Property investment tip: ‘Get into the market as soon as possible’

According to him: “I think there was some sort of x counsel-held properties that we're coming up for sale [back then], and it's funny [when] you look back and you think, ‘Oh, if we'd have gone that extra dollar … just think how much money we'd have made.’”

“I wish I bought more early on because ... we could have easily gone a lot higher than what we did,” Phil added.

However, both investors believe that this uncertainty that is ever-present in property investment is one of the wonderful things about it.

The fact that property investors may never know for sure when and how the markets will move teaches them discipline and encourages them to take their education seriously—ultimately helping them avoid any property lemons in the future.

“It's far better to be in a position where you go, ‘I wish I'd bought an extra couple’ ... [instead of] saying, ‘I wish I hadn't paid that extra couple of grand’ [once] the markets turn again,” Alex said.

‘Purchase for a reason’

Once decided to start their own property investment journey, young budding investors must take time to set their goals, determine their capabilities and limitations, seek good education, and find the best mentors.

There are different strategies and different types of properties to suit every investor’s needs, and while it could be overwhelming at times, knowing the reason behind your wealth-creation efforts make it more worthwhile.

“Not all properties are credit equal—some are really, really good, some are good … There's hardly any indifferent ones in [our portfolio]. They're all delivering in terms of capital growth and they're all delivering in terms of yield,” Phil said.

Aside from seeking below market value properties, it is also important that property investors purchase assets that fits right into the portfolio they are building in terms of its purpose.

If you’re a first-time buyer, is it a good foundation for your portfolio? If this is a subsequent buy, will it complement your existing properties?

According to Phil and Alex’s accountant Michael Johnson: “Every single one of the properties that we've purchased, we've purchased it for a reason … There's a lot of potential there and, I think, that's what [it] comes back to, right?

“You can look at the price lines and go, ‘This moved from this to this … [I] would've made this amount of money,’ but there [should be a] reason behind every single one of [your] purchases,” he added.

At the end of the day, success in property investment relies heavily on one’s commitment and discipline.

After all, no one can predict the future but you can always see to it that it’s more secure by making good and well-thought-out decisions.

Alex’s advice to budding property investors: “It doesn't matter … what's going to happen in the future … [It’s about] having the discipline, whether you've got the tools and the equipment and the know-how to do it yourself or if you engage a team as we have done.”

“Look at all the factors that should mean that property increases in value at a greater level than others in the area—I think that's a very key thing,” he added.

“It's time in the market, not timing in the market … I think that's really important … to [get in] there as soon as possible,” Michael 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.