C
cd31
Guest
Hi,
a while back I met with an authorised advisor who reckoned the best way for me to build a property portfolio was:
- buy a property in an area where capital appreciation was strong and where I could secure a mortgage against the property, rent the property out, rent to cover mtg repayments
- wait 6/12 months and once property has appreciated sufficently re-mortgage at higher value using money released to fund deposit on a second property
- reapply this process on the second property, then repeat over and over, aiming to acquire 7 to 10 properties
Obviously I'm simplifying, this would take a lot of careful planning and budgeting to make work and all hinge on continuous capital appreciation, but I'm curious if anyone has tried taking this or similar approach and if they've any advice or tales to relate...
a while back I met with an authorised advisor who reckoned the best way for me to build a property portfolio was:
- buy a property in an area where capital appreciation was strong and where I could secure a mortgage against the property, rent the property out, rent to cover mtg repayments
- wait 6/12 months and once property has appreciated sufficently re-mortgage at higher value using money released to fund deposit on a second property
- reapply this process on the second property, then repeat over and over, aiming to acquire 7 to 10 properties
Obviously I'm simplifying, this would take a lot of careful planning and budgeting to make work and all hinge on continuous capital appreciation, but I'm curious if anyone has tried taking this or similar approach and if they've any advice or tales to relate...