[Try out our Ultimate Financial Freedom Calculator, which seeks answer to the question, “How many debt-free properties do I need to live in financial freedom?”. It is part of your strategy to understand how many properties you need to acquire from now until retirement.]
Property strategies listed below are commonly used in Australia. They may overlap depending on how you apply them to your personal circumstances, goals and risk profile.
- Home ownership
- Buy and hold real estate
- Negatively geared property (capital growth strategy)
- Positively geared property
- Cash flow positive property
- Buy property to renovate
- Partnerships and syndications
- Property subdivision and development
Which property strategy is best suited to you will depend on your goals and unique circumstances. Each person is different and you cannot follow other people’s footsteps because their strategy is tailored to their goals. This why it is so important for you to be educated in the various types of strategies and align them to your personal goals.
Understanding the inter-play of all these strategies will give you the foundation for sound decision-making.
Your property strategy and buying criteria may also include decisions about whether to buy:
- Capital growth or rental yield property
- New or an existing property
- Apartment or a house
- Off-the-plan property or buy a completed property
- Low-priced or high-priced property
- Custom build, house and land or existing property
There are also a number of complementary strategies that you need to take into account when buying properties.
- Mindset strategy
- Education strategy
- Ownership strategy
- Finance strategy
- Debt reduction strategy
- Tax reduction strategy
- Asset protection strategy
- Contracting strategy
- Exit strategy
- Retirement strategy
Always start with the end in mind. What are your goals in owning a property?
Strategies will only work according to your desire and commitment to succeed.
Ask the question, “What is my level of desire to succeed?”
Unfortunately, many people spend years seeking ‘financial freedom’ and never know the importance of having the right strategies and systems to succeed.
Having the right strategy is the No. 1 thing you must have.
After detemining the strategies, then acquire or develop systems to support the execution of the chosen strategies.
Property strategy 1 – Home ownership
This is by far the most common property strategy in Australia. 67.0% of Australian households owned their home (with or without a mortgage) at the time of the 2011 Census. It is down from a rate of 68.1% in 2006. (Australian Bureau of Statistics, 2013)
This real estate strategy is about purchasing your own home to live in it. Over time you could improve its value by renovating, subdividing or development.
Buy the right property in the right location for capital growth
Capital growth can be:
- Generic, driven by the market. It is due primarily to the location of the property (if chosen correctly). This is considered as a passive property strategy. This strategy is suited for time-poor buyers.
- Manufactured, where value or equity is added through active strategies like renovation, subdivision or development. This strategy is suited to knowledgeable buyers who have time and commitment.
With home ownership, you’re not generating any passive revenue or rental income from your home. Rather, when the market goes up in value over time, your principal place of residence or house will also increase in price. The market will do the heavy lifting for you.
This is why the location of your home is important from a capital growth perspective. Don’t just buy any property that comes along or for the fear of missing out.
Equity release is another property strategy plan
Equity is the market value of an owner’s unencumbered interest in their property. It’s the difference between the property’s fair market value and the outstanding balance of all liens or mortgage on the property.
You could release excess equity from your home to buy an investment property. Revalue and refinance the home. Set up a line of credit (loan facility) with a lender for up to a percentage of the available equity. This amount is your property investment budget that you are comfortable with. You should not go over this budgeted limit.
Draw down on the line of credit to make a 10% or more deposit payment on an investment property. This includes the payment of stamp duty. If the line of credit is sufficiently large, you could buy two or more investment properties.
Capital gains tax on principal place of residence is zero
Principal place of residence exemption applies when you solely or jointly own the home you live in.
Capital gains tax is not levied on the profit from the sale of a pricipal place of residence or the family home. You will keep 100% of the profits!
Property strategy 2 – Buy and hold real estate
Buy and hold real estate strategy is a passive real estate investment strategy. This is where a time-poor property investor buys investment properties on credit and holds them for a long period of time, regardless of fluctuations in the market. In the meantime, the investor rents it out to good tenants where they help pay off the mortgage.
Time in the market – Perform good due diligence to select the right property
Capital growth is about timing the market as it is time in the market.
Buy the right property in the right location and at the right price that can yield both short term gains and long term appreciation. Good property selection is vital as we are relying on the market to do the heavy lifting for us to generate the required long term capital growth for the property.
Timing the real estate market
How to time the real estate market is an important skill. You can time the market to extract the increased equity when the property market goes into an upswing, thereby accelerating the rate of capital growth.
