Your first investment property
Purchasing your first investment property is a cause for celebration – you’ve worked those extra hours, planned your finances and tightened the purse strings, planned your investment strategy, found the perfect property, and secured your first tenants. Well done! It’s a long journey but you got there.
After purchasing a first investment property, most people stop there. In fact, 72.8% of investors stop there and only ever own one investment property. While they may be happy with the security that an investment property offers, one property may not build the wealth that most people are looking for. When you retire, one investment property will not support a comfortable retirement lifestyle.
Building your investment property portfolio
Once you have one investment property, most of the hard work is done! You have built something up from the ground from nothing. This means that you don’t have to do it again for your second property – you have something to build your wealth from.
Making your equity work for you
If you have an investment property in a high price growth area (this is a primary consideration in any investment strategy), your investment will start gaining value quickly. That means within a few years, you could be in a position to release that equity and use those funds to invest in another investment property.
How does it work?
Imagine you have purchased a property for $500,000, with $100,000 as a deposit. Because you have made a sound investment plan and purchased in a high growth area, your property rises in value up to $550,000 within two years. This means you now have $150,000 of equity in the property – more than enough to release some and use the money as a deposit on a new property.
How many times can you do it?
You can repeat the invest and equity release process as many times as you like! That’s the beauty of property investment as a method of building wealth. Even in tougher property market cycles, there are areas in almost every city that will rise in value – you just need to get the right advice and find the right property.
Ready to invest in property?
If you are considering property investing, it’s important to get the right financial and investment advice. At Reventon, that is exactly what we do – we have an expert team who have supported thousands of Australians as they build their wealth through property investment. The best part? You can get a free initial consultation to discover how it could work for you.