9 Tips For Building A Great Portfolio

Did you know only that less than 1% of the Australian population owns more than 6 properties? It seems to confirm that only the dedicated few are striking while the iron is hot and acquiring the right properties based on a sound purchasing strategy. Taking action in a timely manner and becoming a part of that exclusive 1% is possible by following our 9 tips for building a great portfolio.

Always buy below market value.

Build a low risk portfolio by locking in profits from day one and buy more properties sooner.

Target properties with room for improvement and capital growth prospects.

Search areas wherewith new infrastructure, gentrification prospectsprojects, major chain stores arising, openings and other specific growth activities areactivity planned.

Value-add to properties if possible.

Analyse potential gains before undergoing your any renovation plans and ensure you use a professional renovation team like My Trades People to undertake the work.

Understand opportunity costs.

Developments, sub divisions and extensions may seem like a good idea on the surface, but they can add an element of risk. Take time to understand the real numbers first.

Have an exit strategy.

Understand there can be a right time to sell a property, realise some profits or minimise some risks. Be prepared for market and situational changes.

Remove emotional boundaries.

Do you have an opinion or thought process holding you back? Over these barriers to effectively move forward in building more wealth and income. Remember, figures don’t lie, but emotions can cloud the facts.

Set goals.

Planning is crucial. Set your sights on success by being clear on what you want to achieve and take time to plan each step required to reach your goals.

Tax deductions are a bonus.

Negative gearing is merely a sales trick. You should treat investing like a business and remember that a business that consistently loses money is not a success.

Gearing strategies can be made to work in your favour once the appropriate level of professional advice has been sought. Treat investing like a business and keep an eye on the balance sheet.