The Property Academy Podcast How I'd Invest $1,000,000 (Strategies for wealthy investors) ⎥ Ep. 1935
Dec 28, 2024
Discover how to invest a cool $1 million after selling a property! The hosts explore whether buying a home or investing is smarter. They break down financial strategies like using leverage to build a portfolio. Find out how renting can pave the way for a more substantial investment strategy rather than just purchasing a house. Plus, learn why staggering your property purchases can mitigate market risks and how age plays a critical role in your investment choices. Tune in for valuable insights tailored for wealthy investors!
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High Buying Power From Strong Income
- A $300,000 income with a $1,000,000 deposit gives roughly $2.8M buying power under DTI limits.
- That amount can buy a very high-end Christchurch house instead of investing elsewhere.
Rental Income Multiplies Lending Capacity
- Renting while investing can unlock far more leverage because rental income counts toward lending.
- Combining personal income plus rental income multiplied by seven can produce ~ $4–4.2M purchasing power.
Choose A Sensible Middle Path
- Choose a middle path between extremes: avoid maxing owner-occupier borrowing or buying every possible investment immediately.
- Use cash for a sensible home and borrow strategically for a planned number of investments.