Equity release is another property plan
When that property’s equity increases, buy and hold property investors may release the equity in an existing property to buy another investment property. Revalue and refinance the property. Set up a line of credit facility with a lender. Draw down on the line of credit to make a 10% or more deposit payment on an investment property including the payment of stamp duty.
If the line of credit is sufficiently large, you could buy two or more investment properties.
Selling real estate properties to generate pure cash flow
In the future, you may sell down existing mortgaged properties to reduce debt and emerge with other income generating assets. The goal for wealth creation and financial freedom is to own debt-free properties that will generate pure rental income or cash flow during retirement.
Active real estate investment strategies are preferred by some people
People may not be keen on this passive property strategy as it totally relies on the market to generate capital growth. There is no control over how the property can grow in value and for how long.
Renovators may buy, renovate and hold the real estate as an active strategy.
Instead, they manufacture or add value to the property.
Renovated properties should fetch a higher rental income if the renovation cost is strategically capped based on the type and location of the rental property. Over-capitalisation can be a real problem for investors.
Property strategy 3 – Negatively geared property
Negatively geared property generates more expenses than you earn in rental income before you take tax savings into account. Rental yields or income are lower than the mortgage repayments.
Negative gearing is the practice of investing borrowed money in such a way as to result in a loss that can be claimed as a tax deduction.
When total expenses including loan repayments exceed the rental income, there is a loss. The loss associated with property ownership can then be offset against other income earned. This reduces the assessable income and tax payable. Under Australia’s current (and hopefully future) tax laws, you can claim the loss as a tax deduction.
Depending on your property strategy, serviceability and financial situation, you may want to focus on high capital growth areas first to build your real estate investment foundations. Then revert to more neutral or cash flow positive properties to balance the portfolio and support further lending and serviceability.
Negative gearing as a tax minimising strategy
People use this property strategy mainly as a tax minimising strategy. They reduce their tax liability by off-setting the losses from owning negatively geared investment properties against other income earned.
Capital gains tax is payable on the profit when you sell that negatively geared property.
This strategy is best suited for busy high-income earners who are time poor. It takes less work to find fully negatively geared investments than other forms of real estate investments. Just look in the best inner city suburbs.
The disadvantage is that without a very large income source, at some point, the investor’s serviceability would stop them from adding more properties to their real estate investment portfolio. The average wage earner cannot afford to grow a real estate portfolio continuously using full negative gearing for all properties. The accumulated losses will become too great.
Saving tax should not be the sole reason for choosing an investment strategy. Nor should you ignore the tax benefits associated with negative gearing. It should be a by-product of property investing.
Buy and hold property strategy plan
Working in conjunction with the buy and hold strategy, you may buy and hold a negatively geared property for a period of time.
For a negatively geared property, you make money from capital growth if the property is bought in the right location (e.g., right price, right market, right suburb, right street, and right address on the street). Unfortunately, rental yields or income will be very low for such properties; hence, the losses.
There is an underlying assumption that the accumulated losses will be offset by the property’s capital growth. While you are making a loss, your property’s capital value is growing (hopefully or prayerfully). In this case, rental income is not considered as important as the capital growth potential (if selected wisely or correctly).
Negatively geared properties can become positively geared
Properties that begin as negatively geared properties could, if selected carefully and managed proactively, become cash flow positive properties in the long run. This is so when rental income increases are made regularly according to market demand.
Problems with negative gearing
A negatively geared property loses money. It takes money out of your pocket. You have to cover the losses yourself before tax time each year.
Owning properties at a loss can make it harder to build a sizeable real estate portfolio.
Property investing is a business. You do not want to own a business that loses money!
There is an assumption that there will always be capital growth. This is NOT always the case especially when the property is purchased in the wrong location or time on the property cycle.
Where to find negatively geared properties?
Negatively geared properties are usually located in inner suburbs of cities and in major towns. The demand is higher due to land scarcity, population growth and infrastructure maturity. Rental income and yields are low for negatively geared properties.
Capital growth vs. rental yield
There is an inverse relationship between capital growth and rental yield.
High capital growth properties will generally attract lower rental yields and income and vice versa.
Unfortunately, you cannot buy capital growth properties without cash flow. There needs to be a good balance or trade-off between rental yield and capital growth. This depends also on your real estate investment strategy, risk profile and financial goals.
