UNDERSTAND YOUR BORROWING CAPACITY
In order to develop a large property portfolio, you need to be strategic with the types of properties you buy. Therefore, you need to understand the impact they will have on your future borrowing capacity. In other words, if you do not purchase correctly this can jeopardise your future in the market.
YOU NEED A LARGE PORTFOLIO
As I always say to my clients, in order to be a successful property investor (and by successful, I mean generating a passive income that is enough to retire on comfortably), you need to develop a portfolio of at least six properties.
One thing that is often overlooked and underestimated when purchasing properties is funnily enough FINANCE. As an investor, you need to remember that the banks are not going to just lend money to everyone. So, the types of properties you purchase need to be geared in a way that the banks and yourself will see positive returns.
WATCH MY NEW VIDEO
I made this video to explain how your borrowing capacity can be maximised. It also tells you how you can manipulate your borrowing capacity though the types of property you buy. Check it out!
Want to learn more about finances? Look here.