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7 HORRIFIC MISTAKES - Most People Make When Buying An Investment Property - and The Secret Tools To Help You Crush It - Jul2019 - Dashdot
7 HORRIFIC MISTAKES - Most People Make When Buying An Investment Property - and The Secret Tools To Help You Crush It - Jul2019 - Dashdot
MISTAKES
MOST EO E MAKE
HE I A
I ESTME T
RO ERT
A T S T T
H C I
Dear Ambitious Investor,
Do you dream of breaking free from the shackles of the 9-5?
Do you desire more freedom?
Financial freedom... Time freedom… Freedom to travel and enjoy life with the family?
Investing in real estate can be life changing, and can help you
achieve all of this and more.
As a vehicle for change, Real Estate has the ability to take you from where you are
now, to where you want to be. In fact, more wealth has been created in Real Estate
than any other asset class..
You’re bombarded with constant media negativity, and there are so many dodgy agents
out there, it sometimes feels like you’re at war on a battlefield, just fighting to survive.
So, why is it then, that some people are able to scale the mountains of success, whilst
others are condemned to the valleys of despair?
Well… I’m sure you realise by now that there are many reasons.
In this report, we’re going to explore just seven of them.
Not too long ago, we started our real estate investment journey like most people- by
making a big mistake.
This proved to be a massive catalyst for change, which set us on a quest to master the
game of real estate.
We then set about creating a system that would allow us to pinpoint these properties
all over Australia.
This system allows us to avoid speculation, and target the right properties, in the
right locations, at the right time - every time.
As we looked around at our friends and family, it became apparent that they were -
just like us when we started - confused, nervous, and lacking the confidence to take
the successful next step in their property journey.
We realised that there must be so many more people who also needed help, to take
action, to achieve success, and to avoid failure.
You might even fear becoming wealthy, and how your friends and family will see you.
The issue that many beginners and even intermediate investors face though, is that
they spend too much time researching.
But first… Prepare a checklist of what to look for and remember to consider ALL of the
costs.
You lose out on potentially hundreds of thousands of dollars over your life.
You might end up working a job you hate right up to retirement and not have anything
to show for it.
If you were to turn away from purchasing a $400,000 house with the average national
growth rate over the last 25 years being 6.8%, you would lose out on $2,267 in
potential equity growth a month.
If you were to invest the equity into additional properties, with the right strategy, you
would very quickly start to see that fear of not taking action is far more scary.
For most people, fear comes from not having a plan, or not knowing what the next
step looks like.
If you would like to learn more about our 8 Repeatable Steps
to Start, Boost or Bolster any Property Portfolio, you can
TIP email us for a free copy of our guide.
resources@dashdot.com.au - Subject line:
"8 Steps Guide"
...If you don’t know where you are going, you will never get there.
You’ll be lost, stranded on an island of hopes and dreams, without ever making it to
the promised land.
Work backwards from there and start finding opportunities that will get you closer to
this goal.
Are you trying to replace your income?
Or build an asset base?
Both?
In what time frame?
The majority of investors don’t have a specific strategy when they invest.
They simply go with their gut or whatever opportunity comes their way.
This is also why 73% of investors only ever own 1 investment property.
Purchasing an off the plan luxury unit close to the city for $600,000 might sound like
a wise investment when flipping through the brochure..
When you dig a little deeper though, you might find that unit growth has been falling 2-
3% year on year and a majority of renters in the area are made up of families.
Set your intentions and create a plan to reach a number that satisfies
your goals. Be Very specific.
Having the right strategy is like adding rocket fuel to your investment journey.
If you are at a loss for strategy, we’re here to help.
Imagine buying a property which did exactly the same thing, but instead of a hunger
for planets and stars, it had an insatiable, ravenous appetite for the contents of your
bank account.
While this can be advantageous for tax reasons, it can seriously slow down your
ability to purchase additional properties..
If you bought a $500,000 property with a gross yield of 4%, you would bring in about
$385 in rent each week.
If your repayments, maintenance, taxes and utilities add up to $500 a week, you would
be out of pocket $115 just to hold onto the property.
This means less disposable income for you to save, spend and invest.
This means a lower household serviceable income
… and If you wanted to invest in a second or third property, this can start to add up.
If you have a single income from your job, there isn’t much room in the budget to continue
adding to your portfolio.
...Instead, focus on cash flow positive properties.
Positively geared properties put money in your pocket rather than the other way around.
They increase your serviceable income and allow you to build a self perpetuating portfolio.
