If your goal is financial freedom, then the straight answer is…More than one.
Owning only one property that you live in is potentially slowing your journey.
I’ll explain why.
Let’s say ‘John and Mary’ currently live in a $700,000 house and have a goal to work hard and upgrade to the neighbouring suburb and buy a house worth around $1000,000.
The market moves 20% and their house goes up in value, they’re feeling pretty good right?
But realistically everything else around them has gone up in value at the same rate.
This is called inflation.
Now their $700,000 house has gone up to $840,000 and the house they planned to upgrade to in 5 years time, has gone from $1M to $1.2M.
So the upgrade gap has widened from $300k to $360k. Effectively, John and Mary have moved $60k further away from their goal.
So how do we stop falling behind inflation?
To move closer to your goal, you need to outpace or ‘outsmart’ the market. Accumulate carefully selected property assets that increase in value to bridge the gap between where you are now financially and where you want to be financially.
Understand that your home is not an income producing asset.
To repay your home debt requires your time and labour. If you stop working every single day to pay down your debt, then eventually you will have to sell your home because no one else will pay it off for you.
That sounds like a treadmill to me.
So how can you plan to get off the treadmill? Have a tenant that runs the race for you paying down your debt while your asset increases in value.
Then, rinse and repeat.
So what’s the next step?
You need a defined goal, a defined plan and strategy to achieve that goal and a professional team to help you implement the plan.
That’s the short of it. But there’s more detail.
As I always say, property is a long term game so the best time is to start now.
If you’re interested in learning more about how owning an investment property can help you achieve your goals, then feel free to reach out for a chat at anytimeHow many properties do I need to own?
If your goal is financial freedom, then the straight answer is…More than one.
Owning only one property that you live in is potentially slowing your journey.
I’ll explain why.
Let’s say ‘John and Mary’ currently live in a $700,000 house and have a goal to work hard and upgrade to the neighbouring suburb and buy a house worth around $1000,000.
The market moves 20% and their house goes up in value, they’re feeling pretty good right?
But realistically everything else around them has gone up in value at the same rate.
This is called inflation.
Now their $700,000 house has gone up to $840,000 and the house they planned to upgrade to in 5 years time, has gone from $1M to $1.2M.
So the upgrade gap has widened from $300k to $360k. Effectively, John and Mary have moved $60k further away from their goal.
So how do we stop falling behind inflation?
To move closer to your goal, you need to outpace or ‘outsmart’ the market. Accumulate carefully selected property assets that increase in value to bridge the gap between where you are now financially and where you want to be financially.
Understand that your home is not an income producing asset.
To repay your home debt requires your time and labour. If you stop working every single day to pay down your debt, then eventually you will have to sell your home because no one else will pay it off for you.
That sounds like a treadmill to me.
So how can you plan to get off the treadmill? Have a tenant that runs the race for you paying down your debt while your asset increases in value.
Then, rinse and repeat.
So what’s the next step?
You need a defined goal, a defined plan and strategy to achieve that goal and a professional team to help you implement the plan.
That’s the short of it. But there’s more detail.
As I always say, property is a long term game so the best time is to start now.
If you’re interested in learning more about how owning an investment property can help you achieve your goals, then feel free to reach out for a chat at anytime
