More and more people come to us with the big dream of buying their perfect home. They’ve seen the for-sale sign go up in their local area and thought to themselves, “I want that house!” – But good property investing doesn’t work that way – because in most cases, the suburb that you’re currently living in, has already seen a significant housing boom. Which I’m sure is why you want to live there in the first place. This means that the housing opportunities would most likely be negatively geared.
What does that mean?
Well a positively geared investment means that the incomings cover the outgoings. So in basic terms it means that your ‘weekly rental amount’ would cover all of the expenses involved in owning that investment property. So you’re not paying anything to contribute to that investment.
So why buy for less than $500k?
Because if building wealth through property is your prime agenda than everything you do needs to be about that single goal. It’s a conflicting strategy to say ‘I want to build property through wealth’ and then buy a 2 million dollar house (on an 80k salary) in Sydney. So we stick to the lower end of the market. We find you properties that are under 500k, positively geared and prime for rapid growth. This is a formula that we know works. I’ve used it to purchase every home in my portfolio and we use it with our clients who have less than 100k in combined savings and/or equity.