"I purchased land at a good time so by the time it titled it had already built up some equity, then all you have to do is put the house on it,” he explains. “Instead of building to rent, the aim is to sell straight away so that I can continue to invest in the market. That way I can slowly build cash flow and keep reinvesting in the market.”
Aiming for smaller, more regular increments is also a good way of minimising risk.
“The more equity you have in the home, the more you are going to pay in tax if you are looking at selling straight away,” he says. “Whereas if you’re making 20-30k each time, you pay less in tax. But do that five times over five years and it quickly turns into 100k. It’s all about putting small wins on the board.”
For more investment and design inspiration, head to our blog, Home Truths.