Having built a property portfolio worth close to $10m by the ripe old age of 33, Zah Azmi now dedicates much of his time to helping everyday Australians improve their own financial situation. As a property advisor and CEO of Luxland, Azmi guides clients towards lucrative investment opportunities, and helps educate them on how they too can become property entrepreneurs of the future. He shares some of his insights on property investing here:
YIP: How do you help investors leverage the benefits of investing?
Zah Azmi: We treat property investing like a business rather than a set-and-forget strategy, so we teach entrepreneurial skills in terms of identifying opportunities and good deals, and manufacturing equity and creating cash flow by using property as a vehicle. Buying property is only a small part of the equation. We want to teach people about mindset, focus, preparation, and planning to build wealth through property investment and development.
YIP: What would you say is the most common mistake made by first-time investors?
ZA: Getting emotionally involved is a common mistake; people fall in love with a property and forget that it’s just a business transaction. A lot of first-time property investors focus on the glossy brochures but don’t spend enough time on the important stuff, like the marketplace, the location, where that property sits in its current property cycle, and if that property will perform in the next 10, 20, 30 years. Falling for the glitz and glamour would definitely be the biggest mistake, because at the end of the day you’re paying a price for that.
YIP: What do you look for in a potential investment property?
ZA: First of all, the location, because I believe 80% of a property’s performance is driven by the location and 20% by the property itself. All the better locations hold some sort of scarcity factor as they can no longer produce any more land in those areas.
“Getting emotionally involved is a common mistake; people fall in love with a property and forget it’s just a business transaction”
After that, it’s yield and it’s capital growth projection, and so many factors surround that, such as infrastructure spend and development within the area, jobs growth, education facilities, hospitals, where the property is situated in its current property cycle, and rental demand.
YIP: Are there any major red ﬂags for property investors?
ZA: I would never recommend buying in an area that is dependent on one economic driver, such as a mining town. These areas tend to spike up and down in growth too rapidly and are too volatile to hold in a steady-performing portfolio.
I also wouldn’t buy on a main road because that blocks you in terms of your target market, and I always go for something that has owner-occupier appeal, because the rest of the market is going to buy on emotion, and that’s what’s going to drive up prices at the end of the day.
YIP: How much money do investors need to get started?
ZA: To be honest, it doesn’t take much – it’s more about coming up with that initial finance strategy and teaming up with the right brokers and advisors to get you to where you want to go. It can be anywhere between $50,000 and $100,000, depending on how far your lending can take you. Basically, if you have a job, some savings in the bank and a good work ethic, you are well on your
way to property investment success. Time in the market pays the best dividends, therefore patience is key.
YIP: Do you think it’s a common misconception that you need a lot more money to get started?
ZA: Absolutely – there’s this idea that anyone in property is mega rich and ultra wealthy, but what people don’t understand is that everyday Australians can get into the market if they really want to.
You don’t build a massive portfolio overnight, but it’s quite easy to start with a $350,000 property and build from there. I started with a $340,000 property and worked my way up. It just takes some research, planning, and making sure you have the right team to help you get to where you want to go and achieve your goals. You can do that on a salary of $50,000 a year with a $50,000 deposit.
Luxland Investments is founded, led by Zah Azmi
• Luxland invests carefully, ensuring it doesn’t overleverage
• By this point, Luxland had acquired, developed and managed over 100 properties in Sydney, Central Coast and Newcastle
Luxland sells the majority of its residential stock, valued at over $7m
• This is followed by an acquisition spree of two development sites and a commercial retail space
Luxland is currently establishing a $13m investment program for a commercial and residential complex in Broadmeadow, Newcastle
Between its residential portfolio, developments and commercial assets, Luxland aims to reach a net worth of $50m by 2021
<< Zah Azmi, who started with a $340,000 investment property and worked his way up,
is now helping others to achieve property success.
THE LUXLAND WAY
Stage 1: Property investment
Luxland sources the property and negotiates the best possible price, so investors are able to gain equity from the outset. Legal factors are taken care of and building reports are organised. Luxland then helps to locate a suitable tenant.
Stage 2: Portfolio builder
The client’s current investment portfolio is analysed and Luxland offers assistance with cosmetic or structural renovation and value-adding, such as attaching a granny ﬂat or dividing the land. This allows for more positive cash flow throughout the portfolio.
Stage 3: Boutique development
Stepping it up another level, investors make the transition from property investor to property developer, starting small. Luxland guides the client through the process of sourcing the right site for the right build, and engaging with trusted building teams.
Stage 4: Development partner
The most rewarding stage financially and mentally, Luxland offers clients the ultimate partnership – working side by side with them on major residential developments across Australia.
Luxland is a Sydney based buyer's agent and property development company, specialising in the NSW Central Coast and Newcastle.
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