1. “You need money to make money and I don’t have a deposit”
The fact is you don’t need a lot of extra money to invest in Real Estate. If you have a property that is worth more than you owe and a job or profitable business the bank will allow you to “tap” into equity that can be used as a deposit on another property. It is also possible to purchase residential and commercial real estate with your superannuation fund. When you know how, organising a deposit and a loan for an investment property is a straight forward process.
2. “I’ve got a job, a spouse, kids and little time on my hands”
You can work for money or have money working for you, or better still, both at the same time. Turn of the television and you will have all the time you need. Load the kids in the car this weekend and start looking at open houses. Start speaking with experienced property investors who also have a job, spouse and children with very little spare time. You might just find a bargain as well as the inspiration you need and a helping hand or two to guide you through the property investment maze.
3. “Real Estate is risky”
History proves real estate is one of if not the safest and most reliable investment vehicles on the planet. Since the 1970s residential real estate in Australia has enjoyed returns of 6% per annum. Some would say that a term deposit pays the same return but if you take a property worth $400,000 that increases in value by 6% in one year that is the equivalent of saving $24,000. Assuming the out of pocket cost is $100 per week (negative gearing) it is still close to a fivefold return on your investment. This simple example demonstrates the potential power of using other people’s money to acquire assets in order to create wealth over the long term. Banks also view property as a relatively safe investment considering they are prepared to borrow up to 95% of its value.
4. “There’s too much competition”
Success in life comes from doing things differently. If you look at what everyone else is doing and do the opposite you will most probably discover over the medium to long term you are wiser than you gave yourself credit for. Don’t follow the herd mentality. Buy when very few people are and if you have to sell, when everyone else is buying.
5. “I need more information before I start “We live in the information age. Read some of the many books available on the subject, do research on the internet, talk to other successful property investors. Begin to seek help and build a mastermind team to assist you to reach your goals. It’s true there are sharks out there but there are also many people who love to see others succeed. Your dreams and the life you desire is usually discovered just outside of your comfort zone. Are you willing to explore?
