Tag Archives: building wealth

Building an Investment Property Portfolio

property_portfolio_calculator

The whole idea around investing in property is to build long term wealth for yourself and your family, but what does this really involve?

Buying just one investment property and holding onto it until retirement won’t make you rich.  If it performs well, it will definitely be a nice asset to have with substantial equity and a small income stream to help out, but if it does not perform well you are left with an underperforming asset.

What is Home Equity?

Grow wealth with equity and compounding

Equity is the key to building wealth through property investment.

Simply put, home equity is the portion of your property that you fully own. Most people require a mortgage to buy a property which means a bank or finance institution will lend most of the amount required to buy the property and you would fund the remainder with a deposit.

So if the bank loans you 90% for a property you want to purchase for $100,000 they will fund $90,000 and you will fund the other $10,000…