If you want to achieve property investment success, one of the biggest mistakes you can make is to wait.
Apparently lack of funds or age is no excuse, either. Akira Ellis is a perfect example. This inspirational 13 year old boy purchased his first property, without a job (but with a little help from his parents) and is considered one of the youngest property investors in Australia. Eddie Dilleen was just 19 when he bought his first property, he was earning $500 a week at McDonalds and had only $20,000 saved for a deposit.
There are many ways to invest in property and you probably don’t even realise you can afford to get in now. What is the cost of waiting until you’re sure?
Let’s compare the cases of Anna and Liam who each decide to invest in property. Both of them want to find the best investment property.
Anna does some research, identifies a group that she is comfortable working with and decides to make a start today. She buys a property worth $500,000 that averages 4% growth and 3% income over the next 20 years. By 2036 her property is worth over $1 million.
Liam refuses to take any investment property advice.
To add to the problem, he continues to second-guess himself and doesn’t find the confidence to invest in the market for another 5 years. He finally buys a property for $500,000 – which also grows by 4% and produces income of 3% on average until 2036. By that time he has a property that is worth just over $800,000.
The gap between Anna and Liam’s property value widens as the market growth increases. Assume that the properties increase by an average of 6% per annum over the same period. By 2036 Anna has a property worth over $1.6m. At the same growth rate, Liam has a property worth just over $1 million. That is an enormous $500,000 dollars difference or $100,000 for every year that Liam waited.
If Anna and Liam were to purchase another property every 10 years and, for the sake of this exercise, the properties cost the same amount and produced the same growth and income, by 2036 Anna has accumulated property worth around $3 million. Liam would have accumulated property worth around $1.5 million.
If you’re feeling stuck and wondering how to invest in property, don’t be afraid to seek investment property advice. You can always start here for some red-hot tips.
Even if you think you know how to invest in property, a second opinion is only going to further inform your decision. It might even give you a different perspective.
Good advice is available and it’s there to benefit you. You don’t need much to make a big difference to your wealth and every minute you wait is less money in your pocket. If you’re thinking about investing and want to seek investment property advice, speak to the dedicated experts at EDA Property today.
Call Anissa and the team at EDA Property on 0459 446 832 or contact us via our contact page by clicking here