15 Nov Pathways To Wealth
The property investment space has exploded in recent years with countless service providers, each touting their own strategy as the one-size-fits-all approach to success. Paul Wilson, founder of We Find Houses, has taken a different tack – he says the ideal investment strategy will be different for each individual and should be perfectly tailored to suit their specific needs.
YIP: What differentiates We Find Houses from other competitors in the market?
Paul Wilson: We put a substantial amount of time and emphasis into understanding a client’s current financial position, their wants and needs, their goals, time frame, budget, risk profile and criteria, and weigh all this information to create the optimal personalised strategy for each and every individual client.
If we identify that a client isn’t in a financial position to progress, we’ll work with them to create a structured plan for achieving sufficient savings or equity before continuing.
We also ensure they’ve maximised their financial efficiencies and have a wealth protection team in place to help guard their interests, including referrals to specialist taxation accountants, insurance experts, SMSF advisors and quantity surveyors.
SUREFIRE PATHWAYS TO WEALTH
While there are countless investment strategies available to investors, each will fit into one of the three following pathways:
Passive – Following the traditional buy-and-hold strategy, investors acquire properties with the intention of holding them for a minimum of 10–15 years to let them grow in value.
The key to success is ensuring the property makes a positive financial contribution to an investor’s portfolio while they wait for market growth. This allows investors to keep more of their own money, improves their overall financial efficiency, and doesn’t impact after-tax dollars.
Active – Investors pursue ways to alter, improve and add value to their properties through renovation, subdivision or development. The aim is to increase the asset’s value ahead of organic market growth.
Locating and assessing the suitability of properties is vital.
An investor’s financial capacity, skill level and available time will influence the size, scale and viability of potential projects.
Innovative – Dubbed ‘armchair development’, this less common strategy is geared towards investors who may not have sufficient capacity to borrow funds or leverage their available capital into a Passive or Active pathway.
The strategy allows investors to share in developer profits without buying a property and without carrying the commercial risk that is typically associated with property development.
YIP: Is there an ideal investor that WFH is best suited to?
PW: We pride ourselves on being able to work with a diverse mix of investors, from novice to experienced, who are seeking all types of residential and commercial property investment strategies. We provide a real safety net for first-time investors by financially modelling all options to prevent them from making a decision which will move them further away from their ultimate wealth creation goals, and we work hard to ensure they can stay in the market beyond their first purchase.
We also offer coaching and mentoring for investors who want to do it themselves while also having the support and expertise of an accredited advisor.
Then through our buyer’s agency we represent the investor during the entire process. From research to settlement, our agents provide clients with their industry experience, knowledge
and negotiating power to help ensure they make an unemotional and informed purchase.
Ultimately, whatever service best suits the client is what we provide. We want our clients to be comfortable enough to share any concerns and feel confident to ask any questions, as we’re there to be their voice, advocate and mentor in the process.
YIP: Is there one golden rule that every investor should know?
PW: Be clear on the purpose of every investment you make – how will it move you closer to your wealth creation goals? I cannot emphasise strongly enough that affordability alone is not an investment strategy.
There are so many other factors to be considered. Many of these relate to your entry strategy but, at the point of purchase, it’s also vital to identify your exit strategy and understand its impact on the overall performance of your portfolio.
YIP: Would you say an exit strategy is just as important as an entry strategy?
PW: Definitely. It’s so easy for people to get excited about a property when they’re considering the current appeal, but they need to extrapolate that forward and look at how it’s going to affect them when they want to get out of the market.
It may be a hotspot or have high returns right now, but that appeal may not necessarily be present in the future. What if, when it comes to getting out, the market isn’t doing what you’d like it to and you haven’t got the ability to stay in? It’s vital that people give it more focus.
YIP: We Find Houses is committed to educating its clients. Does this help empower your clients to take control of their own wealth creation?
PW: Absolutely, and it’s about more than that. We’re not a dictatorship; we take a collaborative approach. Clients have input and ultimately own the decision. Our role is to open their eyes and help them make a more informed decision.
Through our Pathways to Wealth program, I demonstrate each client’s passive, active and innovative investment options, as there are many different pathways to wealth; there’s no one-size-fits-all solution.
says We Find Houses
is there to be the “voice,
advocate and mentor”
of its clients, from
novice to experienced