Most successful people develop a plan. A good plan will identify what your end point or big picture is. The same plan will identify a series of smaller steps needing action before you can achieve your end point – result.

In this case you would ask yourself how many properties would you need in your property portfolio, so you can retire on a comfortable income. Where are you going to be in the future?

• What are your individual needs, desires, plans and future goals?
• At what age would you like to retire?
• What would you love to create in your life?
• Look at your current situation, what do you need to do to aquire financial independence?
• Establish a clear set of short and long term steps to be taken to achieve your goals. This creates a clear and conscious direction for your immediate and not so immediate future.
• How much will you need. To estimate what you’ll need in retirement, you will need to work out how much you need to spend each year. Then you can do a simple formula to convert this to a lump sum.
• It is about taking action and putting the steps in place so you can create your own destiny.
• Ultimately your destiny is in your own hands and you can choose to do what you have always done, in which case you will get what you have always got. Or you can grab the bull by the horns, let go of procrastination, change your direction by taking the steps to take action, this will make a positive difference in your life.

3.Capital Growth-Is the key to investing in property

If you look back historically at property cycles in Australia over the last 100 years, property has had considerable increases in capital growth.In fact, capital growth for residential property in major capital cities has averaged 7.8% 10 % capital growth for the past 20 years. Although the property market is cyclic and it has it high and lows, over the long term period most properties experience considerable capital growth.

What to look for in property?

• High capital growth potential a minimum of 7.2%  per year.
•  Brand new building for full depreciation.
•  Location within 2 - 15 km of central CBD.
•  Excellent infrastructure close to major shopping centres, local shops, professional services, community centres, medical centres & child care.
•  Easy access to roads and major arterials.
• Capital Cities - with over a million in population & high population increase.  
• Property rental returns 4.5% on average. Strong rental demand in the area,
• Low vacancy rate under 3% rental vacancy.
• Growth area with high employment and population increase.
• Small complex townhouse, unit development, house and land.
• Quality suburb with appealing homes
• High quality finishes fixtures and fittings.
• Fully landscaped garden or courtyard.
• Preference for brick and tile construction and for low maintenance building, grounds and courtyards. 
• Property built by credible, MBA registered builder.

4. Financing Your Investment Property

Good debt versus - Bad Debt
Many people wrongly believe that good and bad debt are synonymous with small and large debt. However, a large debt on appreciating assets can build wealth.

Find A Good Lender
It is important to have a professional finance person assisting you in find the right loan and a lender that will meet your needs.

How much money can you borrow? Most people are exited by the prospect of determining their own future financial independence by borrowing and buying property and they usually want to get started straight away.The three things commonly considered by most lending institutions are:

• Status – Are you a stable person in the community?
• Security – What can the bank keep to ensure that you repay the loan?
• Serviceability – Will your income cover the loan repayments?
• Interest Only Loan -mean's that you only need to pay the interest on the loan, with no principle payments. The advantage of this for the investor is that this frees up cash flow, so that you are able to purchase more investment properties and build your property portfolio quicker.

A professional lender can help you with-

• Borrowing capacity
• Various professional  loan packages
• Interest rates
• Deposits
• Deposit bonds
• Offset accounts
• Line of credit
• Borrowing costs
• Fees and charges

5. How To Reduce The Risks – Protection strategies  

It is advisable that you speak with a professional insurance broker to seek advice on some of the insurance policies and strategies that you can take out to protect you when investing in property.

A professional insurance broker will help you determine the type of cover and the level of cover you will require. They will be able to recommend which polocies are suitable and appropriate to you individual needs.

• Life insurance
• Trauma insurance – sickness and disability
• Income protection insurance
• Building insurance
• Landlords protection insurance

"Protection is an important part of the plan."

6. Buy And Hold Stratergy - Never ever sell

To build a property portfolio you need to formulate and stick with a consistent investment strategy.You don’t have to sell your property to make a profit.By keeping the property you can borrow against the equity and invest in more property - putting your profit back to work for you.The key to building wealth through residential property is to borrow and to keep the property long term.

Time not Timming.

• It is actually the amount of time you stay in the market, by keeping your investment property that you will see the greatest benefits and reap the rewards of your investment property.
• Many people want to purchase an investment property when proeprteis are at there lowest price and the market is slowing down, although this is a good strategy it is not always posssible.
• Investing in property for the long term means that timming is of little consequence. Even though the property market may move in cycles and can have its high and lows, buy staying in the property market long term you realize the most important decision you can make it to take action and purchse an investment proeprty and be in the market.

7. Knowledge Is Power – Wealth Building Education

• Having knowledge gives you confidence and arms you with sufficient information in order to sensibly evaluate each step in your wealth building plan.
• The most useful and unbiased information can come from other property investors.
• Speak with people who have actually created considerable wealth for themselves.
• You need to be informed as much as possible about property investment, at Wealth Stream we do all the research for you, so you can have this inforamtion at your finger tips.Then you can make and informed decision based on sound knowledge and research.
• The Wealth Stream team can assist you to learn about the residential property market and how to make an investment which will meet all your needs and criteria.

8. Have A Posotive Attitude

• To become wealthy you must learn to be confident.
• It doesn’t matter how well you understand the principles of success, you will never become wealthy unless you possess that bit extra – confidence.
• Don’t allow negative thoughts to undermine all your well intentioned plans
• We all have the potential to create a passive income and achieve our dreams.
• When we have a positive attitude, and it is our way of life, we can do anything.

    “Whatever the mind can conceive and believe it can achieve.” (Napoleon Hill)