Top 5 Points For Building A Property Portfolio In 2020
It’s been a crazy year but the foundations of property investment don’t change very often. These five focus areas will get you through 2020 and the years to come.
Have the right plan in place
Having a plan in place can save people a lot of time and money, especially considering the current state of the market. A lot of people never saw the events of this year coming. They didn’t educate themselves, or they made plans for the good times, but didn’t make plans for the bad times. Having a strategy in place is the first thing you need to help you reach your goals. You won’t find a successful business that didn’t have a plan or strategy in place for roadblocks as well as greener pastures.
A lot of people aren’t taking action out there because they have fear or not enough clarity around what will happen to the economy. But if you don’t take action you are choosing not to succeed.
Some people say the wealthiest place in the world is the cemetery because people go to their deathbed without achieving the things they wanted to do as a child. So once your plan is in place, get going and take action.
Get knowledge and information
We live in a world of fakes. They’ve got fake reality stars out there, fake food that we’re eating and fake news and information sources. Be careful of what is being reported in the media and be wary of the people that are trying to spruik to you and sell you things. There are a lot of idiots out there spreading misinformation. We live in a world full of opinions and it’s easy to get information, but you’ve got to make sure you are getting the right information and that it makes sense.
If you know what you want to achieve, and you’re taking action, make sure the knowledge you take on board is in line with helping you get to your goals and not one of the many distractions in the world of 2020 that are stopping people from being the best versions of themselves.
Keep cashflow strong
Make sure that your cashflow is strong and you review your position continuously. From day one you’ve got to treat your property investing like a business. The numbers don’t lie. Many things can lie to you, but numbers don’t. Make sure your cashflow position is in line with your goals.
Are you positively geared? There are so many people out there investing and they don’t realise that property will be eating into their lifestyle, it’s an opportunity cost. Your cashflow should be helping you achieve your goals and putting more in your pocket each week.
Put your capital to work
How is your capital working for you? What is your position? How are the opportunity costs out there? How is your equity working? If you invest in the wrong asset or take the wrong position, it’s going to hold you back from achieving your goals in step number one.
You don’t want to be over-leveraged, but you also don’t want to be under-leveraged. You need to review your finance and debt strategies to make sure your capital position is where it should be.
If you need help with any of these five steps, please reach out to the team for a free Discovery Session.