5 Keys To Building Sustainable Property Portfolio

I am a mother and have two beautiful kids. Since my kids were born, our life got harder even my husband and I both worked hard over the years. My gut was telling me that it was time to do  something different.

Family is my motivation, I do everything to ensure we are set up for life and provide a better life for them. So, I switched my focus to invest in properties in order to have our financial freedom as our end goal.

Making the right decision or choosing the right property strategy sometimes can be overwhelming, and I’m glad to share my personal experience and property investment guide with you.

1. Preparation and Planning for Success

Planning is key.

Before you start out the property investment journey, make sure your financial health is  checked and understand the amount of money you can borrow. Either lenders or mortgage brokers are able to calculate your borrowing capacity based on your current financial situation like your income, assets and liabilities etc.

Getting a home loan could be one of the most important financial decisions. It’s important to be smart taking on debt, few points should be considered:

• Cash flows
• Understand financial needs
• Choose the right home loan (interest rates and repayment options)

Getting a loan pre-approval ideally helps you stay within your budget and speed up the loan process.

2. Affordability

There is a difference between borrowing capacity and affordability.  It’s not ideal to spend your maximum budget to buy a property.

Here are some questions you should always ask yourself before a decision is made.

“What is my budget?”

“How can I afford to buy?”

“Do I have enough deposit?”

Some  small costs like stamp duty, application fees, settlement fees, inspection fees, LMI (if you are borrowing more than 80% of the property price) and body corporate levy (if applicable) should also be considered.

Again, having an appropriate budget and financial buffers against unforeseen circumstances is a good property investment strategy.

3. Choosing the right property

Choosing the right property is one of the most important factors to a successful investment portfolio.

Here are some useful tips:

• Great Location – suburbs with growing population as well as appropriate infrastructures like public transportation, amenities, parks, schools, cafes etc
• Demographic – composition of a population, such as age, gender, income etc
• Maximise your tax return
• Good return yield – low chance of rental vacancy; positive rental income returns
• Potential capital growth – good capital growth allows you to generate positive equity and leverage this equity to buy other properties

4. Assembling the right real estate team

Having the right real estate team in place is a key factor that helps you make the best decisions for your wealth-creation journey.

Experienced Property Strategist provides a full-range of professional services such as property consultation, market research, property valuation and property management services.

Mortgage broker understands the mortgage market and will provide you with valuable information. They are able to find suitable loan package based on your financial status and goal, also manage the process through to settlement.

Solicitor is able to go through all the legal matters that relate to your potential property and can give legal advice in order to protect your best interests.

5. Powerful Mindset and Clear Financial Goal

Achieving financial freedom is a goal for most people. However, building success investment property portfolio takes time. If you follow the right steps well-defined goal, you will achieve the impossible.

Be a part of Midas Family

Midas Real Estate has the proven system and the professional team to assist me in building 4 investment properties within 2 years.

Throughout the years I decided to join Midas Real Estate and follow powerful leader Yoyo Chen as I look at the bigger picture of my special career success.