Gearing Up for the Year Ahead

--- Bei Yilong

--- Bei Yilong

As the new year has arrived upon us, we at PSCA have dissected a number of things from 2015, and have noticed that people in their mid 30s to 50s is the age group in which they began their journey to initiate a property portfolio by becoming a developer.

If you are reading this and are anywhere in this age bracket, then take a note from our client’s comment ‘that, it’s crunch time’ hence why they are beginning to do something now.

Sure at this age you are at the height of your career and you probably have a couple of extra mouths to feed and may think it is too difficult to begin to establish a property portfolio – well it really isn’t! All you need to do is to control your spending, there is always room for this, remember ‘a sacrifice or commitment today will no doubt reflect positive results in the future’.

Don’t overspend: A bigger pay cheque brings many good things – cars, holidays, a new house – but don’t fall for the instant gratification trap.

The need to diversify: To have all your eggs in one basket is a bad idea, old saying – however, it cannot be ignored – this will mitigate any risk.

Being too conservative with your portfolio: If you’re 50, you might have another 30–40 years of life ahead, including 15 years before you retire. Consider your investment horizon to ensure you don’t spend too much now – plan well.

Taking care of your health: Whet ever we do in life make sure it is comfortable and you are able to sleep well at night, and this applies to investments, don’t get into something that will deter your life’s health. Do not be one that person whom spends 30% of their healthcare in their final 6 moths. Relax and enjoy life especially when we get older, by setting up investments now whilst we are strong, employed and the motivation to set a lifestyle in the future.

When searching for investment properties leave it up to us at PSCA, we look at thing that others overlook ensuring that we steer you in the right direction:

Location, location, location: comes into play when investing in property for a home, the old saying has never been more true – location is everything. Though as an investor ALSO never overlook areas with high capital growth, as there might be things planned or happening in that area which is not public knowledge to all.

Worst house, best street: opting for a house that needs demolishing or major renovation, on a great street, can be a good method that allows you to have the benefits of the location now and a chance to create growth in that particular property – Look outside the square. Though be careful as you have to ensure that you’re not buying it at a premium price hence why we at PSCA always provide you with a full feasibility on the property before purchasing, reflecting what we think the property is actually worth.

The value is in the land not the dwelling: the real long-term investment is usually in the land – an asset that cannot be created and to which there is limited supply. A dwelling slowly declines in value, usually: the presumption is that all buildings have an estimated useful life of 50 years. As technology improves, the cost of building is becoming less and less.

IT’S ALL ABOUT TIMING YOURSELF AND TIME IN THE MARKET – NOT timing the market
Every investor should rightly be wary of buying too high at the top of a boom and not make a quick DOLLAR inevitably leading the way to being burnt. PSCA understand investors and investment properties, try us and make your first step today for as little as 350k you can begin to establish your Property Investment Portfolio with returns in a little as 12 – 24 moths.