In today’s show buyers agent Josh Masters gives some advice to start up investors. He says start small, focus on a single outcome and only settle for the best.
Kevin: You’ve been to those seminars, you’ve read heaps of books, and you’re all fired up. Maybe you’ve got your plan together, but quite often, the temptation is to not start in gently – in other words, just bound in. I’ve actually seen people who want to become developers overnight.
Josh Masters has written a bit about this. Josh is from BuySide.com.au. He joins me.
Good day, Josh.
Josh: Good day, Kevin. Thanks for having me.
Kevin: You see this reasonably often, do you, that people want to get in, boots and all?
Josh: I do see it often. When people get involved in property, they’re very passionate about it, and that’s fair enough. I think I have to be guilty about jumping in boots and all before. I think I’ve probably had eyes bigger than my belly and wanted to get in, learn all the courses, and learn all the ways that you can make money.
Sometimes you really can miss the fundamentals of what it really takes to grow a portfolio. Start small and just really understand the process, understand really how to buy property, how to get in and do the due diligence and really assess, or even just the basics to get started before you really get out there and start working on more advanced strategies.
Kevin: Yes. I’ve heard the saying, “Bite off what you can and chew like hell” but it doesn’t really work. I think the other thing, too, Josh, is that I’ve been to many seminars and read lots of books, and they’re all written by very talented people. You go out and hear these speakers and the temptation is, “Gee, they make it look so easy; I can do this.”
Josh: Yes, absolutely. You find the experts out there are experts because they have gone into their field and they did start small, but they developed along the way and they went very deep into a particular strategy. If you go deep into any strategy that makes money, eventually you will do well and you’ll become the expert in that field.
They do make it look easy. All the marketing material is fantastic, and what I’ve found is that a lot of people get glitter in the eye and then they realize how much work actually goes into something like this. With all due respect to the teachers out there, they’re doing a great job in the property markets, but knowing it and learning it can be two very different things.
Kevin: Yes. Another confusing thing, too, I find is that there are so many strategies for making money and they’re all relevant but they fit different people, like buying hold options, renovating, flipping, developing and selling. How do you find the right focus?
Josh: That’s a good question. Sometimes, without getting a little bit woo-woo, it’s about what calls to you at that time. I know some people love renovations. I was an interior designer before this, so it really made sense to me to do renovations. That really appealed to me, and I loved it. I’ve done Cherie Barber’s course. I know Cherie’s coming on later on. It was just fantastic, and that really resonated with me.
There will be other people out there who really love the contract side of it and they’ll be able to look at things and get a town planner involved and maybe do what it takes on paper to maybe subdivide a block or do an option. That’s a strategy in itself. But I think it has to suit your lifestyle at the end of the day.
Kevin: Yes, it does, and it’s got to fit your risk profile, as well. The other thing too, I find – and Michael Yardney, who is a regular on our show, talks about this all the time – is about buying the best. Just make sure that you’re hold out. Do you agree with that?
Josh: I absolutely do agree with that. Property is not like the share market. It’s very much a long-term game, and if you’re going to buy a property, you really need to be looking at least 10 years in advance. When I look at properties – and my clients, as well – I say, “Would I be happy to own this in 10 years’ time? Would I be proud to own this? Is this an area that’s going to be still up and coming, it’s not a flash in the pan?”
That’s where you really make your money because if you can hold it for 10 years and then the next 10 years following, the leverage that you get, the compounding growth, that’s where it really starts to take hold, and you really build wealth from that.
Kevin: Yeah. Josh, great talking to you as always, mate. I appreciate you giving us your time.
Josh: My pleasure, Kevin.
Kevin: Josh is from the website BuySide.com.au. Josh, thanks again for your time, mate.
Josh: Thanks for having me.