Is your equity working for you?
One of the simplest, safest and best strategies to build a property portfolio over the longer term is to buy new and hold. But many people buy and hold and don’t grow their portfolio because they are unaware that they are able to. Many are not utilizing the equity growth in the current properties because they are not up to date with current values.
This is a regular occurrence and many investors are missing out on achieving their goals early because they have not accessed this unused equity.
If you are serious about property investment and intend to build a portfolio that you can live off then there are some simple rules you need to follow:
1. Keep up to date with values.
2. If you think there is equity available then check! Get the property revalued.
3. If you have equity, then use it. Always be trying to expand if possible.
4. Make sure you are on the most efficient loan structure so that you are optimizing your LVRs
Remember, it is only through owning multiple properties that you will ever be financially free. It is the compound growth and rents off these multiples that eventually allows you to live off your assets.