Wealth Creation Through Property Investing
Jun 09, 2019
One of the things that's really important in wealth creation is ensuring that you've actually got the two pillars in place:
- Your Money Mindset - and if you've watched any of my videos previously you would have heard me talk a lot about that and how important it is to make sure that you're not repelling money, and that you're actually attracting it by energetically having the right mindset to bring more money into your life.
- Having a Strategy to create wealth, because without that, you don't have any clear action that you're taking to build wealth.
One of the most effective and probably under-utilised strategies, is Property Investment, and today I'm featuring a special guest and expert: Tim Allwood - the Director of Compass Property Investments, to address some key questions about property investing as a wealth creation strategy.
- Property Investing is a great wealth creation strategy, but possibly one that is under-utilised by Australians in particular. What are your thoughts on that?
I'd have to agree because a lot of people do take advantage of the system, which is the taxman and the tenant to help pay for the majority of their property, particularly now when you've got low interest rates, it doesn't cost anything to hold a property.
Yet people still don't get involved, because they're influenced by the media with all these negative thoughts that things don't work or they, you know, they over-complicate it, they overcook it. And if you look at the fundamentals, property's always proven to be a successful track if you take certain steps and all we do is help people make those steps right. So for us, it's what we do and we love doing it.
- What are the reasons or what would you say are the incentives for people getting involved in property as opposed to, say, shares?
Realistically, people understand property because they can see it and feel it. With shares it's sort of an unknown for a lot of people.Shares can be great, it's a long-term investment just like property, but property is something that people understand more, it's a simpler thing.
However, there's still fundamentals you need to get right, investing in the right area which involves proper research to make sure there's capital growth. It is a long-term investment so you need to hold on, but many people, overcook it or they don't trust someone to guide them. It's important to deal with people that have their best interests at heart and know what they're doing. So we just go through the right steps to ensure that it's in the right area, it's built well, if it's got the right features and it's the right area, it's going to rent well. And then once you get through that initial period, properties become unstoppable and unbreakable because the values go up, the rents go up and then the person's in complete control and they can actually buy another one based on that one and they can keep going and keep going. And it becomes very boring very quickly. But using the system, which is the taxman who pays a lot of it and the tenant who pays most of it, it's quite easy.
We have a proven system and we actually care and we love our clients and my people are all experienced. So I think that's the important thing, to be around people that understand what they do. I'm always famous for saying that when my refrigerator breaks, I ring a refrigeration mechanic and, you know, with property, I like to think we do a good job by educating people to take the right steps in the right way.
- For people who find the idea of property investment really exciting but probably daunting and overwhelming, especially if they don't know where to start, is that where your team steps in?
We make it happen - it starts off with research and we give them a whole heap of research. They also do their own research - which is Professor Google! So they become empowered; it's not rocket science. But everyone has their hangups - and this is what I love about the money mindset, Caroline. This is why my wife and I, use yourself through your program, because we all have a hangup somewhere and the way we process things comes from our past and I just love it, and I'm so glad to be involved with what you do and, you know, it's so important.
It's simple but it's important, and everyone needs to be working on their mindset and their wealth creation going forward because it's not about becoming mega rich, it's just about being able to make choices because, as I always say, if you do nothing, there's always a result. If you don't tend to the garden, the weeds will grow and it won't be a garden anymore.
So you've got to be doing something because the sweat of worrying about "am I doing the right thing?" will become magnified as you become closer to retirement and you haven't provided, so. It's vital.
- You touched on property being a great vehicle to help fund your retirement as opposed to becoming mega rich, but speaking of mega rich, I think some people would assume that you have to already be mega rich to even contemplate getting into property. Can you help to dispel that myth?
You're right, because a lot of people can do it, most people can do it but they just, they don't think they can because they've been to their bank. Now, the average bank doesn't help you that well so you need to have a proper investment specialist that can really make the magic work. There's a lot of ways to make sure that you're paying your existing house off quicker. There's ways that people can get involved without even owning a house.
There's always a way for most people. Yes, you need a job in most cases and you need a bit of discipline but it's very achievable for many. And the biggest thing we find is people get halfway through the process and they say, "Wow, we should've done this years ago and we should buy another one". When they realise how easy it is to do what we get them to do, and we do it at their own pace, some people will come straight in and buy three properties!
We do it in a way that suits the client's objectives - whether that's with one or three properties. Providing for themselves in their own comfortable retirement is important and it's also important for your children to see that you're successful. There's a lot of reasons why people ought to consider property investing.
There's also some people out there who won't make the time to see you, Caroline, to work on their roadblocks, and they will never do anything. They may have their house paid off and they think paying off their house quicker is the way to wealth. Of course there's nothing wrong with paying your house off quicker, but the way to pay it off quicker is to have an investment property to get the tax deductions and pay off your non-deductible debt. There's a system - it's a proven system - and doing it the get-rich-slow scheme: paying your house off first, you cannot outrun property.
Property will always grow, particularly if you leverage it correctly. Because that's all you do with a home - when you buy your home, you walk in with five or 10 percent, and then you leverage to buy the rest. The same with investment properties; you're just leveraging but it's good leverage because it's tax deductible. When you buy your own house there's no tax deductibility at all, and you're not using the system.
I won't get too technical but the bottom line is most people realise they can do something once they see what they can do.
- In hearing you share all of that, Tim, it really sounds like it's the equivalent to having a mentor in business. So if you want to go down the fast track and you don't want to make all the mistakes yourself and get burned, then you get a mentor. It sounds like it's exactly the same with property.
Absolutely, you've got to have a coach and you've got to be coachable. That's what's good about social media - a lot of people will sit back and observe what's happening for two, three, four months, six months - and we have quite a lot of people who will then ring up and say, "Tim, I've been watching you for six months on your social media, we're happy enough now to have one of your senior guys come out and see us". And my, all my people are not pushy, we just explain it, and we find people pick up that ball and run with it when THEY'RE ready, as opposed to some companies who pressure people to buy immediately with false scarcity tactics.
- For my fellow Sydney siders, I've got some really exciting news, well, we jointly do. We've managed to get you down to Sydney next week, Tim. Do you want to share this exciting news with our readers?
Sure - here are the highlights:
- We're hosting a private Compass Property Investing event with no selling, just loads of great information about what's happening with property in Australia and how to become a property investor
- Caroline Labour will enlighten us about all things Money Mindset
- We've also got a really good finance specialist who's going to explain how to pay your house off quicker with some simple tips that the average bank won't tell you.
- If you're in business, bring your business cards, because it's will also be a networking night.
- Complimentary first drink and nibblies
- Date: Wednesday, 12 June 2019
- Start time: 7:00pm
- Venue: Crown Hotel, Church Street, Parramatta
You are personally invited to attend the Compass Property Investing Sydney Event where you will discover how to tap into a success investor's mindset to build wealth, pay less tax, save years off your mortgage and plan for retirement.
Registration is essential and tickets are limited! Go here to register for the Compass Property Investing Sydney Event:
To your success,
To discover how you can clear your money blocks and create a life you love and deserve, check out our free Money Breakthrough training:
Stay connected with news and updates!
Join our mailing list to receive the latest news and updates from our team. 🔥