Here are our 7 GOLDEN RULES every property investor must know before they start their journey!
1. Duration of your investment – when making any property investment, experienced investors understand that property must be held for a minimum of 10 years – this approach allows for maximum capital growth & the ability to ride the fluctuations of the economic market.
2. Buy investment properties under $500K – this allows for further expansion of your property portfolio and reduced monthly out of pocket expenses.
3. Buy with smaller deposits – your deposit should ideally be the absolute minimum to purchase a property. Experienced investors understand that any additional money should be used for the sole purpose of acquiring more property.
4. Avoid regional areas – due to risks associated with high vacancy rates.
5. Buy as many properties as you can – the strategy with property investing is to “BUY & HOLD”. You need time in the property market; thus, your goal is to purchase as many investment properties as you can while having a neutrally geared portfolio and then WAIT. If we look at the history of the Australian property market, we know that property purchased in good locations will double every 10 years*.
6. Avoid incorrect finance structures and cross-collaterisation, and ensure your debt is spread across a few banks.
7. Create as many positively cash-flow properties – life is about living, you want to have investment properties that can pay for themselves allowing you to spend money on experiences and things that matter to you.
Our end of financial year offer ends next week. You only need $1,000 to START your property investment journey.