Are you like most property investors? If you are, you’re likely to get the same results as them – and that’s not a good thing. Close to three quarters of all property investors never progress beyond two properties and it’s not because they earn too little.
According to investment adviser Michael Yardney of Metropole Property Strategists, one of the reasons most investors don’t build large portfolios is because of their mindset. “They don’t treat investments like a business,” he says, adding that the worst thing an investor can believe is that property investment is easy.
“Over the years I’ve seen a small group of property investors, those who treat their investments like a business, become very, very rich by growing a multi-million dollar investment property portfolio. They do this understanding ‘the system’ and getting the right type of finance, setting up the correct ownership and asset protection structures and knowing how to legally use the taxation system to their advantage.
Let’s face it. The majority of Australians will always be employees, but we all have the ability to become financially free by becoming property investors who treat their investments like a business. And you can set up your own property investment business while you are still an employee or self-employed.
In fact, that’s what I did and what almost every wealthy property investor I know has done.
They built their wealth by growing their real estate portfolio one property at a time. While this was going on they lived off the income they earned from their day job. They started off with one property, then leveraged off its capital growth to invest in another and another until one day they found themselves with a true property investment business.”