Five tips to achieve financial freedom in less than five years: Ryan Crawford

Ryan Crawford, group director of Crawford Property Group has compiled five tips to achieve financial freedom in less than five years.

Crawford’s first tip is to appoint a mortgage broker who specialises in creating multiple property portfolios.

Crawford says these brokers understand the mindset of the property investor over brokers who typically deal with home buyers and can help develop a financial strategy and will focus on leveraging your equity.

Crawford says these brokers will guide you on how to maximise your borrowing capacity.

The next tip focuses on creating instate equity.

Crawford says to look for opportunities in the market that will deliver instant equity within six months of settlement.

“This is key to fast growth,” says Crawford.

Equity can come in different forms and includes house and lack packages, renovating a well-located but older unit and adding extensions such as a granny flat.

Crawford says by selecting a property that will deliver a minimum of $50,000 equity upon completion of the project will place you in a good position for your next investment purchase, which generally could be within the next 12 months.

“House and land packages are one of the fastest ways for beginner investors to get ahead and build an equity base behind them for future purchases,” says Crawdford.

Crawford’s third tip is to make short term lifestyle choices to maintain a positive position with lenders while you grow your portfolio to a self sustaining level.

Crawford says investors who have not purchased a PPOR should hold back and remain in the market until they have secured a minimum of three to four investment properties.

Crawford says to remain in a stable job and avoid unnecessary debt and spending while your portfolio is in its initial growth phase, this includes credit cards and large car and personal loans.

“Lifestyle freedom and luxuries are the spoils of a successful property investor and should only be indulged once financial freedom and stability has been reached.”

Every investment has an element of risk and the fourth tip is to not disregard risk, but obtain a level of comfort with the risk associated.

Crawford says market timing, location and the property itself will all carry risks but must be calculated against the benefits.

“There is no return without risk, so arm yourself with the best information to become comfortable with the direction and portfolio goals you have set.”

Crawford says to talk to other investors, finance brokers, property strategists and real life success stories.

Last but not least, Crawford says to appoint a mentor to guide and advise you on how to best position yourself to achieve your goals.

This mentor should have achieved significant results in property investing and can provide accurate guidance based on their personal investment journey.

“They will adequately guide the growth of your portfolio and save you from a number of costly mistakes that are often made in the beginner stages.

“Being comfortable and confident with your strategy is the only way to rapid and sustained portfolio growth,” says Crawford.