3 Steps to Fast Track Your Retirement Through Property Investment

April 3, 2024

Have you ever felt like life is all about levelling up, hitting targets and reaching goals?

Often, life can be polarising, making us feel like we have to do everything possible in the shortest amount of time. It might be a result of the pressure we put on ourselves, or instead, it might come from others around us. Unfortunately, either way it can be quite damaging.

The thing is, this is a very prevalent concept in the property investment world too. We often see investors put all of their hard earned money into buying as many properties as they possibly can, with no goal other than to reach a quantity that will bring them to the financial objective that’s set in their mind.

I think it’s pretty safe to say, purchasing something new can be a great feeling, and the more we purchase, the more frequently we might have that dopamine hit. But, at the end of the day, is it really the smartest option?

We’ll let you answer that one!

It’s kind of like purchasing cheap clothes online every couple of weeks – it might satisfy our shopping need, but it’s safe to say it’s not the best long term option.

In the property world, investors who feel like they need to scratch the buying itch, or feel they need to own more property to please those around them and their own ego, tend to lose out in the long run. As much as it may look great having a portfolio consisting of 5 or 10 properties – are they at the quality that will bring long term equity and consistent rental return?

Quality is what’s important for investors…

If you’ve been around property investment for a little while, this may seem like a pretty obvious concept. However, when emotion, stress and worry comes into things, we can easily forget about what’s truly the best long-term decision. As we mentioned before, the ego side of things, wanting to own a certain number of properties can polarise us from understanding that quality is what’s most important. This is where the idea of strategic planning comes in. With guidance, understanding and direction, your decisions can be made less upon emotion, and more through logic, strategy and confidence.

Instead of jumping into the market, buying as MANY properties as you can, as QUICKLY as you can, let’s instead look at combining the perfect mix of quality, with a quantity that works for you.

So, the moral of the story here is QUALITY is more important than quantity…

In property investment, as much as life in general.

We live in a world where property prices depend on value, and can fluctuate with economic and market conditions. So, despite feeling the need to hit a certain goal, or reach a certain number of properties owned, the more important thing to look at is the idea of owning QUALITY property.

What makes a quality property?

We could go on here for days about how to recognise quality property, and the important inclusions that go into quality property investment. But, let’s keep it short and sweet by highlighting the 3 most important things:

  1. Location
  2. Infrastructure
  3. Demographics

Ultimately, these three things contribute to you harnessing the strong demand we’re seeing in the market in 2024, bringing in the right tenants and allowing you to generate a great, consistent rental return, whilst building equity in the long run.

Let’s look at an example… Quality is what’s important

In a theoretical world, let’s say you have a $1.6 million budget for property investments.

There are plenty of options here when considering the best course of action for investment.

The agent hoping to fill their pockets with maximum commission will probably tell you to purchase 8 $200K apartments, or 4 $400K apartments.

It may be a great thing for your ego too – but does this take into account anything other than purchasing based on QUANTITY?

Well, without factoring in location, demographics, regional infrastructure, and growth patterns, are you really looking at somewhere of high QUALITY?

Instead, with this $1.6 million, what happens if we look at purchasing 2 houses worth $800K each? Higher value properties tend to align to these ideas surrounding higher quality.

Alongside this, an $800K property in an area of high growth and long-term equity is often one with a little bit of space, and at the end of the day, land is truly where the value lies. Consider the first house you lived in, or your childhood home. The chances are, especially because it would have likely been a house on a block, it’s worth A LOT more than it was worth than when you were living there. Quality property on land that you own yourself, is a great thing to have for long term investment – and with a couple of them – that’s a pretty great start to a portfolio!

At the end of the day, this situation may not fit you exactly. Your budget and goals might be different. You may be looking to grow your investment portfolio, or, maybe you’re just starting out. But, no matter your situation, what’s really important to consider is your strategy – one where QUALITY is at the forefront.

Want to chat more about working towards your property investment goals in 2024 and beyond? Not sure where to start? At InvestHer, we’ve got your back – we love working with motivated women to help turn financial dreams and goals into reality.

Give us a call on 0455 223 865, we’d love to hear from you!

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