Open plan living, 3 bathrooms, double garage, awesome entertaining areas!!!!!

How wonderful is it to look at the glossy pictures of a new property in a development estate? I must admit I too like to peruse through these glossy pics and see what all the fuss is about, but that is where I stop. Why do I stop? The answer is simple, I can’t do anything with a new property…….

What am I saying?

My success has been built on manufacturing growth through the post-acquisition stage of an investment property purchase. What can I do to the property to provide leverage, equity – which I can extract? When I look at a property I don’t necessarily look at what great features it currently has, I look at what great features and offering I can introduce, what can I inject? In truth I like to inject my properties with steroids….. Hit them hard and watch them grow! I inject minor improvements like paint, carpet, minor furnishings, an additional room, a sub-division, a dual occupancy… etc etc.

Purchasing a new property either off the plan or in a new estate limits what I can do with it, usually these properties are purchased above market value, minimal capital growth and provide neutral to negative rental yields….. Not really the best outcome (Yes they will grow in value over time, but I don’t want to extract equity from the property in 20 years…… I want to do it within 6 – 12 months).

REMEMBER….. What is your goal? Why are you investing? If it is to purchase one property then kick around in your back yard on your hammock and take a snooze and bask in your success then that’s fine, but remember you will not become financially independent from buying ONE investment property, the secret is strategically structure and acquire a portfolio of MULTIPLE investment properties that generate LONG TERM CAPITAL GROWTH accompanied by positive cash flow. By “Manufacturing growth” in a property we are enabling the extraction of equity through refinance with our bank. Put simply, if we improve the property and have it re-valued we are able to pull cash from the property (Leverage) and go again….. Buy another property, and another and another….. Then we build MOMENTUM!!!!! When I was at the peak of my property acquisition phase I was picking up a new property every 6 weeks….. I had momentum, my solicitor loved me, yes….. I was in his office almost every month…… but I was on a roll, generating momentum, PUMPED!

P.S. think back to a time in your life when things just seemed right, you were on top of the world, you were happy, felt successful… on top of the world. This was most likely because you were focused on a goal and you stopped at nothing to achieve the goal.  Remember how everything just flowed…… answers to your questions would just land in your lap, you felt extremely efficient…… this is because you have momentum! When you focus on a goal you build a network of success around you. This just feeds off positive energy and provide the most momentous results, this is how you generate momentum and smash your goals.

So back to the “New” property purchase, for a safe long term investment “Property”, not “Strategy” they are ok, but you can’t do much with them except wait for it to grow through the property cycle….. Depreciation is good, but you need to be losing that money in the first place in order to pull it back through tax reconciliation…..

I love looking at the ugly duckling and challenging myself, tasking myself with a goal to turn it into a swan with a supercharger…..

If you want to know more or would like to speak in person just drop me a comment on this blog or leave your details for me on the contacts section for the site.

Until next time, be EXUBERANT!