Property Investors Strategy – fine tuning and honing your focus to match your desired investors outcome…
Property investors strategy finding the deals which allow you to build your property portfolio with clear strategy to meet your desired outcome…in this section of Property Investments Now, we delve into various ways you can make money from your property investors strategy.
Property investors strategy principles for selecting properties include:
• The property must be in an area of existing or potential high mid-to-long term capital growth
• The property must be in an area of high population growth and high employment
• The property must be close to schools, shops and transport etc
• It should be new or renovated to allow maximum depreciation and therefore the biggest taxation savings
• It must be high quality in terms of design, materials and construction, and require minimal maintenance, and
• The property must be in an area, which has a sound long term rental history.
Property investors strategy 20 must ask questions for every property investor
Property selection criteria…have you ever found yourself working harder and harder only to go backwards? This section briefly covers the how to of finding an area to invest in and specifics of individual property.
Requires a little more work than throwing $10,000 at someone else to find a property for you:
1. What is the cashflow of the property?
2. What is the vacancy rate of the area?
3. What improvements are being planned for the area?
4. What is the population growth?
5. What is the competition?
6. Is the property tenant friendly?
7. What condition is the property?
8. Does it have furniture?
9. Is there a body corporate?
10. Is there a rental guarantee?
11. What is the current property management arrangement?
12. Is there a leaseback?
13. In the case of a new or off the plan property, who are the developers? (this particularly in relation to companies like the ones you’re looking at)
14. Is there a dual purpose if this is a niche market ( purpose built ) property?
15. What is the land availability in the area?
16. what is the proximity of the area to a large city?
17. What is the age of the property?
18. Is the property at market value?
19. Is the town you are considering based on just one industry?
20. Are you being commercial in your approach?
Property investors strategy as there are an infinite number of strategies, tactics and methods to make money using real estate, it’s likely the property investors strategy being implemented is a variation of the five options outlined below.
Choosing the right property investors strategy is all about matching the right real estate problem with the right investing solution, does that make sense?
Your choice of which property investors strategy to implement depends on three factors:
- Profit outcome you want to achieve (ie. capital gains and/or positive cash flow returns)
- Needs of the person who’ll be paying you money in exchange for the use of the property.
- Maximising your property investment returns…
Typically, the most profitable property investments are made when you understand and tailor the needs of the person using your property to maximise the appropriate investing strategy, rather than the other way around.
For example, if you find a property investors strategy which leverages rental yield and the end cashflow return will be higher than if you had chosen to simply rent it out (using the ‘Buy and Hold’ technique).
If you already own property investments, the key to increasing your returns is to better serve the needs of your tenant. For example, if you have a tenant then look for ways to increase the rent that also provides your tenant with more enjoyment from your property.
A great added value example is installing ceiling fans in a house, which has poor ventilation. If tenant agrees, once the fans are operational you would be able to justify an increase to the rent, that’s fair right?
End result is it’s a win-win outcome where you have more rent and the tenant has a better quality of life.
Property investors strategy is designed to give you an outline of the five strategies listed below, yet it is not designed to be an exhaustive guide to these strategies.
The aim is to help you appreciate there’s heaps to explore in property investments than simply buying a property and renting it out. If you’re interested in finding out more about these property investment strategies, simply use the form below to contact us.
Property Investors Strategy Snapshot:
- Buy and hold is the most common property investment strategy where you buy a property and rent it out with the aim of making capital gains and / or income returns.
- Renovations is to make money by adding value to the property through improvements
Property Investors Strategy ‘Low / No Cash Down’ Creative Techniques:
- Flip is short-term fast-cash property investors strategy where you buy a property and sell before title transfers into your name
- Lease-options takes a residential lease and provides the tenant with an option to buy too
- Wraps or vendor financing allows you to buy a property and sell on ‘vendor’s terms’. You get regular payments rather than a lump sum settlement payout…
Property Investments Now believes you don’t need to be a brain surgeon to begin making substantial real estate profits from property investment.
All you need is the right team of professionals with the right advice, the right property, bought at the right price with the right tenant living in it, under the right property investors strategy.
The only problem is the property investment market is constantly changing, often dramatically. While some experts believe the current market is changing whereby property investment as a strategy for continued profit is getting more difficult with higher risk…
Others believe it just means using more creative strategies whereby you’re controlling property leveraging new ways to get cashed-up.
It also means if you’re staying up-to-date, and you’re an astute, well prepared buyer (investor) you’re way ahead of the pack.
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Property Investors Strategy