Why I only focus on what I can control

Rising interest rates have been putting the breaks on some investors and while it certainly makes for more challenges, it’s always important to focus on the things that are in your control.

When we think about property, most people think about the assets themselves and acquiring various properties in certain locations. However, property investing is often about financing those properties as much as anything.

When rates rise, serviceability goes down and your mortgage repayments go up. This isn’t a great combination for investors. But it raises the point that you should always be focused on how you can continually be improving your own financial situation.

The key to growing your property portfolio is a combination of buying good assets and having the serviceability to actually borrow to buy them.?

We know that where you buy is the most obvious thing that is in our control. I always look to buy in areas that have a very long-term track record of ongoing capital growth. I like blue chip areas in Sydney for this reason as they have proven themselves to be incredibly resilient over not just years but decades.

Sydney's Eastern Suburbs and North Shore are great examples of this, where values keep rising as population numbers keep on increasing, yet the supply of land always remains the same.

Buying into these areas is certainly not always easy and it will typically mean that you will have to reach into your own pocket to make up any shortfall on the mortgage.

Many investors don’t want to do that and would rather seek out inferior investment locations like Perth, or Hobart, where yields are high and property is cheaper. However, when you look at the track record of these locations there have been decades at a time where values have not moved.

In reality, buying in these types of locations is about controlling the costs of your mortgage.

However, the way I would prefer to handle controlling my mortgage costs is by looking at ways I can increase my own income.

By doing that, I get to purchase superior assets that will see stronger growth over the long term and I also get to increase my income through working on my business.

Everything in life is a trade-off, but when it comes to property you don’t want to sacrifice the wrong things.

Focus on buying the best asset you can in the best location while at the same time continuing to work on yourself and your business and find ways to grow your income.?

Property by itself will not make you rich. You need to have all your ducks lined up and it starts with working on yourself.