People often ask me how do you make money in property?
There are many strategies that will create wealth through property. They always take time and patience.
To do it successfully, normally takes a certain amount of skill.
Unfortunately building that skill takes time, one way to fast track the skill process is to leverage off other people’s skills and learn from the process. Use someone else’s knowledge, someone who has already put in the time, made the mistakes and learned the lessons.
This is why we pay a tradesman to do a job we don’t have the skill to do. We don’t have the time or patience to learn the trade so we pay someone who has put in the time and the job is done correctly.
I have 3 pillars that I use consistently to make money in property.
They all compliment each other and feed from each other. I have learned over the years that using these strategies works for me and is a faster path to wealth creation than working 9-5.
It takes time to learn and i’ve made mistakes along the way but the journey has also taught me many lessons. Investing time in learning these skills has allowed me to step away from committing my time to a day job to earn an income.
The 3 pillars that I use to create financial freedom are:
Pillar 1: Long term growth property
Pillar 2: High cashflow property
Pillar 3: Property Development
Pillar 1 builds your capital base over the long term. It bubbles away in the background, growing exponentially and as it fruits over time, you can harvest the equity and feed it into pillar 2 and 3.
Pillar 2 feeds your serviceability requirements. To borrow more money, the bank needs to see that you can service your loans. High cashflow assets like commercial property, regional residential etc. can keep your head above water. Too much of pillar 1 and the banks will eventually stop lending you money.
Pillar 3 feeds both pillar 1 and pillar 2. Small property developments such as renovation and subdivision, selling small lots of land, building townhouses all fast track your capital creation and allow you to buy more property or create cash to do more developments.
If you want any advice or help with these points, book a chat or drop me a message and I will be happy to help :)
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