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8 Rules To Investing In Property

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Mark Coburn | 04 Nov 2014, 10:19 AM Agree 0
Over the years I watched some really smart investors build their wealth by investing in property. The rules that they applies was key to their success.

This is a set of rules have come to mean a lot when I’m working through my decision making process. I find that they also let me see what was at fault when my failures have happened.

Rule One: Always preserve your capital. Risk your return, but in the worst case you should always be in a position to recoup your initial investment.

Rule Two: A good Investment needs to outgrow inflation. “Use good research to locate high growth investments”.

Rule Three: Minimise investing into assets that go into negative growth during the market cycle. This applies to shares and some real estate too

Rule Four: Avoid having to trade and paying the associated costs.

Rule Five: If you buy when the market is selling, sell when the market is buying, you will always come out on top.

Rule Six: Target growth areas for long-term capital growth in your property portfolio.

Rule Seven: “Time is your most important asset” Make long-term investments and disregard the bumps in the road along the way.

Rule Eight: Use leverage and don’t pay off principal during your portfolio's growth phase. Let time and capital growth deal the debt.

This is just my simple list, please add your own.
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