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What does success mean to you? Each of us make choices in life. Some of us are from a background of privilege, others from poverty, but one thing remains true: when it comes to achieving success, we get back what we put into it. Even though you and I may define success in different terms, the end result is the same. We need to make the right choices to get what we want.
One of the choices we make is how we invest our time and our finances. If you’ve purchased one, two or maybe even three investment properties and are wondering why the money isn’t rolling in – I can give you the answer. Whether you realise it or not, you are not yet part of the 1% club. This is the percentage of individuals who have achieved financial freedom and enjoy the choices that come along with it.
Did you realise that although there are about 1.2 million property investors in Australia, only a quarter of these individuals own two or more investment properties? A number of things can impact a property investor’s success; a lack of education in finances, fear of the unknown or perhaps bad experiences – maybe even a combination of all of these problems.
It may sound impossible, but I’d like to make the point that it is definitely possible to become a member of the 1% club. Yes, you can do it yourself – all alone – however it’s much faster and in my opinion more pleasant when you have the knowledge and a solid support system of dedicated professionals who have travelled the road you now find yourself on.
Owning a portfolio of six or more properties – as the top 1% of property investors do – is where financial freedom begins to be realised, so this is a good target to shoot for.
Obviously you don’t want to own six to ten properties which are fully encumbered – that just means you’re faced with a future of debt, not income. To truly achieve membership in the 1% club you’ll need to pay down the debt on your properties and follow a strategy that will allow you to own each of your properties free and clear by the time you’re ready to enjoy your new life of financial freedom.
To reach this point you’re going to need a well-defined strategy. This strategy must take a look at your current situation and establish detailed, accessible goals that will propel your plans forward.
The Bottom Line
Imagine that you own six investment properties – free and clear – which are valued at $300,000 each. Leaving capital growth out of the equation, let’s say your properties deliver an average rental yield of 7%. Your passive income would be $140,000. This means you’d be part of the top 1% of Australian investors!
Can you see why it’s vital that you learn how to pay down your debt before you can really envision growing your property portfolio? There are a number of ways you can achieve this result – and in much less time than you might imagine!
I don’t blame you if you’re skeptical about this kind of result. Who wouldn’t be, but I and other Positive Real Estate educators have enjoyed this kind of success. You can too – with the right knowledge and support the sky is the limit!