*HOW TO JOIN THE 1%*
Just 8.7% of Australians own 1 investment property and 0.8% of these people own 6 or more, so what’s stopping individuals from reaching a large portfolio? and how can I reach the top 1 percent of investors?
BUY POSITIVELY GEARED PROPERTIES
If you want to scale to a large property portfolio and do not earn a large income from your day job, purchasing positively cash flowed properties will ensure your serviceability is not impacted when refinancing and jumping from property to property. As the rental income will be added to your household income when being assessed for a investment loan it’s extremely important keep your overall portfolio cashflow positive.
YOU NEED TO PURCHASE WELL IN THE BEGINNING
The individuals you see with large portfolios of 6,7 or 10 properties did not save for every deposit on those properties, they buy in good growth pockets with cash flows that will enable them to hold without financial stress and the equity gain from those properties will be released to fund the next properties deposit.
This is way it’s so important to purchase well performing assets early on in your property portfolio journey so you can speed up portfolio building stage without having to continually save deposits.
USE A INVESTMENT SAVVY MORTGAGE BROKER
Many investors go to refinance their property or apply for a investment property loan and don’t receive as much as they thought they’d be able to assess. A investment savvy mortgage broker will be able to look around with all the 1st,2nd and 3rd tier lenders to find you a lender suitable for your individual situation. They will understand what is needed for your next property and how it will impact future properties in your portfolio. You need to keep pursuing with other lenders because every lender is different and the right loan is always out there.
PURCHASE PROPERTIES UNDER MARKET VALUE
Purchasing under market value will ensure you buy into equity and are able to acquire equity quickly. Although this is easy said then done, using a buyers agent can give you assess to properties where owners need the sale and can give price discounts. They will also have access to pre,post,off and all current market stock. And with their real estate relationships they will have a negotiating advantage which can snag you investment properties with equity ready to be made at purchase.
The reason individuals don’t reach financial freedom or real wealth through property is lack of CASHFLOW and EQUITY, so create a team of professionals and get the process right in the starting stages of your journey to give you every chance of joining the top 1% club!