Property Myths Busted
A lot gets said in the media about what Nathan and the team get up to here at Binvested.
Some of it is accurate, other parts not so much. So we thought we would use this article to bust some Binvested property myths.
Myth 1: We guarantee you instant equity
What is true is that Binvested will usually get you great value, by sourcing good properties for below market price, with plenty of potential upside.
What isn’t true is that this translates into instant equity on the property you buy.
Value is how much a property is worth in total. Equity is how much of that value you own as a borrower.
Say you bought a property worth $500,000 with a $100,000 deposit and over the next couple of years you paid off $50,000, you would own $150,000 of the equity.
If in that time the property’s value increases by $50,000, then that’s another $50,000 in equity you can call your own.
However, remember that not all banks value properties the same way and not all have the same policies around equity. You may have to wait longer to access and withdraw equity with some lenders than others.
Myth 2: One deposit equals multiple properties for Binvested customers
It is no secret that Nathan was able to build his own significant portfolio by paying a deposit on one purchase, then accessing equity from that property to use as a deposit on his next, and so on.
This was because he was able to source properties for below value, often make a minor tweak and instantly add the value he needed.
But the market was a different beast back then and a lesser known fact about Nathan is that he was a saving machine at the time., often working two jobs and putting every cent into property.
To build a big portfolio in a market like we have today, being careful with money and saving everything you can is what will help the most.
Myth 3: You’ll go from zero to 20 properties in a year
Tighter lending restrictions in recent years, especially for investors, have made it almost impossible to leverage yourself into property so rapidly and to such an extent.
Our clients are still finding a way to buy multiple properties within a short time, but usually with close consultation with one of our finance strategists that can help you build a debt structure that will allow you to keep moving forward and adding further purchases.
Myth 4: Buyer’s agents are only worth it if their fee is less than the discount they source
Good buyer’s agents provide services that are not only measurable by dollars saved.
They bring a wealth of expertise, knowledge, experience and skills, which would take decades to develop yourself.
They offer access to properties not yet listed on the market and buyers can rest assured that they have purchased a property that’s in line with their goals, for less money and stress than if they had searched for, found and negotiated the deal without help.
Myth 5: Nathan Birch is Binvested
Nathan may be the face of the team, but it’s far from a one-man operation. Binvested is a team of experts, plus a community of investors.
Binvested now encompasses a family of aligned companies specialising in lending, legal, financial planning, accounting and property management.
The experts in the team are on their own property journeys so can relate to what you’re going through.
Myth 6: Binvested buys ex-housing commission properties or run-down regional units
Binvested buys a range of property types- houses, semis and units- both new and old.
If we go regional, we only target towns with the right economic attributes, such as diversity in employment and adequate population.
You may think the only way to buy below value is to buy dodgy properties but we are actually able to do it through a wide network of contacts and selling agents that Nathan spent many years painstakingly building.
His vast experience has also seen him become an expert negotiator. Agents know he is genuine and ready to make a no hassle deal.
Myth 7: Binvested are like other off-the-plan sellers
You may have heard of shonky operators selling off-the-plan property deals at inflated prices in return for equally inflated commissions directly from the developers.
We are NOT one of those companies.
We only source brand new properties nearing completion when they are heavily discounted below retail value.
We occasionally buy land or real estate in bulk for our clients, using group power to buy under market value at a wholesale price.
We don’t earn commissions on these deals.
Myth 8: Binvested makes property investment risk free
No matter how cautious and savvy you are, there is no such thing as a risk free investment.
Binvested seeks to help people invest while building a wealth protection strategy in the form of education and expertise.
This involves working together on developing strategies in line with clients’ goals, financial positions and risk appetites; then protecting those with exit strategies, contingency plans and appropriate insurance cover.
FACT: We get incredible results for our clients, by helping them build high performing portfolios that build wealth and let them live life on their own terms.
And that’s no myth!
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