Why do some property investors seem to be able to continually add to their property portfolio, whereas most buy a few properties and then can’t go any further? One of the main things that separates the really successful investors from the average investors is the properties they choose to buy.
Firstly, what are the main objectives of property investors? The most common objective is something like this:
“To create a passive income stream to enable me to stop working if I wanted to… to enable me to retire comfortably so I can spend my time doing what I want.”
An ancillary to this primary objective would be to accomplish this without demanding massive risk or huge effort / stress in managing the properties.
Assuming that these are the objectives, then the following are qualities to look for in a superior investment property:
If your property covers all costs of ownership (the main ones being mortgage interest, rates, insurance and maintenance), it is not going to place great financial strain on your existing cashflow.
If you want to grow a substantial portfolio, you can not have properties that place a strain on your cashflow, because that limits how many you can own.
Over time, when rents increase, a property that covers its costs today, will produce a positive cashflow in the future, hence helping to grow your passive income stream.
If the rent looks high compared to the price of the property, but it is located in an area that is unappealing to tenants, you will have periods of vacancy, which equates to periods of sleepless nights, which equates to “I’ve had enough of this property investment game – I’m out!!”…
These frustrations are not what you need if you want to be successful!! If the property is in an area that is always appealing to tenants, you will easily be able to replace tenants when they leave… this amounts to sleeping at night, which we like!!
A fee simple title is the best legal tenure you can get. With this type of property, you are in control of your asset. For example, you can improve it, extend it or alter it, as you please, without consulting with neighbours, Body Corporates (as with apartments) or common leaseholders (as with cross-lease titles), subject to conforming with the local council rules, of course.
This is important because people (including us Kiwis) LOVE control. The more control and flexibility you have, the more control you have over your future and your choices, the more appealing the property is to LOTS of people.
Therefore it will be easier to sell, and more likely to sell at a premium price, when it comes time to sell (including if you need to sell in a hurry, heaven forbid!). And there almost ALWAYS comes a time when you will want to sell.
People do not like things they do not understand. Investors especially like the tried and tested… they don’t want to experiment.
Therefore, to make sure your property will appeal to the broadest range of potential tenants and purchasers in the future, make sure it is built in the traditional way… weatherboards, iron or tiled rooves, bricks… this is what us kiwis feel confortable with.
If it has a 1990s-style monolithic style cladding system, many people will simply not consider it… don’t give yourself this disadvantage when it comes time to sell!!
If you are going to own an asset for a long time, you might as well own one that is most likely to increase in value faster than most… and this comes down to good old supply and demand.
In a decent sized city, with an increasing population, demand for housing is increasing over the medium to long term. But it is much easier to increase the supply of some kinds of housing, than others, in order to meet this increasing demand.
For example, in central or city fringe locations, the supply of apartments and townhouses is likely to increase dramatically in order to satisfy the demand for additional housing in these locations. This eases pressure on price increases (supply increasing to meet demand).
On the other hand, the supply of free-standing houses in these locations, is really not increasing by much – IF AT ALL!! When you have demand increasing, and supply largely static, this tends to produce strong increases in prices.
If you can buy a free-standing property, with a fee simple title, in a high demand location, built using time-tested construction methods, with a strong cashflow (say 7.5-8.0% gross yield or even more if possible), then you are in PROPERTY INVESTMENT HEAVEN!!
Now don’t get me wrong – I never said it was EASY to find these types of properties… and you may have to compromise one or more of these criteria, but if it was easy, EVERYONE WOULD BE RICH!!! And last time I checked, not everyone is rich…
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The production used copy has a printed description beneath the illustration, and is printed on US Legal-sized paper. It is hole-punched at the top, indicating that it would have been held together in sequence with the rest of the storyboard pages. It comes framed (14" x 13.5" x 1") in a custom built display with laser-cut mount board etched with the iconic movie title.
When it’s time to hit the court, chemistry is everything. Help develop teamwork skills with this basketball drill.
The most successful basketball teams are ones that play unselfishly, communicate and always look for the highest percentage shot, regardless of who is taking it. The key is learning how to work together to get the ball in the basket.
You’ve probably heard your coach utter the old cliché “There’s no ‘I’ in team” at one point or another. Well, it’s true. To win, you have to work as a cohesive unit and learn to work together. In order to help make that happen, basketball camp director and college coach Donnie Arey has a drill that’s perfect for the whole team.
To start, place one cone at the top of the key, one in the corner and one in the slot. Have three players line up directly on top of these cones and have two other players lined up beneath the basket on the baseline.
The first player in line underneath the basket begins by throwing the ball to the slot. The player who catches it will cycle it down to the corner and then that player will finish the passing play by directing it to the player at the top of the key. Players should follow their passes, rotating fluidly to the next spot. The last player to receive the ball will perform a one-dribble pull-up jump shot at the elbow of the paint. Keep going through that rotation until your coach tells you to stop.
To add a level of difficulty, introduce a second ball a second ball to pick up the pace. Each player will have to quickly snag their own rebounds and push themselves even faster.
For the final progression, the players will hand the ball off to each other, rather than passing it. They still use two balls; however, it will be more game-like as the pressure builds up. Focus on making clean, fluid handoffs as well as good shots.
The great thing about this drill is that you can do it a number of different ways. Coach Arey suggests making it a competition. To do so, have one team perform the scenario on one side of the court and have the other perform in it on the opposite side. Try to see if your team can beat the others to 10 shots.
By focusing on cohesion, court vision and communication, this drill can help build team chemistry in a fun, high-energy way. Most importantly, it will show your team how to create open shots for each other like clockwork!
Don’t let a defender jam you at the line of scrimmage this season. Learn to improve your acceleration and start each play on the right foot with these tips.
As a wide receiver, one of the most important things you can do is get a good release from the line of scrimmage. Being stymied by a defender can throw you off your route and get you out of sync with your quarterback. But getting a good jump at the start of each play can be the first step in successfully making a catch.
To become more efficient off the snap, professional wide receiver Nelson Agholor recommends a drill designed to work both lateral and linear acceleration.
To get started, you’ll need five plastic cones that can be set up in two vertical columns. The cones will be placed on alternating sides, each one set up vertically a yard apart.
Lining up at the first cone, you want to practice cutting back and forth from one side to the next, which can help work on your lateral and linear movements.
It’s not just about where you’re moving, but how you’re moving, too. You always want to be mindful of your footwork.
“The most important thing you do in this drill is you’re going to sink, but also apply force from the insteps,” Agholor says.
Agholor adds that receivers cutting on the outside of their cleats can tend to slip and fall. Instead, try cutting from the interior of your foot for better traction through the moves.
“You generate force from the inside because you have more control and more parts of your cleats in the ground,” he says.
Looking to become a complete receiver? You’ll likely want to focus on sharpening your route-running skills. Learn more with these tips from Agholor on how to run a good curl route.