CAN YOU BUY MORE THAN ONE PROPERTY USING JUST ONE DEPOSIT?
After years of hard work, scrimping and saving, you finally have a 25 per cent deposit for your first investment property. But, if you want to build a portfolio, is this 25 per cent enough, or will you need 25 per cent for every property you purchase? Nathan says it is possible to buy more than one property using just one deposit.
GET A GOOD STRUCTURE AND STEER CLEAR OF LEMONS
Nathan says, it is possible to build a portfolio on just one property as long as you buy the right properties and structure your financing properly.
SPOTTING A GOOD DEAL
Finding the right sort of investment properties for your aims and situation, and getting those investment properties for cheap, is not always easy. Sometimes people try to sell you a lemon, but you may not have enough expertise in order to pick the bargains from the duds. That’s where the experts come in. Nathan and Daniel both have a proven track record at investing – and this didn’t come by chance. They share their experience with BInvested and PIA clients by finding them properties in line with their goals that are also under market value. You won’t be able to progress in building your portfolio off just one property unless you buy real estate that will provide instant equity which grows alongside solid capital gain.
SETTING UP THE RIGHT STRUCTURE
But what good is equity unless you can tap into it to purchase your next investment? If you go with the wrong broker who sets up your lending for only one or two properties, then you won’t be able to finance your property investment porfolio beyond this. The guys at Zinger finance have been helping investors with large portfolios for years. They find the best lenders to support your investing ambitions, preventing you from getting stuck after the first or second purchase.
THE BENEFIT OF BUILDING QUICKLY
Although it is possible to build an entire portfolio on just one deposit, it will most likely be a drawn out strategy. There is no way of knowing how long it will take for each property to go up enough in value for you to tap into enough equity for your next purchase. On top of this, you may not be able to access all of the equity you hold. Building a portfolio one property at a time means it may take you ten years to buy ten properties – which is still better off than most Australians, but will not give you the same benefits that accumulating properties quickly can offer. Each time the market rises, it is better to have more properties than not. If you had five properties, and the equity in each one rose by $20,000, you may be able to use that $100,000 to buy another two properties, rather than just one. This is why, if you can, you should put as much money into building your portfolio from day one. The more you invest, the quicker you will get ahead in building your portfolio. The quicker you get ahead, the more you will gain each time the market rises, and the more equity you will have at your finger tips.
COME INTO A MAP SESSION
In order to explore your options and potential as an investor, it is important to talk with the experts. A BInvested MAP session will allow you to lay your goals and situation on the table so you can tailor the best plan of attack to get you there. Click here to learn more about our MAP sessions.
Have you built your portfolio with just one deposit? How long did it take you? Please share your experiences in the comments section below.