Property to Invest in – Mixed Capital Growth / Income Focus – Smart Money Lounge
property to invest in

The Smart Money Lounge –Thanks to George at the Smart Money lounge for this week’s wealth building strategy – finding property to invest in with mixed capital growth/income focus.

Each week, I have asked a finance blogger or podcaster to share their personal wealth building strategies. I am hoping these will be useful to compare lots of different strategies and perspectives to provide ideas and insight in your own investing journey.

George is a health care professional with a side hustle blogging and podcasting at Smart Money Lounge. I’m itching to hear what he has to say!

What are your investing goals?

100k/year passive income for me and my wife

What is your investing time frame?  How far along are you?

Difficult to say as we plan to slowly taper off part-time work over many years, as we build our passive income. We are lucky in that our professions offer a lot of flexibility in this area.

As a rough estimate, I would say we are around the half-way mark.

What the most powerful wealth building tool available to you?

Id say my tertiary education/skills.

I was only able to gear into investment properties as a result of them.

What wealth building habits are you utilizing to reach your goals?

Earn as much as possible

Save as much as possible

Invest the difference in a way which maximizes returns while minimizing risk.

What is your strategy to achieve this?

Buy and holding quality blue chip assets that produce an income.

What makes your strategy suit your personal situation?

By focusing on a strategy of ‘accumulation,’ I can reduce costs involved with buying and selling assets. I believe that this is the quickest way to reach my financial independence goals.

Where do you stand on home ownership vs renting?  Why?

Renting in most cases as it is cheaper.

In particular living at home, house sharing and renting out a room in your accommodation can largely reduce costs of dwelling.

Renting also offers you more flexibility if you need to relocate for your children or for work purposes.

Where do you stand on the great property vs shares debate? Why?

Property to invest in, if carefully chosen, and the suburb researched thoroughly.

I believe that in the current environment only select suburbs in Australia will generate decent capital gain returns.

Where do you stand on investing for capital growth vs income?  Why?

I believe that a balance needs to be struck between the two.

Do you have any financial regrets?

Yes, I have made lots of investing mistakes, but luckily they have been relatively small and haven’t set me too far back.

Any final suggestions?

  1. Find a financial independence target in regard to income/net worth and use it as your goal
  2. Work backwards and engineer a plan to reach that figure as quickly as possible. Understand that the three levers of wealth accumulation are earning, saving and growing your money. Work out if any these areas are holding you back as a ‘bottleneck’ to wealth accumulation.

If you are interested in hearing more about what I have to say, you can check out my blog and podcast at www.thesmartmoneylounge.com

To check out all the personal wealth building strategies shared by finance bloggers and podcasters with Aussie doc freedom see The Ultimate Guide to Wealth Building Strategies – the step by step guide to building wealth, including wealth building strategy index.

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