1. Buy your first investment property
We know it seems like a no-brainer; nevertheless, the first thing you need to do to be able to live off rental income is to have property to rent. Where possible, you’ll want to look for properties with high rental yields and high capital growth potential. Not sure where the best locations to buy are? You can schedule a free conversation with our team here.2. Minimise your expenses
If you want to get to the point where you can live off your rental income, you will need to have more income coming in than you have going out in expenses. When you first purchase the property you may want to look for ways to minimise your expenses as much as possible so you can create cash flow opportunities sooner rather than later. One way to do this is to consider getting an interest only loan. Instead of paying off principal and interest, you only pay the interest. This will lower your monthly expenses considerably and give you time for rental income to grow to begin to pay off the principal.
3. Grow your rental income
It’s natural for rent to increase over time; however, there are things you can do to speed up the process. One of the benefits of an investment property is that your income will almost always naturally go up over time due to inflation, but your major expenses and mortgage will stay the same.
In other words, you can see an increase in the income your property is bringing in without seeing a huge increase in your outgoing expenses! Even if you purchased a negatively geared property to begin with, it can soon become positive as rent goes up higher than your mortgage and other ongoing expenses.
4. Create positive cash flow
The end goal of minimising our expenses and growing our income is so we can create positive cash flow. This is where your income is greater than your expenses, and then you take the extra money and use it for your own purposes.
How you use your cash flow is up to you, but having cash flow is a great position to be in. It means that even if you lose your job, your property will pay for itself (plus some).
5. Get more properties
Just like in Monopoly, it’s easier to make more money when you have more properties. Once you are maximising the value and rental income of your first rental property, it is likely you will have the opportunity to reinvest some of the profit into more properties. The more investment properties you get, the greater the tax benefits, the more advantages you have to pay off your mortgage faster, and the more passive income you create!We Can Help
Ready to start creating passive income with property? Think you’re ready to invest in one or more properties? We can help! At OneCorp, we walk you through every step of the process at NO cost to you. We create a personalized property strategy and help you find the best opportunities on the market so you know you’re getting the best return. Getting started on your investment property journey has never been easier:- We start by helping you set clear goals and objectives as to what you want to achieve through property investment.
- From there, we run the numbers through proprietary software to accurately assess exactly what you need out of a property portfolio to achieve those goals.
- Lastly, we find the perfect property to make those objectives a reality!
