Creating wealth from property is long term, and it doesn’t necessarily rely on how much immediate cash is in your back pocket.

The secret to creating wealth from property is understanding the process and how to maximise your assets.

If you are serious about using property to reach your financial goals, here are 7 principles to guide you:

1. Decide on your strategy

While your ultimate strategy is for wealth creation, there are different strategies you can use; some investors look for run-down properties they can renovate and resell for profit, whilst others look for properties which will give them capital growth over time.

Many investors look at growing a diverse property portfolio, purchasing some properties with capital growth in mind, while other properties may have a high rental return.

2. Surround yourself with the right professionals

Having the right professional team of experts around you at every step of your investment journey is essential. For instance, you’ll need a mortgage broker who can get you the best deal on your finance and a good property manager who not only finds you tenants and looks after your asset, but also advises on how to get the best return. When it comes to lodging your tax, you’ll need a good accountant who understands all the tax-deductible benefits associated with property, and can advise how to manage your finances.

3. Understand the market

Knowing where to buy, when to buy, how much to offer for a property and knowing the right time to sell an under performing asset will determine your success.

4. Think big, but start small

Everyone has to start somewhere; the key to your property investment success is to start with an affordable property and not to over stretch yourself financially. From there on, you can use your experience to work your way upwards.

5. Maximise your assets

With interest rates so low, now really is a good time to think about refinancing your asset to release some capital and buy another property.

6. Cash flow is king

Regularly monitoring your finances to see your cash flow is essential to help you identify which properties are performing well, and looking at where improvements can be made. This may include selling under performing properties.

Healthy finances and cash flow will also make you more attractive to lenders, and enable you to further grow your portfolio.

7. Capitalise on technology

From researching a location and property, to managing your finances, there are some very innovative digital tools around that can give you access to valuable information instantly.

For instance, you have the opportunity to search for new homes, get free value estimates, pre-approvals, calculators and access to a database of home service providers. There are others which can show area and property reports pulled from a number of sources, and there are some great ones for managing your finances.

Over our 40 years of business, we’ve helped thousands of people realise their dreams through property. Our aim is to make your property investment journey as easy as possible, so you can enjoy the things in life important to you.

Get in touch you want to know more about our property management services or investing in property. Simply give us a ring on 02 4954 8833, send us an email to mail@apnewcastle.com.au or pop into our Cardiff office for a chat.