This is an excerpt from Sanjeev Sah's white paper on real estate investing. For full access to his tips for making money from investing in Australia, click here and download your copy today.
When Sanjeev Sah first arrived in Australia in 2007, the way forward seemed relatively straightforward. He was visiting on a work visa to India to take on an IT role, with visions of starting a family and moving up the career ladder. In practice, the job was not all it was supposed to be. Marriage and a daughter followed soon after, and although Sah enjoyed living in Australia and was well paid, the job itself was demanding on his time and emotionally unsatisfying.
"It was a pretty standard 9-to-5 role on paper, but IT also takes a lot of your personal time," he says. “I wasn't the husband or the father that I wanted to be; work came first and I realized I was going to have to change the way I approach money and my job. "
The first ideas of how this might happen started to stir in 2009, when Sah started buying property in his homeland. Buying through a mix of commercial and residential properties, Sah began to realize that his future may lie in investing.
"I didn't have big visions of being independently wealthy or anything at this point," he laughs. “Everything was very pragmatic! It was a smart way to invest some income, and if we finally decided to go back to India then my family would have a nice place to live. "
The real change came in 2013, when Sah realized he could replicate some of his real estate success overseas by buying in Australia as well. But in order to do that, he realized he needed a more effective strategy in place. His previous purchases had been driven by desirability rather than a holistic view of how properties could fit into a larger income-generating portfolio.
In late 2014, Sah moved to his first property west of Sydney. The difference with previous purchases was that there was now a longer term plan and strategy in place. Unlike past purchases, which had simply been paid for on a rote formula, Sah was beginning to realize the true power of leverage.
Since then, Sah has found great success in real estate investing in Australia. Here he describes five key steps that every investor should take before making a purchase ”
See the big picture
"Investors need to have a clear picture of where a property is going to fit into their larger portfolio and help them achieve their overall goals," Sah says. "If you don't have clear goals, you're going to miss out on opportunities, buy the wrong kind of property, or worse, not take enough action."
Learn about various investment strategies
There is more to investing than just buying property, says Sah. Investors should consider opportunities within their properties, such as renovations, adding a grandma's apartment or other accommodation, a subdivision and more.
It allows investors to play the game better, ”he says. "Depending on the objectives, investors can apply individual or multiple strategies to a property as needed."
Know your numbers
Ownership is a numbers game, so make sure you have the information you need.
“What kind of equity and cash flow do you currently have?” Sah asks. “Will this purchase have a positive or negative impact? This is a simple but critical question. "
Consider the location
Sah notes that location is one of the most critical considerations for investors. On too many occasions, he says, people buy properties on the basis of their emotions rather than potential returns.
"You can't let emotion make the decision for you," he said. "You have to have data on your side."
Form your team
"Having the right support network is essential," says Sah. "Make sure you know what you know and don't be afraid to have people on your team who are smarter than you and who are successful in this game. They will be able to advise you effectively on your business decisions." purchase and help mitigate risk. "
For two more tips, as well as other great information on how to make real estate investing a full-time career, download the white paper from the link above or contact directly Sah for more information on real estate investing.
