10 Tips for Owning 10+ Properties: A Finance Perspective
Are you interested in owning 10 or more properties but don't know where to start? In this video, we share our top 10 tips from a finance perspective on how to get yourself to 10 plus properties.
- Match your income level to the type of property: To own 10 properties, your income needs to match the value of the property. If you earn $100,000 a year, aim for $300,000 to $500,000 properties to achieve the number of properties owned. If you earn $1 million a year, consider $2 million to $4 million properties.
- Avoid cross-collateralisation: Don't tie all your properties together in one big pool as it can hurt your equity position. Focus on one property that has increased in value and draw equity from it to put towards the next one.
- Look for good cash flow properties: Good cash flow or yield properties allow you to maintain your property without hurting your bottom line too much. It's important to narrow your focus into properties that have good growth in terms of capital growth but also good cash flow.
- Be comfortable with debt: Every property you own is an asset value that creates debt. You need to manage debt and be comfortable with it to own 10 or more properties.
- Manage household expenses: Managing your household expenses is even more important when you need to ramp up your savings for the next deposit.
- Refinance and restructure your loans: Always be on the lookout for better loan deals and consider refinancing when it makes sense.
- Consider different types of properties: While it's important to have a focus, consider different types of properties to broaden your investment portfolio.
- Surround yourself with experts: Surround yourself with experts in different fields to ensure you have a team of professionals who can guide you along the way.
- Have a strategy: Develop a clear strategy to achieve your property investment goals. Consider the type of property, location, and financial goals.
- Don't rush: Property investment is a long-term strategy. Don't rush into buying properties without considering your long-term goals.
In conclusion, owning 10 or more properties requires a clear strategy, sound financial management, and a long-term investment plan. By following our 10 tips from a finance perspective, you can start on the path to owning 10 plus properties. Remember, it takes time and patience, so don't rush into it.