How To Start Your Journey To Becoming A “Multi-Millionaire”

Young Australians are moving away from the great Australian dream, as the path for 2018 is not as simple as working to save for a deposit on a house, starting your new life in it and paying off a mortgage. This method is simply outdated.

Adopting the direction of past generations is a harder path to follow as a first home buyer, with affordability currently a large consideration, so Australians are now leveraging property differently to benefit their futures. Smart investors reside in a Sydney rental property in areas they want to live and buy Sydney property in places they can afford and rent out.

The ‘Buy and Rent’ model was first conceived of by PIA (The Property Investors Alliance) in 2005 for Australians who want to leverage investment property for future financial goals, allowing buyers to maintain their current urban-city lifestyle, without sacrificing their financial goals. More than half of PIA’s clients say that their personal motivation for investing in property is to attain financial freedom. Buying a home to live in will not deliver financial freedom or additional income.

Saving a 10% deposit, plus the typical 5% costs of purchasing a million dollar property in their preferred location (in addition to the cost of lifestyle), first home buyers would be left waiting years until they can finally get their foot in the door of securing a property.

This is where the ‘Buy and Rent’ model (sometimes known as rentvesting) can provide a better solution – allowing investors to enter the property market sooner rather than later. Purchasing in a more affordable area – at half the cost – and renting out the property to pay it off, while continuing to live in a Sydney rental property in a great location, means making no changes to your current living situation, seems a much more affordable and practical path to financial gain and success.

According to a 2017 white paper from Ipsos, the rentvestor is becoming increasingly popular as 61% of ‘Generation Y’ are jumping on the trend, 41% of whom are single, and 81% who are choosing to live and rent in inner-city areas.

Two million Australians are property investors, but they’re not just investing in a property, they’re investing in a financial plan. The number of landlords in Australia is about 8% of the population, utilizing property to grow their wealth, while tenants pay down their debt.

Based on historical market performance, we have seen big profits from those buying Sydney residential assets.

Following the ‘great Australian dream’ model of working, buying and paying off a home, first home buyers now include Australians in their 30’s and 40’s. So we’re flipping it around and investing before purchasing a first home. It may, at first glance, seem a backward way of entering the Sydney property market, but it’s fast becoming the smartest and most appropriate way to take advantage of the current economic climate….and own a property.

*Information from this article was sourced from The Property Investors Alliance

Want To Become A Multi-Millionaire?? Follow These Three Simple Steps

Building wealth is probably the most spoken about topic across the world and will be for years to come. How to make money is the 24th most Googled question in the world that’s 246,000 individuals per month hoping to find answers.

You can earn more and save for your future easily, but many people get caught up in the old saying “You have to have money to make money.” If you have this mindset, you have already set yourself up for failure. The truth is you have to be driven, be willing to work hard now and invest so you see a return on capital.

Property won’t make you wealthy overnight, but it is a great first step to financial freedom – a great form of income for you and your family in the future. The Sydney residential property market alone has increased by 74% since 2012[1]. Sydney offers promising returns for investors and the long-term outlook for this market is positive.

Follow our three simple steps to wealth and find out just how easy it can be to build your wealth.

1. Using the family home to build a property portfolio

If you have equity in your own home, do you know that you’ve already taken the important first step in your property journey? That’s because the family home can be more than a great place to raise your children. It can be a powerful tool for growing your wealth and setting up your financial future.

After all, a lender may let you use the equity you already have in your home to fund the purchase of an investment property. That means you may not need any further deposit. Meanwhile, the rent your tenant pays should help you meet the cost of taking out your new loan.

2. Renting and buying simultaneously

Think you can’t afford to buy where you want to live but still want to get a foot on the property ladder? Try the ‘Buy and Rent’, model. Under this strategy, which PIA pioneered back in 2005, you can rent where you’d prefer to be based on your lifestyle, study or work. If you earn $70,000 annually, you could buy an investment property worth $650,000 for as little as $42 a week, out of pocket.

3. Helping the children

Worried your children will never be able to afford to buy property? By using the equity in your own home, you may be able to get into a property without the need to save a deposit. If they’re not ready to leave home just yet, you can secure and manage a tenant who’ll help pay off your loan until they do.

It’s never to later or early to start thinking about the future and making a plan, invest in property to secure a comfortable, stress-free future for you and your family, build your property portfolio and build your wealth.