The Skills You Need To Achieve Success In Property

There are a lot of different things you need to know to successfully invest in property while minimising your risk. Here are the skills you need to achieve success in property investing.

1: Budgeting and Saving – 1:25

2: Cash Flow Management – 2:24

3: Goal Setting – 3:26

4: Strategy – 5:15

5: Area Research – 6:24

6: Property Research – 9:20

7: Negotiation – 10:00

8: Settlement Process

9: Property Management – 10:48

10: Opportunity Analysis – 11:13

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Transcription:

when it comes to investing in property there’s a lot of different things that you need to know in order to be able to do it successfully and to minimize your risks and increase your chances of return investing in property can be really hard if you don’t know what you’re doing it can seem really overwhelming but if you know what you’re doing in all of these areas it’s actually pretty straightforward so there’s a lot of different things that you need to be skilled at and you need to be capable in to successfully invest in property and in this episode I want to talk about what those things are so you can kind of look at this and say okay what areas do I need to improve in what areas do I need to work on and we can take away some of the overwhelm we can take away the idea of property just being this elusive goal this really big thing that I have no idea how to do that and we can break it down into the different things you need to know and be able to do and then you work on them one at a time and slowly build up your skills and eventually get to the point where property just makes sense it’s actually pretty easy to do it’s not that complicated at all but this does take time and it will take time to build these skills so let’s get into this list of the things you need to know to invest in property successfully now this is obviously going to be you know a shorter list than probably there’s probably more things that I’m missing here but this will give you a good starting point so the first thing is budgeting and saving so this is before you even looking at investing in property you’re going to need to save a deposit and you’re going to need to be good at budgeting within your own life and save you money within your own life in order to save a deposit so you can have that deposit and be able to borrow money to buy property without that deposit it’s very difficult to buy property unless you go in with someone else or maybe here parents a guarantor you or something like that but yeah budgeting and saving is actually a very difficult skill and something that you need to work on and get better at so that you can save that deposit so that’s going to be the first thing that has always been hard for me my my solution to that has always just been to make more money but as of probably two years ago I started get way more diligent with this and seen a huge improvement in my budgeting and saving in debt reduction and stuff like that so budgeting and saving is a skill that you’re going to need to get good at cash flow management as well it’s something that you’ll need down the line when it comes to owning your property and running your property so you can apply this in your own life cash flow management is kind of looking at what are the upcoming income and expenses and how is that money going to flow because sometimes property might make money throughout the year but you have times where you have a really big expense and so you’re going into the negative so you need to kind of prepare for those moments and so you can do that in your own life and start practicing it in your own life looking at okay when is my Reggio jus for my car when’s that coming up what am i debt repayments or credit card repayments when do I have to pay rent or my mortgage and all of this sort of stuff I’ve actually mapped out my entire year and all the major expenses that come with that and all the major income that I have as well and so I can see my year and what it looks like as well as how much money I need to make and how much money in to make from my business and what I need to do so cash flow management as well next one would be goal-setting and this is something that I guess we talk about a little bit here but people don’t think about I just think of it invest in property and make money no it all actually starts with your goal and starts with what you want to achieve and so there’s goal-setting the next one we’ll talk about strategy but the strategy exists for you to meet your goal and so all the property investing basically comes down to what your goal is and so different people have different goals and what they want to achieve as well as what kind of lifestyle they want so I’m actually here at my dad’s at the moment but next door to Dad’s if we walk out here there’s this giant monstrosity of a development there but talking about your goals and the guy who built that basically put you know a few years of his life into that place was here every single day lost a lot of weight as well probably made a lot of money I think the pen house on that one sold for a six million or something like that so probably made a decent amount of money but he put so much of his time and effort into that place that’s like that’s something that I wouldn’t want to do when it comes to investing in property and so like your strategy will need to line up with your goals so for me my goal is to achieve financial freedom which is kind of six figures of passive income but along with that goal is also kind of lifestyle and what kind of lifestyle I want and being in a development site you know seven