I know that to many people reading this, the two concepts may seem mutually exclusive. But that’s only true if you’re going about property investing all wrong – and sadly I have to say, most Australians are doing just that.
You see, buying real estate and creating a property portfolio that will underpin future wealth isn’t meant to be a burden. It should actually be the opposite and should make you feel empowered and excited about your financial future, not worried about how you’re going to make ends meet each week.
There is no such thing as a ‘one size fits all’ solution to wealth creation because the reality is, what works for one person may not work for their next-door neighbour.
For some people, for example, the ideal property portfolio for their situation could mean owning just two or three properties. If that’s all that your risk profile and financial situation will allow, then so be it; with the right due diligence and correct asset selection, owning three quality properties outright could deliver a financially comfortable retirement.
For others, a driven and determined mindset could see them owning five, 10 or even more properties.
Neither of the above scenarios is ‘right or wrong’.
However, when the situation has the potential to turn ugly, is when you bend over backwards trying to fit a square peg in a round hole.
Let’s say you’re naturally a risk-averse person who worries about money at the best of times. You’re careful with your spending, you don’t use credit cards and you’re diligent about saving at least 10 per cent of your salary each month.
If this sounds like you, then perhaps right now it doesn’t make sense for you to build a property portfolio with a dozen or more assets in it. Even if you could afford it, you need to be able to sleep at night – and if you’re the type to fret about money, then becoming a landlord 12 times over has the potential to seriously derail your quality of sleep!
2 Biggest Investor Hurdles – Finding Deals & Funding.
Because the reality is, the biggest hurdles to property success are all in the mind.
Human beings like to analyse, rationalise, review and consider. At their core, these are all just fancy words for the term ‘procrastinate’!
Don’t get me wrong, they are all important steps in the property buying process – but when you get stuck at one of these stages, it can have a huge impact on your financial situation, now and in the future.
So just how do you become a property investor and afford to have a life, without living off baked beans?
It’s actually quite simple – you need to:
Create a budget… And stick to it. There are dozens of resources you can use online to help you establish positive spending habits and eliminate personal debts as quickly as possible.
Work out a plan for property investing that makes you feel excited, motivated and driven.
Set realistic and affordable goals that will stretch you and move you out of your comfort zone, without causing you to lose sleep at night.
And lastly – take action!
It’s at that last point where most people come unstuck. If this sounds like you and you feel like you need that little nudge to move forward.