Property investment, just like other types of investment is like a chess game, you should approach it in different ways and in different angles considering that there are lot of pros and cons that you should be aware of that might affect your overall investment in either a good way or in a bad way but there are actually a lot of investment strategies that you can learn.
A lot of property investment advisors favour a strategy while others do not, but here is the thing; there are actually a lot of different principles that contradict to each other and oftentimes, you should stick to your gut feeling with a little help of following the strategies that best fit your wants and needs in order for you to become a successful property investor, so we listed down the most essential strategies in property investment that might help you in overcoming this daunting task.
- OWN YOUR OWN HOME- In most developed countries, owning your own home is one of the best and popular ways to generate income and one of the most common way to start a property investment, considering that you are free from capital gains tax. Apart from that, in terms of your lifestyle and your needs, you can benefit from owning your own house and you can even raise its value over time especially if you stay there for a long period already.
- BUY AND HOLD- This is also practised by many investors. This refers to acquiring a certain property with an ultimate goal of generating a long-term capital growth or in simpler terms, you raise its market value. This is very common also to a lot of property investors. Buying a property does not necessarily require for you to pay in full, in fact, most of it is borrowed funds that are being paid overtime which in return, you can let it rent for a tenant to pay off the mortgage.
- POSITIVE CASH FLOW-This refers to putting cash in the investor’s account after the property is depreciated. If you have a lot of properties, especially those that are newly acquired, you may qualify for any substantial tax deductions that are the result of depreciation which was drawn up from the quantity surveyor. The newly acquired properties just like refinancing home loans Australia, on the other hand, are now having the better potential to deliver positive cash flow because it offers the bigger depreciation benefits.
- RENOVATE TO SELL- When it comes to renovating a property up for sale, this is actually one way for a manufacture equity which allows you to sell the property quicker. This may sound easy but by the time you factor the hard costs it makes, and the cost of any time and the labour cost, it is actually an overwhelming task in hand, but you can generate income over time if you have the right investment techniques. The techniques are having an accurate prediction of the renovation, spending enough money for the renovation which can add more value to the property, and a controlled cost to avoid any blowout of your budget.