Why people have no idea how to invest in the Seven Hills area

There are a num­ber of reas­ons why people are not able to take advant­age of prop­erty invest­ments.  A few of these can be broken down to a couple of key areas which include:

 

  • don’t know where to start and what to buy
  • per­cep­tion of afford­ab­il­ity  and bar­ri­ers to entry
  • nervous about com­prom­ising their lifestyle

 

I would like to share my years of prop­erty invest­ing learning’s – and I star­ted young (in my early 20’s) – I know what not to do and what really works.

 

Here is a sneak peak of some areas covered in my upcom­ing book:

 

Life­style

A big part of people’s decision and why people don’t own more prop­erty is pre­dom­in­antly , the life­style we choose. Quite often we’re always look­ing and think­ing we would like another big trip, or what about a new car, upsiz­ing in house, or upgrad­ing neigh­bour­hood. And then there are rising expenses, edu­ca­tion and the list goes on – all these factors are mak­ing it harder to save.

How­ever we don’t neces­sar­ily need to give up on all these sac­ri­fices to fur­ther ourselves fin­an­cially, it just takes some dis­cip­line but also the know-how to invest suc­cess­fully.  To attempt prop­erty invest­ing wisely the key is to have a plan, and good advice.  Factor in the cur­rent life­style to ensure it is not com­prom­ised.  Then look to invest­ments which fit fin­an­cially, that have good cap­ital growth pro­spects, and then sit and reap the rewards.

 

Where to start & What to buy 

The 2 most com­monly asked ques­tions — Where does one start ? Most people tend to buy in a 5-10km radius of where they live or grew up. That is because it’s what they know and are com­fort­able with.  They fear the unknown of invest­ing in an area unknown to them – of course.

Depend­ing on where you live and the value of prop­er­ties, you may find dif­fi­culty in ever buy­ing  one prop­erty let alone mul­tiple prop­er­ties.  Then, an open mind when com­ing to invest­ing is a must. The reason why we pur­chase invest­ment prop­er­ties is (for a min­imum 5–10 year period as his­tor­ic­ally prop­er­ties tend to double every 10 years) our invest­ment and wealth grows.

The decision in where do I start let alone what and where do I buy is a daunt­ing one for most.  As a res­ult a lot of people will put in the too-hard bas­ket and delay the decision to jump into the mar­ket.  Have you ever heard this ? .…..” I wish I had of bought in that area earlier, the prices have just gone crazy now” I can see this hap­pen­ing in Blacktown.

A bad location for a seven hills investment property

Besides from con­sid­er­ing prop­er­ties out­side the com­fort zone the other task is actu­ally know­ing what is the right prop­erty to pur­chase in Seven Hills.  Is  it going to be off the plan;  or an estab­lished prop­erty;  or  some­thing that is cash flow pos­it­ive;  or is the prop­erty going to neg­at­ive pre tax depre­ci­ation?  And then the logist­ics kick in of how are we going to pur­chase it. This check­list is a usual tool that I use reg­u­larly to work through what the next invest­ment will be.  So, when look­ing at the decision mat­rix with all these

vari­able – then it is no won­der many people res­ist the urge to invest in property

Afford­ab­il­ity

Gen­er­ally, most people con­sider the lack of cash deposit to be a hurdle.  A lot of this really comes back to not know­ing where to start, what to buy and look­ing within a 5-10km radius of where you live or grew up. You don’t need $400-500k plus to get into the prop­erty mar­ket once again. By wait­ing and doing so you may be for­go­ing a sub­stan­tial amount of upside in the wider prop­erty mar­ket. There are abund­ant amount of prop­er­ties in all dif­fer­ent states that are attain­able and feas­ible from at least $100-150k upwards.

Now in some of these places or prop­er­ties you aren’t neces­sar­ily going to get massive cap­ital growth poten­tially but what you have to keep in mind is that the major­ity of these prop­er­ties would tend to be cash flow pos­it­ive.  So, the prop­erty will be pay­ing itself off over time. You can quite eas­ily build up a sig­ni­fic­ant cash pro­du­cing port­fo­lio within a space of years and later on down the track you can look at diver­si­fy­ing into the higher priced prop­er­ties if you wish to do so.

Just because you may not live or like the par­tic­u­lar area that you’re pur­chas­ing in doesn’t mean someone else doesn’t.

Here are a few examples of what is avail­able and pos­sible in the West­ern Sub­urbs area that we have helped secure for our prop­erty invest­ment cli­ents which included a 1 bed­room unit in Black­town off the plan that had a pur­chase price of $330,000 is now worth $340,000 and it has a rent of $400 per week.

If you were to bor­row 80% of the  value it would be roughly $56 per week cash flow pos­it­ive before depre­ci­ation so not a bad invest­ment and if you were able to bor­row the full amount then is slightly cash flow neg­at­ive before depre­ci­ation assum­ing 6% interest rate and is a gross rental yield of 6.3%.

 

Another prop­erty was a 2 bed­room unit in Par­ra­matta, happened to be dual key and had pur­chase price of $579,000 and rent of $720 per week

If you were to bor­row 80% of the  value it would be roughly $147 per week cash flow pos­it­ive before depre­ci­ation so a very good invest­ment and if you were able to bor­row the full amount then is still cash flow pos­it­ive before depre­ci­ation assum­ing 6% interest rate and is a gross rental yield of 6.43%.

 

There are a num­ber of other prop­er­ties in areas in the West­ern Sub­urbs in which I’m help­ing people invest in the range from $170,000 to $330,000 and receiv­ing rents from $240 to $400 per week and even up to $600 if can add a 1 bed­room granny flat which doesn’t need DA approval for as little as $55k.

In essence we have been able to find prop­er­ties and oppor­tun­it­ies where it would cost around $360,000 on the higher side and achieve $550–600 per week rent.

There are a num­ber of areas in the West that we are act­ively involved in and look­ing at and one of the sub­urbs included in our search is Seven Hills. At the moment there is a lot of activ­ity hap­pen­ing in Seven Hills with many prop­er­ties under offer or sold within weeks of being on mar­ket. Things I like about Seven Hills include prox­im­ity to trains and trans­port as well as land size and value for money. Try­ing to get a prop­erty in Seven Hills at the moment you will need to be quick.
Never buy on emo­tion – buy on the num­bers stack­ing up.

 

To con­clude — start low, work inside your afford­ab­il­ity range, get expert advice, and seek prop­er­ties which will provide future cap­ital growth and cash­flow to get you into your next property.

 

 

About 

The sole reason for Aus­sie Prop­erty Brokers and my object­ive now over the next 5–10 years is to help oth­ers cre­ate a life of fin­an­cial inde­pend­ence and hap­pi­ness through build­ing and grow­ing their own per­sonal prop­erty port­fo­lios through qual­ity driven invest­ment prop­erty pur­chases nationwide.

Hav­ing pur­chased over 20 prop­er­ties in 3 dif­fer­ent coun­tries includ­ing NZ, Aus­tralia & Japan I have the exper­i­ence and research to help many people, even with a low deposit, to get their start in prop­erty. Budgets can start as low as $100,000 for prop­erty purchases.

Aus­sie Prop­erty Brokers — Prop­erty Match­makers
info@aussiepropertybrokers.com.au
1300 457 248

seven hills real estate agent NSW
Cnr Federal Road Prospect Highway Seven Hills NSW 2147 Australia