Property strategy 4 – Positively geared property
Positively geared properties are properties that generate more rental income than you have to pay in expenses before you take tax savings into account. This is the flip side of a coin from negatively geared properties.
This strategy works in conjunction with the buy and hold real estate strategy.
Positively geared property requires you to pay tax
Genuine positively geared properties should give you cash benefit before tax. You are not reliant on any tax deductions or refunds to give you the cash flow.
You owe the taxman money because you are making a profit from the excess rental income.
Combine negatively and positively geared properties in an investment portfolio
This strategy to combine negatively and positively geared properties in one portfolio will help in your serviceability. It’s a balancing act to ensure that investors can continue to move forward in building their real estate portfolio.
Serviceability is the ability of borrowers to meet their loan repayments. It is based on the loan amount and the borrower’s income, expenses, and commitments. This generates an overall figure, known as the debt-to-service ratio (DSR). It is a borrower’s monthly debt expense as a proportion of monthly income, including rental income from investment properties.
Having a basic knowledge of how serviceability is calculated can help you understand and, if necessary, rework your finances in preparation for obtaining a loan for the purchase of a real estate.
Positively geared properties can offset the losses arising from having negatively geared properties in your real estate portfolio.
Depending on your income level (especially if you are in the lower income bracket), you may want to start first with having positively geared properties in your portfolio. Then, switch to buying negatively geared properties later on are the excess rental income over the losses.
Your serviceability can be improved with the existence of positively geared properties. This avoids the financial brick wall that you may encounter. It gives you access to greater borrowing power in the future by putting money back into your pocket.
Where to find positively geared properties?
Positively geared properties are usually located in outer suburbs of cities and in regional areas. Because there is less competition, these properties usually grow at a slower rate (e.g., lower capital growth) despite their good rental yields and income.
Regional areas tend to be sensitive to economic cycles and have slower capital growth over periods of time unless there is an economic change to the area.
In addition, jobs growth may be slower, unemployment may be higher, wages growth can be generally lower and there is no shortage of land.
Property strategy 5 – Cash flow positive property
Cash flow positive real estate put cash in the pocket after depreciation and tax deductions are taken into account. This is where the investment property is cash flow positive due primarily to the benefit of the tax refund claim.
This negatively geared property with positive cash flow strategy is best used by property investors who are not in the highest wage brackets. It works in conjunction with the buy and hold real estate strategy.
This strategy is suited for those who have a bit more time to learn, research and scout around for the appropriate cash flow positive property. It may take some time to find a cash flow positive property that have some capital growth.
Keeping the portfolio cash flow positive also means that investors would not be knocked back on loan applications due to their poor serviceability.
Where to find cash flow positive properties?
Like positively geared properties, cash flow positive properties include properties located in the outer fringe suburbs of cities, serviced apartments and student accommodation. Because there is less competition, these properties usually grow at a slower rate (e.g., lower capital growth) despite their good rental yields.
Rental yields may still increase due to inflation and tenant demand in the area. The tenant profile may also differ when compared with those living in the city.
Property strategy 6 – Buy property to renovate
Renovating a property is a way to manufacture equity and add value to the property. This active strategy allows you to fetch a higher property sale price if you decide to sell immediately after the renovation (a process known as ‘flipping’).
Or you could re-valuate the property immediately after renovation and extract the excess manufactured equity to purchase another property. Or it also allows you to fetch a higher rental income if you decided to keep the renovated property as a rental.
Renovation may sound simple and sexy. It is an active property strategy that requires time, commitment and knowledge. Doing a renovation requires a lot of work and time, especially if you do it yourself.
Even if you do not do it yourself, it requires a lot of management and close supervision when work is done by others.
It also takes a lot of time to find the right property that can make the numbers work. You want to make a profit from the renovation.
You need to create enough manufactured equity on the sale (or revaluation) to make it worth your investment in time, effort, and money.
It is very easy to underestimate the time, cost and work involved in a renovation project if you are not careful or experienced.
Opt for cosmetic renovations instead to increase perceived value
In older houses, there is the ability to manufacture additional equity that you can immediately access for further investment.
Add perceived value (in addition to the actual renovation cost) to a property especially in a lower growth property market.
Basic cosmetic renovations can help investors increase their profits and equity on a shoestring budget within a short period of time.
