How to Obtain Financial Freedom Through Property Investment

How to Obtain Financial Freedom Through Property Investment

Achieving financial freedom is a goal for most people.

Unfortunately, the reality is that not many people will achieve it.

So what is financial freedom?

There are lots of definitions but I like the one from T Harv Eker:

“Financial freedom is simple: it is the ability to live the lifestyle you desire without having to work or rely on anyone else for money.”

Let’s look at 17 steps that can help turn your financial dream into a reality through property investing.

1. Devise a plan

What are you trying to achieve?

How much cash do you want to live off and when do you want it?

How many properties will you need to do this?

How big an asset base will you require?

Having a plan shows you where you should be heading and takes emotion and luck out of the equation.

It will tell you what opportunities to follow and which opportunities you should ignore.

Over the years, you’re going to make more money by saying “no” to so-called opportunities than by saying “yes” to all the new schemes that get offered to you.

2. Develop the right mindset

This is one of the most important steps because it is the foundation for your wealth.

If you don’t get your head right then anything else you build will topple over.

Your wealth success mindset consists of your beliefs, your habitual thoughts, and your habitual actions.

But it is important that these three attributes are in-line with achieving and maintaining wealth.

3. Educate yourself

Acquire the appropriate skills and knowledge.

You’ll need to become financially fluent — learn about property, finance, and tax.


And don’t be swayed by the many myths about money and wealth creation.

Luck plays no role in wealth creation.

You may have some good or bad luck from time to time, but over the long term, you accumulate exactly what you deserve based on your mindset and your application of knowledge and skills.

If you don’t have the knowledge or skills to create wealth, then the first investment you should be making is in your own wealth education.

If you think getting knowledge is expensive then try investing without it.

You’ll soon find out just how expensive ignorance can be.

4. Use the right strategy

Select an appropriate property investment strategy that fits with your cash flow and risk profile.

By the way…just buying a property is not a strategy. It is not a plan.

You need to strategy to bring your future into the present and plan for it.

Business Teamwork, Success And Strategy Concept

There are many ways to make (and lose) money in property and each has its advantages and disadvantages.

While many beginners invest for cash flow, that will never make them rich – cash flow keeps you in the game, but capital growth gets you out of the rat race.

My strategy is to build a substantial asset base of “investment grade” properties.

Growing wealth through property involves going through four stages, namely the:

  • Education stage: many failed investors leave this out
  • Accumulation stage: where you focus on growing your asset base.
  • Transition stage: now you start paying down loans to lower your LVR. If you’ve invested well and your properties have grown in value, this will happen organically as well.
  • Live off your cash machine

So things must be done in the right sequence – build your asset base first, then live off your cash machine – not the other way around.

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Note: Why not let the team at Metropole build you a Strategic Property Planclick here and find out more and have a Complimentary Clarity Consultation

You see… the property you eventually purchase should be the physical manifestation of a whole lot of decisions that you have made in the right order because property investment is a process, not an event.

5. Assemble your team

Successful property investment involves more than just you.

That’s why it’s vital to assemble a team of experts who can assist you in working towards your dream of financial freedom.

Diverse Group Of Businesspeople Solving A Puzzle I Team Pazle

On your team should be the following people who are also property investment specialists:

And remember…if you’re the smartest person in your team, you’re in trouble.

6. Save a deposit

Saving a deposit for your first property is usually the hardest part of the journey.

There is a variety of ways to do this, but one of the simplest ways is spending less than you earn.


Perhaps you can earn additional income via the gig economy as well.

Once you have a deposit, then you buy the best investment-grade property that you can and perhaps manufacture equity over time via a renovation.

Then you extract the equity and do it all over again.

7. Set up the correct ownership structures

You must begin with the end in mind

You are going to want a multimillion-dollar property portfolio and while it may seem a waste of money to set up a trust structure when you start, it is too expensive to change ownership structures later on.

So, get advice from the accountant on your team to ensure you have the correct structures from the start.

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Note: Ken Raiss and his team at Metropole Wealth Advisory specialise in providing tailored strategic wealth advice including ensuring that you have the right structures in place to safely grow intergenerational wealth. Find out more about how Ken can help you here.  

8. Get finance pre-approved for your first purchase

When you are buying your first property, whether it’s a home or an investment, make sure you have your finance organised beforehand.

Not only will this improve your bargaining power, but it will also ensure that you have all your numbers worked out well ahead of time.

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