Our role is to navigate our clients safely and successfully through the complex world that is wealth building. For some, this means starting with improved budgeting, savings plans and mortgage reduction strategies. For others, it’s helping them break down the barriers, both financial and emotional, that prevent them from taking the first step.
Here are 3 things you need to get right to be a successful property investor:
1. Income
When you invest in property you will receive two streams of income.
Rent Tax benefits
These amounts will differ greatly depending on the type of property and often people get it wrong. Before investing you need to establish whether these two streams of income will actually cover all costs associated with the property. If you have money left over every week it could improve your lifestyle or help you pay down your home loan quicker.
** Avoid traps** Wondering how to avoid falling in to the traps most investors make? Would you like to know how to avoid losing money and putting yourself at risk when buying a property as an investment? Learn more Here.
2. Get The Lending Right
Avoid Cross Collateralisation
The bank uses your home or another investment property to secure a new loan for your next property. You know you have this structure if the loan to buy a new property is larger than the value of the property being purchased. In the majority of cases there is no need for banks to take two properties as security. Even worse, many people are unaware that the bank has cross-collateralised their properties and it can prevent them accessing further equity in the future.
Structure Is The Most Important Thing
The single most important component of obtaining finance is not which bank, it’s not about the interest rate and it’s not the package the bank is willing to give you. The most important factor when considering borrowing to purchase investment properties and building a portfolio is all about the structure.
The right structure in place from day one ensures you can keep borrowing and building your portfolio, particularly as you will need to invest in more than one property to achieve your long-term goals.
Purchase The Right Property
Property investment, regardless of your level of experience, requires a commitment and skill that can only be acquired through research, experience, astute judgement and a willing financial institution. Get any one of those factors slightly wrong and the chances of obtaining the sought-after returns can be dramatically compromised.
Having been in the investment space for many, many years we know what to look for and help our clients overcome the numerous obstacles that can arise through property investing.
3.Working With A Strategic Team
If We Could Show You A Way To
1. Pay down and eliminate your home loan years earlier
2. Find more cashflow in your existing pay cheque, without sacrificing your lifestyle
3. Give the tax-man a big pay cut (100% legally)
4.Fund your first (or next) investment property with the extra cash you’ve gained at the banks’ and the tax-man’s expense
5. Build a portfolio of 3+ properties that will set you up in retirement
…Would You Spend An Hour With Us To Learn How?
If you answered yes, we look forward to hearing from you on 08 6323 2306. Check out our blogs for more info or watch a helpful video and see a whiteboard training session where Wade Curtis explains how you can generate two rental incomes from one property using “Dual Key Occupancy Property”. Watch Here.
