7 Properties and a granny flat in less than 3 years!
In just under 3 years my partner and I have managed to purchase 7 properties in total and add a granny flat to one of the existing properties! Majority of these purchases have been in the Brisbane property market and diversifying now into the Adelaide market.
We are rentvesters, we rent where we wish to live and purchase property nationwide to ensure that we are taking advantage of the markets that are primed for growth. These areas have higher yields, also primed for rental income growth. This allows you to build a portfolio quickly.
Purchasing in your own backyard is one of the biggest mistakes that you can make when investing, looking nationwide you are able to target areas with lower purchase prices, higher yields and areas that are earlier in their growth cycle. This approach in building our portfolio has allowed it to grow so quickly.
We invest in the exact same type of properties and locations that we help our clients invest in! This is powerful as we put our money where our mouth is! Leveraging a professional that practices what they preach, means that they believe in the locations and areas!
How did we get 7 properties and build a granny flat in less than 3 years? This is a combination of discipline, focus and ensuring that there is a consistent cash surplus and having an impenetrable mindset blocking out all the negative noise. The first four properties that we purchased were with cash deposits ranging from a 5% deposit plus costs to 12% deposit plus costs! Yes that is right, not 20% deposits!
In your accumulation phase as soon as you have available equity or cash you want to leverage this to purchase more assets!
The three most recent purchases have been secured using equity from existing properties! This is the power of selecting the right areas, primed for growth where the assets perform well and grow in value, this equity now created can be leveraged back up to 80% or sometime more depending on the lender to purchase more high performing assets.
You then have further assets, and a larger asset base appreciating in value. This compounding affect is super powerful!
You will never save your way to financial freedom, and you won’t pay off your owner-occupied property to achieve financial freedom!
The total property portfolio value is approximately 4.2 million dollars currently.
We understand that achieving financial freedom means leveraging off cash and equity as soon as it’s available. We will continue to leverage up to 80% LVR on existing properties to cash out funds for further purchases in the accumulation phase.
Time in the market is key and blocking out the negative noise is a must!
If I listened to the negative noise, I wouldn’t have purchased my first property at the start of covid in March 2020 or we wouldn’t have made 3 purchases in the last 5 months all while rates increase and the main stream media project fear and doom and gloom.
Those who can think long term, block out the noise and realize there is never going to be the perfect time to purchase will do extremely well.
We haven’t come from wealthy families; we weren’t born into money. We stayed consistent, put in the work and ensured we had a consistent cash surplus. That cash surplus was then put to work to purchase higher performing assets that grow in value and pay us rental income.
These purchases were made through a structured system to ensure they will perform well long term and be the foundational properties within our portfolio. We didn’t cut any corners and treated this as a business.
If you want to know in far more depth how we achieved this, jump across, and download my E Book –Taylored Guide to Property Investing.