Real estate is arguably the most profitable and safest investment strategy to use and there are plenty of people around the world who have become independently wealthy because of real estate investing and this is because everybody needs a roof over their head. In Australia particularly there are more people coming into the country than the amount of residential construction approvals. Do your math, it stands to reason that property prices are going up regardless of what the economists say, sure there will always be downturns in the market but you can ride these if your property investment advice was sound in the first place.
Obviously you will need good property investment advice such as the best place to invest and the amount of money you can afford to borrow and how to utilise property investment tax.
There are many forms of residential property investment strategies out there such as flipping and wholesale real estate investing that you could adopt but just remember your level of outlay and risk. You need to get your sums exactly right when outlaying costs for renovations etc. Know also how much it will cost you to hold the property, in other words how good your cash flow will be needs to be considered but there are ways to be a successful real estate investor and profit from those investments regardless of a down-turn in the economy.
The recommendation is to use someone else’s money such as:
- The most obvious, borrowing from a bank
- Use equity in your own home as leverage.
- Get permission to use other people’s equity to obtain a deposit bond.
- Swap tax for property.
- Set up a trust and use your superannuation fund.
Use your own money to automatically pay extra onto your home mortgage as this is not being tax leveraged and ALSO pay by fortnightly installments this will shave years and thousands of dollars off your loan.
My advice is to keep your job, insure and plan against any adversity, get to know how to budget, keep your head and do not panic.
Should you have any concerns do what all good real estate investors do, go back to the experts and get reassurance and reassess your situation and find out if the market is really as bad as the newspapers are telling you. In fact throw the newspapers out the window. Do not read them, their figures are outdated and fuelled by sensationalism. Keep focused on your real estate investing strategy and as soon as possible add to your portfolio. Investing in rental properties is building on to your long term wealth.
I realize there is a lot of advice out there about buying houses, doing them up to sell quickly or rent and other such strategies but keep in mind the following:
- Doing up houses means outlaying money that you are putting at-risk.
- Houses attract families and children meaning lots of maintenance costs.
- Old and new units near universities, means young heavy handed adults meaning lots of maintenance costs.
- Old units and old houses do not attract good government tax incentives, remember swap tax for property?
New units in trendy areas on the other hand, near entertainment, good restaurants, shopping malls and railway stations and in big cities are always a goer. This is where people are knocking on the doors to rent, don’t leave yourself open to vacant houses, you want new modern units with all the modern conveniences, expensive? Remember don’t focus on the cost of the unit; focus on your cash flow that is what really matters.
Go ahead and use this free property investment advice and set yourself up for the future, retire early. But remember to always seek financial advice before stepping out in any investing venture.
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