While there are about two million investors in Australia, about 75 per cent of them own just one investment property.
What made the other 25 per cent confident enough to increase their property portfolio beyond one?
Firstly, they began their investment journey the right way by selecting the right investment property first time round – an investment grade property in the right area at the right price, which increased in value, gave them another deposit, and got them back in the market.
Secondly, they understood their financial situation.
Thirdly, they researched every aspect of property investing – from what drives price growth, knowing how and where to do due diligence, to economic trends and property cycles. They found the right property experts to help them achieve their property goals. They immersed themselves in real estate until they really understood that buying an investment property was different to buying a home, the latter being emotion-fuelled while the former needs to be devoid of emotion.
Fourthly, they treated property investment like a business and asked the tough questions, like when will this property make me money? Where is the next deposit coming from? How much will I need?
Fifthly, they began with a written business plan for property investment, which included overall financial goals as well as personal goals.
Then they were prepared to continually reassess their situation and shift an underperforming property if necessary. While the buy and hold long-term strategy is incredibly sound, sometimes a property just must be sold if it has become a financial millstone.
Would you like to increase your property portfolio?
Talk with your property manager, real estate sales specialists and finance broker, and take advantage of the investment opportunities in the market.