7 GOLDEN RULES for Property Investing

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  1. Duration of your investment – when making any property investment, experienced investors understand that property must be held for a minimum of 10 years – this approach allows for maximum capital growth & the ability to ride the fluctuations of the economic market. 
  2. Buy investment properties under $500K – this allows for further expansion of your property portfolio and reduced monthly out of pocket expenses. 
  3. Buy with smaller deposits – your deposit should ideally be the absolute minimum to purchase a property. Experienced investors understand that any additional money should be used for the sole purpose of acquiring more property. 
  4. Avoid regional areas – due to risks associated with high vacancy rates. 
  5. Buy as many properties as you can – the strategy with property investing is to “BUY & HOLD”. You need time in the property market; thus, your goal is to purchase as many investment properties as you can while having a neutrally geared portfolio and then WAIT. If we look at the history of the Australian property market, we know that property purchased in good locations will double every 10 years*. 
  6. Avoid incorrect finance structures and cross-collaterisation, and ensure your debt is spread across a few banks.
  7. Create as many positively cash-flow properties – life is about living, you want to have investment properties that can pay for themselves allowing you to spend money on experiences and things that matter to you.