Expert Advice with Lindy Lear. 15/05/2016
I really enjoy speaking with and hearing other investor’s stories of how they built their portfolios. I speak everyday with many different types of investors. It never ceases to amaze me that most have one thing in common that drives them – a goal that they want to achieve. They know that it’s not about the property as such. It’s about what property can do to help them achieve their goals. Property is just the vehicle. Those who focus just on the property and are not clear on their goals, may risk not achieving them as they can get stuck looking for the perfect property, and procrastination can take over, as written in previous featured articles.
Ian’s Goal Driven Strategy
At the end of 2006 when I first met Ian Hosking Richards, my mentor, what attracted me most was his success mindset. He had clear goals, he had them written down, and had a goals chart with pictures up on his wall as a constant motivator to achieve them. He had figured out after his first few property purchases in 2000 that it could change his life. By buying even more properties, it changed his life even more. His strategy was to grow his portfolio so that he could reach his goals even sooner. And he did. And he is still buying and growing his portfolio today.
Growing a portfolio
Following in Ian’s footsteps I also started growing my portfolio and as I also had clear goals. I just put my head down and built my portfolio as fast as I could. I did not have time to waste and decisions for me came easily as I had a mentor. My husband Steve was often surprised when I arrived home saying, “guess what? I bought us another property today!”
Now many might think this all sounds very impulsive and a bit too easy. However what I found was a mentor made it much easier and less stressful to build a portfolio as I had someone to guide me. Someone who had more experience, more knowledge of the market, how to keep it low risk, what criteria to look for in a property, what type of property to buy and where was the best market to buy in at the time.
Now many years later, I now help mentor other investors who are just starting or building their portfolios. A mentor will just help you make it happen more quickly and more easily. A mentor in property is like having a personal trainer to keep you motivated and on track with the action needed to get you to your goals.
Why new properties?
When Ian started, he also had a mentor that he followed. They always bought new properties, so Ian also bought new properties where they were buying.
The main benefits of buying new I have found for myself
- I can focus on the growth drivers for the area first not on the property
- I can focus on growth properties where the numbers give me cash flow positive results
- I can build the property to suit the target tenant
- I can make sure the property specifications and inclusions suits the demographic
- I can attract a premium rent for my new property
- Demand for new properties where there are low vacancy rates means no finding tenant worries
- I know who the builder and developer is and choose those who meet my criteria of quality and ethics
- I have no maintenance and repair issues for many years
- I can attract a premium tenant who is able to pay a premium rent and have less tenant issues
- I can diversify my portfolio and buy affordable propertiesin other states with more confidence when I build them from scratch and am not only buying where I live.
Summary
From the start I built my portfolio in 3 years. I am now in the consolidation phase of watching them grow. Maybe I may be tempted to buy another one, as there are some great new properties out there in markets where there is great value and great returns. If another property will help me get to my goals sooner, then I will buy it. Just don’t tell Steve!
Ian Hosking Richards is about to launch his new book “90 Minutes to property success”. To read Ian’s story you can download the first 4 chapters by visiting the Rocket website below.
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Lindy Lear is a successful property investor who had a late start into investing, yet she built a portfolio of eight properties in just three years. She is a qualified property advisor and general manager of Rocket Property Group, and she won the Reader’s Choice Award in 2009, 2012 & 2013 for Property Investment Advisor of the Year. Lindy is passionate about helping others realise their goals through investing in property, and can be contacted on Ph: 1300 850 038 or visit www.rocketpropertygroup.com.au
To read more Expert Advice articles by Lindy, click here
Disclaimer: while due care is taken, the viewpoints expressed by contributors do not necessarily reflect the opinions of Your Investment Property.
