Property investment strategies: focus on long-term goals and not just property volume says Victor Kumar
Property investors should focus on long term financial goals rather than simply accumulating more assets, according to Reshmi Kumar and Victor Kumar, hosts of Buying Power.
The pair say investors should start by defining the lifestyle they want in ten years, whether that means building equity, funding self-employment or replacing employment income.
Cash flow remains critical
Investors need to understand their borrowing capacity, deposit requirements and ability to manage negative cash flow before purchasing property.
While capital growth remains an important consideration, sustainable cash flow helps determine whether an investment can be held comfortably through changing market conditions.
A ten year outlook can also help investors look beyond short term volatility and avoid reactive decisions during economic downturns.
Diversification beyond location
Building a resilient portfolio means diversifying across property types, asset classes, lenders and investment timelines, rather than relying solely on different locations.
Investors should also consult accountants about ownership structures that align with their tax circumstances and retirement goals.
Ultimately, a larger portfolio does not guarantee greater wealth or financial freedom. A smaller, carefully selected portfolio with strong cash flow and suitable locations may deliver better outcomes.
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