Building your portfolio from scratch
Post on: 19 Апрель, 2015 No Comment
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Why do some property investors seem to get ahead so much faster than others? It’s simple really and it all comes back to your overall structure, investment strategy and your ability to act. Keeping your long term goals in mind is most important so planning how you are going to get there is where you start. Know how many properties you will require and your exit plan, will they be purchased for cash flow today or capital gain in the future, will they be tax effective purchases, will you do a property or two in a self-managed super fund, will you sell some and hold some to live off. You need to know these plans at the beginning.
Firstly ensure your goal is set, where do you need to be for your retirement, where do you want to be and what do you need to do to get there? Once you’ve established your needs it’s time to look at how you can optimize your finance structure to pay down your home mortgage faster and find out what investment strategy you can be involved in.
Remember, property across Australia traditionally has increased on average per annum by 7-9% for the past 40 years. This means that your properties will be building equity over time. So this coupled with good debt reduction on the principal of your home loan to increase equity and reduce future mortgage payments is ideal for boosting growth and opening up future opportunities for your investment portfolio.
When you’ve established your suitable finances it comes back to sticking to your goals and continually looking for the best properties available to maintain growth across your portfolio and in time for your retirement. Ensuring the research is done correctly and the properties you purchase are at the beginning of a growth phase. Relying on the opinions of websites is simply not enough to make a clear and confident decision, however professional researchers who spend time in the field looking at land, developments, estates, build quality and have experience in making rational and logical decisions about where is best to invest are a vital addition to your decisions.
Having a team of professionals working to ensure that your investment strategy is fulfilled is integral to the success of your portfolio. But more than that it’s important that you become an educated investor yourself and ask for assistance from those with experience and professionalism.