How much do prospective property investors need to start their journey?
Many people often think twice about starting their own property investment journey for fear of losing too much money, but you don't need to be a 'bazillionaire' to start your own business of creating wealth through property.
According to propertybuyer's Rich Harvey, there is no certain dollar value or secret formula to determine how much a person actually needs to start investing.
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"It is a case-by-case basis thing because it's an individual thing. It's not so much about a number, but it's about getting started," he said.
"I think you've obviously got to qualify for a loan and have some money behind you. You can't buy property with nothing; you don't want to leverage 100 per cent."
He continued, advising that "[y]ou can beg, [or] borrow, but don't steal. You can borrow off your parents or certainly use OPM, use other people's money, but you do need to get started as quickly as possible".
However, prospective investors must be careful about rushing important decisions, especially that very important—and often make or break—first property purchase. In most cases of starting new ventures, the first big step in property investment should be seeking the best education and mentorship.
"They often go to an investor course or hear [a] seminar and get really motivated to buy," Rich said.
"They rush out of that course and buy the first property they see, and that's where a lot of people make mistakes. They're so ultra-motivated, but they haven't done enough due diligence, [and] enough research. My advice to the listeners is research thoroughly. Build a team of support. Get started early."
He also advised budding investors to pay attention to equity and leverage, which will be key to buying the next property and ultimately growing one's portfolio.
"I started myself doing a subdivision, that's how I got started in investment property. We bought our first time [property] and we did a subdivision on it. We made fantastic equity by building on the back and then we leveraged off that... [The] key to investing is getting some equity behind you, [and] leveraging off that. That enables you [to] leapfrog into the next property," he concluded.
Tune in to The Smart Property Investment Show's special Q&A episode to know the answers to some of the most frequently asked questions about property investment, including off-the-plan risks and identifying the best real estate agents to sell a property.
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