Financial freedom is much more more than having money – it gives you the power to have choice in what you want to do in life. The truly wealthy people don’t work hard for money. They have money work hard for them. Most Australians spend 50 years or more equipping themselves for retirement, yet 95% of them fail, remaining dependant on the pension as their main source of income. These days, most people don’t have a financial plan to become financially free. In order to achieve success in your plan, they must execute and take action!
This type of financial freedom is most likely achieved by using property investment as the vehicle. In today’s current property market for investors, it is possible to slowly build a portfolio that includes income producing assets that can fund a lifestyle dream. A well thought out property investment strategy and formula can provide you with the choice to do what you love, such as travel, retire from work or spend time with the family, while you can sleep at night knowing that the assets are doing all the hard work.
The first step is to save for a first investment property deposit. This is usually 20% of the property’s purchase price however it is the most important step to begin your journey to financial freedom. Once this initial purchase has settled, and as long as you have bought well, it should start appreciating in value. From here, we build up equity to then look at purchasing a second property. Without having to save up from scratch in comparison to the first one. This process is repeated throughout the accumulation phase of the portfolio.
Property that has been purchased in key blue-chip areas such as Newcastle and The Central Coast generally have a history of doubling in value every 7-10 years and provide solid rental yields. The right investment decision varies depending on the individual’s goals and risk appetite. Everyone is different, whether it comes to serviceability, dependants, occupation, financial position just to name a few. Speaking to a property expert can help you shape your goals and targets with investment property before you commence your journey.