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Is owning 1 investment property enough?

Wednesday, 2nd Mar 2016

normal houseBy going the extra mile, you’ll be able to reap the rewards that the majority of property investors fail to realise.

If you own an investment property then you’re a part of the 13% of Australians that have made the decision to build their wealth through property.

While this is a great achievement for those who have taken such proactive steps, the data also tells us that more than 72% of these investors will never hold a multi-property portfolio.

That is, they will never buy more than one investment property.

The truth is, though, that owning just one investment property won’t allow you to create the wealth that most people aspire to reach.

The goal of investing is always to see a return on your money and grow your wealth.

For example, many people start investing in property because they hope to one day be able to retire early and live off the rental income.

This is entirely possible, provided that you accumulate enough properties to produce an income stream that will support your lifestyle.

Similarly, owning one investment property that gradually grows in value is great, but the capital gains are, of course, only attained once you sell it.

A better strategy could be to use the equity in your investment property to acquire successive properties.

This allows you to buy multiple properties that will grow in value, creating greater wealth sooner.

You’ll also have more options when it comes time to retire. For instance, you could sell some properties and use the profits to finance your lifestyle, you can hold and refinance others, or you could live off the rents as a source of passive income.

Of course, a lot will depend on your ability to choose the right property, in the right location, and buy it for the right price, but with careful planning and research it is possible to achieve your goals.

If you would like some expert advice, or should you wish to learn more about how to own a multi-property portfolio, contact us here, we’d be glad to help!