Demand for homes stays high in 1 state while the rest fall back
Rising interest rates have eased demand from potential buyers, which has been reflected in the slowing of home price gro...
Chinese investor Eric Wu was able to purchase nine properties in different parts of Australia in just a decade, building a portfolio worth $5 million – but he is definitely not stopping there.
Eric plans to use a three-stage plan of action to improve his portfolio and prepare for his retirement. Through this strategy, he aims to double the value of his assets in five to 10 years:
After a decade of exploring the Australian property market, Eric plans to continue his investment journey for more years.
“The first stage is the accumulation stage. You get into the market as soon as you can and make it as big as you can, and collect as many as you can,” Eric said.
Like most investors, Eric has admittedly committed mistakes throughout his journey. He plans to examine his portfolio in the years to come and consolidate to maximise profit and reduce debt.
“It is really very rare that you’re not going to make a single mistake at some stage. When it comes to consolidation, it’s time to examine your portfolio. If any product does not perform, you sell down and it reduces debt. The first stage and second stage will cross over each other for a period of time,” he said.
3. Debt reduction
An investor must reduce as much debt as he could, especially as he nears retirement.
“You have to reduce debt anyway. That will be before or close to retirement or anytime you want to reduce work hours. At that time your income’s reduced, you can sell down one at a time to pay minimal tax and also reduce your debt,” Eric said.
The successful property investor advises his fellow investors to think long-term whenever they make decisions. While property investment is undeniably a risky business, a good plan of action will always come in handy to prepare for possible scenarios until you’re all set for a comfortable retirement.
Tune in to Eric Wu’s episode in The Smart Property Investment Show to know more about the opportunities he’s found within the Australian property market and how he’s accumulated and managed his nine-strong portfolio through the years.