What to expect in 2021 and 2020 recap
Many people had a difficult, challenging 2020. But while times have been tough, it’s also important to remember that we can adapt, grow and navigate to the other side. There were positives to be found amid the carnage of 2020, so bear with us as we take a look.
When negative is positive
We’re in a world today where we’ve got interest rates of 0.1%, which is great for borrowers paying down debt. In 2021, we’re very likely to see interest rates go into the negatives and various new stimulus packages come out.
We’re likely to see the roll back of some APRA restrictions in around March. They tightened the market for investors a few years back, which caused a lot of pain for some. This lasted all the way up until 2020, at which time quantitative easing arrived. That easing helped a lot of people out there in the Binvested community do great things and improve their positions. Here are just a few examples.
Binvested community achievements
On average in 2020, our investors pulled out $32,760 equity per property. The average number of days after settlement that our investors waited to extract equity was 17 days. We had 19 investors go from zero properties to six or more in 2020. We had 26 investors reach 10 or more properties in their portfolio. We had 183 investors buy 3 properties. And we helped a total of 839 first time investors in 2020. Considering that we are in a depression, it’s been great to see people out there kicking arse.
Binvested Business achievements
Binvested has a large suite of businesses we have built; a law firm, accounting practice; financial planning; buyer’s agency; education business; finance and more.
On our finance team, 2020 saw us write more than $300 million in loans. We had $50 million worth of equity extracted for our investors. Our buyer’s agency purchased $400 million worth of assets this year on behalf of our investors. Our property management business has $1.9b worth of properties under management. We’ve collected over $50 million in rent on behalf of our investors this year.
Of the thousands of properties we have under management in Queensland, we currently have less than 10 properties available for lease. That’s a vacancy rate of less than half a per cent. In NSW, we have zero properties currently vacant, which is amazing.
As far as rents go, some areas took a hit in 2020, while some areas have increased significantly. For example, in the Gold Coast, Sunshine Coast and Brisbane markets, some properties have gone up between $30 and $80 a week in rent. If you had 10 properties that increased by $35 a week, that’s an extra $350 a week in income for you. So a lot of people have been able to increase their cashflow this year even though we’ve been through such a bad time. Couple that with interest rates going lower – you can now get a loan with interest under 2%, which is insane to imagine- and things aren’t looking as bad.
So what happens next?
In 2021 we may see even greater levels of insanity out there. If you thought 2020 was bad for you, be prepared because 2021 could be a hell of a lot worse. The world is a screwed up place and there’s a lot of bad things that happen out there, but your world doesn’t have to be that way. It’s all about how you carry yourself and the actions that you take.
So, it’s all about how you prepare, learn and make sure 2021 is a better year for you. A lot of people had a lot of pain in 2020, but a lot of people have also done very well for themselves. Some businesses that were originally hit pretty hard have remodeled, scaled, moved and repositioned themselves to go on and reach great new heights. That’s the opportunity that’s out there again in 2021.
Reach out to Binvested to find out how you can build a solid strategy to make the most of that opportunity.