You might say "Well that's OK for you, you got in when property prices were low."
My answer would be that prices always seem low when you look back and there is never a time when the prices seem cheap relative to the income and property availability at that time.
With that being said I will say that in the beginning I had to change my attitudes quite a lot in order to best take advantage of opportunities at that time. In other words I had to do a lot of stretching. For example, I live in Sydney, Australia. Back in the year 2000 when I bought my first investment property it was in Brisbane.
Now it would have been much more comfortable to wait until I could afford to pay the $300,000 price difference for roughly the same property in Sydney. But I chose to get started immediately with what I was able to do and defer purchases of investment property in Sydney until the equity I had in my portfolio supported Sydney's more expensive prices.
The point I am trying to make here is that by starting straight away and investing in a well located property in Brisbane, I was able to take advantage of the capital growth of my first property to buy a second and third in Brisbane before I would have been able to purchase my first in Sydney.
Real Estate Values Double Every 7 to 10 Years
You may have heard this before and thought "That might be right, but I'll just wait until prices go down."The big news is that the best time to buy investment real estate is right now!
Even with the "economic crisis" that we have been thrust into, what is happening? The real estate prices are falling somewhat here in Australia, this is producing great buying opportunities.
My outlook is that in another 2 to 3 years this crisis will be behind us and then 7 to 10 years after that property will have doubled again.
The question is what is your mindset? Do you feel like all your plans for the future have been suddenly made redundant because of outside factors? You can seize the initiative back by setting in place some plans for your future now. Sit down, take a calm look at your current situation and assess where you are and where you would like to be in 5 to 10 years time.
Nine years ago when we bought our very first property after thinking about it for over a year, I never would have believed that today I would be holding a property portfolio worth several million dollars.
In a future post I'll go further into the strategies and philosophical shift that allowed me to do this. It's exciting to sieze the initiative back from thise who will take it away if you let them. The journey has been an exciting one for me and my wife.
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