Renovations do not have to be major to add instant perceived value. Cosmetic renovations (when compared to structural renovations) have lower town planning requirements and complexity. They do not carry the risk inherent in major renovations. They can be as simple as having a new coat of paint, exterior cement render, update the kitchen, update the bathroom, update the front façade, create an outdoor entertainment area, and improve the landscape.
Renovations can generate a higher rental income and tax depreciation
Depending on the location, the increased value can enable a higher rental income, not just create more equity. It can also lead to higher tax advantages due to higher tax depreciation.
We all know that building and renovations rarely come in on budget. To avoid a budget blowout, engage a quantity surveyor to estimate the cost of renovating before lodging an application with the local council (if required). This will ensure that you don’t end up with an approval for a renovation that you can’t afford.
There is a danger of over-capitalising the property on renovation cost. By doing so, you don’t make as much profit when it’s time to sell.
Use the 10% rule, as a guide. That is, only spend up to 10% of the total purchase price of the property on renovations.
Devaluing the property
Any renovations you undertake should be finished to the expected quality and has wide appeal to most people.
Over-personalising a renovation can actually devalue your property.
To achieve a premium price, you need to have competition amongst buyers. You need to appeal to the maximum number of people.
Not getting the right advice
A renovation is not that simple. Reality shows give a misleading impression that renovations are easy.
Get the relevant experts to tell you what you’re in for.
Do your homework to avoid surprises. Invest in your education.
Sourcing reliable builders are important. They may not be the cheapest. Look at the quality of their work before you hire them.
Shoddy work can end up costing you more than you bargained for.
Risking your health
If you’re planning a DIY job on your renovation, the budget won’t be the only thing to worry about.
Exposure to asbestos is a risk to your physical health. In most cases, renovations are performed on older houses that most likely contain asbestos. It is used in products such as carpet underlay, walls and floor tiles in homes constructed before 1987.
Electrical wiring, falling fragments of wall and potential trips and slips are also risks associated with renovations.
Property strategy 7 – Partnerships and syndications
A time-poor, cash-rich property investor can find a time-rich, cash-poor partner who has the knowledge to renovate or develop a property. The partner can do all the daily running around for the partnership.
A clear expectation of what each partner will bring into the project is vital. This could be done through a written contract.
Multiple parties can also come together to contribute time, knowledge and finance to buy existing properties and land to renovate or develop.
Whilst this strategy may have a higher return, it entails more risk and trust amongst partners. It must also suit your risk profile.
Property strategy 8 – Property subdivision and development
Like renovations, property subdivision and development are active property strategies that manufacture equity and add value to the land or property. Active strategies that add value to the real estate may be a way to create positive cash flow properties and profit that are not totally dependent on location and market cycle.
It’s a highly skilled venture with substantial learning curve and risk. This strategy takes time and commitment on your part.
You can either sell off the properties you build and/or hold on to stock as rentals.
Subdivisions involve buying a property with an extra-big block of land and dividing that land to either build another house or create a new block of land that you can sell by demolishing the old house.
Subdivisions and developments are complex businesses
There is potential for you to make good profits and create instant equity instead of waiting for capital growth over time. Where the potential return is higher, so is the risk and challenges.
It is also easy to make a loss if you do not know how to do it correctly. You require high commercial, management, and people skills.
You have to be able to read the property market extremely well. Know when it is time to sell the properties after development.
There are potential delays in every step of the development process; planning, permits, finance and construction. These delays can cost you money and time.
Property development requires a larger capital commitment. Your lender must be comfortable with your active strategy. They must also be comfortable with your experience and skills to successfully execute this strategy.
Develop with the end in mind
There are multiple exit strategies to make money. It depends on how quickly and how much profit you want. This includes subdivide and sell; sell with plans and permits; subdivide, develop (whole land or backyard only) and keep or sell.
Alongside your property strategies, you need to consider a range of other complementary strategies.
The financial discipline to save and manage your money and cash flow is part of your personal financial mindset that is already ingrained in your subconscious. It will determine your financial outcome.
Are you working hard for your money? Or does your money work hard for you?
Mentally, are you set for having a high income, a moderate income or a low income?
If you go from living paycheque-to-paycheque, does it sound right that you will know the best things to invest in, and the best tax and asset protection strategies?
Are you programmed for saving money or for spending money? And are you programmed for managing your money and cash flow well or mismanaging it?
