You need that income! 

One of the primary things you need to be a successful property investor is a job. Why? Because you need money. You need a job to borrow money. You need savings or some cash to buy your first property. 

But the sad fact is, a lot of people don’t love to work. They hate their job, they don’t like their boss, the commute is a killer. You name it. We don’t all love our jobs. But we need money.

How many times have you imagined a situation where you never have to work a day in your life ever again? It might have been when you were on holiday with your family and thinking, ‘Wouldn’t it be great if life was always like this?’ 

Or maybe you were having a shocker at work one day and dreamed of telling your boss to stuff it and walk out, never to return.

The fact is the idea of not working appeals to us all at some points. But the reality is very different. 

Would you really enjoy never working again?

Do this exercise with me. Really think about never working again. What would every day look like? Once you’d played all the golf or done all the Pilates classes you could stomach. After you’ve drunk all the coffee with mates and walked the dog every day, five times a day, and mown the lawn, and watched all the movies and read all the books. What would fill your time?

The truth is you’d likely be bored. 

But what’s the alternative? Most people wait until they’re in their 70s to retire. They go from working five days a week, to nothing. While it might be a welcome change, the reality is that at 65 or 70 we might not have the energy or ability to do all the things we’d dreamed of. 

So, what’s the answer?

Make Your Work Meaningful

We spend an average of 13 years at work over our lifetime, so doing a job you hate isn’t going to do wonders for your general frame of mind. Find a job, a career or some work that you get satisfaction from. Choose to do something that provides challenges and opportunities and pays you well enough that you can live the kind of life you want. Find something that adds value to your life and the world around you if you can. If you like – or better yet, love – what you do, putting in the hard yards to be a success will feel good. 

Scale Back Your Working Week 

Going from working five days a week to working none is a flawed concept. It’s not good for our mentality and is also very hard to achieve. Aiming to be able to afford to work a four-day, then three-day week, is a better approach for property investors who want to reap the rewards of the passive income they get from their portfolio, but are also still buying real estate.

The sense of achievement at suddenly having a three-day weekend, then a four-day weekend, will feel amazing as you are able to see and feel the benefit from the income you’re getting from rent and capital growth.

Scale Back Your Hours 

If dropping a day of work (and income) is still out of reach, can you afford to work shorter hours? If the growth and cash flow you’re getting from your investment properties can turn your eight hour day into a six hour day, you’re already reaping the rewards of property investment.

Successful property investors are able to redesign their lives to suit their own needs. Once your properties start to grow in value, rents come in and capital growth creates equity, you can use the investment process to achieve the things you want, faster.

Start The Redesign Process

Having a solid property investment plan doesn’t just account for the bricks and mortar real estate that you plan to buy. It factors in the type of lifestyle you want to live and includes a pathway of how to get there. 

To learn more about what this might look like for you, join our free property investing masterclass. 

Our team of expert property investors and coaches will be able to advise on the steps required to get you from where you are now to where you want to be.

Book here – Property Investment Seminar

Jason Whitton

Founder – TRC-Gorod 

When it comes to property investment there are some things you can never have enough of.

When it comes to property investment there are some things you can never have enough of. Good tenants, reliable builders, a great relationship with your bank.

But more than anything what you need is good cash flow. 

Having a steady income of cash means never having to dip into your own pocket to top up repayments, complete repairs or make another purchase.

Here are the top five ways you can ensure the cash keeps flowing, so you can keep your investment portfolio growing. 

Location, Location, Location.

It makes sense that you will always get a greater rental yield in areas where people earn more.

Properties in capital cities and their neighbouring suburbs are more popular than homes in small, out of the way towns, due to their overall convenience.

By definition this means they will yield much higher rent and offer you greater income possibilities. 

Two For The Price Of One

Being able to draw two incomes from one property is a great way to ensure healthy cash flow.

A house with a studio or granny flat is an excellent example of this, as is two apartments within one house.

Two dwellings on one title will garner a significantly higher income for very little extra effort on your part, so keep this in mind when you’re looking for your next investment opportunity.

Put It On Display

This one is a bit left-field, but stay with us. Display homes are a great investment for cash flow. Tricky to find – you may need our help with this, so get in touch – but once you do, they can be a hassle-free goldmine.

Investors can purchase the display home that builders run their office space or sales desks from.

The contractors will give you a locked in, long-term lease agreement, meaning you’re guaranteed that income, and the house and land is beautifully maintained.

This kind of property can be expensive, but if you can afford it the cash flow potential is exciting.

