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Why Invest In Property? | How to overcome paralysis of analysis?

Why Invest in Property?

Why invest in property? Because real estate via property investments continues to be reliable and proven to be a constant, remarkable stable investment choice in Australia.

While there’s some risk in any type of investment decision, here are a few facts…

Property value has increased on average 8% per year historically over the past 100 years. This period includes two World Wars, major conflicts in Vietnam, Afghanistan, Palestine, Iraq, recessions, global crises such as 9/11, SARS, emerging markets crisis, and even latest global financial crisis (GFC).

Why invest in property? Identify growth areas and targeting neighbouring suburbs which grow next. Discover suburbs producing 10-30% sales price growth.There are increasing rental demands and more coming needing people like you.

why invest in property
Why invest in property? Property investments are not just for the wealthy...

Why invest in property? There’s a current backlog of 200,000 residential properties needed, a number increasing by a further 30,000 homes per year.

It means there’s an undersupply of developed land and a shortage of funding for development
companies, there is a serious shortage of housing in Australia, no wonder many experts call it a
housing crisis.

Why invest in property? Through natural population increases and new arrivals to Australia, our population grows by about 400,000 per year. This alone demands an extra 133,000 homes a year, assuming an average of three people per household.

As a result of continuous demand, property prices and rentals rise steadily. Along with strong demand from renters and assistance from the government to assist supply, property investments
are the envy of the developed world.

The only real risk for new home buyers and property investors is in not knowing how to invest in property and trying to go it alone by making costly mistakes simply through a lack of research or knowledge.

Why invest in property? You need to use a proven step-by-step process to support you from initial financial analysis all the way through to selecting investment properties, finance and perhaps the property management.

Property Investments Now has over forty years of collective experience in the Australian property
market and access to the latest past history and future growth property investment information
from independent research companies, we can help you with free investment advice on property
investments.

How to Overcome Paralysis of Analysis?

New home buyers and property investors reading lots of books, attending real estate seminars and
meetings often feel paralysis of analysis.

There’s so much information available you don’t know what to pay attention to and its so overwhelming and contradictory you wonder how anyone ever figures it all out…

Every month, there’s another speaker with another opinion on the killer strategy for this and
that. You’re overwhelmed and you can’t seem to get out and actually do anything, right?

Adding to the problem, every successful investor defends their strategy as the only strategy.

Although they’re trying to be helpful, they often add to confusion experienced by new home buyers and property investors trying to make sense of it all.

What if new investors don’t start making offers in the first 2-3 months? The reality is they almost never get around to doing it at all.

Why invest in property? The fear of doing deals only fades with action, which means actually doing deals so no amount of theory or book-learning ever gives you the confidence you need.

Stop trying to learn everything and start focusing on what you need to do to make your first deals happen:

1) Some idea of what you want your real estate to do for you. Know this, and you’ll have a good idea of the exit strategy AND the type, condition, areas, and price range of properties you
should be looking at.

Want quick cash? You’ll need to wholesale properties. Looking at anything other than family junkers is a waste of time. Eliminate other properties and from your thinking and move on.

2) A working knowledge of how your one exit strategy works. Building on previous example, once you know wholesale deals are sold to cash buyers for 60%-70% of as-is value…

a) You know how to calculate an offer

b) You need to start finding buyers now

3) Two or three strategies for finding the types of properties you want. Whatever your chosen strategy, finding the good deals consume most of your time and energy.

Use 2-3 methods all at once for a few weeks. Discard those which fail and amplify those that work, but always use more than one-way at a time.

4) The ability to evaluate the properties you’re viewing. In the case of junkers, you’ll need to know how to find the after-repaired value and the cost of the repairs.

Don’t worry about figuring out what the property will rent for; it’s not important to your plan. If your plan is to buy and hold, you’ll need to learn how to calculate the return on investment (ROI).

5) You need a professional team and a contract which keeps you out of trouble. Why do you need to know how to do a title search when there are folks who do it for a living?

Sure, it might be good to know later, but it isn’t crucial for you to know right now. And if you have a well-written purchase contract which allows you to get out of a bad deal before it closes and an experienced mentor to help you through your first few deals, how can you lose?

Why invest in property? Because now instead of a million steps to learn, you have only five. Go one better, you’ve absolute most effective strategy for buying and selling property just get out there and do some deals.

Why invest in property? Would the positive cash flow be less than helpful?

Why Invest in Property?