Allow the Property to Increase in Value
If you plan to make money from investing in property, you should have loads of patience. It is a slow process. You need to hold your properties for a long time before the playback starts. To build a considerable asset base, you need to go through a couple or more cycles.
Don’t waste 5-10 years buying into the wrong deals. You will end up having to sell them off, as they have no long term value. This will only be a waste of time and money.
You can achieve financial freedom sooner with property investment. You just need an effective strategy. To accomplish this, the involvement of your advisors and mentors plays an important role. They can make or break things for you. They will help you streamline your decisions with regards to investments. If all goes well, you get to expand your portfolio and speed up the process of becoming rich through property investments.
Borrowing against Increase Equity
Most investors are not on board with the idea of borrowing against increased equity in their portfolio. They usually never buy more than one property and that’s often the wrong way to start off with.
Some investors with positive cash flow properties, don’t get enough growth. They also can’t borrow more equity.
The wealth-producing rates are only achieved with the investment grade properties. The rent of these properties also increases over time. This all makes borrowing against increased equity possible for you. Your next deposit and increased rent will help subside the mortgage costs.
Stay Updated on Your Property Portfolio
You need to regularly check up on your property portfolio. This step is one of the main keys to financial freedom. If you stay updated with your portfolio, you can change your strategy accordingly over time to ensure maximum benefits.
Here are some of the questions you need to ask about every investment property year after year.
How did the property perform over the last few years?
Can I buy this property again, now that I know more about it?
Can this property outperform the averages in the coming years?
Can I improve the property to yield a better return on investment?
If your investment hasn’t performed well over a period of three to four years, then it indicates that it is a dud investment and you must reconsider steps you can take to make it worthy.
These questions will help you choose the top performing properties in your portfolio and to make changes to others to avoid loss. If the property isn’t producing the return on investment, it is time to shake things up.
Renovations
Hire new property managers
Selling and buying a better property.
