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Meet Josh Masters… the investment property expert, author of Why Property Why Now and director of the buyers agency BuySide.
In this interview Josh talks about the property he bought when he was 22 which tripled in value and kick-started his entrepreneurial career.
We also learn about Josh’s second path into investing which came from a career in interior design and undertaking luxury home renovations.
Now Josh runs BuySide (www.buyside.com.au) which assists clients purchasing investment properties across Australia generally with the view to achieving maximum long term capital growth.
The investment Josh shares with Soldier Tom is of a family home 6km from Brisbane CBD which he recently purchased for $225k below the initial ask and now rents with a 7% gross yield. It is a great story of how investment properties can be bought well in interstate markets.
Josh offers the following contribution to Soldier Tom’s set of rules/criteria we are developing for successful property investing:
Don’t compete against too many owner occupiers when buying.
This is an easy to listen to 10 minute interview… thanks for tuning in and enjoy!
Here are the key takeaways from Josh’s story:
Owner occupiers are emotional buyers and will often pay “whatever it takes” to secure the property they want to live in. When competing against these buyers, investors can easily overpay, so they must be careful.
Owner occupiers can be turned off certain properties for illogical reasons. In this example the property had been on the market for a extended period, so (shallowly) a number of owner occupiers assumed something was wrong with the property, and they didn’t see the benefit of having a granny flat either — so demand for the property was reduced as there was less owner occupier interest.
For an investor though the granny flat presented an opportunity for higher rental income and eventually the desperation of the vendor meant the property could be purchased at a significant discount.
Don’t compete against too many owner occupiers when buying.
*** It is important to note that because owner occupiers are emotional buyers having a property with high owner occupier appeal can be highly advantageous if/when it ever comes time to sell. We could go further into ways investors can add value to their properties by increasing owner occupier appeal but that is a big topic in itself and will be covered separately another time.
Josh’s book Why Property Why Now outlines how financial goals can be achieved through property. His premise is that the currency of time is extremely valuable and that the right investment strategy can provide people with more time to do the things they want to do.
An electronic copy of Why Property Why Now can be downloaded for free via the BuySide website (click here), otherwise a hard copy is available via this link at Amazon.
Feel free to post any comments or questions via the reply box below.
