How to build a multi property portfolio
72 per cent of investors only own one property in Australia. This represents a lost opportunity considering the best way to unlock the financial benefits of investing in property is to own multiple assets. The key to building a strong portfolio is tapping into your equity, which can be converted into cash for deposits for future investments. But starting this process can be overwhelming, often discouraging investors to continue with their original goals.
So what steps can you take to maximise your property portfolio?
1) Identify your objectives and begin planning
Objectives and goals will vary amongst investors depending on their goals, income, and resources available to them. The one thing that all successful investors have in common, however, is planning. Planning is key to growing a strong and economical portfolio and will help investors move beyond owning a single property, to a multiple property portfolio.
2) Do your research
There is a lot of commentary about the property market bubble and whether or not it will burst. Either way, focus on locations that will make good, long-term investments, rather than what might occur over the next six months. Examine economic and property trends in different markets, read and seek advice, attend seminars – make the most of all resources available to you.
Furthermore, it is important to seek financial advice from professionals who specialise in structuring loans for multiple property investors. With their advice, you can also consider the benefits of an offset account, using your SMSF to purchase property, and how to maximise the equity from your home to invest. Knowing your options will help you make informed decisions to achieve your property goals.
3) Reassess
Once you’ve purchased an investment property, continual monitoring of the economy, interest rates, property trends and changes in legislation will help you to continue to maximise tax benefits and cash flow. Reassessing your financial situation periodically is critical to ensure that your assets are working for you to their full potential.
4) Diversify
As your portfolio continues to grow, the power of diversification will become more prevalent. Diversifying the properties you invest in will minimise the risk and potential effects if the property market should change. Find out more about diversifying your property portfolio.
Growing your property portfolio doesn’t need to be a arduous task. Invest in a knowledgeable team of experts to help you achieve your goals.
Contact CPS Property to discuss expanding your property portfolio today.