Reframing or reprogramming your mind is your key to financial success, especially if you have poor financial literacy and financial management skills.
We have developed our subconscious financial mindset through what we previously heard about money, what we saw when we were growing up and when we were involved in specific negative incidents involving money (or the lack of money). It could also be living the life of frugality.
What many people do not realise is that we are all taught and conditioned in how to deal with money by people who didn’t have a lot of money in the first place. As such, the importance of having the right mentor and model is vital to our financial freedom and success.
The reality is that if our subconscious financial mindset is not set (or re-set) to a high level of success (especially for financial success and achievement of goals), nothing we read, nothing we learn, nothing we know and nothing we do will ever make much difference. Not a bit!
“If you think education is expensive, you should try ignorance” (anonymous).
Invest time and effort to acquire the right knowledge and education before you buy a property.
Be careful who you learn from.
There are experts and there are experts. If you ask five experts, you will get five different responses and opinions as what your strategy and purchases should be because they have different skills, market knowledge and business interest. It is only through self-education and having your own goal-focused strategy that will save you from potential financial disaster and being led onto the wrong path.
The right knowledge and information will take the worry out of investing or buying real estate. It gives you the confidence. It equips you to sensibly evaluate each step in your wealth-building plan, which is not taught in schools.
Real estate investing is not a ‘get rich quick’ scheme. Just as any solid home needs a strong foundation, the same is true when it comes to your real estate education and knowledge.
A solid educational foundation is key to a long-lasting business that does not lose money.
Develop education goals like “I will read at least five property investing books in the next six months”.
There are a lot of ways to lose money when you buy real estate. The more education you get and the more work you do upfront, the more likely you can make money from real estate instead of losing it.
With proper education, you can feel more confident about your decision, thereby minimising any buyer’s remorse.
Remember, education is a process and financial literacy is vital for your success.
After a certain point, you have enough knowledge and information to buy real estate. A real world experience is invaluable to super-charge your education.
The key question, “What name do I put on the contract?” should always be answered well before you start searching for a property (e.g., well before auction day!).
Your ownership structure will depend upon a variety of things – your personal situation, your goals, and your financial and risk-taking capacity.
This strategy requires you to weigh up many considerations including:
- Immediate tax benefits (i.e., negative gearing, land tax).
- Future tax liabilities (especially when the property produces taxable net income).
- Future capital gains tax liabilities.
- Asset protection.
- Estate planning.
- Retirement strategies.
- Managing exposure to investment risk.
- Family obligations.
There are many ways to own a property. Each ownership structure has its pros and cons. No one structure is perfect.
Firstly, you can own the property in your name or own it with other people. If you own the property with other people, you can hold it as joint tenants (i.e., where there’s no specific ownership percentages) or tenants in common (i.e., where you can stipulate each party’s percentage interest).
Do you own the property in the highest income earner’s name to maximise income tax benefits? Do you share the property ownership between high and low income earners to spread the capital gain and income tax liabilities that will eventuate over time?
Secondly, you can own the property in a trust. There are three types of trust for consideration – discretionary, unit and hybrid. A discretionary trust is probably the most popular (often referred to as family trusts).
Thirdly, you can own the property in a company. This is rarely a good structure due to the cost.
The problem with a company is the individual is normally the shareholder so they could lose the shares in a successful lawsuit and therefore the assets and cash flow of the company.
The other problems with a company are it does not receive the 50% general Capital Gains Tax discount, traditionally it is inflexible as to who can receive distributions plus if the asset was negatively geared the individual could not take advantage of the tax credits of the negative gearing.
Finally, you can own the property in a self-managed super fund.
Buying property or property investing is about a game of finance. Without finance, you are unable to buy a property.
Primary sources of finance include:
- Banks – first and second tier
- Building societies and credit unions
- Non-bank lenders
- Joint venture partners
- Private venture or equity organisations
- Family and friends
- Government grants or subsidies
This strategy sets out how you plan to finance your property purchase and its activities, how much is needed and by whom, and where finance will come from.
If you are going for a mortgage like most people, then your aim is to get the right loan type, structure and features to match your strategy, ownership structure and buying criteria.
Avoid cross-securitisation of your mortgages and credit facilities, if possible.
Alternatively, you could release available equity from an existing property you own if the outstanding loan amount is much less than the market value of the property.
There are two key steps to keep in mind.
