I offloaded 7 negatively geared investment properties in a “fire sale” that cost $300,000.00, before changing my course and leaving paid employment within 13 months. Find out how I cracked the code.
In today’s market, the expected rental yield on a negatively geared investment property is about 4.5 to 5%, however I have tapped into a new trend that has allow me to achieve what many consider impossible.
Welcome to a world where 10 to 12% yields are the norm, and instead of depriving your family of luxuries, you can enjoy positive income from day one.
The house on the left is a case in point. It picks up twice as much in weekly rental as the one at the right ($1,500 vs $600) despite the fact both are comparable size and design, and they’re in the same ordinary, everyday suburb.
The capital gains are exceptional too. In fact, a recent property received an offer for $930,000 whereas a similar house next door sold for just $780,000.
Many think it’s impossible because they’ve bought into the negative gearing myth. Yet with 1.55 million Australians dealing with housing stress, the marketplace rewards you for supplying affordable housing to people who desperately need it.
Sadly, Australia is the most unaffordable housing market in the world. According to the 9th Annual Demographia International Housing Affordability Survey, Port Macquarie, Sydney, both the Sunshine and Gold Coasts, Coffs Harbour, Mandurah and Melbourne are all part of the top 20 least affordable areas to live in worldwide.
The problem lies in developers pushing their cookie-cutter 4-bedroom, 2-bathroom homes as the ideal - despite the unaffordability crisis and the fact 22 Hong Kong Homes can now fit inside the average Australian home.
The demographics suggest we should be doing the opposite:
There’s been more than a 100% increase in single adults occupying public housing in the past 10 years: 54% in 2016 compared with only 21% in 2015.
What’s more, the number of women over 50 in the past four years who find themselves homeless (reporting to living in cars or couch surfing) has doubled.
And don’t forget our elderly. There are 70-year-olds everywhere living on less than $399 a week, yet the cheapest rent they can find is $300.
With rents at an all-time high, and wage growth at a record low, the negative gearing gravy train may have just ground to a grinding halt. Just as recent technological trends have killed companies like Kodak and Dick Smith, this demographic swing may cripple millions of Aussie investors.
On the flip side, with a huge demand and limited supply, there has never been a better time to build affordable housing.
It’s better for the tenant, and more profitable for the landlord. With 12 million empty bedrooms in Australia and millions struggling, I am on a mission to build 1 million self-contained, affordable homes. That’s why I’m travelling all over Australia to spread the word.
I don’t believe the government is the best solution to our affordability predicament. This type of investing is so profitable right now, it actually encourages us as investors to build better communities and relieve housing stress for those who are struggling.
Find out how you can get higher rental returns and capital gain, replace your income, boost rental yields and even turn a negatively geared cash-burning property into positive cash flow.
Join me by clicking here at one of my FREE events being held all over the country (including NSW, Victoria, WA, QLD, SA and Tasmania).
Ian is a full time investor, developer, advisor, author and educator. As a sought after Keynote Speaker and thought leader, his passion to see others succeed in both their personal and business lives while helping others, is his greatest drive. As seen on Sky News, Sydney Moring Herald, Australian Property Investor, Your Investment Property and numerous other media, Ian uses his vast experience to turn traditional approaches towards housing provision on their head. Ian is recognised as Australia’s leading micro apartment, rooming and boarding house specialist, he is driven by his intense desire for creating multi-generational living and re-creating community. An advocate and action taker towards fixing the huge affordability issue in Australia, Ian is passionate about bringing back the genuine connection of community by providing elegant housing diversification.
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