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How to Build a Property Portfolio? 

When you look at the Australian property market there is no doubt that the value, It is a foundation that has appeared solid as prices have risen strongly over the past five years in the two biggest property markets which are Sydney and Melbourne. 

Anyone can get into property investing… and you don’t need a big salary. $50K to start, whether cash or equity, is the minimum you need. If you are looking for simple pointers on the What, When, Where, How and Whys of positive cashflow property investing, we have a quick guide on building a property portfolio below.

 

Why Property Investing?

1. Leverage – Using equity to reinvest

2. Volatility vs the share market
3. Control – Opportunity to add value to your investment
4. Risk – You can manage the risk 
5. Income stream
6. Setting Goals
7. What income would you like to produce – E.g for property to deliver an annual income of $150K the time frame of about 10 years.  How much can you put towards investing each week? Consider as little as  $50 per week. Beginning with creating a plan that can be set up in  two stages: Acquisition Phase & Consolidation Phase. 

How to get started? 

  1. Knowledge is the greatest power that you will have, so get educated! Learn from & follow successful people. Surround yourself with like-minded positive people. If you don’t have any in your support team,  build the team- make sure all members of your team are personally involved in property investing. Then ensure that you Save  about $50K in cash or equity.
  2. Buyers agent – if you don’t have the time, knowledge or access to industry contacts. Also helps with accountability.
  3. Mortgage broker
  4. Accountant
  5. Solicitor / Conveyancer
  6. Financial Planner 

The Process 

Identify emerging suburbs with good fundamentals – Good Yield in Good Areas. Obtain quick capital growth to recycle deposits Investing is about minimising risk and maximising returns. Buying investment properties is a financial decision, not an emotional decision. These pointers on building a property portfolio were helpfully provided by Glenn Newbery, from Right Property Group. If you are seriously thinking about getting into property investing and want more information, don’t hesitate to contact Glenn. He is very approachable and always happy to have a chat. Glenn recommended reading From 0 to 130 properties in 3.5 years, written by Steve McKnight.

 

Right Property Group also run information sessions at Rydes in Parramatta – which will most definitely help with building your knowledge and potentially support team.

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