Powered by MOMENTUM MEDIA

How to handle a cash flow crisis

By Reporter 27 October 2014 | 1 minute read

Jason Paetow, Director, Alliance Corp

{{youtube id="5KWFW7tGslA"}}

Advertisement
Advertisement

One of the biggest concerns we see when investors start to build their portfolios is that they don't create a buffer for themselves. It is so important that you understand how to deal with situations whether it's you losing your job, whether it's you not having tenants in the property, whether interest rates are increasing. How do you deal with these cash flows? Well he best way to do this is to always make sure that when you buy property you have a buffer in place. Now his buffer could be equity that you've released from another property, it could be some cash sitting there but you must always have a fall back position. So I'd urge everyone out there, if you are building a portfolio make sure that you have. Significant buffer in place.

RELATED TERMS

Investment property

An investment property refers to a land, condo unit or building purchased to earn profit through rentals or capital appreciation.



How to handle a cash flow crisis
spi logo

Get the latest news & updates

Join a community of over 100,000 property investors.

Check this box to receive podcast updates

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.