Why this successful investor believes ‘property is forgiving’

According to Alex: “I think there are always properties that are below market value … It's easy for a certain period of time to not be too disciplined and [think that] everything will go up.”

“[You should be] disciplined in terms of viewing opportunities in business, in life, in properties … I think it's always a good time to buy property and I'm a huge advocate and I have been all my life,” he added.

Aside from properties, Alex also spends time building portfolios of different asset classes, including shares, but he firmly believes that real estate gives him more than just an opportunity to build his wealth.

Contrary to what most people believe property investors to be, Alex actually admits to lacking discipline in terms of keeping up with his finances. Property investment taught him the value of being honest and disciplined in the journey towards achieving his goals.

He said: “I like property because it forces me to have discipline … it keeps me honest.”

“A lot of people say you don't invest in property because it's not liquid [and] you can't get your money quickly, but people on the other side say it's a great asset because it's not liquid and, therefore, it holds its value—it's not so sentiment-driven,” Phil explained further.

Investing well

For many property investors, building wealth through property is simply buying an asset below market value, then it’s all about time in the market rather than timing in the market—educate yourself, get good advice, and hope for the best.

Alex said: “Property is forgiving as long as you don't make rash buying decisions, as long as you don't overextend yourself, as long as you consider how you can service that debt … Make sure you're comfortable with ... your debt levels.”

“If the market dips because of just market conditions, not because of that asset is a bad asset ... it is likely to go back up. If the whole market is dipped, then the whole market will eventually return,” the property investor added.

For budding property investors, Alex shares three simple steps to get started:

1. Have a “fundamentals” checklist—from location to the state of the market.
2. Seek external advisors: Many things in the market can go beyond your control, so finding professionals to help you navigate your way through your journey is one way to ensure that you’re making the best decisions.
3. Let the bank assess the asset’s value and get a pest and building report.

According to him, one doesn't need to be a genius to jump into the business of creating wealth through property.

“You do have to have common sense and you have to have a level of discipline … As long as you stay within your comfort level and don't get ahead of yourself, it's a great simple way to build wealth,” Alex concluded.

Tune in to Michael Johnson and Alex Whitlock’s episode on The Smart Property Investment Show to know more about the day-to-day operations of an 18-property portfolio, as well as the impact property managers have had in steering property investment journeys into success.