Far too many people think owning one property is enough.
One property at a time is a good start, but if you truly want a fully funded retirement and sufficient pension fund for your ideal lifestyle, you’ll need more than one property.
My book The 3+1 Plan is about owning four properties, three investments and your own home, but even in the book it talks about seven to ten investment properties with mortgages. Prepare yourself for a portfolio.
Don’t worry if this conjures up fears right now, by the time you get to two, three will seem easy. By the time you get to eight, ten will be a breeze. That’s how it works. I can guarantee this.
Create a strategy for the short, medium and long-term
To build this, you need to create a strategy. To build your property strategy you need to understand the fundamentals of what makes a good property – that’s what we call due diligence.
Once you’ve done your due diligence, you need to look into the current market and property cycle. Once you’ve pulled together all the information you need, you’re ready to take action.
Your strategy is all about bringing these things together. It’s about restricting the type of property and areas you’ll invest in and considering all relevant factors. Without a strategy, you’ll be given thousands of opportunities – and they’ll all sound great. You’ll soon learn the truth about ‘a fool and their money’ in property investment.
Property should give you more life
My personal strategy is a new-build one. I don’t look at second-hand property. Instead, I buy in upcoming areas that I feel are beginning to change significantly in fundamental ways. I get in early and hold.
For my investments, it has to be Set and Forget stratergy. If I can’t buy it and give it to someone else to manage, let out, maintain, re-let and deal with problems, it’s not for me. This fits well with my new build strategy. If I had to get involved, it would take my time (life) away. My philosophy is that property should give you more life. If it doesn’t, you’re doing it wrong.
I now own a significant amount of property across three countries. Although I could own properties in many more countries, I resist the urge to buy. As a professional investor, I know that with each country comes a totally new set of rules. They’re all different. Three countries is enough for me. I do have holiday homes in other countries, but these aren’t investments.
Your own strategy will be one that suits you
My strategy is great for busy people who don’t have time to build it themselves.
One of my Aussie mates has a totally different strategy. He wines and dines local agents and finds off-market deals in a specific area of the Gold Coast. He then totally strips out the property and renovates it (so the inside is contemporary and fresh) and sells it.
We both make money. So will you when you learn the rules of the game, do your due diligence, understand the current market, and take action.
UK pension changes 2015
I’m very interested in the UK pension changes– in fact, more than interested. My business teaches people how to invest in property – something that was off limits to many people before the changes. There is no better time than now to consider property for your pension.
Live with passion and fun,
Brett Alegre-Wood
