Over the past 20 years, I’ve seen a lot of property investors struggle to create enough passive income. One group, I know of, spent millions of dollars. Some of them got it right and some didn’t. We were able to study what made the difference between those that created their desired incomes and those that didn’t.
From these practical insights, we developed a formula. We’ve used it to invest in property and had great results. We were so excited by these results, we had to share it with our clients. Our clients have repeated created passive incomes – from $2,000 to $10,000+ per week.
The formula solves many of the problems encountered by investors when they are selecting a property. It creates a factual foundation for them to make informed choices.
Mike a professional sportsman, on a big salary in his late 20’s suffered a debilitating injury ending his career with thump. He had put everything into his career only to have it cut short in one day … no more income.
His goal was to achieve an income of at least 10K per week and he wanted to achieve this in 5 years.
To plan this we modeled areas with:
- very high capital growth rates,
- good rental incomes, and
- sustainable drivers of demand.
Use the capital growth created by a fast growing market, and a renovation strategy to leverage into another property. The added value increased the rental income and enhanced serviceability.
Here’s how it worked (3 rules for success):
- Properties were selected in high capital growth locations (identified using the Moore Methodology) – greater than 18% p.a.
- The properties were purchased well under the median price for the area.
- Value was added to the properties purchased by creating an extra bedroom and relocating the older style kitchen. Note, adding an extra bedroom increased the rental income.
High capital growth rate and increased number of bedrooms allowed the investor to draw down equity faster to continue purchasing similar properties. Each property was given the same treatment.
High rental yields helped the investors loan serviceability. After 4 years the investor had with an income of over $38,000 per week!
Got 15 minutes to call us and see if this strategy is right for you or maybe you have some questions you would like answered?
Book a quick phone call a time that suits you.