These days, applying for a mortgage isn’t as simple as just heading to the bank and
signing a loan contract.
Despite recent APRA changes, lenders are holding themselves to much higher stands
since the Royal Commission into banking and this means you have a bit of preparation
ahead of you.
1 6
Prepare 3 months in advance Consolidate or organise your debts
2 7
Prepare a Budget Demonstrate Stability
3 8
Get your spending in order Prepare the paperwork
4 9
Check your credit score Speak to a professional
5 10
Rectify Any Credit Issues Compare the products
First, you must know EXACTLY what you’re about to be spending, and on what
Like most people, when it comes to the numbers, you probably glaze over.
And fair enough too.
It’s hard to digest, all of the search fees, title fees, conveyancer fees, LMI, P&I, IO, and
more… it’s enough to make your head spin.
You see, if you don’t fully understand all of the fees, charges, and
associated costs with a purchase, you might find yourself tens of
thousands of dollars short on settlement day… and that could be
catastrophic for your purchasing plans.
To make it even more confusing, the fees, charges, and processing costs vary from
state to state, sometimes by thousands of dollars.
Before you even start to negotiate, it is critical that you understand exactly what
you’re about to be spending.
So often, property investors just hear about the latest “hotspot” and get trigger
happy to jump in to the area.
The problem here is that the difference between the right street and the wrong street
can be as little as 20 meters and can cost you as much as 1.8% in growth!
DO YOUR HOMEWORK.
THIS COULD SAVE YOU LITERALLY HUNDREDS OF THOUSANDS OF
DOLLARS.
Take a national view at first. Look at government spending by state. Look at interstate
migration. Jobs growth. Understand the property cycle.
This is where you take a 10,000 ft view and observe where the general flow of people
and money is heading to.
It’s about looking at the overall economic trends, and how they apply in a big picture
sense.
What infrastructure projects are going in, when, for how long, how many jobs will
they create?
If you would like to learn more about how to find the right
asset, every time, that will accelerate your property portfolio,
you should definitely read our guides to High Performance
TIP Property, and 8 Repeatable Steps to Start, Boost or Bolster
any Property Portfolio.
resources@dashdot.com.au - Subject line:
“High Performance Property Guide” And “8 Steps Guide”
Purchasing an investment property on the assumption you can make a quick buck
and walk away with profits in just a few months is a dangerous game.
...There are always winners and losers in this game, and it is not worth the risk.
Buying a run down property for $450,000 with the dream of fixing it up and making a
six figure profit often catches a lot of investors off guard. They hear the market is
running hot and they jump in at the peak. Only to find costs and time blow out… the
market changes… and they are left holding a lemon.
All that hard work and all those expensive materials might end up netting you less
than minimum wage if you don’t know what you are doing…
Real wealth in real estate is made through understanding the market, and holding for
the long term.
Yes, adding value is an amazing component of being able to control your own
wealth, but if you have to sell the asset to unlock the value, you’ve got a
flawed plan.
Following a clear strategy and investing for long term
wealth, is the path to success.
If you’re serious about becoming the master of your own lifestyle design, then you
must address these seven points. If not, then you’re probably already asleep at the
wheel, careening toward the precipice of an insignificant life and wasted opportunity.
However, there is hope.
For example, when you work with us, we aim to get you up to 15% equity increase
from your property purchase price in the first 12 months.
Thats right. 15% growth.
In fact, if you park that against your deposit and acquisition costs, we’re aiming to get
you approximately 100% ROI in year one.
Yes. You read that right. Year one.
BULLSHIT. HOW.
Well, we run a full-service, investor focussed buyers agency called Dashdot.
As we mentioned earlier, we have made it our mission to help everyday Australians
achieve financial freedom and build generational wealth through real estate
investing.
For a limited time we are offering you a 90 Minute Strategy Session where we’ll
discuss your goals in life and property, and uncover the roadblocks that are stopping
you moving from where you are now, to where you want to be. Once uncovered, we’ll
draw up your custom High Performance Portfolio Builder Blueprint.
Claim your no-obligation 90 minute strategy session now and get your
$1000 custom High Performance Portfolio Builder Blueprint. FREE!
PLEASE NOTE: You will be speaking with one of our highly experienced Property
Strategists. Due to the value of this offer, we only accept a certain number of calls per
month, and acceptance is by application only.
Using our advanced research and selection processes, we have built a system
designed to help any investor find success, every time.
In fact, we’re so confident of this that we’ve introduced our ironclad, industry
changing guarantee that will ensure you succeed, every time.