You’ve probably heard of the snowball effect – when one small thing builds upon itself to rapidly form something much bigger.  Well, the same principle applies when it comes to growing a successful investment portfolio. It’s called equity.

But it can be tricky knowing how, when, and what to do to get that ball rolling.  And when we hear tales of only a select few having mastered it, it leaves the rest of us wondering if we’ll ever achieve that kind of success.  Most people are lucky to own even one investment property, let alone a whole huddle.

So, here are a few insider tips that can help shift your thinking and have you investing like a pro.

 

1.  Stay below market value

Buying at market value is a rookie mistake. Look for cheaper options to start building your equity asap.

 

2.  Buy at the right time    

Getting your timing right is everything.  The ideal time to buy is when a declining market is just starting to rise again.

 

3.  Don’t cross collateralise

Reduce risk by only having one loan with a lender at any one time.

 

4.  Put in lots of offers

Just keep putting in the offer – no matter how outrageous it sounds.

 

5.  Watch for tax, interest, and legal changes

Keep an eye on the big picture to stay ahead of the game.

 

6.  Hunt for those 95% loans

You’ll need a good credit score for this one, but it offers you the chance to make a smaller deposit.  i.e. secure more property faster.

 

7.  Use interest-only loans

Make better use of your income by lowering your repayments and maximising your tax deductions.

 

8.  Get a mortgage broker

A good one!  When things get tricky, or you simply don’t know what you’re doing, a broker can help you navigate to grow your portfolio faster.

 

9.  Get property revalued

Every time your property goes up in value – you have more equity to play with.  If you neglect this step, you can miss out on fantastic opportunities.

 

10.  Value up with renos

By adding value to your property, you can gain even more equity much faster.  Renovations are a great way to do this.

 

11.  Create positive cashflow

The money you receive from your investment property should outweigh its expenses.  You can use this surplus to better service your existing properties to create more equity.

 

12.  Look after your tenants

Your tenants are your cashflow. So, fix stuff when it needs doing, and the property will maintain its value.  Plus, your tenants will stick around.

 

If you’re still looking to get a foot in the door, but your finances are just too tight, it’s time to talk to us.  We’ve got a strategy that gets you in the game sooner, for far less upfront capital.  Amazing, right?

Remember – to stand still requires nothing. But to move forward, that first step is everything.