As property prices continue to skyrocket around Australia, it’s hard if you are still saving to get into the property market.
Let me reassure you – there is never a “better” time to enter the property market provided you have the funds to do so and it is ALWAYS the toughest to acquire because of the buy in cost. Saving that initial huge deposit for a property can be daunting.
Lately, many who have been sitting on the sidelines watching property prices go north, have given up on the notion of owning a property.
Let me provide some perspective by sharing this case study of one of my clients who made a powerful decision to just buy a property.
Sarah had all the odds stacked against her when it comes to buying borrowing money and buying a property – she was 54 years old, single and was in an average paid job but was also hit by the gender pay gap so struggled to get her deposit saved.
In early 2018, property prices had escalated in Sydney and Sarah wanted to buy a house. She was pre approved for $450k and the only property she could afford to buy in Sydney was an unrenovated 2 bedroom apartment in a very low socio economic location in the outer western suburbs of Sydney.
In other words, her $450k was not going to buy her the house of her dreams and at that point she could easily have given up trying to buy a property but she didn’t.
As things turned out, Sarah became a Rentvestor – someone who rents where they would like to live but can’t afford to buy.
Instead they invest in properties around the country to set up an asset base.
Using a focused Strategy and then honing in on the Research resources which uses Ai and tracks trending data, we determined that the outer suburbs of Newcastle would be a growth location to buy a house.
We were able to secure a house well under market value, only 5 years old and it came with a tenant in place. The well negotiated property meant that on settlement it was cash flow positive and within 4 months, Sarah had negotiated another loan with her lender and was ready to purchase the second property with her $260k pre approved funds.
Again, the Research was undertaken and the second property purchase for $235k was in Ballarat, again negotiated well and cash flow positive. This property portfolio building exercise was working very well for Sarah, who initially didn’t think that she could afford to buy anything!
Just five months later, Sarah returned to her lender and managed to get another loan for $240k and her third property was purchased in a suburb in Adelaide. The Strategy for the overall portfolio was one of positive cash flow because Sarah is a single income earner and needed the comfort of not exposing herself to too much financial risk if she, say, lost her job.
Now, in 2022, her assets have all grown in value significantly and her gain on the three properties totals just over $600k in the past four years of ownership.
Given that Sarah didn’t think that she could even afford to buy an investment property and now has more than $600k of capital gain is extraordinary.
How did she achieve this?
- Sarah sought advice from a property portfolio builder who helped her achieve this amazing result.
- Sarah made the decision to push through the initial barriers of having insufficient funds to buy in the area she really wanted to live in.
- Instead she bought in places that gave her the cash flow and this Strategy helped her to keep borrowing more money.
- She will not join the cohort of women over the age of 55 retiring into poverty.
