Grow­ing a port­fo­lio

How do you de­velop a suc­cess­ful port­fo­lio of prop­er­ties? It’s a com­monly asked ques­tion among bud­ding in­vestors

Weekend Gold Coast Bulletin - Property - - EXPERT OPINION - CHRIS GRAY Founder and CEO of “Your Em­pire” and one of Aus­tralia’s lead­ing in­de­pen­dant prop­erty ex­perts.

AS WITH any long-term wealth cre­ation strat­egy, build­ing a prop­erty port­fo­lio takes a lot of time and care­ful con­sid­er­a­tion.

The num­ber one piece of ad­vice I would give to any­one look­ing to grow a port­fo­lio is to de­velop a good strat­egy be­fore pur­chas­ing. Your main fo­cus should be on buy­ing safe, solid as­sets that will go up in value if you hold onto them for 10, 20, or 30 years.

It’s also im­por­tant to be re­al­is­tic when de­vel­op­ing an in­vest­ment plan. Don’t aim to buy five to 10 prop­er­ties to­mor­row and be­come a mil­lion­aire overnight. Con­cen­trate on tak­ing sim­ple steps and buy­ing one prop­erty at a time.

Every­one is dif­fer­ent and will pre­fer a dif­fer­ent in­vest­ment strat­egy depend­ing on their knowl­edge, at­ti­tude to risk and level of in­volve­ment. With this in mind, be­low are my top tips for de­vel­op­ing a suc­cess­ful port­fo­lio.

1. Set goals. The first step to de­vel­op­ing an im­pres­sive port­fo­lio is to set some ob­jec­tives. Or­gan­ise your fi­nances and work out ex­actly how much money you have to work with and ex­actly what you want to achieve through your port­fo­lio.

2. Do your re­search. While it can be tempt­ing to buy into the first prop­erty you see, if you spend more time re­search­ing po­ten­tial in­vest­ments prop­erly, you will gain more fi­nan­cially down the track.

3. Di­ver­sify your port­fo­lio. Remember to be se­lec­tive about the prop­er­ties you choose to in­vest in. A great port­fo­lio will have a mix of older prop­er­ties that can be ren­o­vated to add im­me­di­ate value and new, off-the-plan prop­er­ties to get growth with a small de­posit.

4. Con­sult pro­fes­sional ad­vice. The value of prop­erty ex­perts like pro­fes­sional val­uers and buy­ers agents should not be un­der­es­ti­mated when in­vest­ing in a prop­erty.

5. Look for prop­er­ties within the me­dian price. You want prop­er­ties that are go­ing to be easy to rent be­cause as a prop­erty in­vestor, that’s what pays your mort­gage.

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