Mastering Property Investment Guide

By June Ramli

Western Australia’s property expert, Damian Collins, has compiled 30 years of expertise into a new resource aimed at both budding and seasoned investors seeking to enhance their wealth.
His book, titled Property Investing Roadmap: How to Build an Income from Property for Life, offers a comprehensive guide filled with proven strategies and insights for successful investing in both residential and commercial real estate.
The book encapsulates lessons from his career, including his role at the helm of two market-leading investment firms, and offers an in-depth exploration of the benefits of maintaining a balanced portfolio. Collins, who has built a multi-million-dollar portfolio himself, is the founder and managing director of MW Group, which includes the leading buyers’ agency and property investment advisory Momentum Wealth and the residential and commercial investment company, Westbridge Funds Management.
A chartered accountant by profession, Collins has unparalleled property investment credentials in Western Australia. He aimed to demystify property investment in his book by adopting a no-nonsense, easy-to-follow approach, making property investment more accessible and demonstrating that success doesn’t solely depend on high income.
Unlike other real estate books that focus solely on residential or commercial properties, Property Investing Roadmap illustrates how these asset classes can be integrated effectively to achieve wealth and income objectives throughout the investment journey, emphasizing their essential roles in a balanced property portfolio.
Tailored for investors at all stages, from novices to veterans, the book delivers actionable advice on topics such as starting with your first property purchase, building a portfolio, identifying smart investment opportunities, financing and cash flow management, incorporating commercial property into your portfolio, research and planning for a model portfolio, tax strategies and legal considerations, exploring property development opportunities, and achieving financial freedom.
Collins, a passionate industry advocate and respected authority, is frequently sought for commentary on property investment. His insights have been featured across various media including Australian Property Investor Magazine, The West Australian, Business News, and the Australian Property Journal, in addition to appearances on property investment podcasts and commercial broadcast media.
Property Investing Roadmap will be released in paperback on May 15, 2024, and will be available nationwide on platforms such as Amazon, Booktopia, and Audible.
Here is a Q&A with the author, where Collins shares more insights from his extensive experience in property investment:

In your book, do you address the issue of underwater properties where the mortgage exceeds the property value? What strategies do you recommend for handling such situations?

No, the book doesn’t cover this topic. In the book, property investment is recommended as a long term investment and in the long run prices have historically risen substantially and therefore negative equity is a low probability occurrence. Even if your property goes backwards in value in the short run, which is always possible, the bank usually does not ask for additional top up payments, so as long as you are meeting the repayments, you will have no financial issues.

For single women looking to sell their property, what advice can you offer to ensure they get a fair deal and are not taken advantage of?

It is important to approach investment and any negotiations with confidence and knowledge. Empowerment comes through education and I advocate for using professional guidance to protect sellers’ interests and prevent anyone from getting taken advantage of. Any seller should consider a few real estate agents and interview them and seek their market value opinions before selecting an agent.
You should also do some homework yourself. Check out recent sales in your area to ensure you have a good understanding of the market value of similar properties.
Having a mentor can help – it can be extremely helpful to speak with someone who has already walked the walk.

What are the benefits and drawbacks of holding property investments in a trust versus individual ownership? Which do you recommend for long-term property investors?

There isn’t a one-size-fits all structure and what is most suitable depends on individual circumstances. I recommend speaking to your accountant regarding the structure you use when it comes to investing in the name of a trust or individual ownership.
The advice in my book provides generalised strategic advice on how seasoned investors can look for structures that will deliver tax savings plus legal protection. It covers the pros and cons of the variety of investment structures.

What is your stance on international investors in the local property market? Should there be more flexibility to encourage their participation, or do you believe in stricter regulations?

International investors bring significant economic benefits to the local property market, stimulating growth and infrastructure development. It is always a good idea to closely examine foreign investment in Australia, but it can be sensible to encourage foreign investment (or at least not discourage it) to relieve pressure on Australians finding a home.
Foreign investors are only able to buy new residential property across Australia. Therefore, foreign investment is aimed at bringing on new supply to the market. Much of it will be rented to local Australians. At a time when we have a severe housing shortage, we should be welcoming foreign investment which will increase our housing supply.

In “Property Investing Roadmap,” how do you advise investors to approach market fluctuations and economic downturns?

I advise first and foremost that investors take the time to understand their risk profile. Your tolerance for risk will help to determine the type of properties that are suited to you as an investor.
A tolerance for risk and ability to handle fluctuations in market conditions will depend heavily on your cash flow security and your financial situation.
Throughout the book, I give examples that may help you determine how you really feel about risk and what your investor risk appetite looks like.
Once you understand your relationship with risk, the book then provides a roadmap – providing guidance on how you can start to map out a property strategy that balances both your objectives and needs as an investor.
From there, you will start to build your own unique ‘investor profile’ which can go a long way in assisting you in deciding which properties may be best suited to your goals in real estate.
None of us know for sure what lies ahead. That said, we will tend to set goals for ourselves even if only in the broadest sense. Your future plans, no matter how vague, should definitely be reflected in your property strategy.
Over the journey of property investment, you will certainly see market fluctuations and downturns. Understanding your risk profile, setting in place financial buffers for the downturns and choosing high quality properties will see you through those challenging markets.

What are the most common mistakes you’ve observed among new property investors, and how does your book help them avoid these pitfalls?

I encourage new investors to create your own personal action plan – you should never assume that investment strategies are a one-size-fits-all approach.
My book provides a comprehensive guide to new property investors with advice detailing how they can create and determine their own personal action plan and then how they can utilize that to develop a property strategy that’s unique to them and their financial situation, long term goals and appetite for risk.
Above all, it is also crucial that new property investors realise they do not have to figure this all out on their own. Investors almost always benefit from a team of professionals to help them build a substantial property portfolio.

Could you elaborate on the role of technology in modern property investing, as discussed in your book? How can investors leverage tech tools to enhance their decision-making and profitability?

There is substantially more information available to investors today than there was 5, 10 or 20 years ago.
Sales transactions, estimated market values and lots of other real estate data are available at the touch of a button, so an investor can much more easily understand current market conditions.
However what is critical to investment is predicting the locations and the properties that will outperform the market in the future. Even a small percentage outperformance each year will add up to potentially hundreds of thousands of dollars in the long run.
There’s no easy data tools to help with this. Investors will need to analyse demand in a location and what’s likely to drive demand in the future. It’s also about how much supply might come into that market. Investors don’t have to do it all alone. In the book I discuss which professionals may be helpful for investors in finding the best investments for them.

In your experience, what are the key factors to consider when choosing between residential and commercial property investments?

The best property portfolio is determined by an individual’s personal circumstances. The book covers residential and commercial investing, however more is dedicated to residential property investing, as this is a great spot to begin a property investment journey.
Commercial property investments tend to be more sophisticated yet are crucial to develop a higher-yielding property portfolio. This is essential for those seeking a higher income from their property investments.
My general philosophy, which is discussed in the book, is that residential property investment is a great place to start investing, buy commercial property investing is where you want to end in retirement, as it produces better cash flow returns to support you. The book discusses a model portfolio strategy, which is a balance of residential, commercial and development property.

How does your book help readers identify red flags and avoid investing in dud properties?

The book covers in detail what makes a great residential property investment and what makes a great commercial property investment and how to avoid dud properties. Ultimately it comes down to lots of research and relying on trusted professional advisers to help you sort out good independent information from some of the biased information that is out there in the marketplace.