Just flick through the pages of Your Mortgage’s sister magazine, Your Investment Property, and you’ll come across tale after tale of ordinary people who have built – or are in the process of building – substantial property portfolios. Million-dollar figures are bandied about with regularity as investors talk about how they’re moving towards financial independence. It’s an enviable position to be in, but how do you join the club?
The answer is that it’s surprisingly simple – whether you already own property or not. Each and every property investor started exactly where you are now – with no experience and worried about making a wrong move.
In fact, mustering the courage to start a property portfolio is often the most difficult part in property investing. However, as long as you understand a few key concepts and are clear about your goals, property investing can become a far less daunting proposition.
Why invest in property?
The main reason for building a property portfolio is to build up your wealth with the aim of moving towards financial independence. Exactly what ‘financial independence’ means is different to every person: to you, financial independence might mean owning three properties outright by the time you retire; for others, it might be 30.
Another attraction is the ability to manufacture your own value. Investors in other types of assets – shares, managed funds, indirect property, deposits, super and so on – play a relatively passive role in the investment decision-making process. Direct property investors, on the other hand, are entirely responsible for their success and failure. The property investor is fairly and squarely in the driver’s seat.
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