The Path to Financial Freedom Through Property I
Many people choose the path they deem most suitable for them to realize their dream of financial freedom. If your chosen path is property investment, here are some of the steps you need to take to turn your dream into a reality.
Make a Plan
First of all, you have to devise a plan that aligns with your requirements. Questions you should ask yourself:
What is your end goal?
How much cash do you want and when do you want it?
How many properties are required to align with your plan?
How much of an asset base will be required to take care of the whole plan?
Having a plan for embarkment on such an important venture is of vital importance. Elements such as luck and emotions are not involved at any stage. You will be very clear about the steps you need to take next. As opportunities start appearing further into the future, you will have an idea of which opportunities to purpose to benefit you. You should know that many schemes pop up from time to time as you are trying to invest in property. Without a predefined plan, you might end up saying yes to the wrong schemes. You are going to gain more by saying no to most of the offered schemes versus taking up all the offers brandished for you.
Mindset and Education
You have to be headstrong if you want a successful outcome. The foundation of your wealth begins with your mindset. You have to develop a mindset of wealth success. The following attributes must align with your goal of financial freedom.
Your habitual actions
It is also important to familiarize yourself with financial terms. You need to learn the skills and become knowledgeable in this field. The basic concepts of property, tax, and finance must be clear to you. Success requires full commitment. It is not going to be a walk in the park.
Luck does not come into play. Ups and downs are a part of life. Your practical implementation of knowledge and mindset is what matters; that is what is going to make the financial dream a reality for you.
If you lack these two basic factors, you should invest in them before you pursue financial freedom. If you’re finding it tough to obtain both characteristics, you should not pursue financial freedom. It is not going to end well.
The Right Strategy
Just investing in the property won’t help, you need to have the right strategy to invest in your desired property. You need to devise a strategy that is in line with your risk profile and cash flow. You can make or lose a lot of money in the property business if you are smart about it from the get-go.
Some people buy property mainly for decent cash flow. It never accumulates enough to make them rich per se, but it keeps them in the property game. Capital growth is what matters most and it should be your main objective. The plan is to build a sufficient asset base. It should incorporate properties of ‘investment grade.
If you aim to improve your financial status through a property, you must follow the stages below:
The Education Stage: This stage is extremely important. Many unsuccessful investors have often skipped this stage.
The Accumulation Stage: This is the stage where you start pooling your cash to enlarge your asset base.
(“Look Rich Or Be Rich: Develop a Millionaire Mindset to Achieve Financial Independence”, 2019).
Transition Stage: You start to decrease your loan to value ratio (LVR) by paying off loans. It will naturally start happening once your investment fares well and the value of your properties starts to increase.
These steps should be followed in the right order. You will not succeed if you hurry through or skip the stages. Keep the following points in mind to stabilize your financial independence.