4 Popular Investment Strategies Dec 22, 2020 | Blog Property investing has been a powerful way to build wealth that Australian’s have been using for generations. The great thing about property is that there are a number of different approaches you can use that all increase your wealth over time. The exact strategy that you use as an investor will be dependent on your own personal situation, but here are 4 powerful strategies you can use to add value to your property or build a portfolio. Renovate The great thing about investing in property is that, as the owner, you have the ability to add value to your investment. Compare that to the share market and with Home Mortgage Experts and there isn’t much you can do to increase a company’s share price. By doing a renovation, you are able to add value to the property and at the same time, increase the rental yield and overall appeal to potential buyers. The trick to a renovation is to do your research before you start. You want to look at other properties in the same suburb that have similar characteristics. Ideally, you want to see a large difference in price between renovated and unrenovated homes in that suburb. That way, there’s room to make a profit after taking into consideration all the costs involved. Cash Flow With interest rates at record low levels and mortgage rates incredibly affordable, the vast majority of properties in the current environment will be at least neutrally geared. The idea of finding a positive cash flow property is that the income you receive from rent is more than the costs of owning the property. That includes mortgage and interest payments and all costs such as maintenance, repairs, and management fees. A positively geared property puts money in your pocket each month and allows you to build a larger property portfolio than one that is negatively geared. However, just because a property has a high yield and is potentially a positive cash flow property, doesn’t mean it’s a good investment, check with a home loan finance expert in Australia. You still need to buy a property that has the potential for capital growth over time. Getting a Good Deal When a vendor sells a property, they are doing it for their own reasons. Depending on how motivated that vendor is to sell, will tell you how much they are willing to negotiate. Generally speaking, a highly motivated seller, will be far more willing to accept a lower price in return for a quick settlement. A motivated seller is often someone who needs to sell for personal or financial reasons and if you can identify these types of properties, you may be more likely to get yourself a great deal and also create instant equity in the process. Capital Growth Arguably the key objective of most Australian property investors is to look for capital growth potential as per home mortgage experts. Australian property has a long history of appreciating in value and that is expected to continue over the long term. However, the property market is not one big market, but rather thousands of smaller markets made up of tens of thousands of suburbs. If you can identify areas where demand will outstrip supply, then you’ll likely see above-average capital growth as well. These types of areas are often located in highly sought-after owner-occupier areas that have great amenity, access to rivers and beaches and good school zones. Alternatively, they can be areas that are being rezoned and going through gentrification. There’s no one right strategy for property investors, and a more powerful way to create wealth is to try and combine as many of the elements mentioned as you can into your next property purchase. Why YFA? We are very passionate about helping individuals and families to identify financial goals with the correct focus on their plans for the long run through our home loan expert. Our motto has always been “Honesty” and Over 20 years, we have always believed that understanding the customer requirement should be the first priority. What makes us stand out from others is the utmost trust from our clients who have trusted us. Our home loan broker is always there to assist you. We have always aim to provide updated yet useful blogs by adhering to traditional values of transparency and integrity, while continuing to bring steady and consistent performance over the long term. We feel proud and blessed to win awards because of successfully assisting people to achieve financial success. We love going beyond the bolts of financial crisis in an easier manner just to help people believe that money never blocks their happiness. Our home mortage experts try to the best of our abilities to be a sane, and trusted entity in the sector of Wealth Management via providing services in Finance & Insurance. Credit Rep Number – 418883 | ABN – 8119516623 Submit a Comment Cancel replyYour email address will not be published. Required fields are marked *Comment Name * Email * Website Save my name, email, and website in this browser for the next time I comment.