How do you own 5 properties in 10 years?
When it comes to your annual income in retirement, what sort of figure do you have in mind? Picture it, hold it there – and now ask yourself how you’re going to fund it. Because if we’re talking in terms of 10 years down the track and your super balance isn’t great, there’s still time to make a difference.
We’ve developed a 10 year SMARTER property portfolio strategy plan for investors who want to supercharge their retirement savings and secure their financial future. Some have come to us following divorce, with a lump sum settlement they want to safeguard and grow, whilst others have wanted to develop passive income and transition to early retirement.
Your own needs may be quite different. Perhaps you’re looking to leave a legacy behind for your children and grandchildren, or you have university fees in mind. Whatever your aim, the principles remain the same, so keep reading!
Building your multi-property portfolio with an experienced professional
It’s essential to work with an experienced Property Portfolio Strategist such as myself to ensure you have the best diversification strategy. You need to ensure you have a number of different property types in selected areas across Australia. We have exclusive access to industry insider information about the next hot spots (often two years ahead of the media). Plus we know how to relate this information to your own personal circumstances.
Year One, Property One
Once we’ve discussed a client’s Property Preferences, it’s time to seek out the first investment for their new portfolio. At Smarter Property Investing, we recommend buying off-the-plan for the many advantages provided to our wealth builders, including higher depreciation rates, increased taxation rebates and access to better pricing. Once the property nears completion, it’s time to line up an experienced property manager and tenant your residential investment.
Years Two to 10
As the equity grows in your first investment property, you’ll be in the position to add the second property to the portfolio. This is known as leverage – using equity from one investment to help purchase another – and will be key to your multi-property portfolio success.
We continue in this way over the next decade and use a variety of strategies including:
- buying in the right areas
- adding a mix of properties to your portfolio
- setting up tax variations
- building appropriate cash buffers for each investment
- ensuring you have the right property management team and risk management plan in place
From $0 to $1 million net worth in 10 years
By purchasing properties valued between $350,000 to $600,000 during a 10 year period, it’s possible to come out with over $1 million in equity as a result of your capital growth – pretty impressive! And don’t forget the annual income you’ll be receiving from your properties – along with the continued tax advantages.
So what are you waiting for? Talk to me and let’s set you up with your own 10 year plan – or less. It’s up to you!
Until next time,
From the desk of Christine.