“When it comes to building a property portfolio it can be hard. We will help you stay on the right track and achieving your goals that you have set yourself. There are a lot of components to putting a portfolio together and we are committed to making this a stress free and simple process. We don’t just have client’s, we have a community of investors that are getting educated on how to make their money work for them. Come and join our investing community”
What we agree to do for you
– Gather an understanding of your financial needs
Should you be Diversify your Portfolio?
When it comes to building a big portfolio you must start to look at different states for a number of reasons. When having multiple houses in just one state you will have to pay land tax, this is a tax that is based on the portion of land that you own in that state, each state gets a different land tax threshold, so when it comes to multiple properties it is best to spread out your portfolio to take advantage of that land tax threshold for each state. Reason two for buying in different states is capitalising on different growth sectors at one time. For example if I had 5 properties in NSW and it grows by 20% but then stagnates for 7 years, you now have assets that aren’t growing for a number of years. Now lets say I have 5 properties, two in Sydney, one in victoria, one in Queensland and one in south Australia. Sydney grows by 20% while the others aren’t doing too much, when the Sydney properties stop growing it then may be Victoria that is growing or Queensland. By having diversification in your portfolio you can access many different markets and at any one time one state may be growing in value. It also helps if markets are going down in value or rents are going down. You may have one of your houses that are declining in value or rent but the other houses maybe performing well which eases the pressure. If they’re all in one state and this situation happens and you have 5 properties declining all at once it maybe hard for you to hold the properties and you may be forced to sell some of these properties to be able to pay the loans. By spreading your properties over multiple markets you also spread your risk while accessing different growth drivers in different markets.