Right now, it seems that everywhere you look, someone new pops up claiming to be a property expert. So why me?
Firstly, I’ve personally been investing in property in different states around Australia for over 20 years. I’ve bought property successfully in times when interest rates are falling and…
I have bought property that grew in value when interest rates rose.
And that is really important right now because for the first time in over a decade, Australia has just started a cycle of rising interest rates.
That means that some areas around Australia will struggle to grow
While others will prosper
So you can’t just do what others have done for the last 10 years and expect to succeed.
You’ll need to do things differently.
You need to look at different data points
And make investing decisions based off data, not emotion (or the latest headlines)
Here’s how I know…
I first started investing back in 2002.
At the time, the property markets looked exactly like they do right now (in 2022).
Property prices had risen significantly and people were in one of two camps.
In one camp, you had the people who said “Property prices were too expensive. The average person cannot afford them and prices had to crash”
In the other camp, you had people who said the property prices never crash and that prices always go up.
Regardless of that, the other problem I had was people kept telling me that I had to choose between positive cash flow and capital growth. I kept being told that I had to either focus on positive cash flow but then sacrifice capital growth. Or I had to focus on growth but be negatively cash flowed.
But I wanted both positive cash flow AND capital growth.
After all, why would I buy an investment property and then have to sacrifice my own lifestyle and budget?
So I decided to start investigating where (and how) you could get both positive cash flow AND capital growth on the same property.
At the time, my friends and family laughed at what I was doing. They thought it was a big joke. They said that you had to choose between positive cashflow and capital growth. You couldn't get both!
They said, I was a dreamer and that I had no common sense. In fact, one guy said I was a nerd, I was going to invest in dud property and he actually felt sorry for me.
Oh yeah? Well, I didn’t listen. I figured that people who didn’t have large property portfolios were not the right people to listen to, no matter how long I’d known them. So, I did my research and, despite living in Sydney, decided to buy all the way over in Western Australia.
This only made my critics ridicule me even more. They said that if you couldn’t afford Sydney, you bought in Melbourne. They were the only 2 areas that grew in value.
Yet 18 months later, they were stunned to see that I doubled my money, while ALSO getting positive cash flow along the way.
I was too.
I couldn’t believe how well my little experiment had worked.
Now of course, not all of my investments after that were quite that successful. But every time, I made a mistake or when something didn’t go to plan, I learned from that.
And I have now spent the last 20 years fine tuning my little experiment into a fully fledged formula that has not only helped me create peace of mind around my financial future