Investing in property is a great way to build your wealth. If you play your cards right, you can be quite well off even before you decide to retire. Setting up a strategy is the key to success. Follow our tips below on how to get this started
Follow the success of others
Do your research on people who have successfully built their wealth through investing in property. Read their stories on how they got started. Learn from their mistakes. It’s much easier to follow the path already paved. Learn from the people who have the success you want.
Set your personal goals
Set your long term goals followed by a series of short term goals that act as stepping stones to the major price. Of course, things may change however, having a series of steps to achieve can help you avoid feeling overwhelmed. Always set your short term goals with an achievable timeframe that you can stick to.
Get started saving your initial capital
This is potentially the hardest step as it can feel the slowest. However, don’t despair. Once you save enough for a deposit and you purchase a good property, your money will start working for you. In a few years time you will see how much that initial deposit has grown into a nest egg.
Compound your growth
This is the secret to building real wealth. It might be tempting to sell off an investment to buy a bigger home and go on a holiday.
However, selling off an investment to buy two more can mean in a few years time, you will be on holiday all the time.
Mix up between cash flow properties and growth properties
Take some time to learn more about the property market. Become educated on trends in suburbs as well as trends in interest rates. Diversify your portfolio between investing in property that gives you a positive cash flow and properties that are located in areas of large capital growth.
Focus on what is working now toward your long term goals
Perhaps you are testing other investment options like shares. While it’s great to diversity, sometimes it’s also best to stick with what
works and what you know. Shares do offer a quicker turnaround but the risks can be high. Keeping your mind set on the property market means you’ll learn more, get better at reading the trends, and as such make better decisions towards achieving your long term goals.