As mortgage brokers serving the Rockingham, Kwinana and Baldivis areas, we have helped a lot of people just like you enter the property investment market. Baldivis, in particular, benefited from its “hot suburb” status in 2013 and 2014. If you want to use property investing to fully fund your retirement, one or two properties isn’t enough.
Here are two important factors that can help you decide how many properties you need.
If you fail to plan, you plan to fail. If you don’t have a plan, you will succeed by accident. Once you have a plan, it’s simply a matter of execution. The best way is to start at the end and reverse-engineer your success. Figure out how much money you need and how much money each property will provide. Take all costs into consideration. Then you know how many properties you will need to amass.
It is capital growth, both long term and short term, that creates income. While yield is important, it is the capital growth that is going to help you get where you want to go. You can use capital growth to invest in more properties by using equity to buy more. One common but ideal strategy for success: when you retire, sell off half of the properties to pay for the other half. Then, live off of the income provided by the properties you kept.
Get Started Now
The most important thing is to get started now. If you need ten properties to fully fund your retirement and buy one every two years, it will take you twenty years to amass your ten properties. The sooner you get started, the sooner you can retire.
Call Smartline Rockingham
The mortgage brokers at Smartline Rockingham have a wealth of experience in finding financing for property investors in the Rockingham, Kwinana and Baldivis areas. We can also provide the insurance you need to protect your investment. To learn more, call (08) 9527 1800 today.