Dear ,
If you’ve considered investing in property, one thought may have crossed your mind: “Can I afford it?”
Many people do ask this question, and it’s true; some of them can’t afford to invest in property.
People tend to ask this question because the lifestyle they lead and the way they spend is subconsciously wasteful.
People can tend to place items from their “luxuries” list into their “essentials” list. As a result, investing in property seems unaffordable.
The simple way around this is to ask yourself one question: How much money per week do you want your wealth creation strategy to cost you? If you are a new investor with no investment properties, then for example, you may want to spend no more than $50 per week.
This was the case with Jeremy, who was in his 50s when he began working with Real Wealth Australia.
He didn’t want to be heavily negatively geared as he was just starting out as a property investor. He needed to take action in order to generate wealth for his retirement.
With some mentoring from our team he devised a strategy to purchase three properties:
Overall, Jeremy was able to purchase a property portfolio worth $1.2 million, which only cost him $40 per week to sustain.
The property portfolio has since grown in capital value by around 10% per annum, meaning he earns more than $120,000 in capital growth per year – and it only costs him $2,080 annually to hold!
The best part is that he can replicate this strategy again and again if he chooses to.
The point I’m making here is that it isn’t luck or a magic formula that helps you to become a successful property investor.
It’s a personal strategy, and it’s also some lifestyle choices that need to be made.
If you want this bad enough, are you willing to do what it takes?
The good thing is, it’s not as hard as it sounds, because often these are just small lifestyle changes – so don’t freak out!
But you must be prepared to shift your thinking and your habits!
Activity
Knowing your borrowing position and what you can do to improve it will help you to plan and work out the type, number and profile of the properties you can afford to buy. To ascertain your borrowing power, you need to find out your:
and what you can do to improve all of the above.
If you need some more help, download a copy of our <link>FREE Budget Planner</link> to identify where your money is going. Then contact your bank or mortgage broker to ask them for an assessment of your borrowing position.
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 the story of how a man went from $50,000 in credit card debt to creating his own financial independence through a personalised property investment strategy