Investing in property is rewarding and can help you achieve your goals. Through the years of being a property investor and a managing director, Andrew Coronis shared some of his most valuable lessons and insights when it comes to property on the Property Investory podcast with Tyrone Shum.
UNDERSTAND THE FUNDAMENTALS
It’s important to remember that with the growing population, the property value grows as well because everyone at some point goes through the process of living at an accommodation, whether by buying or renting it.
“Early on, I’d buy anything that was reasonable value close to town,” Mr Coronis said. “Even to this day, the advice I give people is to buy the biggest block of land you can close to town.
“There’s not going to be more land that will appear in these areas, so it will increase in value providing you with more long-term capital growth. Units and townhouses are also good for investing in with home grants available, low maintenance and tax effectiveness with depreciation you can claim.
“It all comes down to what you want out of your investment property – do you want a longer capital growth later or tax effectiveness now and stable income from the property?”
SET YOUR GOALS
Set your goals and think about what you want to achieve in life and with property investment. By setting your goals straight, you will have a clearer vision of your ‘why’, which will give you extra drive to achieve your plans. Andrew also recommends changing your goals at 70 per cent completion to keep your energy and motivation going.
BE TRUE TO YOURSELF
Growing and learning are very important not only for personal development but for property investment. Finding inspiration in other people’s successes can be encouraging and help you learn as well.
Surround yourself with people who are better than you and learn from them. Sometimes it can be hard to stay true to yourself, especially with social media it’s easy to start feeling undervalued in yourself. It’s important to remember if you try to do something to get better, that’s what you can deliver to this world. It’s a compounding effect, if you grow by one per cent every day, in a year you will be 365 per cent better than today.
Buying an investment property in partnership with someone can work really well if you don’t have enough for the deposit yourself, or even if you do. Here’s what Andrew has to say about it.
“Buying a property together with someone is not for everyone, but it can work really well,” Mr Coronis said.
“You must acknowledge who you are, whether you can work in partnership and what your values are because you have to share the same values with your partner to make it work.
“Before your partner with someone you have to agree on responsibilities each of you will have for this property, whether it be renovation costs or overall commitment.”
YOU HAVE TO SACRIFICE TO MAKE IT WORK
When you’re buying your first home or your first investment property, you will need to sacrifice. It’s about not spending the money on discretionary spends and putting it into property instead, especially if it needs renovation work.
“Adding value to your property is easy, especially nowadays where you can buy everything you need at Bunnings and watch YouTube tutorials to learn how to do everythinh necessary…I did painting and tiling in my first five properties myself,” Mr Coronis said. “This way we were able to cut costs on labour, and it was fun.”
PROPERTY INVESTMENT MIX
As you grow your portfolio, it accumulates value and you have more equity that you can use to continue growing your investment. A lot of property investors look into mixing up their portfolio with commercial property for its high returns. It’s an option Andrew recommends looking into if you want to diversify your portfolio and have higher returns from your properties.