3 award-winning tips on property investment finance

1. There’s always somewhere to invest

Ross wants his clients to remember that they will never run out of opportunities to create wealth through property.

“From a general market sense, [my advice would be] there's always somewhere to invest... Phil and I are currently buying properties in the market looking in the Brisbane market—there's always opportunities,” he said. “There's markets within markets around the country, so don't focus on where you live or feel that you have to be able to drive past the property.”

2. Look after your cash flow

According to Ross, cash flow is the most important thing in property investment, so it is vital that property investors learn about risk management and set up buffers for all possible negative scenarios.

He explained: “Rental yields and your ability to make those mortgage payments is very important. Set up buffers like $50,000 sitting in an offset account, something that's going to help you sleep well at night.”

“Don't sail too close to the wind in terms of your serviceability. Don't go out and buy three or four off-the-plan properties because you don't know what that's going to mean down the track… Have those buffers in place so you've got that protection should something else happen,” he added.

3. Be on the lookout for “cheap properties”

Property investors should learn to be “opportunist[ic]” when buying properties—find any opportunity you can to have a competitive advantage in terms of acquiring properties under market value.

“Look to buy… those under market properties… because in times of trouble you could always sell it and get out of that market,” Ross said.

Phil advised his fellow property investors to make use of the knowledge and expertise of their financial teams to determine a good property deal.

He said: “I'm always out in there in the marketplace using the people I know… and I'll go and find those opportunities and find people who are in distress and that's typically where I'll try and buy a property… If I can locate and identify a property that someone needs to shift really quickly before it hits the market, I'm going to grab that really really fast.”

Tune in to Ross Le Quesne’s episode in The Smart Property Investment Show to know more about property rate hikes, hotspots, and other factors that can ultimately affect an investor’s business of creating wealth through property.

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