Do you wish to begin property investment as a means to secure your future? Are you wondering, where to begin? How to get a hold of the best property that will start your cash flow? How can you multiply the cash flow and become free of debt as soon as possible?
If these questions are coming in the way of your property investment portfolio, don’t worry. Our Investment team at McIntyre is here to help. We have put together a few broad steps for beginners in real estate investment.
When it comes to investing in real estate, there are 4 key stages every beginner, as well as a long time investors, need to keep in mind.
1-Saving/Accumulation of finance
2-Foundation/Acquiring of properties
Saving: To be able to start investing in real estate you need to have saved a deposit to make move towards your first property. You could either work more, save as much as you can, or borrow from friends, family. This might take a while depending upon your current financial situation. You need to also find out your borrowing capacity. Whilst you do all this do as much research and learn more about real estate investing.
Foundation: We call this the foundation stage because, in a way, it lays the foundation of your property investment portfolio. It’s always better to invest in a neighbourhood that is the booming rental market. Once you have a property, rent it out and try to accumulate as many more properties as you can afford. Don’t worry, they will generate enough cash flow to pay for the respective mortgages. The important thing is that you must be in a positive cash flow after negative gearing on taxes.
Consolidating: Once you have accumulated your desired number of properties, you need to allow them to generate positive cash flow from surplus rent. Sooner or later, they are going to pay themselves off, but the important thing to bear in mind is how you can speed up the process of becoming free of debt. Figure out ways to increase your income so that you can pay off the mortgages as soon as possible.
Financial Freedom: This is the final stage of property investment where it’s paid off. Enjoy your financial freedom!
Always remember to bit as much as you can chew. Slow and steady always wins the race!
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