days a week is not really part of that goal of what I want so that’s goal-setting is really important understanding what you want and what sort of lifestyle you want and what financially you need in order to achieve that so that is a skill as well and something that you need to practice and then it comes down to strategy and okay what kind of actions do you need to take in order to achieve that goal so strategy is looking at maybe you invest in positive cash flow properties or maybe you do the two properties to financial freedom strategy where you invest in properties and then build granny flats on the back so you’ve got those two incomes coming in and you’ve got that positive cash flow but you’re also in a growth area and then you’re just going to pay down the debt over time and then achieve your financial freedom that way there’s so many different ways to achieve the same goal in property that strategy really comes down to okay what kind of suits you as an investor what makes sense to you what are you passionate about what kind of work you put in that development that development site we looked at that’s one particular strategy to achieve the goal of financial freedom it’s a very active strategy and something that I’m not really interested in where as buying high-quality properties in good areas that are going to rent for long term that I can build a granny flat on that’s pretty simple it’s like a bit active but not heaps and something that I could achieve and just build on over time so strategies next and then it kind of starts to come down to the nitty-gritty so area research and suburb research is a big one so taking all of Australia being able to look at the market as a whole and how the market is going and then narrow it down to looking at specific states and specific cities and how they’re going like how it’s Brisbane performing different to Sydney and what are the cycles of Brisbane and how they different to Sydney and whereas Brisbane at in its cycle if you’re looking and investing there or where Sydney out and what a kind of some of the major factors that affect that so there’s that big area research part of it and then suburb research as well as to say okay let’s say Brisbane is my choice what are the different areas in Brisbane narrow it down to it’s different spots and then the suburbs within that spot how do they compare to each other so what is the pricing of this suburb what is their lure of this suburb what’s the rental yield of this suburb grow statistics behind that population growth future development all of that sort of stuff so I think that’s kind of the area that most people get really overwhelmed and don’t know what to do is how do I pick a suburb and so we’ll probably spend a lot of time this year talking about that sort of stuff because while it’s very overwhelming to begin with when you start doing it regularly and it’s really quite simple and one of the benefits as well is that when you start doing it regularly like let’s say you learn about the differences between Sydney and Brisbane and you look at the grow cycles of them and you look at the last 50 years of data of Brisbane once you learn that you’ve kind of learnt it and you know you just need to keep updating it each year as to how it’s going or each month if you want to be that granular with it but it’s like well I’ve learnt about you know brisbin’s history and I now know that and so you slowly build upon your knowledge in these sorts of areas so it starts off you know nothing and it’s all super overwhelming you then learn a bit and think you know everything you then learn a bit more and realize you actually know nothing and then slowly you start to build on it and have a decent idea of okay where is this market at where do I think it’s going for the future and then once you kind of get to that point you can narrow down to okay what are the suburbs in this area researching those suburbs where do I think these suburbs are going and then you start tracking that and then over time you really start to learn about that and compare suburbs to each other and you can start to see ones that look better than others or look like they have opportunities and so that part takes a lot of time and a lot of it’s not I guess it’s a very specialized skill because it’s not something a lot of people teach it’s not something a lot of people talk about and so you know maybe I’m realizing right now that this is something we need to spend more time on teaching you how to do because there’s something that’s actually really easy to do once you know how to do it but it’s very it’s something that’s very hard to learn so yeah area research is really important then it comes down to property research so knowing the areas within the areas and the streets within the areas and the different types of houses in the areas and what sort of houses people want to live in and what people are paying for rent and what people want from their properties and what are the good properties and what’s undervalued properties and kind of really understanding an area really being able to research properties as they come onto the market understand where they’re valued what opportunities are in those properties inspecting those properties as well that’s another skill and looking at that sort of stuff so I guess I’ve put that all under property research but there’s a lot there too and then it comes down to negotiation so this is when you’re really starting to look to buy a property how do you negotiate with the real estate agent and me and Ben did a great video on exactly how to negotiate and it’s a real simple step method so I’ll link up to that down below if you want to go