Building wealth is probably the most spoken about topic across the world and will be for years to come. How to make money is the 24th most Googled question in the world that’s 246,000 individuals per month hoping to find answers.
You can earn more and save for your future easily, but many people get caught up in the old saying “You have to have money to make money.” If you have this mindset, you have already set yourself up for failure. The truth is you have to be driven, be willing to work hard now and invest so you see a return on capital.
Property won’t make you wealthy overnight, but it is a great first step to financial freedom – a great form of income for you and your family in the future. The Sydney residential property market alone has increased by 74% since 2012. Sydney offers promising returns for investors and the long-term outlook for this market is positive.
Follow our three simple steps to wealth and find out just how easy it can be to build your wealth.
1. Using the family home to build a property portfolio
If you have equity in your own home, do you know that you’ve already taken the important first step in your property journey? That’s because the family home can be more than a great place to raise your children. It can be a powerful tool for growing your wealth and setting up your financial future.
After all, a lender may let you use the equity you already have in your home to fund the purchase of an investment property. That means you may not need any further deposit. Meanwhile, the rent your tenant pays should help you meet the cost of taking out your new loan.
2. Renting and buying simultaneously
Think you can’t afford to buy where you want to live but still want to get a foot on the property ladder? Try the ‘Buy and Rent’, model. Under this strategy, which PIA pioneered back in 2005, you can rent where you’d prefer to be based on your lifestyle, study or work. If you earn $70,000 annually, you could buy an investment property worth $650,000 for as little as $42 a week, out of pocket.
3. Helping the children
Worried your children will never be able to afford to buy property? By using the equity in your own home, you may be able to get into a property without the need to save a deposit. If they’re not ready to leave home just yet, you can secure and manage a tenant who’ll help pay off your loan until they do.
It’s never to later or early to start thinking about the future and making a plan, invest in property to secure a comfortable, stress-free future for you and your family, build your property portfolio and build your wealth.