As experienced buyers agents, we understand better than most the power property investing has to change lives. We have worked with investors who have built serious wealth from the most humble beginnings. We have also witnessed the flexibility, stability, and financial security owning investment properties can provide.
Here we take a closer look at what having a high performing property portfolio allows you to do. We also share some of the more interesting and inspiring ways we have seen successful investors use their returns.
Why people get into property investing
While the primary goal of property investing is to build wealth, exact motivations will vary from investor to investor. For some, it will be all about shoring up their finances and building a better future for their family. For others, their focus will be improving their quality of life and supporting the lifestyle they want to lead.
In our experience, the main things investors aim to achieve through property are:
What you can do with the wealth you build
As a general rule, we recommend reinvesting most of your returns into your portfolio. This usually means using the extra income to pay down your debts faster or putting it toward additional property purchases. This helps keep your portfolio growing and should mean you are paid larger dividends in the future.
However, we understand that this approach is not for everyone and that there are other ways to make the most of your returns. For example, we have seen quite a few investors use their portfolio’s capital growth to upgrade their own home. While this is mostly an investment in their own quality of life, it also adds to the total value of their property portfolio.
We also know of several investors who had to use their property portfolio to support them through the toughest times. There have been investors who have lost a spouse but were able to maintain their lifestyle, thanks to their portfolio. There have also been investors who have lived off their rental income while they recovered from serious illnesses. We have even heard stories of people making the transition from casual property investor to professional property developer. In most cases, these people had a lifelong interest in property and their portfolio helped them fund the change. They were also able to leverage the knowledge and skills they learned through investing to maximise their returns as a developer.
Want to discuss this further?
If you would like to learn more about what property investing could do for you, contact Search Party Property. We can help you better understand your motivations, set your investing goals, and tailor a strategy to achieve them. To get started, book your complimentary property investor readiness assessment session today.