Best 7 Property Investment Strategies

1. Best 7 Property Investment Strategies

2. Introduction When you see property investment from far it may seem like a promising field. You may think it is easier to build wealth through property investment. After all, what one has to do? You buy a property in a good posh location like Gold coast, Queensland or high profile QLD areas and then sell it to some buyer at a high rate. Your job is done and you will make money. Well, when you take a closer look you come to know that there is a lot more involved in buying and selling decisions.

3. Property Investment Strategies To make the most in property investment you need appropriate investment strategies in place. Unfortunately, if you fail to choose the right strategy at the right time you may end up losing your hard earned money. Choosing any strategy anywhere doesn’t work either. It has to be planned and implemented at the right level at the right time.

4. Right Investment Strategy Think that you want to buy a new property in Broadbeach Waters but the real estate agent Broadbeach suggests that off-the-plan property is best for you. On the other hand, accountants suggest that investing in a new property will help to maximize the depreciation options. Family says something else and friends suggest something else. Now what can you do? You need the right investment strategy and to choose the best one that meets your financial goals is to think about your personal financial situation which is different from others. What works for others may not work for you. Thinking about the advice of real estate agents Broadbeach Gold Coast will be much better because they have the knowledge and experience in property investment.

5. Home Ownership This may seem like a simple thing but owning your family home is the basic form of property investment. Most of the property owners buy a family home and then spend the rest of their time paying off the mortgage. Purchasing a family home is not considered as a property investment but actually you are buying an asset that has the potential to increase in value in the coming years. So, take it as a serious form of property investment.

6. Renovate Your Property & Add Value To It Property adds value and when you renovate your property, you can add value to it. Updating the property means enhancing its appeal and you can make it a magnificent place to live in. Renovations can range from slight improvements to big additions/deletions in the property. It includes bathroom and kitchen renovation, adding new window coverings and new floors or you can simply paint the whole space.

7. Renovate Your Property You can think of large structural renovations where you can convert rooms and add walls. The aim should be to enhance the property value so you can make more money than you spend. It will also boost the rental yield. Tenants like renovated kitchens and bathrooms and they are ready to pay more for such renovations. Check the prices of renovated apartments to those properties that are not renovated. If there is uplift in the rental price then plan the renovations accordingly.

8. Cash Flow Family home costs you money and therefore it is not an asset. It doesn’t add anything and hence becomes a liability. When you look for properties analyze whether you are purchasing it to generate income and can be paid off quickly or not. Paying money to hold a property is very difficult if you plan to buy multiple properties in the future. With which perspective are you buying a property? Is it a cash flow perspective or just serviceability?

9. Real Estate Broadbeach Waters Using a cash flow strategy means the property should generate an adequate amount of income every month and rent must be greater than the cost and interest payments. Look for real estate broadbeach waters and QLD areas that have high rental yields and low fees or strata costs. Target those suburbs that give high rental yields. Properties that give high rental yields are common in large regional areas and these properties are available at a low price so you have a chance to build up your equity base and actually someone else will cover up the price of the property for you. So, this is a very lucrative investment strategy to follow.

10. Buying At A Discount Everyone would like to bargain and get a low price, but in the property market getting a lowest possible price is very important. In Australia, transaction costs are high and to counter this you must give yourself instant equity and seek to get a discount. To get the discount you should buy from a seller who is looking to sell quickly and have a financial reason or family issue to sell the property. They are ready to accept a lower price because they want a quick sale and it will be beneficial for you. If you get the property in a prime location like Broadbeach Waters or Gold Coast then seek for the best broadbeach real estate agents advice to be sure of the investment and make a purchase.

11. Property Development Investors have the potential to turn one property into two or more properties. How is this done? Property is sourced in a great location and the land or property can be transformed to something different. For example, you have a very big property in a prime location but it is old. You want to demolish it and convert it in a courtyard so three to four townhouse homes can be built. You can think of building a few apartments on top of the house you live in presently and think of various other options like these. When property development is done in a correct way you can generate profit and there is significant risk if you do not plan or manage the investments properly.

12. Indirect Property Investment Everyone may not like to buy a rental property and be the landlord. Every investor also is not interested in renovating or developing. So there are many passive forms of investments which can help you invest in the property and there is minimal work and risk involved there. Investors want to invest in Real Estate Investment Trusts or managed funds. The benefit of investing in the property via managed fund or other type of property investment fund is to make a small investment and you need to borrow money for doing so.

13. Buy, Renovate and Hold Buy a property, renovate it and then hold the property. Holding a property here is the direct combination of two strategies where you will purchase the home at a less price. Implement the strategy of buying at a discount when you are looking for one and spend money to renovate it to improve its value. Wait for the market value to improve and you can either sell it at a higher price or rent it out to generate the cash flow.

14. Conclusion These are a few strategies that can be implemented for property investment, but what is right for you depends on your objective and financial situation. You can aim to combine multiple strategies and to be on a safer side you can always hire Real estate agent who can assist and guide you on property matters.