There is no denying that years ago it used to be much easier to quickly build a portfolio of properties. Income testing was not a big thing like it is now. Deposit conditions were not as strict.
Many investors who already own 10+ properties accumulated them at a time when buying and borrowing were relatively easy compared to the stricter criteria of today. Add in the fact properties are more expensive in comparison to incomes today. The property prices relative to income were easier to stomach (ratios of ⅓ rather than 1/10+ like we have now), and the ability to get lending approved was fairly simple.
You cannot take away from these people what they accomplished. They worked hard and within the rules to build up their wealth and you will have to do the same, But the rules of the game have changed and you need to adapt with them.
To create equity and lots of it, so you can keep buying, you need to understand subdivision and development options. You do not have to execute them, but at least understand them. Check out Blandon’s video: How to Increase Mortgage Borrowing INFINITELY in NZ to Keep Buying Property Investments.
One of our clients recently bought a property in the first lockdown for $920,000 in West Auckland. He took possession after lockdown (with a long settlement) and talked with the neighbours and did more development due diligence.
After discovering the project was going to be less profitable than he hoped, the property was relisted and sold for $98,000 gross profit ($1mn+). This was him owning the property for 2-3 weeks! The client knew about development potential and knew he could sell at a profit to another developer who was willing to take a project immediately. The purchase was almost risk-free. Watch the case study on youtube, and remember to subscribe there are more and more videos getting uploaded each week.
If you want to make $1mn profit on a single project over a 12-24 month period, the easiest way is probably to buy a property with subdivision and development potential then get to building more homes. The spreadsheets we provide make the process simpler to understand. It’s not easy and there’s going to be competition, so it’s probably best you start smaller and work your way up.
In the online workshop course, Blandon spends some time deep-diving into an 8 unit development he is currently working on. Lesson 72 in the course. If you want to preview this video we must connect first and review your situation to see if you qualify.
Bringing other friends and family into your project if you cannot fund or execute on your own will be much easier with the spreadsheets provided on joining the course.
I have read 100+ books on property investment, listened to podcasts and videos ALL the time on property investing, and can pretty much sum things up for you – to build massive equity quickly, you will probably need to do a development deal. If you are patient, then great, but if not then learn about the planning guidelines. Your development does not have to be massive, but it needs to be a value-add.
Check out one of my FAVOURITE youtube case studies here OMG this is legit.
P.S. Tomorrow we are going to chat about cross securitisation of property. Then tie that together with exit strategies… you don’t want to shoot yourself in the foot as you are leaving the party. Did you check out the masterclasses yet? They are super popular with our clients to help reinforce the case studies and principles for successful property investing.