How to Build your Property Portfolio and Still Sleep at Night
Congratulations on wanting to learn how to grow your asset base quickly and safely.
At AssetZ we want to show our clients how you build your property portfolio and still sleep comfortably at night.
This means building a multimillion dollar portfolio without having to worry about where the money is going to come from should there be a small emergency , for example the hot water service breaks down.
The key to becoming a successful property investor is being able to hold the asset over a period of time to allow it to grow in capital growth. We want to ensure all our clients are in a position where they can do this and benefit from a more secure financial future.
Where most property investors go wrong is they only purchase a property and that is it, what you need to do is purchase the property and purchase time.
This is a strategy AssetZ teaches their clients and this is the strategy that allows our clients the security of knowing they have protection on their side.
Now what do we mean when we say you need to buy time?
If a property costs you $350,000 plus$15,000 in stamp duty and fees your total costs are $365,000. Cost is $365,000 to buy the property but remember you also want to be a successful investor and buy time, we would recommend you have a minimum period of 2 years time buffer. This is 2yrs worth of the expected holding cost of the property.
Let us say the holding costs after rental income and tax rebate back is $5,000 per year, this would mean if you wanted 2 years worth of time protection you would need to have access to $10,000 ( 2x $5,000) in available funds or in a line of credit.
This is a very basic principle yet one where the majority of property investors do not follow. The amount of time you buy with each property depends on the individuals comfort level, some people may want 5 years as a buffer period, the important thing is to buy time when you purchase your property.
On average an investment property will become positive geared (income is greater that outgoings) within 3 to 5 Yrs.
As the time buffer is very much tied to the individuals comfort level AssetZ will tailor the strategy to ensure we meet the client’s needs.
Once the appropriate buffer has been determined along with the individual’s budget and risk appetite, an individual strategy is implemented that identifies the right investment property. Ongoing assistance, advice and direct one on one attention is given to each client on how to fund the holding cost of the new property without using any of their own income.
This allows you to build your property portfolio without affecting your day to day cash flow.
So remember, when you buy your next investment property do not forget to buy time with it.
If you need help with this please
Any advice provided in this publication should be considered General Advice as it does not take into account your personal needs and objectives or your financial circumstances. You should therefore consider these matters yourself before deciding whether the advice is appropriate for you and whether you should act upon it.