Finding it hard to get past your first investment property?
Less than 1 per cent of investors succeed in building a property portfolio, mainly due to one particular reason.
Blogger: Paul Bennion, managing director, DEPPRO
To continue reading the rest of this article, please log in.
Create free account to get unlimited news articles and more!
In recent years there have been many people in the property sector promoting the importance of building a successful property portfolio to create wealth for retirement.
However, the reality is that few people succeed in building a large property portfolio.
The fact that only a tiny portion of people ever go on to build a successful property portfolio is highlighted by Australian Tax Office (ATO) figures.
ATO figures show that 72.8 per cent of individuals who own an investment property own just one, while 18.9 per cent of individuals own two. Only 0.9 per cent individuals or less than one in 100 own six properties or more.
The ATO figures also revealed that for the more than 1.2 million of these individuals, two out of every three were negatively geared or reported a loss on their income.
Generating strong cash flow is therefore critical in the process of building a successful property portfolio, especially if you are just starting off in the property investment market.
The main reason why so many individuals fail to own several properties is that they make mistakes with their first property purchase. This then prevents them from moving on to buy additional properties.
However, individuals who do make the correct decisions at the start-off stage in property investment can go on to amass a highly successful property portfolio that will help fund a comfortable retirement.
This is why is it critical to undertake extensive research before buying your first investment property to avoid simple mistakes that can undermine a long-term strategy of creating wealth through property investment.
Property still remains one of the best ways for mum and dad investors to create wealth, and this has been proven over many years with Perth real estate achieving high level of capital growth consistently over several decades.
Many first-time investors never buy more than one investment property because they make simple mistakes, which include:
Comments powered by CComment