Firstly, set your buying power based on a pre-determined budget for property investing that will not compromise your lifestyle. Don’t go beyond this financial limit.
Secondly, understand your level of serviceability. It’s your ability to meet the regular loan repayments, based on the loan amount, and your debts, income, expenses and commitments.
Always get a written UNCONDITIONAL pre-approval from your lender well before making any buying decisions. This pre-approval will give you a good indication of the type of property you can afford and in which location the property is located.
Beware of written conditional pre-approval from your lender. This conditional pre-approval is NOT your finance approval to proceed to find and buy a property. Seek clarification on the reasons for the conditional pre-approval. Always seek to get a written unconditional pre-approval instead.
Debt reduction strategy
The aim is to be debt-free!
Your financial mindset should be set to being debt-free upon retirement.
This strategy sets out how you plan to reduce your debt over time using good financial and cash flow management.
If you have existing debts to pay off, then start with the highest interest debt or smallest first as a matter of priority.
Tax reduction strategy
Buy a property to make money. If you buy a property primarily for tax liability reduction in the form of negatively geared property, then you must have an exit strategy. It ensures that you do not take money from your pocket when you retire.
This strategy sets out how you plan to reduce the amount of tax payable by using tax credits, exemptions or deductions.
Asset protection strategy
This strategy protects your assets, income, wealth and legacy. This could be done via ownership structures, insurances (e.g., income protection, total and permanent disability insurance, etc.), pre-nuptial agreement, Will and testamentary trust.
This strategy includes all relevant legal safeguards or appropriate contractual conditions like finance and inspection clauses.
Buying a property and making your offer subject to several conditions is normal.
A sale that is ‘subject to finance’ can fail completely if the purchaser’s finance fails or unapproved. It is important to note that you cannot get out of a contract under the finance clause just because you changed your mind after signing the contract.
The finance clause is NOT a ‘cover all’ contract cancellation condition.
As real estate laws and contracts differ between states, please check with your legal representative on the appropriate offer conditions to be used in the contract of sale.
Begin your exit strategy planning before you buy any property.
Put some consideration into the end game and what it will look like for you.
Knowing the reasons for owning the property will give you the appropriate building blocks for developing your exit strategy.
Linked to your exit strategy is your retirement strategy. Determine what retirement looks like.
Set a target date for retirement. This will give you a goal to work towards.
This age can be used in the Ultimate Financial Freedom Calculator to determine the number of properties required to generate the required passive income after retirement.
People don’t plan to fail; they simply fail to plan
Successful wealth creation requires you to set goals, strategies, and actions prior to acquiring any property.
Determine where you want to be at end (i.e., retirement) and devise a cohesive actionable plan to get there.
Attempting to build a real estate portfolio without a written plan of attack is like setting out on a road trip without a map. You can inevitably take a wrong turn, end up lost, and most likely lose money along the way.
The only solution is to acquire the right knowledge and develop a well-considered and well-written strategy.
Is now a good time to invest in real estate? Has the market ‘bottomed out’? Is it time to buy? Is it time to sell?
The truth is that most people are so scared and so mind-boggled that they wait and wait and wait. Then they end up buying too high. Or, not buying at all.
Here is the truth. WHEN you have the correct knowledge and the right strategy, you can proceed with buying a property with confidence. Most likely, you can make money in the long term.
Four key questions
There are four must-answer questions that you must answer before you invest in real estate
- What is your investing time frame? That is, for how long do you plan to hold the property?
- Are you investing for capital growth or cash flow?
- What is your appetite for risk? Are you looking for safer, set-and-forget type investments or passive strategies that will make you money over the long term? Or are you looking to speculate and make money quickly?
- What can you reasonable afford without compromising your current lifestyle ad personal commitments?
Seven steps to buy the right house
There are seven powerful steps to buy the right investment grade property.
Let’s be clear. There is no such thing as a perfect property.
Identifying an investment grade property is all about mitigating your risk. It’s about mitigating the risk of buying in the wrong location, buying the wrong type of property and buying at the wrong end of the price equation.
This process of mitigating risk takes time and effort. It takes research and due diligence. And it takes patience, knowledge and experience.
The seven key questions to ask
- WHY am I buying a property?
- WHAT are my goals and strategies?
- WHICH professionals should I use?
- WHO owns the property?
- HOW much can I borrow?
- WHEN to buy and exit?
- WHERE and WHAT do I buy?