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Ryan Smuts: Why it is never too late to start investing in property

Friday, February 08, 2019

IMAGE CREDIT: INSTAGRAM @MATIASCELIS

 

Starting early definitely helps – when it comes to any kind of investing. Time is an investor’s best friend. Remember what Einstein said about compounding?

That being said, it’s never too late to start today. There is a Chinese Proverb that says “The best time to plant a tree was 20 years ago. The second best time is now.” Investing is much the same. Focussing on what you didn’t do when you possibly could have does nothing to improve your situation. The most important thing is to focus on the ‘now’.

There a several key reasons for this:

  1. At the moment in many regions (particularly Auckland), it is more a buyers’ market than a sellers’ market. This means that there are more opportunities to be had. You are in the position to negotiate hard with the vendor and buy at a discount, which you’d find is extremely important in the property game when it comes to accessing equity and recycling your deposit. The key to any investment is understanding you make your money when you buy.
  2. Real estate income can supplement your existing income. Even if it is small at first, additional income towards your bills, or even towards that next vacation definitely is both helpful and motivating. Retirement should also be a focus, realising that one day when you stop working, you are going to need some level of income to continue your current lifestyle.
  3. It is a relatively simple process and not overly time intensive, particularly if you have the right team around you. This means you can get into the real estate investment industry part-time, perhaps after hours. A past mentor once told me you can spend your days making a living, and spend your nights building a fortune.
  4. Your investment may be in the form of an owner-occupied property. Security is important, particularly in later years when it comes to retirement. Financial burdens can often be heavy, and dealing with this at a point in your life when your ‘earned’ income may decrease, you want to ensure that these bases are covered. Furthermore, emotional stability is earned by owning the home you live in – while you may still have a mortgage to pay in retirement (which depending on how aggressively you repaid your loan may be lower than what rent payments would be), the benefit is that your rents won’t be lifted and your landlord can’t request you to move when they decide to.

While I definitely am a property enthusiast as an investment vehicle, it definitely does provide many benefits that other investment cannot guarantee, and due to this are a great investment class in my opinion. That being said, you need to pick the basket wisely that you lay your eggs into, so be certain to do your due diligence before investing your cash into anything.

 


ABOUT THE AUTHOR

Ryan Smuts 

Ryan is a Key Accounts Manager at Kris Pedersen Mortgages and Insurance. Ryan can be reached on 021 193 9333 or ryan@krispedersen.co.nz

 

 

 

 

 

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Mathieu Holt- Managing Director, The Tenancy Practice Service & TPS Credit Control
Through the Association I found the channels and methods to fund the purchase of property I never dreamed about. Grant Brown

All round it has been one of those things Neil and I felt was really worthwhile belonging to. We have learned so much it has just built our confidence in what we are doing.

Janice Bieleski
I read two articles in the monthly magazine that saved me over $5,000. That is my membership fee for the next 26 years and I am sure I will learn a whole lot more! John Duncan
Fantastic organisation. The networking opportunities are brilliant and provide us with information and opportunities that cannot be obtained anywhere else. We learn something new at every meeting and we've been in this game for nearly 20 years. Pauline and Gyanen Kumar

I find the information obtained from various APIA meetings very useful in guiding my own property investment and rental management.  I also enjoy the networking opportunities with like-minded investors.  I am inspired by other investors’ success and find the more experiences and knowledge that I share with others, the more confident I become.  

Thanks to all APIA event organizers and administrators for your brilliant work. 

Stella Shao

I like talking to people and learning from their experience because it gives me the confidence to invest well. I think it is a knowledge thing. I now know I am doing things the right way.

Stephen Weatherall

My APIA membership has become a total success.

Every time I attend a monthly or regional meeting I come away with so many useful and positive tips that have added value to my property investments and management.

Not only that, the website is a great place for practical advice and useful information. It has now evolved into an important resource for my business.

Talk about value for money! The discounts I have been getting at Bunnings when I present my APIA membership card have more than paid for my annual subscription!

Tim Duffett, Plan A Investments Limited