Investment tip: ‘Accumulation is not a straight line’

He said: “I'm still on the path but the speed needed to be altered … With the current environment, I think [I need] to be a little bit careful [about the speed of accumulating and] be wiser about what asset to choose.”

Despite the unpredictability of the property markets in Australia as well as the “forced restrictions by lenders”, Eric remains confident that he will be able to double the value of his asset base in a matter of time. In fact, in the past nine months, he has been consistently on the lookout for opportunities to add more investment properties in his nine-property portfolio.

Aside from using strategies based on his personal goals, capabilities, and limitations as a property investor, Eric also finds ways to work through the movements of the market. Since financing is one of the biggest challenges for property investors now, he makes it a point to use strategies that will assist in reducing debt.

The property investor explained: “I think, with the market moving ... [there are] lots of factors affecting the asset's accreditation—the finance part of it, the market as well, [and your] personal [circumstance].”

“You need to put it in place … like putting the jigsaw puzzle together. There are lots of moving parts ... but don't give up. Just look at opportunities,” he added.

Three-stage plan

At the moment, Eric holds investment properties in Sydney, Brisbane, and Queensland. His next property purchase, according to him, will depend largely on price range. The property investor is currently looking at buying in the Geelong area to catch some growth, or buy in the Hobart area and hold the property for up to three years before selling.

Despite being keen on accumulating more investments, Eric also recognises the possibility that it may take some time before he could add multiple assets in his property portfolio.

He said: “I think accumulation is not a straight line. Sometimes, you accumulate a lot within a shorter period of time. Sometimes, you have to wait and see what the market says.”

With nine properties in his portfolio, the property investor currently focuses his time and energy on consolidation or examining his portfolio to maximise profit, as well as debt reduction. Until the investing environment and the market circumstance starts to suit his needs as a property investor once again, Eric remains in no hurry to get back into the game and purchase properties.

Tune in to Eric Wu’s episode on The Smart Property Investment Show to know more about his perspective as a mortgage broker as well as the common struggles that first-time investors are currently facing.