Build Your Property Portfolio

ByJohnSageMelbourneConsiderdevelopingastrongcollectionofhighgrowthhomesanddecreasingyourloan-to-valueratios(LVA).Here‘showitworks: MichaelYardneyfrompropertyupdate.com.audescribesthatwhatmattersisthevalueofyourpossessionbase,whichmightbeasmallnumberofwell-selectedproperties.Evenifsomeonehasaagreatdealofpropertiesdoesn’tmeanthatthey‘reperformingwellfortheinvestor! InMichael‘sexample,thefinancierhasactuallyaccumulated$5millionofwell-locatedpropertiesover10or15years,plustheyowntheirownhome.Ifyouhadatypical80%Loan-to-ValueRatio,youwouldbeadverselytailored. Ifyouhadnodebtagainstyourpropertyportfolioandhadpositivemoneycirculation,youwouldgiveupthebenefitsofutilize.Ifyouhada50%LVR,yourpropertyportfoliowouldbeself-funding,andwhileyoumayacquiresomecashcirculation,itwouldnotbesufficienttoresideon. Follow John Sage Melbourne for more expert property investment advice. Whiletheideaofa$5millionpropertyportfoliowithoutfinancialobligationsoundsexcellent,it‘smuchbetterandmorerealistictoaccumulatea$5millionportfoliowith$2.5countlessfinancialobligation.Itwouldallowyoutogotoyourbankandprotectanadditional$100,000loan,asyoucouldproveyouhaveaself-fundingportfoliothatisn’treliantonyourincomeandhassomecashleftoverforserviceability.Inthisway,you‘reslowlyincreasingyourLVR. Afterpayinginterest,you‘reentrustedtoaround$93,000annuallytoliveoff,andthat‘smoneyyoudon’tpaytaxonasit‘snotearnings.Nowthatpictureofabeautifulretirementisenteringintofocus. ConclusionOnelastthingtostateistobeclientandawaitthebestproperty.Don’tgetrestlessandbecomestrainedwithanunprofitableproperty!Formoredetailsaboutpropertyinvestment,checkoutJohnSageMelbournehere.