How You Too Can Achieve Financial Freedom with Property Investment


Achieving financial freedom through property investing is within most people’s reach, including yours.

But the earlier you start investing, the greater your chances of building a property portfolio that will generate an income that’s capable of letting you live the life you want.

The good news is that it has rarely been easier to take the first step on your property investment journey than in today’s property market. That’s because reduced prices and record low-interest rates make entering the Sydney property market a more affordable proposition than it has been for some time.

After you’ve taken your first step and, over time, both the value of your property (capital) and your rental income (yield) should grow. As your property grows in value, the equity in your investment property will grow too. You can then leverage this equity to invest in a new property and grow your portfolio.

While most property investors start their journey using negative gearing – ie the rent they receive doesn’t quite cover the mortgage repayments – this changes over time. Once they start paying down their loan and the market rises, their equity grows and the income they receive increases to the point where it outstrips repayments.

When that happens to your investment, you’ll start earning passive income which can supplement your other earnings and eventually, when you retire, even replace your income altogether.

For this reason, your wealth as a property investor usually depends on:

How soon you purchase
The market conditions you purchase in
How many properties you own, and
How long you hold onto your properties for.

That said, there’s no set number of properties to which you need to aspire. You should always base the size of your property portfolio on your own circumstances and financial goals. You should also be prepared to be flexible. There may be times you’ll want to sell a property and rationalise your portfolio, especially if you’re changing your investment strategy or you need the capital in your property to meet other goals.

Information for this article has been sourced from The Property Investors Alliance.


How To Acquire Your First Property Investment To Secure Your Future

An investment property can be a solid financial move for your future. Whether it’s to boost your retirement plan, retire early or set your family up, an investment property can be a step in the right direction.

You’re not just investing in property, you’re investing in a financial plan. Investing in real estate is a long term plan so take the time to talk to your partner and your finance broker about your plan. By setting clear goals and timelines, you’ll have a better chance of achieving them. Your journey to financial freedom begins here.

Step 1: Finance and Pre-approvals

It is important to consider your short and long term goals and review your finances. Check your credit rating – Start budgeting to ensure you are able to balance your income and expenses in order to plan for greater upcoming expenses. You should also consider reducing your credit card limit and minimizing your debt. Find out if you qualify for a bank loan – Discover your potential borrowing power by speaking to your bank, credit union, broker or financial adviser. Pre-approval comes from your mortgage broker or directly through your lender.

Step 2: Select and Reserve your Property

Explore and research the properties available, then compare and choose the one that suits you.

Step 3: Review the Contract

Your solicitor or conveyancer will review the contract for sale independently and make sure you understand what you’re signing up to. They will also negotiate with the seller’s legal representative on contract conditions, making the process of documentation and settling easier.

Step 4: Sign the Contract for Sale

If you want to go ahead with the purchase, you’ll need to return the signed contract.

Step 5: The Contract Exchange

Once you’ve exchanged signed contracts with the seller, you’ve secured the property.

Maximizing your Investment

After settlement, it’s time to take ownership and move in, or sign up your first tenant. For off-plan purchases, settled properties come with a 90-day warranty maintenance period. For any defect issues identified within the first 90-days after handover, these are submitted by the purchaser to the Builder on a warranty claim form.

* Please note: Information from this article was sourced from The Property Investors Alliance