Property Investment

Traditional Property Investment

Common Strategies Employed

• ·         Find cheapest house in best street
• ·         Do a development, single or multiple and strata title
• ·         Latest listings emailed to you from portal type websites
• ·         Latest and greatest hyped developer advertised properties bought
• ·         Local friendliest RE Agent best bargain presented to you for purchase now
• ·         Paying for “insider reports” of which postcodes performed best last year in the hope they will do the same for     the next 5 years
• ·         Paying a monopolised data source for owner info, previous purchase price, estimated value and levering your   offer to vendor off this info
• ·         Searching newspapers, gov. Reports for localities targeted with big expenditure in the future by governments or big business
• ·         Buying anywhere else the government is not in the business of setting land prices and profiting from sales.

Purchased properties are either, flipped, renovated/constructed or held with negative gearing in the hope that with a tax saving and capital growth they will achieve a positive outcome.

Non-Traditional Property Investment

Common Strategies Employed

• ·         Searching for positive cash flow properties with some opportunity of capital growth
• ·         Sub leasing properties for a monthly profit
• ·         Finding Vendor financed properties for renovation/resale
• ·         Buying properties with no money down in exchange for renovations
• ·         Buying properties with very little money down and no mortgage
• ·         Joint venture a property for sale and share profits
• ·         Tying up suitable properties to immediately increase cash flow and add capital gain
• ·         Vendor financing properties already held
• ·         Finding good deals on property mortgage notes for holding or sale

Active or Passive Property Investing?

There is a gradient scale of property investing which goes something like this from active to passive

• ·         Renovators
• ·         Developers
• ·         Business renovators [buy a business..build up it’s turnover..sell with lease or title]
• ·         Vendor Financiers
• ·         Rent to Own Operators
• ·         Mum & dad purchase of 2^nd property
• ·         Mortgage note holder/dealings
• ·         Investment in a property trust managed by others

You choose the type of investor you want to be depending on your skills sets, level of profit and risk you care to assume. Don’t assume you are minimizing your risks by taking the passive route and handing responsibilities over to others to make profit on your behalf as when you do this you take on a whole new set of risks which could be classed under the heading of “Business Ethics”. You don’t have these risk factors to worry about in others when you are taking full responsibility for you own investments.