The secret to property investment: Good property investors buy time🕰️

A very important lesson to learn early on is that to be a successful property investor, what you are really buying is time. Of course, you do need to buy the properties, but they are not the absolute key to success. By holding your portfolio in the market for long enough, you’re able to make money that can cover any problems that may arise. The main way to buy time is to maintain a healthy cash buffer.

Whether it’s an interest rate increase, an unexpected vacancy or unforeseen maintenance problems, you’re bound to encounter some issues along the way. Don’t let that deter you from investing though, because then you won’t make any money at all. You can minimise the effects that these risks can have on your cash flow with a buffer. This could be an offset account against your mortgage or a line of credit. Having cash on hand that’s easily accessible for unforeseen expenses throughout the year will save you in the long run. Then when tax time rolls around, you can top up your buffer again with your tax return.

Too many inexperienced property investors get this wrong, buying as many properties as they can and not leaving any cash in reserve. When they get caught off guard by a vacancy or maintenance costs, they either have to sell a property or default on a mortgage. Neither of which is a desirable outcome, so don’t let it happen to you!

Stay tuned for more insights from Wealth Through Property.

~Daimien Patterson


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Legal Disclaimer: This information ('the information') is presented for illustrative and educational purposes only. It is not presented nor should it be treated as real estate advice, legal advice, investment advice, or tax advice. All investments involve risk and potential loss of money. If you require advice in any of these fields you should contact a suitably qualified professional to assist and advise you. Your personal individual financial circumstances must be taken into account before you make any investment decision. We urge you to do this in conjunction with a suitably qualified professional. Daimien Patterson, IntegrityX Enterprises Pty Ltd, and their associated trading names, companies, researchers, authorised distributors and licensees, employees and speakers do not guarantee your past, present or future investment results whether based on this information or otherwise. Daimien Patterson, IntegrityX Enterprises Pty Ltd and their associated trading names, companies, researchers, authorised distributors and licensees, employees and speakers disclaim all liability for your purchase decisions. You should do your own independent due diligence and seek the advice of qualified advisors before making any investment decision.