Trusts are critical to building and protecting wealth if you want to create financial freedom .
Read our article , Why You Need At Least Two Trusts And How to Use Them Correctly , for more information .
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“ Expect the best , but plan for the worst .”
2 . SUFFICIENT CASH RESERVES
You must have cash reserves ( emergency fund ) in place for the unexpected , such as rising interest rates ( that affect your bond payments ), vacancies or tenants who are not paying or are squatting .
Ideally , you want at least 10 % of your properties ’ value in cash reserves . You do not necessarily have to save up for this - you can refinance your properties .
Read our article , How To Use Your Access Bond , for more information on how to do this .
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SA Real Estate Investor Magazine SEPTEMBER 2022 53