You don’t need to be a millionaire to build a large property portfolio; you just need the know-how. Take inspiration from these everyday investors and their different strategies.
Growing a large investment portfolio is what many people can only dream of. But that’s only because they don’t know how to go about acquiring multiple investment properties in an efficient manner.
In the mainstream media recently, we’ve seen so many examples of young people building impressive investment portfolios off the back of low income jobs.
They’ve discovered the secret and so can you.
Buy properties in areas expected to grow in value
It’s a strategy that has served him well as he has been able to use the equity from each new property purchase to fund the next purchase.
By doing your research, you can locate properties on a national level in areas well positioned around growth drivers, where it’s only a matter of time before growth occurs.
You’ll then be able to use the equity from the purchase to reinvest and buy another investment property.
Renovate, renovate, renovate
This allowed her to build up enough equity to refinance her loan and purchase another property, which she again renovated.
When looking for a property it’s a good idea to look for one with potential.
There’s a lot some simple DIY can achieve in increasing your property’s value.
Rundown properties will often sell for well below the market value because people don’t want to put the work into fixing them up.
If you’re smart in choosing your property and don’t mind getting your hands dirty this can be a great strategy.
Just make sure the property you purchase doesn’t have any structural issues or else it could turn into a costly renovation.
Keep your ear to the ground
If you’re aware of trends and changes in the property market you will be ready to jump at the opportunities that come across your path.
Be aware of what’s going on in the areas you are looking at and what the market forecast is.
Location is key because tenants want to be close to the things they need. Think about access to motorways, shopping centres and CBDs.
Your first property purchase is never going to be a waterfront mansion (unless you are in fact a millionaire!) so don’t start at the top.
Start with a smaller property like a unit and work your way up from there.
The property is now valued at $500,000.
Since her first small property purchase she has bought numerous other apartments and a block of land.
Her property portfolio currently amounts to $2.3 million.
These are just a few strategies you can implement to start building your property portfolio.
You definitely don’t need to be a millionaire, but you do need some nous.
Paul Wilson is an Independent Property Investing Expert who's been educating and coaching investors since 2001. Author of 7 Deadly Mistakes Property Investors Make and How to Avoid Them, he also manages Educating Property Investors, We Find Houses, and We Find Finance.
Through his books and websites, Paul provides valuable, independent guidance and support by teaching strategies on how you can invest successfully, while protecting yourself from the common mistakes that trap many investors from reaching their full potential.
Paul doesn’t promote cookie cutter strategies, instead he demonstrates how you can create wealth as a property investor regardless of your budget, location, strategy and risk profile. Paul makes his home on the Gold Coast and spends his leisure time enjoying adventures, surf and sun with his wife and five children. Protect and grow your portfolio with knowledge.