The Formula to Successful Property Investing

The Formula to Successful Property Investing

Most property investment books have a critical flaw: their strategies only work for certain people with a certain amount of money or time available. With so many strategies on offer, how do you find the one that's right for your circumstances?

In the forthcoming book, The Formula to Successful Property Investing renowned property advisor and author Michael Sloan provides a practical guide to developing the right investment strategy, tailored to your current financial situation.

As the founder of national property advisory firm, The Successful Investor, Michael practices what he preaches and draws upon decades of experience helping people in all financial situations to build a strong property portfolio. He shows readers:

Strategies to reduce risk and increase your chance of financial success
How to get started in investing, even on a low income
The types of property you should avoid
The different types of loans available and what they offer
Why you need to begin investing with the end in mind
When to use equity to build a property portfolio
How to decide between capital growth and cashflow
When the sell and when to hold a property
How to rescue poor cashflow

Whether you're a first-time buyer or an experienced investor, The Formula to Successful Property Investing provides you with the framework to create real wealth to live the life you want.

Melbourne-based Michael Sloan is a 20-year veteran of the property industry. He is a licensed real estate agent, award-winning mortgage broker, financial planner and investment property expert who understands the importance of building a quality property portfolio safely. Michael is the Managing Director of national property advisory firm The Successful Investor and writes property articles for the National Australia Bank (NAB) website. He is dedicated to teaching others how to invest through his public speaking and writing. The Formula to Successful Property Investing is Michael's second book on property investing, following from Cracking the Real Estate Code.

The Formula to Successful Property Investing
Red All Over Publishing
Author: Michael Sloan
ISBN: 9780987391582
RRP: $24.99

Interview with Michael Sloan

Question: Should parents help their kids buy their first home?

Michael Sloan: It is certainly something parents should consider, but at what cost. Parents need to look after their own financial future, as that will flow down to the children later on. There are some practical things they can do to give their children a hand (and not a handout) into the property market. One option that not many people know about is a family pledge loan. This is also known as the no deposit loan since the parent can help their child buy a home or investment property with no deposit. The parents lend their children some equity in their property and that equity becomes the deposit. For more information read my book The Formula to Successful Property Investing.


Question: Does Australian property double in value every 7 years?

Michael Sloan: Let me be very clear with this point.
No.

That myth belongs to the yeti category or the big black cat or the conspiracy theory that man didn't land on the moon. Think of this: Someone you know has a baby and at the same time buys a $500,000 investment property. By the time the baby is 7 the property is worth a million dollars, at 14 it's worth two million and at 21 years old a whopping four million. A 3.5 million dollar capital gain in 21 years. And from there, at 28 eight million and at 35, 16 million, do I need to go on? Plan on getting 6% capital growth and you won't be far away. That means a property will double in value in 12 years and there is nothing wrong with that.


Question: Is it possible to buy our first home on a low income?

Michael Sloan: Yes with the help of parents as mentioned above but also by joining forces with siblings or friends. Someone living at home earning $45,000 with $15,000 in savings doesn't look like a great prospect to a bank. But three people earning a combined $135,000 with $45,000 of savings is a totally different prospect. One plan (that is not without risk) is to buy an apartment off the plan for $450,000. A $45,000 deposit is needed with nothing more until settlement, which can be two years away. Plenty of time for all owners to save.


Question: What inspired your passion for property?

Michael Sloan: When I was in my 20's I was a painter and decorator, one day over lunch an older tradie started telling me about his investment properties. I had no idea of the concept; I didn't even know it was a possibility for me. But he showed me how it worked and within a month I was buying my first investment property. I started helping people myself from that day but it was another 20 years before it became my profession. And 20 years later I am still helping my clients create wealth through property investing.

Question: Can you tell us about The Formula to Successful Property Investing?

Michael Sloan: When my wife Laurel and I first started in the property industry I met and interviewed well over 1,000 investors. I met people who were successful, people who failed and people who never got started. Then over the next 10 years, I spent more than 26,000 hours in the property industry. I knew I had information that was vital for people to understand, but how to get my message to a broader audience? The book is my way of reaching more people to pass on the lessons I have learnt from 20 years in the property industry. Writing a book is a long way from painting houses but I have enjoyed every minute of the journey.


Interview by Brooke Hunter

 

The Formula to Successful Property Investing
Red All Over Publishing
Author: Michael Sloan
ISBN: 9780987391582
RRP: $24.99