6 Lessons I learned ….

July 30th, 2021 by igniite

6 Lessons I learned ….

Owning property was a secret desire of mine, particularly when I separated and lost our family home. I thought I would NEVER be a property owner. Well I am! This is what I have learnt…

6 Lessons I learned by buying two properties in 12 months at over 40 years of age and female.

1/ Get a mentor. Find someone who knows the game, who has made many purchases and knows the market. Someone with passion and who you can trust! I think it is also important that they are aware of and respect your financial situation.

2/ Go to a broker first to work out a purchasing budget. Knowledge gives you power and confidence. My mentor referred me to an amazing broker and together, they got me over the line. Twice!

3/ Don’t limit the buying location to your own state. I am a “rentvestor”. I can’t afford to buy in the state/suburb I live, so I purchased interstate. The properties are not as expensive but the rental return is still good.

4/ Property leverages money from the bank to give you more capital gain in the future. Eg. Using 10% of your own money and 90% of bank money, the capital gain is on the whole 100%.

5/ Don’t stop looking! I was so thrilled when I bought my first property. I was actually satisfied with just one as I didn’t think my earning capacity would allow further borrowing. Then, property 1 had some growth, so all of a sudden I had some leverage. I found there were cheaper, smaller properties for sale that still had a good rental return. So – property 1 was positively geared and property 2 was negatively geared by a smaller margin – I could afford this! So long as the bank could finance the purchase, these two properties were going to be (basically) taking care of themselves in the background, while not having a major affect on my day to day life.

6/ You are worth it!