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Buy at a discount The trick to breaking even is buying property at a discount . The price does not have to be far under market value . Even buying a property at a 10 % discount makes a massive difference . We discussed how to purchase a property at a discount and all the reasons why someone would sell a property at a discountin a previous article .
Register a bigger bond Securing a property at a discount is just the beginning of your breakeven journey . For example , when you buy a property at a 10 % discount , it is important to register the bond at or even above the market value . This does not mean the bank will give you the amount above the purchase price , only that you can apply for that extra amount at a later stage . This is a huge help when you are planning on buying many properties !
Elevate your investment through refinancing Within a year of purchasing a property , a game-changing opportunity arises , namely refinancing . By refinancing the property to its market value and parking the funds made available in the access bond , you can withdraw funds monthly to subsidise the shortfall of the property . And while you do this , your property continues to grow in value . Talk about setting yourself up for financial success ! Refinancing can also be done in the future again if required .
6 Steps to
Real Estate Investor Magazine OCT / NOV 2023 42