ahead and check that out if you’re up to that sort of part so negotiations another skill then it comes down to let’s say you’ve negotiated its mortgages and conveyancing and building and pest inspections and settlement so that whole settlement process is a skill in and of itself and can be overwhelming but if you get a good team around you they can really advise you on how things are going to go and what you can expect and it’s really not that hard to do it can just be overwhelming for someone doing it for their first time then once you own a property it comes down to property management making sure your property looks great and is renting for market rent and just managing the day-to-day things that come with that obviously you’ll probably have a property manager who looks after most things but there are still some skills around managing your property making sure that things going smoothly that you’re getting your rents paid on time and all of that sort of stuff property management is another skill there’s also opportunity assessment so then looking at your portfolio and looking at where the opportunities are what sort of return on investment am I going to get so let’s say I overhaul my property and do a renovation of it and spend $20,000 how much is that renovation going to get me in terms of increased value on the property as well as increased rent helens are going to take me to make that money back well let’s say I’m going to potentially build a granny flat on the property that’s going to cost me one hundred and twenty two hundred and forty thousand okay what is that going to add in value to the property as a whole how much rent is that going to add and how longs are going to take me to your my money back on that one so opportunity assessment is another thing and then I guess it comes down to like leverage management and stuff as well do you want to leverage against growth in equity to invest again or do you want to save another deposit do you want to pay down debt and lower your loan-to-value ratio or do you want to leverage to try and grow your portfolio faster all of that comes down to like leverage and asset management and cash flow management which we talked about before as well so as you can see there’s a lot of different things that you need to know if you want to successfully invest in property and it’s not ok it seems like a lot even just saying it all it kind of seems like a lot but as you get good at each of these you just kind of good at it so if you can get good at budgeting and saving it takes a little bit to stay good at budgeting and saving but I’ve got systems in place now that budgeting and saving is actually pretty easy for me so that’s I kind of got that on lockdown so don’t need to worry about it as much and so I can focus on different things that are important so you know then you can focus on goal setting and once you’ve set your goals and once you’ve got your strategy that you can kind of forget about those and you can look on look on to area research once you’ve been doing area research you can then you kind of got that on lockdown you’re pretty good at that then you can look at properties so it’s like you build on this like a stack over time so it’s not you don’t have to do everything all at once but have a look through this so listen back to this video podcast again and think about through these things of okay what area do I need to really work on right now what’s next on the list work on that area get that good and then move on to the next one so to kind of take it one step at a time so that you can really build up your skills when it comes to property investing and then it just becomes you know something that you do and it’s not that difficult so that like I already I’ve got cash flow management budgeting and saving goal-setting strategy down pat I’m pretty good at area research as well but property research and inspecting properties and stuff like that is definitely a skill that I need to work on and so I guess I’m at that point where area research and property research are kind of my big two focus areas and so that’s why I’ll be focusing and learning more about this year while I’m continuing to save and continuing to have the same goals and same strategy in place so I can look at this list and say okay this is where I need to work on and where I want to improve my skills at the moment and then I can focus on what do I need to do to improve my area research well I need to do more research I need to you know look at the property market more because I’ve kind of been head down in my business for a few months that I’m not sure whether markets exactly at so I need to get back into that need to look at that sort of stuff and start to get my head around it again give myself a bit of top-up information on where things are at and build that up so I can then move on from the area research to the property research part of things so I’ll be sharing a lot more about these different skills throughout the year which I’m really excited to share with you if you have any in particular that you want to learn most about please let me know in the comment section down below but property investing is a skill it’s actually a multitude of skills but the good news is that each one of them is learn about and if you’re diligent and if you spend time doing this and learn these things you can achieve great success and property investing can become quite simple so have a look through this see where you’re at I’ve got so many videos on the channel on how to do all of these different things and so go ahead subscribe to the channel give this video a thumbs up if you liked it until next time stay positive