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.
You don’t need to be a millionaire to build a large property portfolio; you just need the know-how.
In the 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
Tony Fleming’s strategy is to only buy properties that he deems undervalued in areas he believes will see price growth soon.
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
Renae McGlashan took a similar approach to building her portfolio but quickly after purchasing her first property, renovated the home to increase its value.
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, as 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.
Stephanie Brennan’s first foray into the investment world was an apartment she purchased for $386,000 in Manly Vale.
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.
If you want to get an education in property investment or would like some help looking for the perfect property, visit www.wefindhouses.com.au and book a complimentary consultation.