I first read about Ian Hosking Richards in the April 2009 issue of Your Investment Property magazine. I was impressed by the way he managed to eventually quit his day job earning $35,000 a year in a warehouse. Through his methodology of acquiring investment properties, he has accumulated a portfolio worth over $13 million from scratch. From someone who used to work in a warehouse in his previous job, today Ian is the Chief Executive Officer of Rocket Property Group, an organisation which helps property investors to realise their life goals through intelligent property investing.
In buying my own properties recently, I have used some of his advice and investment principles in minimising risk and mistakes:
1. Buy new or near new ~ The array or modern conveniences in new apartment dwellings such as reverse cycle air-conditioning, lighting systems, gas kitchen, modern appliances, lifts, storage , video security and finishings all have a distinctive advantage over older style apartments both for the owner occupant or tenant. Current incentives given by the Australian government also encourages purchase of new dwellings by both local and foreign investors. In addition to these new and modern facilities, investors are entitled to significantly higher amounts of capital allowance and depreciation against tax payable.
2. Build relationships ~ I have developed new relationships with agents, bankers, property managers, conveyancers and solicitors all of whom I believe will assist me in the future.
3. Use interest-only loans ~ Since the interest portion is deductible against income, this greatly reduces monthly repayments.
4. Educate myself ~ I try to be open-minded at all times, listen to what all parties have to say, and evaluate their views to ascertain if it works for my particular situation. I try to keep a log of issues, problems, solutions and will share these with you in due course.
5. Have a plan ~ I try to think ahead, draw up a financial plan on how to manage, fund and maintain my property portfolio.