Are you thinking of ways to future-proof your financial security beyond plainly relying on your superannuation funds? Are you looking for other lucrative avenues to supplement your income once you hit retirement?
In this blog post, we’ll unlock the secrets to building massive wealth through exploring real estate investment candidly. We’ll explore how combining residential and commercial property investment can create a winning strategy towards increasing your positive cashflow earnings and gaining early financial freedom.
The growth game of residential property
Residential property has been a proven avenue for growth over the years. Since the 1950s, the value of residential properties has doubled every decade, creating a substantial increase in wealth for homeowners. However, the mistake many investors and homeowners make is attempting to alter the nature of this growth-focused system.
To truly amass wealth, one must understand the importance of leveraging both growth and cashflow. While residential properties provide growth, they often lack consistent cashflow. Investors find themselves adding extensions, granny flats, or roomy houses to generate income, but this is not an optimal strategy.
The truly rich understand the art of leverage. To expedite portfolio growth and ensure stable income, a combination of cashflow and growth is essential. This is where the marriage of residential and commercial properties becomes a game-changer.
Commercial property: The cashflow king
Commercial properties are designed for cashflow. Whether in Sydney, Melbourne, or regional areas, the returns from commercial properties consistently outshine those of residential ones. Even in regions with negative residential returns, commercial properties boast positive cashflow, making them a lucrative addition to any property portfolio.
Examining the success stories of real estate moguls like Frank Lowy, the visionary behind Westfield, reveals crucial strategies. Lowy turned a massive building into a destination, renting out spaces to various businesses. The diversification ensured a steady stream of income from a mix of commercial tenants.
McDonald’s, a globally recognised brand, is often considered more of a real estate business than a food industry player as a majority of its value lies in the values of the properties they own. The lesson here is that they excel in commercial real estate, not residential. The success stories of entrepreneurs like Jerry Harvey and Dick Smith further emphasise the importance of commercial real estate in wealth creation.
Building your wealth blueprint
In conclusion, the journey to wealth through real estate requires a well-thought-out strategy. By integrating both residential and commercial properties, investors can achieve a balanced portfolio that combines growth and cashflow. Drawing inspiration from the real estate frontrunners of our time, it’s evident that the synergy of these two property types holds the key to unlocking unparalleled success.