How Much Savings Do I Need To Get Started Posted on April 9, 2019April 9, 2019 by Arjun Want our top tips for finding investment properties that PAY YOU? The top eight strategies to consider when searching for positive cashflow investment properties What a positive cashflow property looks like ‘on the books’. In other words, you’ll see an example cashflow analysis clearly demonstrating HOW a property can pay YOU every week And much more. Get Your Free “Positive Cashflow Property Checklist” Transcript How much savings do I need to get started? When looking to start an investment property portfolio there’s a big saying that the first one is the most important. I totally agree, but at the same time the first one can be different for so many people and it’s hard to measure what’s important or what right looks like. Now having the first one for some it may mean, “Look, I’m very risk adverse. Property wasn’t the thing for me to begin with and I’m just getting my toes into it and I’d like to balance the cash flow so the risks are minimal.” And sometimes you might buy properties where the cash flow becomes the key focus. And this person over time wants to build a portfolio. They don’t want to build a five to 10 property portfolio in a few years. Then on the flip side, you suddenly have people who really want to build a large scale portfolio ultimately generating significant amounts of wealth. And that first property can be a really big component to getting them off the line fast. Now that’s the difficult part to answer in terms of how much is the right amount that you need for one part of the journey or for the other. Now what you really want to understand firstly is price. And what price means in terms of value or quality. There’s a bit of a myth out there that price is quality. And what that means is someone might say, “Well I’ve got $60,000. I might be able to buy a three or $400K property as my first. But that’s not quality. I should save $100,000 at least.” This is very important where you should not get lost in this trap. Property markets are different across the country. And suddenly what might be a three or $400K property might be about 10 minutes away from a [inaudible 00:01:49] in a very large regional market or in a different capital city. And because there’s so much movement there is so much property prices that vary as well between different markets, suburbs and in the streets. So if you’re looking at what that first one I like don’t firstly get lost in the translation of price being quality because that could set you back a lot. Imagine you’ve got $40 or $50,000 or even $50 or $60,000 and that might be your starting journey. You could get into a property which may have a growth cycle that could outweigh how much you might be able to save in that time. At the same time you could alleviate risks around building a property portfolio with the right type of cash flows. Now on the other end, you might be a very good saver and it might not take you that long to get that $100K are $150K. Or maybe you support, have support from family, which is totally okay as well. But when you’re looking to build that property portfolio you could even use that $100 to $150K to buy multiple or you could put it in one. So you see, you don’t want to be stuck thinking, “I don’t enough savings.” I’ve seen people start an investment property portfolio with a small as $40 to $60,000. Now it’s not a small number, but it’s small in the world of investing in terms of the types of properties you could buy. So when you’re looking to invest $40 to $60 could technically be that time. But then for others, it could be $60 to $100 and for others it could be a $100 plus. Your rate of savings, the risk that you take with how much of a loan and all these things put together, will help you make that decision. But most importantly, don’t get lost thinking you need to save $100,000 or $150 or $200,000 or even a 20% deposit thinking that, that represents quality. That’s it here from us at InvestorKit, the experts in well creation helping you take action.