Building Your Property Portfolio in Your 20s and Tracking It with Property Dollar

Building a property portfolio at an early age is one of the best ways to secure your financial future. As the famous entrepreneur and investor Robert Kiyosaki once said, “Real estate investing, even on a very small scale, remains a tried-and-true means of building an individual’s cash flow and wealth.” Starting early can give you the advantage of time, and with the right strategies and tools, you can grow a profitable property portfolio. 

Here’s a step-by-step guide to help you get started and how to leverage Property Dollar to track your investments. 

1. Start Early: The Early Bird Catches the Worm 

Building a property portfolio requires capital; the earlier you begin saving, the better. For a property priced at $700,000, you’ll need about 16% of the value in savings — that’s roughly $112,000. This amount covers costs like your deposit, stamp duty, lender’s mortgage insurance (LMI), and other fees. 

It’s crucial to budget wisely and consistently save. Opening a high-yield savings account or leveraging family equity can give you a head start. Alternatively, look into guarantor loans, where a family member’s property can be used as security. Make sure you run all your financial plans through a certified financial advisor before taking any decision.  

2. Educate Yourself on Property Investment 

Before investing in property, make sure you understand the market. Read books, attend seminars, and engage with experts in the field. According to CoreLogic, Australian property prices have grown at an average rate of 6.8% over the last 25 years, making real estate a lucrative long-term investment.   

However, property values depend on market timing and location, so it’s vital to research well. Hiring a buyer’s agent can help find properties with high capital growth or positive cash flow. 

3. Start Small: Building Your Property Portfolio One Step at a Time 

When starting out, you don’t need to go big right away. Begin with smaller rental properties, or consider flipping houses. You could even look into regional properties, where prices are lower, but returns can still be solid. You can gradually expand your portfolio as your properties appreciate and generate rental income. 

Real estate can generate steady cash flow through rental income, and as Domain reports, the average rental yield for houses in 2022 was around 3.7%. This rental income helps you pay down the mortgage while building wealth. 

4. Leverage Equity to Grow Your Portfolio 

One of the key strategies for growing your portfolio is leveraging the equity in your properties. After your property appreciates in value, you can extract that equity to finance future purchases. For instance, if you buy a property for $300,000 and it appreciates by 10%, you can use that increased value to fund another investment without digging into your own savings. 

5. Track Your Portfolio Growth with Property Dollar 

As you build your property portfolio, keeping track of your properties’ performance is crucial for success. This is where Property Dollar can play a huge role. With Property Dollar, you can input details of each property you own, monitor their performance over time, and track your expenses and cash flow in real-time. The app allows you to add expenses, view market trends, and generate reports for tax purposes — all in a few clicks.

No more juggling spreadsheets or scattered financial documents. Property Dollar brings all your data into one user-friendly platform, helping you stay on top of your portfolio’s performance. Whether you’re tracking one property or many, the app empowers you to make smarter decisions backed by real-time data. 

Disclaimer: The information provided in this blog is general in nature and not intended to be personalized financial advice. Please consult a financial advisor before making any decisions regarding your finances.