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10 ways to become a Smart Investor

 1. It's a marathon not a sprint!
Invest long-term and let compound interest create great wealth.
 
2. Select great quality assets
This includes top notch shares and property. The experts say have at least 10 shares and let them ride. Your principal property you buy should be the worst property in the best street and do it up to pocket untaxable capital gain. Your investment property should be close to amenities, such as transport, and should be a place where tenants love to be and the vacancy rates are low. Make sure you buy a place that's relatively new to maximise tax deductions. And use a quantity surveyor.
 
3. Have a wonderful team of experts
Use an accountant, business adviser, financial adviser, stock broker, mortgage broker and lawyer who you pay for GREAT advice. You can even have your own money coach.
 
4. Create a wealth-building plan
This means having a financial plan, a business plan (if you own a business) and a personal improvement plan.
 
5. Be business-like!
Adopt a business-like manner in your approach to buying expensive assets. Know important facts, such as it costs you approximately an extra $10,000 on top of your purchase price to run an investment property.
 
6. Do your homework
Read extensively and find out useful money-saving and money-making facts.
 
7. Review your entire life spending
Aim to GST your life to create new saving balances! If you spend $20,000 a year and you implement a 10% saving regime then you find $2000 a year for saving. You could turn this into half a million with 40 years of super saving!
 
8. Use the Tax Act!
Knowing how legislation works can give you an investment edge and actually can give you money to invest. Negative gearing, used carefully, can help you fund the purchasing of shares and property.
 
9. Try positive gearing!
This means you buy property in areas where the rent is greater than your costs of borrowing and other services used to be a landlord.
 
10. Work at a good pace
Don't try and get rich fast but do it slowly and safely but don't procrastinate. And if you need help, pay for advice and don't be cheap!
 
 
Important Information
 
This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

 

Published on: Thursday, July 25, 2013

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