Michael Xia has successfully made the transition from working in a corporate job to pursuing his passion for property. Aside from building a multi-property portfolio, he has also spent time helping his fellow investors as a mortgage broker—inspired by the goal to lead them towards more sophisticated ways of creating wealth through property.
One of the many responsibilities he takes on everyday is assisting a wide variety of investors in their pursuit of a good investment property.
According to Michael, many of those who have invested in one or two properties in their hometown are starting to look in other areas for more opportunities—a strategy that has long been used by property investors who want to build a lucrative portfolio.
“I would say, around Brisbane, [one should] know the demographics and the target demand there. Even, for instance, an area like Logan, the demographic there is a little bit different from Northern Brisbane so the types of property that you’re buying there is to meet [the needs of] the target market,” he explained.
“In Logan, [in particular], there’s a lot of extended families… If you can buy a property that targets those types of household, you can get a lot [of] high yield.”
He also reminds them of the cases of flooding in the different pockets of Brisbane—a problem that often takes property investors by surprise. Instead of inspecting suburbs, investors must take a closer look to make sure that they jump this hurdle.
“Make sure that you check the flood maps. Know exactly which pockets [are affected]... It really isn’t about ‘Is one suburb good and is this other suburb not?’ It’s more about ‘In a particular suburb, what’s the pocket that’s good [in terms] of flooding?’” Michael said.
Lastly as a mortgage broker, he makes it a point to let investors know that the process of buying in different states are rarely similar to each other. Therefore property investors who are looking into purchasing properties across Australia should find more time to educate themselves about the varying factors that can ultimately affect the growth of their portfolio.
“With new investors coming up to Brisbane," Michael said, "the first thing they say is ‘Can you send me the contract of property?’ [because that’s how they do it] in New South Wales. But the contract in Brisbane, it’s a template contract. It’s the same across all the properties, so the buying process is a little bit different—just get your head around that.”
At the end of the day, Michael’s main goal as a property professional is to share his own experiences—like how he used property to finally quit the rate race—with his fellow property investors in the hope of inspiring them and making better, more sophisticated investors out of them.
“My goal is … if I could make them a better investor and the properties that they’re buying are better, then, for their long-term financial goals, it’s going to get heaps better … For my business, it’s going to get better [as well], ” he said.
“For each of my clients, I spend a lot of time taking them through that process and at the end of it, they’re a lot savvier investors as opposed to someone who just came to a bank and got their loan.”
Tune in to Michael Xia’s episode on The Smart Property Investment Show to know more about his portfolio, what the recent changes to the cash rate and bank interest rates actually mean for real-life investors, and some of the financial tips and tricks all property buyers should know.