1. Build a large asset base and live off your passive income
Whilst your property portfolio is growing over time, effective strategies can be adopted for potential passive income. An investor should review their portfolio at least every 6-12 months ensuring the portfolio is working like a business. Gradually increasing rental income with guidance of a property manager is one effective strategy to achieve passive income. An investor should always aim to secure a neutral to positive cash flow property from day one.
2. Build a large asset base and live off your equity
This is one effective strategy that many investors adopt to retire comfortably is utilising the additional money created through capital gains in your property portfolio. Therefore one strategy investors use to retire early is to access the additional money from their property portfolio (created through capital gains).
3. Build a large asset base, sell a number of properties at the height of a growth phase to repay debt and retire comfortably on the passive income
This strategy can be effective for many investors, as they can potentially own multiple properties outright by disguising debt and generating a strong passive income.
4. Build the right team; Financial Planner
To ensure your property portfolio is working like a business and your profits are being maximised an investor will benefit from having the right team around them. The above 3 strategies outlined need careful thought and guidance from a professional in the right field. A financial planner can potentially give an investor the right guidance and support required to help maximise the performance of a property portfolio.
5. Build the right team; Accountant & Mortgage Broker
To retire comfortably, preparation is crucial to an inventor’s success. To help maximise one’s tax benefits an accountant that specialises in property taxation will be a strong asset to an investor. An accountant will help ensure effective investment structures to minimise tax and maximise returns on each investment property.
A mortgage broker can take the legwork out of securing the right investment property loan for each investment property. A broker can compare many highly competitive investment property loan options from a wide choice of lenders.
6. Build the right team; Property Investment Consultant
Each property purchase is a large investment; therefore a property investment consultant can be crucial to the success of a property investment. A consultant will conduct property analysis and research with a strict focus too not only maximise your returns in each investment, but to also dramatically reduce your risk.