Property investment is not a get rich quick scheme and those who have been successful in property investment work on 3 core fundamentals
Leverage is the ability to use other people money (such as the banks) to help grow your asset base.
It’s the ability to take $100,000 of your money and use it to borrow $500,000, so you can have $600,000 working for you.
Compounding is focusing on high growth assets that are worth more and grow faster the longer that you own them.
It’s buying an asset of $500,000 and, over time seeing it its growth compound into a $1million and then eventually $2million and on it goes.
And successful investors do this multiple properties so they have multiple levels of compounding working for them.
The more time you have, the more compounding can occur and the more wealth you can create.
The world of property investment can be rather complex and confusing so it always best to keep things simple and just stick to these 3 core fundamentals.
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