Blink Property
A lot of people want to get into investing because they think “I should probably accumulate some wealth”.
But apart from a loose idea that property performs well as an asset class, they really aren’t sure what they’re trying to achieve.
You wouldn’t leave the house in the morning without first knowing where you wanted to go and planning the best way to get there, so why would your investment journey be any different? Before you invest, you must ask yourself one critical question “Where do I want this journey to end?”
Why are you investing in property? What do you want to get out of it?
Different investors have different goals. You need to think about what might suit your personal situation, your risk profile and your financial capabilities.
You might want to accumulate 10 investment properties that pay themselves off and create an intergenerational wealth vehicle for your kids, grandkids and beyond, or you might want to create a passive income that allows you to retire from work by a certain age and live off your portfolio.
You need to understand what your ultimate end goal is, so you can work backwards from there and create a roadmap to make it happen. Once you have that roadmap in place, it will help you stay focused.
Your strategy is what goes hand in hand with your goal. Your strategy allows you to navigate the long path towards you goal, until it finally delivers you to your destination.
How are you going to get started? Do you have a certain amount of money you can use to invest? Do you have $100,000 saved? Or are you working two jobs to save a deposit so you can start investing while you rent where you live? Maybe you have some equity available in your family home and want to use that to get into the market without additional outlay.
How can you use starting points like those to springboard onto a path for success?
Will you spend 10 years accumulating property, the next 10 years consolidating your portfolio and the following years getting rid of your debt? Or do you plan to invest in 10 properties, wait until they double in value and then sell five to pay off the others and be left with five unencumbered properties delivering you an income?
There are many strategies that can get you to your end goal, you need to settle on one that you think will work for you.
It’s hard to know what goals and strategies are right for you. You’re not born an expert.
The good news is that you can engage experts to help you. Professionals such as accountants, conveyancers, solicitors, and buyer’s agents can be the difference between success and failure.
These people can help arm you with the education and skills you need to make the right decisions. And many of their fees are deductible come tax time.
When choosing professionals to help you, you should check their track records. Have they been in business for a long time? How many clients have they helped? Do they have examples of success stories that they can share and that you can verify through research?
You can have the perfect investment strategy, but it won’t matter if a bank refuses to lend you the money.
It’s important to get in touch with a mortgage broker who can present you with the loan options and products available to you. When meeting the broker, you must make it clear upfront what you are hoping to achieve with your portfolio. A good broker will help you put a financing strategy in place that ensures you can keep borrowing the money you need.
A broker who is inexperienced with multiple property portfolios or is only focused on the first deal and their commission from the bank may leave you stuck later down the track.
Zinger Finance is a company that specialises in investment and helping people build double-digit portfolios, so reaching out to one of Zinger’s financial strategists would be a good place to start. Zinger’s expert mortgage strategists know financial success is tailored to each individual’s financial position.
