At a time when a loan application means that every crevice in your finances will be assessed, tracking your spending has never been more essential to securing a property. But how do you start? – An expert explains how the definition of objectives can guide the way forward.
Whether there are a handful of properties in your portfolio or whether you recently got your first property, knowing the most appropriate angle from which to approach your investments ultimately depends on trust in your strategy and where you want to position yourself later. on your journey – say, retired, when you want to enjoy a particular lifestyle that is liberated from 9-to-5 and open to more spontaneity.
But how do you organize your finances today and start growing your savings?
In Your Investment Property's latest YIP Talk podcast, Michael Beresford, director of investment services, OpenCorp, sits with host and editor Sarah Megginson to discuss Importance of budgeting and how to approach "goal setting" in real estate investing – which he says "gets easier over time".
"Be clear about what financial security and flexibility would mean to you, so this is a good place to start because then you can understand that and fuel effectively [it]," said Beresford.
In the podcast, the director advises investors not to look for the "smoking gun to invest in 2020".
"What constitutes a successful real estate investment is investing when you can and taking as many steps as possible at any time, which is basically your cash flow and your objectives and all of those parameters, "Beresford explains.
Leverage on leverage is essential for more experienced investors who wish to continue expanding their asset base, as well as for those seeking to use the equity of their first real estate purchase so they can embark on their next investment. But even "good" debt has become increasingly difficult to obtain due to changes in loan regulations.
As Beresford shares: "The focus has been on loans and finance, because unless you have bundles of tickets and you can buy properties, everyone has need a bank – right? "
"This is why it is a key topic on which we focus, and why we always put time and effort to understand and help customers navigate this kind of landscape to be able to find where they can borrow money from a lender. ", He says.
To help investors along the property road, Beresford highlights how they should approach their "borrowing capacity", and if they happen to have substantial support for it , not to feel as if they need to inject everything into a single property in order to get a profitable return.
"What [understanding your borrowing capacity] means is that you know what you have borrowing capacity for, so that you acquire investments that obviously work within the limits of your personal circumstances", advises Beresford.
“The bottom line is that you choose the strategy that will produce the results that [you want].”
To better understand Michael Beresford's advice on creating wealth through goal setting and strategic real estate investing, listen to the latest YIP Talk podcast.
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