Hundreds of people have become millionaires by investing in residential property in Australia. This is hardly surprising when you consider that real estate in the country has a long and successful history of strong investment performance with a minimal risk.
Unlike Hong Kong, the risk of investors seeing their wealth drop 40 per cent (or more) overnight is small.
But also unlike Hong Kong, investors cannot expect to become property millionaires overnight.
Investors can, however, accelerate the process dramatically by living outside Australia - with lower tax scales, a higher income and access to better financing.
If investors want to build their property portfolios with minimal outlay, they should consider taking a fixed-rate interest-only investment loan for the first five years.
Otherwise known as interest-only loans, these loans are not only more tax effective but compared to principal-and-interest loans require less cash to service.