If you are new to real estate, the following 3 part series on suggestions may help you make profit with property.

Part 3 – Manage your property portfolio

• Do you want to go full-time? As your properties increase you may need to give more time for their management. This may mean that it is time for you to leave your employment and spend all your time on managing your properties. You are the only one who can make the decision at the right time.
• Slash all debt: At some point you may decide to reduce your debt exposure by selling a property or two to reduce your mortgage loans. This will reduce the cost of the loans and will give you a more positive cash flow from your properties.
• Use your rental income for your requirements: At this stage you may be in a position to live on your rental income. If you had 5 properties, each worth $200,000 and free of debt and you rented them at $400 per week, this would give you an income of $100,000 per annum, which after clearing the expenses would possibly leave you with sufficient income to live on without looking at any other activities for income generation. The other good thing is your rents will increase with inflation, so in effect they are inflation proofed.
• Keep to what you know best: You will find as your properties increase and your income follows suit, you may be tempted to move into other investments. Be very careful here, because you don’t want to lose all the gains you worked for with accumulating your property wealth. Sometimes it is best to stay with what you know.
• Retire gracefully: You should now have a substantial property portfolio, producing an income for life. This will allow you to have sufficient plus the superannuation to enable you to live in reasonable comfort until you die and your wealth can be passed over to your family or those you wish to benefit.

We hope you enjoyed this three part series of suggestions to get started on real estate investment.

Happy investing!

Print PDF