Are you saving for your first home but have become priced out of the housing market?
If you rent in Sydney or Melbourne you might be thinking that you can never afford to purchase your own home. Prices in Australia’s biggest two cities have gone through the roof in the last few years and many first home buyers are struggling to get onto the property ladder. Until the market cools down and your wages or savings grow, Sydney and Melbourne could be out of reach for some time. So what option do you have to realise the great Australian dream of home ownership?
There’s an old expression that says ‘Cash is King’, but when it comes to property investing ‘Cash Flow is King’.
In my last post I mentioned how a positive Cash Flow can provide a passive income from a property portfolio. In this post I will explain why the consideration of Cash Flow is critical to your property investment journey.
In my last post I explained the primary reasons as to why you should consider buying investment properties. You can create long term wealth, set yourself up for financial freedom and take full responsibility for a self-funded retirement by creating a Passive Income.
In this post I am going to outline how a portfolio of properties could achieve this, but first lets reiterate what financial freedom is:
Financial freedom is achieved when your Passive Income is greater than all your expenses after tax.
Everyone has a different personal situation and future goals. You should work out what level of Passive Income you would like to achieve to meet your future goals. You might want a modest Passive Income that just supplements your regular income or you may aspire to replace your entire salary.