B Invested

Why Aren’t You A Property Investor?

Real estate has fuelled the dreams and fortunes of some of Australia’s best known billionaires and high net worth individuals. Just look at famed developer and Meriton boss Harry Triguboff, who was Australia’s richest in 2016. He had a series of failed business ventures before he began buying and developing land in Sydney.

The incremental profits he made from each project enabled him to fund bigger projects. Now, his company has built more than 55,000 residential townhouses and apartments and his wealth is estimated at more than $14 billion. Not bad for someone who came to Australia as a poor immigrant.

Our Best Investment

Triguboff is just one of Australia’s many real estate rags to riches stories. In fact, if you look around at today’s house values in various capital cities, you can’t deny that more millionaires have been created from the real estate market in this country than from any other venture. Values have increased enough in family homes alone to create intergenerational wealth in our bigger markets, while savvy investors all over the country who began with nothing, but scrounged their first deposit, made sacrifices and invested wisely, are now living life on their own terms.

Practice what you preach

You may not be a budding billionaire developer, but you can still follow the path of incremental purchases, using equity achieved from value growth to keep moving on towards bigger and better things.

The most obvious case study for property investors to relate to is our b Invested founder Nathan Birch. He began his investment journey as soon as he turned 18, while working two jobs and buying houses in the more affordable markets of Western Sydney.

Buying below market value and carrying out superficial renovations to add value, he was able to repeatedly create enough equity to fund the purchases of his following investment properties. All the while, these properties were positively geared, creating extra cashflow on top of loan repayments and holding costs.

And the result?

Fast forward to today and Nathan’s current portfolio is proof of the power of property. He now holds more than 220 properties worth $75 million worth and has a net worth of $55 million after expenses.

He is in a position to sit back and watch the values of his properties increase further, along with his rental income. But he continues to work helping source properties for clients. He has now helped more than 1700 investors become ‘one per centers’ by building portfolios with more than six properties.

The Australian dream

So many Australians dream about investing in property, but many struggle to go ahead and take the plunge.  They always have a reason that stops them. Maybe they are risk averse and think the market will crash, or they’re waiting for it to settle down, or they lack confidence, or their relative had a bad experience with tenants, or they just want to wait and save a bit more cash first…the list goes on and on.

They still want to create a great lifestyle for their families in the future, but don’t want to make sacrifices to their lifestyle in the present and take the necessary steps to get on the ladder.

So, what are you waiting for?

Time is your friend when it comes to property investing. It’s always the right time to buy property somewhere in Australia. By not making a start, you are choosing to miss out. The current low interest rates make now as good a time as any to begin a property investment journey. Growth is anticipated all over the country this year and next. And rents will continue to rise with inflation over the years and decades to come.

The ship has never sailed, you can get on it wherever you like. But the longer you wait, the less wealth you will create and the more time you will spend living life on someone else’s terms.

If you need help getting started, reach out to b Invested.