Cracking the code: 25% growth is the magic number
Whether it takes one year or five - assuming an 80% loan to value ratio and 5% costs, when you achieve 25% growth in an asset you can potentially use the equity in that property to purchase another. Jacob Field cracks the code on growing your portfolio.
The success of your next property investment will set the pace when it comes to how quickly you achieve your investment and lifestyle goals. Purchasing in an area that’s just reached the peak of its cycle or paying too much for a property, will really put a handbrake on your investment success.
In the current post-APRA financial landscape, securing finance and growing your property portfolio is a common dilemma we see many investors struggle with.
Having worked with a lot of investors to overcome these financial restraints, here at Ripehouse we believe we have cracked the code.
Securing Outstanding Growth with great yield in the first one-two years of your next investment purchase will not only help with serviceability, it will also assist you in growing your portfolio. Locking-down Outstanding Growth for your next investment can quickly provide another rung on your investment ladder.
While there are no shortcuts when it comes to generating Outstanding Growth, to separate yourself from the standard investor, you must take an end to end, holistic approach to your research. Each component must be driving toward a common purpose. Each element must amplify the results into the next.
It starts with an overall assessment of the nation, then drilling down to identify the best LGAs set for imminent growth and the individual suburbs, leading the charge. Next, by identifying the best streets and pinpointing the most in-demand property, your results can be optimised.
To achieve Outstanding Growth, you need to position yourself before the less sophisticated masses. When the word is already out about a boom area, the optimum buying window has already closed. We want to consistently identify areas JUST before they are about to spike in value.
Why is 25% growth is the magic number?
Whether it takes one year or five to achieve - assuming an 80% loan to value ratio and 5% costs, when you achieve 25% growth in an asset you can potentially use the equity in that property to purchase another.
The next step, building your portfolio and asset base towards your lifestyle and retirement goals.
Now you know the strategy, how can you find out where the next boom area is located? Check out our recent video here, to find out how to position yourself before the masses and achieve Outstanding Growth for your next investment.