At TMAP, we have a saying: action takers are money makers. This philosophy is embodied by our students particularly those now entering the phase of property selection. In this phase, the key to success lies in mastering both the numbers and the letters of property selection. The numbers are often the limitations that need to be overcome, and how do you do that? Strategy, strategy, strategy aka the letters.
The Numbers
Borrowing Capacity
Understanding your borrowing capacity is the first crucial step in property investment. It’s all about knowing how much you can borrow from a lender. This involves a thorough check of your financial situation, including your income, expenses, and credit history. Once you have a clear idea of your borrowing capacity, you can start looking at properties within your budget, avoiding the disappointment of falling in love with a property that’s out of reach at this time in your life.
Property Price
The price of the property is another key number to consider. It’s not just about the sticker price; you also need to factor in other costs such as legal fees, inspections, and potential renovations.
Land Tax and Stamp Duty
These are often overlooked but can significantly impact your investment. Land tax is an annual tax levied on landowners, while stamp duty is a one-time tax paid when purchasing a property. Both can vary greatly depending on the location and value of the property.
The Letters
LMD – Low Money Down
One of the strategies that many TMAP students find attractive is our Low Money Down (LMD) approach. This strategy allows investors and first home buyers to enter the property market with a minimal upfront investment.
OPM – Other People’s Money
Another popular strategy is using Other People’s Money (OPM). This involves securing financing from sources other than your own savings, such as equity from family, government grants, rebates and discounts.
IRS – Income Replacement Strategies
Income Replacement Strategies (IRS) focus on generating a steady income from your property investments. This could be through rent-vesting; co-living, triples or duplex builds; or SDA properties for the NDIS. The goal is to create a reliable income stream that can eventually replace your primary income.
Conclusion
Knowing the numbers and letters of property selection is crucial and the home buying process. Mentorship can help make the process even smoother. TMAP’s mentors help students identify the right strategies tailored to their specific needs, guiding them through the complexities of property investment. They ensure that students understand both the numerical aspects (like borrowing capacity and property prices) and the strategic letters (like LMD, OPM, and IRS).
Licensed buyer’s agents, such as Edgar from our PA Realty team, play an equally important role. They assist students in selecting the right properties, providing insights into the market and helping navigate the practical aspects of property selection. This holistic approach ensures that students are well-prepared and confident in their investment choices.
We’re thrilled to see so many of our students taking massive, massive steps towards their property goals. At TMAP, we’re here to support every step of the way, turning dreams into reality through smart, strategic property investment. Talk to the team today.