Author: JamieMcIntyre

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Jamie McIntyre is the founder of the 21st Century

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Are we at the Start of a New Property Boom? By JamieMcIntyre

  in Finances | Published 2013-08-22 04:55:50 | 332 Reads | Unrated

Summary

Original article by Jamie McIntyre published in 21st Century News Jamie McIntyre who has built million dollar property portfolio’s for himself and his clients, shares his views on the Australian Property Market: I am often asked about my views on the Australian Property Market and I am happy to share my belief that within the next 3-4 years we will witness another property boom

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Original article by Jamie McIntyre published in 21st Century News.



Jamie McIntyre who has built million dollar property portfolio’s for himself and his clients, shares his views on the Australian Property Market:



I am often asked about my views on the Australian Property Market and I am happy to share my belief that within the next 3-4 years we will witness another property boom.



Investors who wish to do well financially with property investing should do their best to ideally buy at least two properties as
soon as possible in order to prevent missing out on this boom and having to wait perhaps another decade to witness such growth again.



Generally the best strategy with real estate is to buy and never sell. Over a 10-20 year period you will do well. Even if you purchase properties in the worst areas, more often than not you will still make money. However, if you buy quality property, in quality areas at a good price, then over 20 years you can become extremely wealthy.



Let’s use an example of you purchasing just two properties



For instance, if the properties are worth $400,000 each today ( below the average price for most Australian houses), in ten years these properties if bought well should be worth double.



Therefore, now you have $800,000 properties purchased which ten years later would be worth $1.6 million total and you would end up making $800,000 in capital growth plus received tax benefits and rents that also tend to double every 7-9 years. Therefore in 7-9 years these properties will be cashflow positive and the debt will have reduced boosting your equity from $800,000 above $1million .



The reality is that after ten years you basically are a self-made millionaire with $1 million plus in equity.



Let’s do another ten years to the 20 year mark:



In 20 years, these two properties will approximately be worth $3.2million and no doubt largely paid off by increasing rents. That’s a nice retirement plan you have created simply because you got educated and took action with just two properties 20 years ago.



Critics might suggest that property doesn’t always double every ten years and they maybe right, as often it can double every 7 years or less .If that were to occur during this period you would have approximately over $6 million in property value.



However, let’s say things don’t go as well as planned and it takes 15 years to double because that is a possibility in an extremely poor property market and perhaps if you choose a poor property.



In that case, after 20 years your two properties are worth approximately $2.2 million.



Is this better than the pension plan ?



Or a managed fund your Financial Planner, (who probably has never invested before) has pitched to you?



Or your struggling superannuation fund making your financial planner rich with the fees?



Property is by far the most superior asset class and almost every self-made millionaire in this country would agree with this. I have only ever touched shares to write calls over them (which I termed share renting) to supplement the cashflow from my property portfolio and speed up the above plan. However, property and business has always been the cornerstone of my wealth.



It is best not to try and get rich from shares alone as it will never compete with real estate.



Here is the plan with property for those who want to become seriously wealthy in the next 10 to 20 years.



You don’t have to stop at two properties though. There is a ‘buy ten properties in ten years’ plan and by using that you’re growing equity in your initial properties and can use it as a deposit on a new property to continue buying 2-10 properties over the next decade.



In 20 years you can possibly have $10-$15million in equity plus.



If that sounds too daunting or too good to be true, then you should focus on getting your first couple of investment properties. Normally the first steps are the hardest, so educate yourself and take action.



Remember you don’t need a financial planner, you simply need a financial education.



Acquiring finance or just knowing what you can or can’t afford is usually what holds many back.



Your first step should be to complete a financial fact finder in order to access some free qualified help.



However, you should avoid making obvious errors. For instance, don’t buy high rise apartments in Docklands, Melbourne or Gold Coast as they are the worst property investments.



Generally it is best not to touch large, high rise apartments as you have hundreds of competitors on your step and if one sells cheaply it devalues all the others. Moreover, Body Corp rates often are atrocious and a waste of money.



The other venture I have been investing in for last 3 years is US Property.



Why?



It is ridiculously cheap and rising in value. Also, you can access rentals of 15-20% in some places and in some cases as much as 46% p.a. in rental returns.



That is $46,000 for every $100,000 invested or $460,000 p.a. for every $1 million invested.



Don’t bother asking your financial planner about accessing these kinds of investments as they wouldn’t be have the knowledge as they aren’t generally investors.



Some would also question if such an investment is risky.



Every investment carries risk yet if you are educated and learn off others who are already doing it you can lower that risk. You just have to make an effort to learn.



So, will you be taking advantage of the next Australian Property boom coming along with the US housing recovery?



Your family and your country need you to become a smart investor and invest into your future.



It is good for you and good for our entire country.



Make it happen!



No excuses!!

Jamie McIntyre is the founder of the 21st Century Group of companies and CEO of 21st Century Education. He is also bestselling author, successful entrepreneur, investor, sought after success coach, internationally renowned speaker and world-leading educator. www.jamiemcintyre.com

Jamie McIntyre is the founder of the 21st Century Group of companies and CEO of 21st Century Education. He is also bestselling author, successful entrepreneur, investor, sought after success coach, internationally renowned speaker and world-leading educator. http://www.jamiemcintyre.com

21pbn

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About the Author

Jamie McIntyre is the founder of the 21st Century Group of companies and CEO of 21st Century Education. He is also bestselling author, successful entrepreneur, investor, sought after success coach, internationally renowned speaker and world-leading educator. www.jamiemcintyre.com