Jathu Srikanthan is focused on sourcing investment properties nationwide with his Property Framework Buyers Agency. He offers a data-driven approach in areas where demand is exceeding supply, which allows him to stand out on the market.
Due to his expertise and experience, he has been featured in investor-focused magazines such as Smart Property Investment and Your Investment Property magazine as an expert contributor.
This year, Jathu has sourced several properties in areas that are rapidly growing in value and where clients will see at least 20-30% growth over the next few years. Some of these properties were purchased at least 10-20K under market value making instant equity for the client.
Jathu accomplished that through building agent relationships in the areas, where he was purchasing, giving clients an advantage. His overall goal is to help people build wealth through property investing and provide massive value to each client he serves.
For more information on Property Framework Buyers Agency, visit their website here.
Here we sit down with Jathu to get some valuable insights and advice about how to build wealth with property investing.
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Table of Contents
What core principle do you follow when investing in property markets, and how has it contributed to your success?
Jathu: The core principle we follow is to purchase the correct asset in the correct location at the correct time. The correct time is probably the most crucial aspect of them all. You can enter a market at the correct time by closely monitoring the data trends associated with that market.
For a beginner investor, what approach would you recommend when building a property portfolio?
Jathu: Here’s what I advise beginners to do when they’re trying to build their property portfolio from scratch:
- Have a clear goal.
- During the early stages focus on capital growth properties without compromising on cash flow.
- Build a strong team around you which includes a mortgage broker, accountant and a buyer’s agent who understands the game of property investment.
- Look to buy under different structures to expand the portfolio (SMSF’s/Trusts).
Why do you believe now is a good time to enter the property market?
Jathu: Overseas migration into Australia is going to be really strong over the next couple of years. There is a dwelling shortage all around Australia due to issues in the construction industry and developers not taking on more projects due to the lack of profits. This is creating pressure in the housing market and placing upward pressure on prices in certain parts of the country.
Should investors buy in a capital city or regional markets?
Jathu: It does not really matter whether it is a capital city market or regional market as long as it has the fundamentals in place to provide solid returns on investment over the short, medium and long term. Investors should select the market based on their budget and what they are looking to achieve through the purchase.
When assessing an area for investment, what factors do you consider?
Jathu: Well, it depends.
On a macro level, I consider factors such as:
- Presence of a diversified economy
- Infrastructure projects planned
- Population growth (demand) in an area relative to dwelling supply
On a micro level, I focus on:
- Suburb affordability
- Current supply-demand metrics
Past 10-year growth performance relative to the historical average growth of the suburb
What are some of the most common mistakes you’ve seen investors make, and how can they be avoided?
Jathu: Some of the common pitfalls are:
- Buying the wrong asset type (e.g. apartments). Typically houses provide better appreciation over the long run, so that’s what I recommend.
- Buying into a market when it has peaked. Investors should understand the stage at which each market is in its growth cycle and only get into markets that have just started or are midway through a growth wave.
- Looking at properties only in their backyard instead of taking a nationwide approach. Interstate markets may provide much better returns on investment concerning growth and rental yields and investors should not miss out on this opportunity.
- Listening to advice from friends who may not have much knowledge when it comes to investing. While they may have your best interests at heart, investors should only make decisions backed by numbers, trends and statistics.
Property Framework Buyers Agency provides investors with a tailor-made road map to help them reach their goals. With a data-driven approach, strong relationships with agents in areas of purchase, and a deep understanding of what works, Jathu and his team enable clients to reach investment goals faster and they guarantee capital growth in the selected locations over the next 3 years.
If you’d like to stay up to date with Jathu Srikanthan and Property Framework Buyers Agency, visit their website or connect with them on Instagram, Facebook, or LinkedIn.
Jerome Knyszewski, VIP Contributor to ValiantCEO and the host of this interview would like to thank Jathu Srikanthan for taking the time to do this interview and share his knowledge and experience with our readers.
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