Remember the first rule of Fight Club? There is no Fight Club.
It’s pretty much the same when working out a property investment strategy.
No single strategy suits everyone, and no convenient, generic rule applies to every client.
Yet our industry is awash with one-size-fits-all strategies handed out by companies far more interested in their own profit than your plans to build wealth with property.
So, what’s the first rule of Property Investment? There is no real benefit without due diligence – a genuine drill-down into the goals, stage of life and financial circumstances that make you, as a client, unique.
Couple this with a customised strategy matching your very specific needs with prevailing market forces and trends, and you have a powerful tool to build a strong, resilient portfolio which can future-proof your investment.
If you think we’re labouring the point, consider the totally different requirements of the following people.
Multiple, ever-changing factors are in play when working out a strategy to get you from where you are now to where you want to be in the future, whether that’s two, five, 10 or 20 years down the track.
If you’re still tempted to pluck a property investment off the shelf, take note of the following factors.
A whopping 73% of Australian investors with grand plans get off to a false start and end up sticking with just one property.
Nothing is more critical than making a smart choice first-off, forming a solid foundation to build on while protecting your investment.
A dual income property has the potential to double your income or offer substantially higher returns than investment in a single income-producing rental property.
Dual income properties offer two rental streams. With high-quality dual occupancy and duplex properties now common in some parts of Australia, your choice is not limited to houses with granny flats in the back yard.
A dual income property helps you take advantage of the multiplier effect. With positive cash flow on your first property, you’re in a strong position to go on expanding your portfolio, income and capital growth. Here's an example of how a dual income property can help you leverage your cash position into a second investment property.
Over supply is a killer for property investors. It’s happening now with rampant apartment construction in key areas around Melbourne.
With so many choice and rents forced down, you could potentially wait months to find a good tenant. Not to mention reductions in the value of your investment, which limits opportunities to leverage into more property.
Australia’s property scene is in a constant state of flux. Unless you know the ins and outs of growth corridors, financial markets, industry trends and the shifting lifestyle choices of buyers and tenants, it’s mighty difficult to make the right choice.
That wonderful apartment might tick lots of boxes, but can you service ongoing body corporate or owners’ corporation fees?
These are quarterly fees all owners are legally required to pay for maintenance of the exterior and communal areas of their apartment along with essential items such as insurance and management costs.
Buying property through your Self Managed Super Fund (SMSF) requires a holistic approach which:
With investors attracted by deposits as low as 20%, it’s easy to be tempted by unrealistic pay-down estimates.
So, first rule of Profitable Investment? There is no profitable investment without sound strategy and assessment of the factors which make your situation unique.
Talk to us about taking the next step – we’re fight ready. Book an appointment with us now to learn how you can succeed with property investing.