Are You Trying To Find Property The Wrong Way?
Most people try and find property the wrong way. By going straight to the property level you miss the most important aspects of successful investing. In this video we talk about this error as well as the correct way to approach property investing.
Tommy is saying they wanted to buy a unit in the coalfield area in Melbourne. It’s not a huge new unit. It’s established an established unit. What do you think? With my plan, I think tell me the. We don’t have enough information to give you an answer to that question, but I think generally if people are approaching something and they’d just say, I want to buy a unit or on a buy a property in this area, what do you think? It indicates to me that that person has an actually set a goal for themselves that don’t have a strategy of how they’re going to achieve that goal and they haven’t actually done research to find the best suburb that’ll help them get to that goal. So I think you jumped to the end point which is this property in this suburb where really you need to go back to what’s my strategy? Okay, what like, well, what’s my goal and then what’s my property strategy to achieve that goal and then what region is going to best help me achieve that and then which suburb looks best for that and then which property within that suburb’s going to give me the best chance to achieve my goal, to take me to the next step of my goal. Would you add anything?
Eat Great. Like I think what I mentioned before around property investment being of equal. It doesn’t matter what you buy. This is the thing that investors need to understand. It does not matter what you buy, what you are buying is a return based on history and potential for future performance. So I don’t buy suburbs that have an average annual growth rate of below seven percent because there’s a higher likelihood if that suburb’s got a history in the last 10 slow years, ever, ever return that, hide that in the next 10 good years, it’s going to be even better. I don’t buy a suburbs with vacancy rates below two percent. I don’t buy suburbs with rental yields below five percent and I want a manufacturer you up to seven percent, like I don’t buy a property where I don’t make at least 10 to 15 percent on the way in. By having this list of criteria, it means that 99 point nine percent of suburbs and properties don’t make financial sense to me. So it stops you looking at staff and gets you focused on finding the exact thing that you’re looking for.
Yeah. That’s so good because you have this criteria. It just shifts your mind. Right? So your focus is now on, okay. Which southern fits within these five financial parameters that will help me achieve what I want to achieve rather than the opposite approach, which is here’s a suburb. Is this suburb going to be good or not?
Oh, he should be trying to not buy property rather than buying it.
Which I think as well, like starting at the property thing and speculating on. I mean starting at the suburb and speculating on the suburb generally leads to inaction because you don’t know whether or not that suburb’s going to be good. You don’t know if you’re gonna make money, you don’t know if it fits into your financial goals because you don’t have any. Whereas if you do Ben’s approach and you’ve got all these criteria, like once you, once you looking for them and you realize how hard they are to find once you it, you say, okay, I know this suburb is going to move me towards my goal or is highly likely to move me towards my goal and that gives you the confidence to then move forward versus just one.
Do you know how once you have a clear strategy in place and you stick to it, how easy it is to find what you want? Like there’s only two suburbs in Brisbane I would personally buy and right now I know exactly what I’m looking to buy agents every single day, bringing me off market these things. In the second I hear it, I’m like, no, every single invest issued get to that point where they say, your job is to say no until you can find a property that just takes all of the boxes for you. Like so many people are trying. Trying to buy something because they want another property or they think that they need one or whatever. Like I spoke to a blank yesterday from your community and he said he wanted to own 10 properties in 10 years. I’m like, well, I can get you the same outcome by buying four.
Why do you want to do 10 and take on all that risk and debt nine. There’s going to be another global financial crisis at some point in the next 10 years and it’s just like these arbitrary numbers that are pulled out of the air as opposed to really sitting down and going, what is the path of least resistance and the easiest way to achieve this. How can I not buy so that when what I do want to buy comes up and it does take patience and skills to do that, but you know it’s the right property and you sleep at night without even thinking about it. You have none of that fee. None of that worry because you know that if you played the 15 year game, you’re going to end up five times better off than you are now.
Yup. And like, yeah, I actually have this, me and my wife were talking about this the other day. I’m the same way that knowing your financial criteria and having your goals give you this laser focus, you know what Ben was saying, agents approach him and instantly he can say no because he knows it doesn’t fit in. And then when he does find the right one, he’s like, yes. And knows how to act on it. Like I’m a vegetarian, like working towards becoming Vegan and my daughter’s like gluten free, dairy free. So like when we go to woolies, ally, the range of things we can buy is extremely limited because of all of our, like dietary requirements. Right. But I had this new experience going into this now. I used to go in and I would just like look at everything and want to buy everything.
Even like the chocolate and confectionary area. I mean that was, that was my place. I was like look at all this stuff and now there’s like maybe one or two like chocolate bars that don’t have milk in them. Um, even like gummy stuff has meat in it. Like is made from beat, but I, I had this situation now where I go into woolworth’s and I don’t experience all of or worse. I don’t even see the stuff that I’ve chosen not to eat, so I don’t like. I don’t see the meat in the meat section. I don’t see the gummy bears that have gelatin in them. Like I don’t like my, my mind blocks that stuff out. It’s a really weird experience because I’ll go into the aisle with all the butters and the yogurts and stuff like that and all like honing. I get the coconut yogurt we get to not lex sort of thing.
Like, yeah, your mind is very powerful. I guess what I’m trying to say is, is don’t underestimate the ability of your mind to pinpoint and to find the right thing, but you just need to tell your mind exactly what to find. So in the same way that I find the Vegan gluten free stuff in woolies, you can take that same approach but towards property to have your criteria for exactly what you want and then all of the rest, every other suburb, every other property or the real estate listings that are coming to your email that you’re seeing pop up as a featured listing, like you don’t even see them. They just like what you see is what you want to get. So I don’t know. I hope that made sense.
Alright. Assessing machine, like the more accurate information that has the two program, like it wants to find this stuff for you. It wants to simplify the world into a very structured little thing. Like that’s naturally what our brain wants to do to protect us. So why not take advantage of that and just let it do what it wants to do. The problem is right now most people are too broad, but as soon as you become specific, all of these options in the property market that you didn’t know existed will pop up. Like I got a call this morning from an agent property, six k’s from Brisbane cbd have been looking for a split of blocking Brisbane for 12 months. Haven’t found one, not a single property that stacks out financially. He calls me out of the blue. There’s an older couple, you know, they’re going to sell it for market value. The house is in the right position. I can clean up the house and sell it a pick out the piece of land for $200,000. It’s worth 550. I can build a house for 400 K for 300,000 through my network. You can on sell that opportunity. You know, again, I can take it, I can leave it, but that’s,
you know, by being very focused and being verbal with the agent and telling what I, what I don’t want, he’s been able to go find me this opportunity that finally makes sense. If you know what I mean, and you can jump on that opportunity or not. That’s up to you and your situation, whatever. It doesn’t matter yet. Give it to a client or by like. And that’s, that’s the paradigm and what you want and being able to say no when it doesn’t fit right now as well, because they’ll always be another great option in say. Yup. Cool.
Well, I hope you enjoyed the answer to this question with Ben Everingham from pumped on property. We’re really having a blast doing these q and a sessions with you guys. So keep the questions coming. If you’re at the point now where you’re ready to purchase an investment property, but you think you might need some help, then ben is offering free strategy sessions to own property listing. Simply go to on-property dot com dot EU forward slash session. And you can book a time with Ben and you can go through where you’re at, where you want to be, and what your next steps are to get there. So again, that’s on property dot condo. You forward slash session. Thanks so much for watching. Until next time, stay positive.