Want to know what the experts do to successfully draw profits from real estate? We reveal the simple property investing strategies of millionaires that can help you grow your wealth.
Letting emotions enter your decision making is a recipe for disaster. Investing in property should be treated as a business, not some kind of exotic adventure.
Keep tapping into the equity in your properties to buy more properties – and maybe a few luxury items along the way.It can be confusing to know whether to get a variable rate or fixed rate mortgage, and what features are important. That's why it's important to not only check the right rates, but make sure that you're getting the right features in your home loan
Be passionate and driven
There may be times when you’ll doubt what you’re doing, particularly when you receive all the Council rates’ notices at once, or when an expensive repair bill comes in. Keep focused on the bigger picture of what you’re trying to achieve and believe in your investments. Drive also enables you to take risks that very few others would take.
Don’t time the market
Don’t try to be a millionaire overnight. The real secret to wealth is compounding your investments, so aim for consistency by investing time in the market, not by trying to time the market cycles.
The more questions you ask the more you are going to learn. Sometimes I hear people saying, “I am sorry to ask so many questions, but…” Don’t be sorry to ask, this is what it is all about. Education is the first step to becoming a successful investor.
Don’t fear the gear
Many people perceive debt as being dangerous, but property debt can increase your return and boost your wealth. Figure out how much debt you are comfortable with and allow yourself to borrow for investment purposes, without feeling anxious about your mortgages.
Have clarity of purpose
This includes having a strategy and a business plan as well as sound risk management practices in place. In other words: What are your goals in dollar terms over time? How many properties do you need to get there and how often do you need to invest? How much bu er should you keep? Once you know where you are going, the actions you need to take to achieve your objectives become obvious.
Go against the crowd
As property billionaire Warren Buffet says, you should always do the opposite to what everyone else is doing. Buy when everyone sells, and sell when they buy. Don’t listen to negative people telling you you’re doing it wrong.
Buy, don’t sell
Buy quality properties located in a blue-chip area and where possible, try not to sell. Once you have one appreciating asset you can build up equity, which you use to purchase your next property.