Why Your Strategy Counts
When it comes to building a portfolio, each individual has different goals
When it comes to building a portfolio, each individual has different goals. For me it was about creating financial freedom so I can live life on my own terms – you may want an early retirement or create passive income in case you lose your job.
It’s your end goal that’s going to determine your strategy – whether you take the fast track with a high performance approach or build your portfolio at a slower pace.
When you’re building a high performance property portfolio, you need to think differently to achieve your goals.
Some investors will tell you rental yield is the most important consideration when buying a property, but I’ve learned otherwise.
A well balanced and diversified portfolio of capital growth and cash-flow is far and above what’s going to help build your portfolio – and do so quickly.
As your properties grow in value, you’re able to tap into their equity and buy more houses at a much faster pace.
This accelerates your portfolio into high performance mode, just as I did with my own property journey.
It’s what enabled me to build a $4m portfolio on an average wage, without being held back by a shortage of funds.
Seeking higher rental yields in favour of capital growth is a mistake most new investors make. They look for immediate return on investment, and do not do the correct research to identify the growth drivers of that particular area.
Rental yields are important in that they enable you to hold your properties, but shouldn’t be the only reason to buy.
Learn more about our investing strategies by downloading our free ebook ‘0-3.5 million in 6 years’ here