The biggest mistakes investors make when growing their portfolio

The biggest mistakes investors make when growing their portfolio

Cam McLellan, CEO Open Wealth Creation , The biggest mistake investors make when growing their portfolio

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So how can an investor build a multi property portfolio and avoid getting stuck? The answer is knowing what "stuck" is, and "stuck" is not having enough money to create a deposit for another purchase or not having the borrowing capacity to seal the deal and settle on it. So how do you avoid that? The answer is being prepared to sell. In order to move forward you need to release equity and you need to release some borrowing capacity, and selling a property at the right time will do exactly that. When you've got a property in your property portfolio in a market that's starting to plateau, starting to cool down, it might be the perfect opportunity to sell so you can then go and buy again in an area that's about to take off.



Listen to other instalments of The Smart Property Investment Show:
Episode 78: Savings tactic: how house-sitting helps this couple save more money for property
Episode 77: How will the government's changes to tax depreciation impact investors?
Episode 76: SPI portfolio update: what's next for the team?
Episode 75: How travelling cross-country helped this investor buy 9 properties in 6 years
Episode 74: How this investor plans to double his portfolio within 10 years
Episode 73: Bad builders: how this investor bounced back
Episode 72: Policy changes to interest-only loans: what buyers need to know
Episode 71: How this 'stubborn' investor recognised a property lemon
Episode 70: How this investor complements each property and balances his portfolio
Episode 69: Are you a ‘lazy’ investor? Consider the benefits to working with a financial team
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