Hi, everyone. Salena Kulkarni from Phoenix Wealth Group. In today’s little video I really just wanted to create a video for younger people who are really interested in accessing the property market but may be need to look at using other people’s money.
I’ve been doing a little bit of speaking this year, working with younger people trying to encourage them to get their heads around how accessing the property investment market when they’re younger can actually have massively amplified effects later on in their lives in terms of wealth creation and the freedom to have more choice around the work that they do.
In particular, a lot of people that I’m speaking with are just leaving University, they’re going into the workplace, maybe on not brilliant incomes and certainly if they’re moving out of home they don’t really have a lot of money leftover at the end of every month to save or to look at purchasing a property.
One of the simplest solutions that younger people have is obviously to present a business case to someone who they know that has the money, whether that’s in the form of equity or cash in the bank and sell them on the idea that they would like to invest collectively with their family, friends, parents to kick off their property investment journey.
The main things that I would say to you is you’ve really got to have a strong business case to support the fact that you know what you’re doing. So whether that’s that you’re going to work with the buyer’s agent or property investment advisor or you just are doing the research in order to make sure that you don’t make a mistake. Look at all the risks associated with property investing. You’ve got to be able to articulate or describe how you’re going to mitigate those. You’ve also got to be able to articulate how you’re going to manage the investment, how they’re either going to get their money back or by part of the investment and how to think as well about in the event that the asset grows, how you’re going to split those gains.
I guess the underlying message that I want to share with you today is be sure to treat it as if it were a business venture rather than you going to someone with your hand out saying, “Can you lend me some money?”
I hope that’s really helpful. If you’ve got any questions, by all means, please get in touch. Otherwise, I look forward to connecting with you in the future.
Salena Kulkarni signing off.