How To Kick Ass In Property Investing
Next time you are stuck in traffic, think about this. If you are paying off your own home and have some equity available, how could you use this to exit the rat race?
Do The Sums
Say you had purchased a house in Sydney ten years ago for $400,000.
Chances are it is now worth around $1.2 million.
If during the last eight or so years you had decided to pull out $200,000 in equity, then your debt would have gone up $200,000 too.
Risky? Yes, but if you had invested it wisely, you probably wouldn’t be sitting in traffic today.
What Could $200,000 In Equity Achieve?
With that $200,000, you could have purchased four properties for $200,000 each. This would have given you a property portfolio worth $800,000.
If the properties had a neutral cash flow and were located in a good growth area, they could have doubled in value over the next eight years – all while paying themselves off.
Today, you could be sitting on a portfolio worth $1.6 million.
You could be $800,000 better off than you were eight years ago.
What Can You Do About It Now?
But since you didn’t do these things eight years ago, you may feel as though you have missed the boat.
The good thing about property is that different boats are always coming and going – you just need to know when and where.
There are still plenty of opportunities out there in property investing. Don’t lament the past – focus on what you can do now to get you where you want to be in the future.
How have you kicked ass in property investing? Have you looked at your financial figures and position?
The key is to spend time working out your goals and figuring out what it will take to exit the workforce.
How many more years are you going to spend slaving away at a job you hate?
We always say the best time to take action was yesterday, but the second best time is now.