This infographic shows illustrates the 5 key concepts highly successful investors combined to build their wealth using property as an asset class.

Importantly, these techniques can be used in any property market cycle. They are simply adapted to suit the cycle.

How did most wealthy investors build their portfolio's?

Importantly, they use a combination of the following strategies:

1. They buy under market value.

Wealthy investors never pay retail prices for property. They ensure there is a safety buffer of at least 20% (or instant equity) against changes in market conditions e.g. interest rate rises.

1. They look for positive cash flow.

Wealthy investors don’t get bogged down in negative gearing debates. In fact, the majority of investors who negatively gear property in Australia earn less than $80k/pa.

1. They buy and sell at the right time.

Yes, you can time the market with the right technology.

1. They add value.

The 2016 BRW Rich Listers are overwhelmingly property developers. Only 8% invest their wealth in holding property. The youngest and new entrants are worth in the $100s of millions. They buy a development site and add tremendous value. And they spend less of their own time developing than most people will spend renovating a house.

1. They use experts.

And that’s because they use other people’s expertise and contacts to make it happen.