I'd like to explain to you my make it, keep it philosophy
. I came up with this quite some time ago. I don't know about you, but I like to make money and I also like to keep it. So I call it the make it, keep it philosophy, or, as I've nicknamed it, the MIKI.
Investing in property has a lot of ups and downs so it is critical that you have a really good reason behind what you are doing. I am talking about the "why" behind your investing. Money is a shallow goal so you have to have something that really drives you to succeed.
Something that is just as important as your reason for investing is your strategy to be able to keep the money you make, which is why I created the MIKI.
Quite a number of years ago, we sat down and tried to work out what might be the best way to create a passive income through property and then how we would sustain that wealth and effectively apply the MIKI.
At the time we looked at a number of strategies. Positive gearing was the one being touted the most, so we looked at that first. We did the numbers and figured out that we would need something like 200 properties to create the income we desired at the time.
This all seemed well and good but with that many properties comes a lot of risk and a lot of problems - 200 in fact.... Imagine what happens for example if the property market cools by 10-20% and you have 80% mortgages on all of those properties!
When you are putting together your wealth creation plan make sure you have a strategy in place to keep the wealth once you make it.