Short Term Letting = Long-term Savings

If you’re smart about how to approach it, short-term letting (think Stayz, Airbnb etc) is a fantastic way to increase your constant cash flow.

If you have a property close to the CBD or beach, then you’re in an ideal location to exploit all of the things people want from a short-stay property.

Think tourist drawcards – restaurants, cafes, museums etc. If you only want to short-term lease intermittently then take time to do the research into when the high seasons occur and you can charge more for rent i.e. school holidays, Christmas, summer, Easter etc.

It’s also worth keeping an eye on big events coming to your city that might attract a higher number of visitors, all looking for a convenient place to stay.

And if you don’t want the hassle of managing all the coming and going, there are agencies that will do it for you, meaning all you have to do, is sit back and let the cash roll in.

Room By Room Means Cashflow Boom

You need the right kind of property for this so you can turn rooms into independent, self-contained living quarters, with small kitchens and bathrooms.

It’s vital that you create these dwellings correctly with the right kinds of health and safety standards, fire codes etc, so do your research and get it right.

Once your set-up is done you can start filling rooms with tenants. In a house with six or more independent ‘suites’ your cash flow will increase exponentially.

You could also approach a university or a government agency to let the rooms as a group, which could make life easier in the long-run as your contract would be with the one provider of tenants rather than many individuals.

You’re invited – Property Investor Night

For more ideas on how to increase cash flow, and tips on the best way to get it done, sign up for one of our free property investing seminars. 

Book your spot now to get some resources, tools and strategies to help you build the framework for a bright financial future.

Book here – Property Investment Seminar

Jason Whitton

Founder – TRC-Gorod 

Don’t be caught without it.

As a property investor who is building a portfolio, it’s vital that you have access to your equity whenever you need it. 

There’s nothing more frustrating than finding that perfect new property to purchase, only for it to be held up – or worse still, lost completely – because your finances weren’t in good shape.

Having an interest-only loan structure with a healthy off-set account is a great way to ensure you have equity at your fingertips whenever you need it, but that’s not the only way…

With a bit of time and commitment, there is another strategy you can employ to take advantage of your equity called – Equity Lock. 

Equity Lock in simple terms is locking in the highest value for your property’s possible at different times and refinancing your loans to reflect and draw on the increased value. Confused? Let’s break it down.

STEP 1 – Buying A Property

.Congratulations – you’ve just added a new property to your portfolio.

As research, resources and a bit of luck would have it, you’ve bought a great little apartment in a booming area.

Over the course of a few years the market shifts and your $500,000 purchase is now worth $1 million. How do you know this?

STEP 2 – Keeping your eye on the Market

If you’re buying property with a view to build a portfolio over time, then you need to get familiar with the property market and notice when it changes.

Equally, watching what similar size/value properties are selling for in the same area will give you a good idea of what your property is worth and if the value is increasing significantly.

If and when it does is the time to make a move.

STEP 3 – Equity Lock

So, your property has increased in value by a whopping $500,000. While you don’t want to sell, and you don’t need the extra cash today, locking that value in so you can use it when you do need it, is smart.

All you need to do is speak with your bank to refinance your loan. You can “borrow” up to 80 per cent of the new value without mortgage insurance, and it’s always going to be there, even if the value of the property adjusts.

STEP 4 – Act Quickly

Once you know the value of your property has increased enough to warrant refinancing, don’t wait. Lenders are usually happy to offer good loan conditions and rates when the market is on the up, and less happy to oblige when it’s stabilising or flattening out. 

STEP 5 – Be Disciplined

Equity Lock doesn’t happen by itself and it takes a fair amount of work and commitment from you.

Keeping track of valuations and the market is something you’re going to need to do very regularly if it’s going to work in your favour.

But the time really can pay off in the long run and end with you having enough equity up your sleeve to swoop in on your next purchase with no delay.

Are you giving yourself the best chance of success?

Good property investors are nimble and adapt fast. They stay informed and enrol a team of experts to help them excel in times where others can’t. But most importantly, they start with a plan that is deliberate and based around the goals they wish to achieve.

To find out how you can be one of those people, come along to one of our free Property Investor Night events.

Here you’ll be equipped with the tools, resources and support to thrive, and most importantly, not make the fatal mistakes that others make when they fail to have a strong plan in place that can properly maximise their potential and the opportunities that are available to them.

Spots are limited so go here to book your spot for the next Property Investment Seminar now. 

Jason Whitton

Founder – TRC-Gorod