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Vaughan and Dinah's tips:
- To finance new properties, use equity first. Check the capital growth as often as possible with valuers and banks. It's free and you can do it through different banks if your bank gets sick of helping you. Secondly, raise funds through joint ventures but be aware that it does slow you down if people have different goals and risk profiles. Thirdly, and as a last resort, use your own savings. Every year we try to save around $25,000 and this can be used as a deposit for more properties.
- Do your sums. Be very conservative with income and growth. Overcompensate your expenses and you can't lose.
- Use brokers and don't get roped in with one lender.
- Surround yourself with one good accountant, broker and solicitor and maybe a real estate agent and build strong relationships with them. They're more likely to go the extra mile for you when it's most needed.
- Most of all, keep up the momentum. Don't slow down. Even if you can't keep buying, keep educating yourself and actively researching the market.
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