Property Hub - Investment Insights & Inspiration - Realty Talk Vault: Gaming your property strategy

Episode Date: December 21, 2022

We bring you another classic Realty Talk episode from the vault, which was originally published on September 14, 2021, but is still just as relevant today. Many property investors focus on buying property without thinking about how it is going to help achieve their long-term goals. Jordan de Jong joins Bushy to discuss how to start with the end in mind and game your property investment strategy. RealtyTalk is part of the Property Hub podcast channel, your home for property investment insights, inspiration, and stories from Australia’s top property experts, investors, leaders, and analysts. Subscribe now to get every RealtyTalk episode delivered to you each week for free, and also get full access to Get Invested, the leading podcast for Australians who want to unlock their full ‘self, health, and wealth’ potential and get inspired by the stories of investors, founders, and entrepreneurs. Subscribe to RealtyTalk on the Property Hub channel: Apple Podcasts | Spotify | Google Podcasts | Email Property Hub is a collaboration between Bushy Martin from KnowHow Property, Kevin Turner from Realty, Andrew Montesi from Apiro Marketing and Apiro Media, and Australia’s largest independent podcast network DM Media.  Business and partnership enquiries: [e-mail] omnystudio.com/listener for privacy information.

Now, as a property and finance strategist, I'm continuously frustrated with the large number of property investors who just focus on accumulating properties without spending much time, if any, on their property investment strategy, on why they're investing and where they're investing is going to get them to. And it's a proper strategy that separates the best from the rest, creating a magnet to motivate your commitment and a compass to guide your day-to-day decisions. So to delve into the fundamental importance of this subject, we're joined by a like-minded property strategist, Jordan Dejong from Gameplans, the ultimate property portfolio and money management tracking system. Welcome to the show, Jordan.

Thanks, Bushy. Thanks for having me on, man. I'm very excited to be here. Likewise, mate. We both share the same passion for the importance of property strategy, and it's a great opportunity for us to get the word out there. Tell me, to kick it off, why is a detailed property investment strategy so important yeah it's a great question and i think you know i can really sort of just look back on my own portfolio and building that out i think the biggest thing looking back now in hindsight is i wish i had a plan or a strategy i mean i was never really the type of guy that would want you know sort of 10 properties in 10 years that was never really my shtick but you know when you do that you can only really achieve that numbers game by

dropping other things right such as a purchase price and if you start dropping numbers game and you start dropping that purchase price normally something has to give and maturity of that time that's the quality of asset so if I have could have gone back and told myself well you know I could really realistically achieve my goals within two to five properties then I might have not been so rushed building the acquisition of my portfolio I think when you're rushed you make those irrational decisions you know you're under pressure you're frustrated whatever might be going on in the market at that point in time you know if I could have just told myself that I could have waited another year or two gotten into a much better asset and then i would have been much better off

in the long term anyway then i may have just sat back taking my time really assess what i wanted in my portfolio rather than be a lot more aggressive and that's what a sort of a 10 to 20 to 30 30 year strategy can really show you and demonstrate that to you and it's not until you sort of visualize that out in a big picture before you really grasp the impact of things yeah and a really good call my call me mate so for for those who are interested what does a good investment strategy look like yeah i think it's good to the best thing to do is to start with the end goal in mind and then reverse engineer it from there so what is your time horizon you know do we have 30 years to just sit and hold on a good asset you know if the time frame shorter do

we need to be a little bit more aggressive today to be able to achieve those goals and then that's where our sort of risk profile time ties into things. So, you know, can we actually achieve those short-term goals with your current risk profile? And that's why it's so critical to sort of be honest with yourself, be realistic. You know, in my modeling, I sort of use some really rational numbers. You know, I use a 5% growth rate and a 3% rental yield. Don't go out and forecast these things on an 8% compound growth rate and a 6% rental yield. Yes, these things may be achievable in some areas but only in a snapshot of time you know there are market cycles and things that in play but you know get to get involved with a strategy there's a lending

levers that can be played with APRA could step in again like we saw in 2017 and so no one can really predict the future so you know if you can achieve with your goal your goals on those sort of more realistic assumptions anything better than those realistic assumptions is just going to be an added value. And so on the note of not being able to predict into the future, it's so critical that you do revisit your strategy at least every purchase, at least or not sort of every year to sort of update those interest rates and inflation rates and assumptions to be able to impact the calculations and see how you're tracking on your journey. Yeah, no, really good call. So how can property investors develop a good integrated property strategy, Jordan? Well, if you don't

know it already. The game of property is really about the game of finance. So if you can't borrow to leverage into these things, then how can you buy them in the first place? I think first and foremost, it's just about getting the right people in your team. An investment savvy mortgage broker has been essential to building out my portfolio. Alongside of that, you need a property strategist to put this plan together for you. And then it really comes down to your time commitment and how much you love property. If you love researching and doing all that sort of stuff, then you may be able to go at it on your own, or you can look at getting a buyer's agent or something like that. but just note that one really bad purchase could be pretty crucial for your

portfolio long-term, especially if it's the first purchase. So really just having a good team around you. Totally agree. And it's, it's worth building it all on paper first and the whole journey. So you're clear on how that's going to operate and it gives you a roadmap then to know how you're tracking over time. So now really timely reminder there. Thanks Jordan. And thanks for your time on the show today. No worries. I'll speak to you soon Bushy.

thanks mate now if you don't have a detailed property investment strategy and a roadmap on how your properties are going to achieve your life's old goals do yourself a favor and reach out to an independent property strategist like jordan at game plans and make sure that you're enjoying the peace of mind of knowing where you're heading and how to get there because that's priceless in the long-term scheme of things keep watching realty talk your trusted voice for property.