuation.
How many of us know anything about our super? When the government said that most of us could start choosing our own providers back in 2005, you would think we’d all become experts.
But, most people aren’t – which is kinda silly, since most of us will rely on it during retirement.
It’s a good idea to compare providers, but it’s also important to look at how your money is being invested. A lot of people lost their retirement savings during the GFC (global financial crisis) thanks to economic volatility.
It’s great to have an independent financial advisor on board who has operated throughout different economic cycles. They should be able to set up your super in line with your goals and your risk appetite.
On the 9th day of Christmas – Do a rental review.
When was the last time you looked at your rents? A good property manager should conduct regular reviews to make sure their landlords are getting the best bang for their buck.
Unfortunately, there aren’t many good property managers out there, says Nathan. He should know – he is landlord to more than 200 properties.
He started Blink so that investors could have their properties looked after by investors.
If your property manager is reluctant to increase your rent in line with market trends, it may be time to look for a new property manager.
On the 10th day of Christmas – get up to date with your bookkeeping.
Yes, we know – bookkeeping sucks.
Especially if you have a whole years’ worth to do in the lead up to tax time.
This is why you should get on top of it now – just do it.
If you really can’t handle it, consider using My Property Tracker so it doesn’t become such an issue in future.
On the 11th day of Christmas – check you are getting the best interest rates.
With rates dropping so much over the last half a year, you’d be crazy to keep paying 5% interest on your loans.
It is worth looking at the market to see if you can refinance to a cheaper rate. This could improve your cashflow and serviceability and may even help you with your next purchase.
Before you change lenders, make sure you have a clear idea of whether this new loan will help you achieve your goals. Fixing rates may actually prevent you from moving forward, so be sure to speak with a finance strategist first.
On the 12th day of Christmas – update your Will.
Sorry to dampen the festive spirit, but, one day you will die.
It’s an unavoidable fact, so it is better to face up to it sooner and make sure you have an updated Will before it is too late.
The last thing you would want is to leave your loved ones in a financial mess when you die. Also, if you have kids, you will rest easier knowing they will be looked after by the person of your choice, not that of the state.
Many experts warn against using DIY Will kits – especially if you have a lot of assets. Engaging a solicitor to draw up a Will is a small price to pay for peace of mind.
If you aren’t sure on what the next best step for you is then contact us via the link below.