Many people think investing in property is more challenging and more expensive than it actually is and are unnecessarily complicating the process, according to inSynergy founder, Richard Sheppard.
During his 20-plus years of providing property investment advice and mentorship, Richard says he often finds that people are surprised by how easy it is to invest in property.
“We all get so busy but if you just spent just a couple of hours a week getting set up with a good mentor, you can earn $1 to 3k per week, passively.”
That initial set up period first requires people understand property investment methodology, before they even consider what areas to buy in.
“We don’t advise anyone to invest until they have learnt how,” Richard says, adding that inSynergy’s five-hour, one-on-one education workshop is often a “lightbulb moment” for people.
“People are usually amazed by how affordable property is, once they realise that rent and tax benefits pay for pretty much everything.”
“Property investment doesn’t need to impact your cash flow. The right property will only cost around $30 per week.”
“Also when people understand how to use their equity to invest in property – that and how affordable it is are usually the two biggest surprises,” Richard says.
And once your property is established, the time investment is about one hour a month.
“It will be the most valuable hour you spend each month. The right property should grow in value by between $3k and $6k per month.”
The Right Property: Analysis Paralysis
Having understood property investment methodology, choosing the right property is next and this is where people often over-complicate things with “analysis paralysis”, according to Richard.
“When you get online or talk with friends or family, you are inundated with information. There are so many differing opinions.”
This often leads to people doing nothing because they are so bogged down with information.
“If they talk to a good advisor who can condense information into the most practical, useful and relevant info, that really simplifies things.”
“An advisor will understand the context of an area’s macro level research, how you blend that with micro level research and then mould that data to fit your unique financial situation and long-term strategy.”
If you do want to conduct your own research, Richard recommends using only independent, unbiased sources without agendas – see list below.
However he says that research should not replace professional advice, which starts with the education workshop.
“You can spend hundreds of hours reading and researching or have it all condensed into a five hour workshop.”
“You’re not deciding to invest, you’re just coming to find out what the options are. It is possibly the best use of five hours you will ever make.”
Richard’s Recommended Independent Research Sources:
Beware of analysis paralysis and combine your research with professional advice
|Your Investment Property Magazine|
|BIS Shrapnel – Oxford Economics|
|Residex (powered by RP Data)|
|QBE Housing Outlook (in partnership with BIS Shrapnel)|
Important Note and Warning: This information is general in nature and should not be considered personal tax advice. We highly recommend you discuss these concepts with your accountant, property investment adviser and investment finance mortgage broker jointly to ensure any considered concepts are suitable for your personal financial situation, as one effect of the concept may negatively impact another part of your plan.