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Your investment strategy must be strong

Strategy meaning

If you want to successfully invest in property, your decisions should never be spur of the moment or driven by emotion.

If you operate this way, when the excitement of a new acquisition fades, you may realise your decisions were impractical.

Like any other business, and property investment is a business, you need to plan – and that means having a strategy.

And a financial strategy is at the heart of investing in anything, property included.

Don’t be tempted to follow the herd. Remember: 90 per cent of property investors don’t get past the first or second property. Why? Because they rely on savings or cash flow to get ahead, whereas I recommend a capital growth strategy. It takes patience and planning, but reaps rewards.

Of course cash flow is important to keep you moving, but residential property is a high-growth, relatively low-yield investment, so a capital growth strategy is what will last the distance.

This means building up a solid asset base over several property cycles, gradually  lowering your loan-to-value ratios, so over time you can live off the cash cow you have created.

Hang on to good investments, reinvest, and accumulate capital gains. A winning strategy.

If you want to have a chat at any time about this common rental market mistake or other property investment issues, do get in touch. Also, please do connect with me on LinkedIn.

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