Below are 5 simple tips and tricks to help you progress as a property investor.

If you adhere to what we mention below, you will have no issues scaling your portfolio

1 – Just because you have a large pre-approval, doesn’t mean you have to use all of it

This is a common pitfall for many a would be property investor. Just because you have a pre-approval, doesn’t mean you need to utilize it all on a singular property. Yes you may get a superior property for the additional money down but this doesn’t always mean its a better investment. Strategically utilizing your pre-approvals is a very important factor for scalability of your portfolio. This ties into the next point below

2 – Ensure your purchasing with your head and acquiring the right properties for your goals

Maximizing your output of your pre-approvals into the right properties is pivotal for scalability of your portfolio. Purchasing the wrong property first can quite literally put any potential scaling 6 foot in the grave until you sell down and start again. You need the data on your side for any potential property acquisitions. If the data is trending in the right direction, the price growth is all but guaranteed.

3 – Dont purchase local properties

Everyone is comfortable in their own backyard as they know the areas well. However this ties into the point above, if you purchase the wrong properties, it makes the next purchase almost impossible. What are the chances of your local area being in the top 1% of suburbs primed for growth? Possible but unlikely and if you do manage to fluke it, its not a strategy you can replicate for future growth.

4 – Understand your serviceability and how to get around any potential caps

Every investor that has multiple properties will get to a point where the banks simply say you cant borrow any more money in their personal name. Many people will see this as the end to any potential scalability. However this is not the case. This is where knowing your structures and what they can do is crucial. Business, Trusts and SMSFs all have their place when it comes to progressing past your serviceability caps

5 – Dont listen to unqualified advice

You would think this would be a no brainer however many a BBQ conversation has killed many property investors dreams of a large portfolio. Long story short, unless your BBQ or pub acquaintances are qualified to give you advice, dont listen to them. Chances are if you hear a tip of a property hotspot over BBQ beers there is little to no actual substance behind it. Disregard at all costs.