Own 6-8 Properties in 10 years? Here’s Some Tips on Where to Start
Is one of your goals to own multiple income producing properties but you are cautious of how or where to start? This covers 73% of the marketplace when it comes to entering OR growing their investment property portfolio.
Investing in property is a huge financial and personal decision and that’s why it's important you make wise and calculated decisions during this journey. Getting it wrong can result in extreme financial pressure and emotional stresses, whilst on the other hand sitting back and doing nothing to build your retirement nest could potentially render issues further down the line, as your super runs out. There is no secret that property is a great vehicle for income into retirement, if done correctly.
Expanding your property portfolio renders exceptional benefits enabling you to unlock and build real long-term wealth in the future Here are some tips from Ewan Ramsey, Director of Ramsey Property Wealth, on how do you get started. Having built a personal property portfolio worth over 5.5mil in 5 years Ewan’s wealth of knowledge and passion for getting his customers ahead is second to none.
1. Know Your Numbers
The first step in building any property investment portfolio is to know your numbers, get to know your borrowing capacity, how much you could potentially lend, what impact this additional borrowing will have on your monthly budget, how much money would you need to contribute from your hard earned savings? Should I purchase property in my personal name or family trust? And what impact will this have on the amount of tax I have to pay?
All of these critical questions require thorough investigation and questions you should know the answers to, prior to looking at property, as it can be a very expensive mistake to undo if you get this process wrong.
2. Develop, Implement & Regularly Review your Strategy
Once you know your numbers, the next step is to develop your investment strategy, But what strategy is the correct one? Negative or positive geared, passive vs active income. Which one is best? New or established properties? House & land vs apartments? When is the right time to buy and what should I buy when? All of these are valid questions that need to be fully explored and planned out. Building long term wealth in property requires you have a thoroughly thought out long-term plan that you are going to implement, but, like a car, needs regular tweaking to ensure it is running at its best at all times.
3. Get the right team on your side
As important as the previous points are; The success of any long investment property portfolio depends on you having the right Advisors to guide through every step of the process. Your team should include an exceptional MORTGAGE BROKER, QUALIFIED PROPERTY ADVISOR, TAX ACCOUNTANT, FINANCIAL PLANNER AND PROPERTY MANGER. They should have one thing on their mind … your financial wellbeing and best interest at all times. They should all be working in unison for you to achieve your property portfolio goals.
Avoid bad situations, discounted distractions and bad advice from Consultants that you feel may not working in your best interests and switch to an awarded, client reviewed business KNOWN for property advice. There are plenty of ‘professionals’ out there that claim they know strategy, or know someone who has, but do your research as the wrong advice is also costly.
Summarising all of the key points above:
As property is the most expensive outlay you will have to pay in your life, teaming up with a Property Wealth Strategist to build you a personalised long-term, step by step plan based on your goals and financial/personal situation and optimising this intermittently to plan for the next best move is a service that can take the pain and uncertainty out of a rather complex property journey and set you up for success.
This is our sole goal when it comes to our clients, paving the way for a long term relationship as we grow your income generating property portfolio together.