One expert’s 3-step ‘tortoise’ approach to better property investment

“So, for those that have equity in an existing property [or portfolio] that they are not using and they have got servicing, there are opportunities; while not necessarily in Sydney and Melbourne perhaps, to be able to start [or expand] that investment portfolio,” he says.  

Mr Beresford advocates three steps to make the process really simple both for those starting out and for existing investors.

1. Understand your range 

Always review your borrowing capacity on a regular basis, says Mr Beresford. 

“Every three to 6 months,” he adds.

“It is a very quick exercise and it takes 10 to 15 minutes of effort. But with a lending landscape that is changing rapidly and with banks having a different appetite for different types of loans at any point in time, understanding what you can borrow is that first key step.”

He also says not to take no for an answer.

“Don’t just go back to the bank you have been dealing with for a long time; have persistence and assess your options more widely.”

2. Free up cash

Always monitor you cashflow, says Mr Beresford, and improve it where possible.

“Always ask yourself if there is something you can be doing, some action you can take.

“If your borrowing capacity doesn’t allow you to add to your portfolio, what can you be doing from a loan structure perspective to maybe reduce your rate and free up a little more cashflow so that you can have that money in your pocket to be able to get that next investment and hold it, essentially for free, when your borrowing capacity does allow it.”

3. Take action where you can

Mr Beresford says, as always, if you are standing still, you are going backwards.

“Add to your portfolio when you can,” he says.

“Take action. If you are a nervous first timer, get some guidance, use a mentor, follow a proven process. You don’t get anywhere building wealth by sitting and taking 10 years to research something and finding property to buy.”