When Nuttakit started working with our mentors, he believed that buying a ‘blue chip’ property was the only way to go.
He was looking for a $400,000 property in the inner suburbs of a major capital city.
However, Nuttakit realised that if he did this, he would be unable to buy another property for many years.
In fact, his position was such that he wasn’t able to finance the property!
Whilst most people would have been disappointed, Nuttakit wasn’t disheartened.
Instead he did something very different. This is what he had to say:
“I earn a moderate income. I only pay rent on my unit of about $135 per week and I live by myself so I have heaps of money left over.
Previously I spent my money on too many holidays, too many surfboards and unnecessary expenses!”
After joining Real Wealth Australia’s education program, Nuttakit realised that he was spending a lot of his money on eating out, entertainment and travelling – way more than he felt was necessary, and so he decided to curb his expenses.
“And I didn’t feel like I was deprived of my holidays or even my happiness because I feel very happy to see my money going in the right direction!
I’ve been in the program since September 2014 and I have bought a cash flow property which puts $130 per week into my pocket!”
Also, because Nuttakit is following his personal investment strategy, he will be using the cashflow from his first property towards the purchase of his next investment property!
Soon after the purchase of this first investment property when he had his borrowing power reassessed, he found out it had more than doubled!
I want you to do a bit of research. Find out the meaning of the following property investing terms:
- Cashflow Positive
- Negatively Geared
- Neutrally Geared
- Positively Geared
- Off The Plan
Hint: these are ways in which you can gain leverage in property investing!
Give this a go, and I’ll share some more information with you shortly.
To Your Success,
P.S. – In my next e-mail, I’ll share with you how you can actually afford your next investment property – make sure you don’t miss it!