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Helpful Tips Concept

We wanted to go through some ‘myths’ and “realities” people have about building investment property portfolios. These stop people from progressing with their financial futures.

Myth #1: Choose Property First and Think of Finance Later

For every time we had a dollar where people said – “where should I buy my investment property?” well before they even thought of the strategy aspect – both finance & investment selection.

This alone stops people from moving forward beyond the first investment property. That’s because they aren’t thinking for the long term. They don’t have a ‘step by step’ strategy laid out to enable this first property and beyond.

Remember the Australian Taxation Office (ATO) 2015-2016 stats released in April 2018 that we shared, revealed 71% of all property investors (2 million) own only 1 investment property.

That’s because that’s they are never thinking about strategy. And it’s not their fault. No one has shown them step by step to build out a strong property portfolio.

Myth #2: I can go to any bank and build my investment property portfolio

There is a myth that all banks are equal and the only differentiating factor is the interest rate. WRONG :). Different banks have different niches.

What about…

  1. How much equity can you pull from your existing property?
  2. What about valuation shopping? For example, we just ordered 4 valuations for a client’s property – which ranged from $740k to $770k! This could mean usable equity ranging from $33k to $57k!!
  3. Will your existing lender allow you to pull maximum equity to move forward with your portfolio?
  4. Are you choosing the most flexible finance set up to pay off your home AND build a property portfolio?
  5. How should you structure your home finance versus investment property finance?
  6. Are you managing risk well while you progress?
  7. Can you purchase 1 investment or 2 or 3 or more with your current resources?
  8.  

ALL This is STRATEGY!

A tailored ‘step by step’ strategy with actionable steps helps you maximise YOUR potential – whether that’s 1 property, or 2 or 3 or 5 – you need to get this mapped out upfront.


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Note: Please ensure you always seek specific specific credit, tax, financial, legal or investment advice. Property Twins' Blogs are not a substitute for personal and specific, taxation, financial, legal or investment advice

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