Rise High Investor Weekly Video Tip #44 – Number 1 thing to get right as a property investor



The #1 Thing to Get Right as a Property Investor: Cash Flow

When it comes to property investment, success isn’t just about finding the right property—it’s about making sure you can hold onto it for the long term. The single most important factor that determines whether you thrive as an investor is cash flow. Getting it right can make all the difference between growing your portfolio and facing financial stress.

Breaking Down Cash Flow: Personal vs. Investment Property

Cashflow is the lifeblood of your investment journey, and it has two key components:

1. Personal Cash Flow

Before diving into property investment, you need a clear picture of your own finances. This means understanding:

  • Income: How much money you have coming in from all sources, such as your salary, business, or other investments.
  • Expenses: A realistic breakdown of your monthly and annual outgoings, including essential costs, discretionary spending, and any debt repayments.
  • Savings Capacity: How much you can allocate towards your investment property without stretching yourself too thin.

A solid grasp of your personal cash flow ensures that you’re in a position to comfortably fund your investment journey without jeopardizing your lifestyle or financial stability.

2. Investment Property Cashflow

Once you have a handle on your personal finances, the next step is to assess the cash flow potential of the property itself. This includes:

  • Rental Income: How much money the property will generate on a weekly, monthly, or annual basis.
  • Ongoing Expenses: Costs like property management fees, maintenance, insurance, council rates, and loan repayments.
  • Cashflow Position: Whether the property will be positively geared (income exceeds expenses) or negatively geared (expenses exceed income).

Your goal should be to invest in a property that aligns with your financial situation and allows you to hold it comfortably for the long term.

Why Long-Term Holding Matters

Property investment is a marathon, not a sprint. Real estate typically grows in value over time, but short-term fluctuations can occur. If you’re forced to sell because your cash flow doesn’t support the property, you could lose money through transaction costs and potential market downturns.

By ensuring both your personal and property cash flow are strong, you’re setting yourself up for success. This way, you can weather any challenges that arise and give your investment the time it needs to grow in value.

Key Takeaways for Property Investors

  1. Take the time to analyze your income, expenses, and savings capacity.
  2. Choose an investment property with a cash flow profile that matches your financial position.
  3. Plan for the long term—only buy a property you can comfortably hold, even during challenging times.

At Rise High, we’re passionate about helping investors make informed decisions. If you’d like tailored advice to ensure your property investment journey is built on solid financial foundations, reach out to our expert team today.