Property - Don't Waste Your Time

Time can be both an advantage or a disadvantage when it comes to property, it really depends on the property itself.

I've spoken with many an investor who purchased a property and waited the often touted "10 years", a time in which their investment should have doubled only for it to be worth marginally more then what they paid for it.

For these investors, time certainly didn't work in their favour and many of them are now stuck because their years to retirement are now running out.

What caused this situation?

I believe it is often the allure of low holding costs that excites people.

What, you mean I can own a property for the cost of a few coffees a week? Wow, how awesome, sign me up.

The fact is, who cares if it only costs you diddly squat to hold onto the property if in 10 years it is still worth what you paid for it. Time has just killed that deal.

On the other hand, some investors who purchased property in the right areas, who wait out that 10 years are often left with significant increases in equity.

The difference is though they had to stomach the extra holding costs through that period.

These properties generally won't cover their own expenses, but when you forecast it out and see the effects of a couple of decent properties purchased in the right locations, even with their higher holding costs, after 10 years your in a much better position.

Plus, it then opens up other doors for you. Since you've been able to create equity, you then have more options. You can choose to step into more active modes of investment should you choose something like property development.

You might even buy a block of units or some commercial property with higher yield. Either way, your better off then if you had no growth at all.

What will help you to maximise your position, so that time does work in your favour, is having and following a strategy.

A bit of consideration and thought about where you want to end up and some analysis around what paths you can take to get you there will help immensely.

I hope you've enjoyed this perspective and if you want to chat about property strategy, give me a call, Shane 0402 024 625.