Alright, so, you’ve started your investment journey…
The first property’s in the bag and you’ve managed to find a tenant.
It all seems to be going pretty well…
Soon enough, you’re going to face a question:
Are you ready to expand your portfolio?
The question may fill you with fear because taking on another property means you’re taking on more risk.
(Or perhaps you don’t feel ready because you’re not sure what “ready” even means…)
Thankfully, we have some good news for you.
There are a few signs that suggest you’re ready to expand your portfolio…
Here are three of them.
Sign # 1 – You’ve Built Up Some Equity
You’ve stayed on time with your repayments and built up some equity in your first property.
Perhaps you purchased under market value, meaning that you’ve got ready equity available.. (nice one!)
That’s important because you can recycle that equity to pay the deposit on your next property.
If you’ve got tens of thousands of dollars in equity ready to go, you’re likely ready to start expanding.
But if you’re a way off that sort of figure, it may be best to hold off a little while longer…
Sign # 2 – You Have Positive Cashflow
This is so important when building a portfolio…
Positive cashflow means you’re making a profit from your investment property.
That’s going to play out in your favour when you apply for your next loan…
The income counts towards your serviceability.
A positive cashflow means you’re less of a risk, which makes it more likely that you’ll get the loan…
If you’re making a tidy profit, you may be ready for your next property.
Sign # 3 – You Have the Market Information
You’re not ready to go ahead just because you have the cash…
It’s crucial that you research the market so you know what you’re getting into with your next property.
Remember that it’s always best to buy below market value…
You just need to find somebody who can help you locate those sorts of properties.
Well, we can help you with that..
We’re here to help you build the portfolio that will support you for years to come.
Ready to expand?
Take our 15-second application, to see if we’re a good fit, and to start taking action on your High Performance Property journey.