As the year draws to a close, many Australians start reflecting on the goals they want to achieve in the new year. For property investors
sitting on the fence, now is the perfect time to incorporate your financial aspirations into your resolutions and take the first steps
toward building a secure and prosperous future.
Property investment is a powerful tool for wealth creation, but success begins with planning, goal-setting, and aligning your financial
objectives with actionable steps. Having this in mind will enable your team of specialists to support you in delivering on those goals in
lending, portfolio modelling, property planning and buying..
Why Property Investment Should Be Included In Your New Year’s Goals
Property investment offers several benefits that align with long-term financial stability and growth. Here are a few reasons why it’s a great goal for the new year:
- Wealth Creation: Its no secret that residential real estate has been the strongest performer as an asset class, with long-term capital growth and rental income generating substantial wealth.
- Financial Security: Property can act as a hedge against inflation and provide consistent cash flow, especially in retirement.
- Tax Benefits: Investors in Australia can take advantage of negative gearing, depreciation, and other tax deductions to reduce their taxable income.
- Accessibility: With the right guidance and strategy, property investment is achievable for many Australians, even those who think it’s out of reach.
The below guide will show you how to include property investment in your new year’s resolutions and create a plan that sets you on the
path to achieving your financial dreams.
Step 1: Define Your Financial Goals
Before diving into property investment, it’s essential to have a clear understanding of your financial goals. These goals should be realistic and aligned with your broader life objectives.
How to define your goals:
- What is your primary reason for investing? Are you looking for long-term capital growth, passive income, or a property you can eventually live in?
- How much income do you want to generate? Set a target, such as $100,000 annually in passive income, and use that as your guide.
- What is your timeframe? Are you planning for retirement, aiming to grow wealth in 10 years, or looking for shorter-term gains?
- What level of risk are you comfortable with? Understanding your risk tolerance will help you choose the right investment strategy.
Step 2: Assess Your Financial Situation
To create a solid investment plan, you need to know where you stand financially. This involves taking stock of your income, expenses, debts, and savings.
Some simple steps ahead of meeting your Advisor:
- Calculate Your Budget: Identify how much you think you can allocate toward property investment after covering living expenses and debt repayments.
- Understand Your Borrowing Capacity: Speak to a Ramsey Mortgage Advisor to determine how much you can borrow.
- Build an Emergency Fund: Ensure you have savings set aside for unexpected expenses, so you’re not stretched thin when investing.
Step 3: Educate Yourself About Property Investment
Education is a great asset as an aspiring property investor. Familiarise yourself with the basic fundamentals of the Australian property market, investment strategies, and key terms.
Resources to explore:
- Property Market Reports: Stay updated on trends and forecasts for different regions. Investing has a national footprint and should not be limited to your own back yard, so reading broadly gives you an indication of the ebs and flows of the national property market.
- Ramsey's EBooks and Educational Series: Learn the basics of property investment, including understanding how property is used for tax purposes, the importance of cash flow, and understand market cycles and property types.
- Professional Webinars: Include yourself on Property investment webinars - Ensure they are conducted by industry experts with a background in Property, Finance, Advice and are backed by awards, google reviews, experience and the relevant credentials. Avoid overnight celebrities and hype 'advice' as they can often lead to a negative experience in property.
Step 4: Develop Timeframes to Success
Ever heard the phrase 'Property is a long game', its true, historically property increases in value over time, the more land you own over a period of time, the more increase in value as land becomes more scarce.
By setting your own expectations on timeframe , i.e how long you want to invest in Property to derive your outcome, will give you a strong
base you start and also prepare you for the long road to success ahead.
Step 5: Choose the Right Property Investment Advisory Firm
Property is not a 'one size fits all approach'. Different strategies cater to a clients different goals and financial situations.
The key to success is choosing the right property wealth advisory firm, a strategy that aligns with your financial goals, risk tolerance, and resources.
Choosing to seek the right advice, with an advisory firm that customises your strategy that aligns with your goals and circumstances increases your success and accelerates your timeframes but appointing a team to deliver on the requirements when it comes to building a profitable property portfolio.
Step 6: Hold Yourself Accountable to Growth and Adaptation
Consistency is key when working toward your goals. Regularly review your progress and adjust your plan as needed to stay on track. Holding yourself and your Advisory Firm to account during the long-term relationship.
Make 2025 the Year You Start Investing
Incorporating property investment into your New Year’s resolutions is a powerful way to align your financial goals with your aspirations for the future.
With careful planning, education, and the right strategy and the right Advisory team behind you, you can take the first steps toward building a prosperous property portfolio.
The most important action is getting started—your future self will thank you for it.
Make 2025 the year you turn your property investment dreams into reality. Start planning today and take the first step toward financial freedom with the team at Ramsey Property Wealth, enquire today on 1300 001 215.
