Chris McMullen recently started his property investment journey by seeking good education and the best mentorship, determining his capabilities and limitations, and setting both short-term and long-term goals.
As a new property investor, he wants to keep adding more properties to his portfolio in order to grow its value and eventually be able to retire with a passive income.
According to him: “I don't have any ambitions to buy sports cars or be rich. I'd just like to have a comfortable income from my assets.”
“If I was going to buy a farm up nearor Byron and have an income I can live off, I can be happy,” Chris added.
However, even if he has goals already set, the budding investor has yet to work out a concrete plan of action to achieve them.
He said: “I'm just gonna keep going and see where I'm at. I think that's the best way to do it.”
One of the most important things to seek right at the beginning of your property investment journey are good and reliable property professionals who will help you understand the vast and ever-changing landscape so you can make better decisions.
Smart Property Investment’s Phil Tarrant has become an advocate of building a financial team after his own has helped him build an impressive 17-property portfolio over the years. As a property investor, he makes it a point to find time for regular meetings with his team to assess the current status of his portfolio and determine the best way to move forward.
He shared: “If I sit with my accountant … [He] says, 'Okay, why are we investing in property?’ And most people would say, ‘Well, I want to have a nice passive income and a nice retirement.’”
“He would say … ‘How much do you need for that to be the case?’ And most people would say, 'Well, right now, it would be X amount of money,' and then they would work backward and work out what it would mean [as a big picture].
“What value of properties [do] you need [to be] unencumbered in order to deliver you that income at a point in time?”
Property investors must also be aware that as circumstances in the markets and their personal lives change, their goals will also be different after some time, so they need to set a plan that is specific but flexible. Being “fluid” in terms of goal-setting and planning can give you more space to explore strategies and opportunities in different markets.
According to Phil: “I personally don't have a number that I want to retire at. I just know that if I keep doing what I'm doing, it's probably going to be okay—that's the way I see the world and I'm quite happy with that.”
Chris believes in the same philosophy as he has personally experienced how willingness to adjust to circumstances can lead to a better chapter in one’s life.
About eight years ago, way before he began his property investment journey, he broke up with his girlfriend, moved back home, and virtually had nothing that could help him fend for himself. Instead of wallowing in grief, he decided to save up for his own place. Soon enough, he was able to buy a place in Marrickville, which would turn out to be his first investment property.
The budding property investor said: “I was talking to some friends at the pub last night—they're 30—and I said, ‘Look, you just can't compare my chapter 10 with your chapter 4. It'll get you nowhere.’”
“‘But you'll get there. It just happens. Just let it happen.’ You can't predict where you're going to be in your life and it's nice just to let it flow and see where it goes.”
At the end of the day, you simply need to understand what you want and the different means through which you can achieve it. Find people who can help you navigate your way through your property investment journey so you don’t make “expensive mistakes”.
It could a “bumpy ride” but opportunities will always be around the corner—you just have to be quick enough to grab them at the right moment.
Phil said: “[It’s okay to be] quite happy … [to] just go with the flow a little bit and see opportunities when they arise and move quickly to [grab] it.”
“But [make sure you] still have the confidence … [to] go to bed at night ... [and] sit there [without] worrying about [your] property portfolio,” he concluded.
Tune in to Chris McMullen’s episode on The Smart Property Investment Show to know more about the invaluable education processes and why, sometimes, it’s okay to be a “pain in the ass” towards your buyer’s agent.