Discover the most critical step to property investment before you start to invest – if you DON’T define this step you will never have success with property investment. The first step is determining your strategy.
The question is not “what is the right strategy” but rather “what is the right strategy for you?”, you should not invest in property until you know your strategy.
Developing the strategy right is an absolutely crucial first step. The majority
The ‘Buy, renovate and sell or hold’ investment strategy can maximize potential gain by improving areas of the property that are unsightly. An un-landscaped front yard, a messy entrance way, a run-down bathroom or kitchen on a property are example of these. This is a good strategy for those with the time and skills that can complete the renovation themselves.
To minimize transaction costs, most investors choose to buy, hold and bank on the
The ‘Buy, renovate and sell or hold’ strategy can maximize potential gain by improving areas of the property that are unsightly such as an un-landscaped front yard, a messy entrance way, a run-down bathroom or kitchen. This is a good strategy for those with the time and skills (i.e. tradesmen or women) that can complete the renovation themselves.
It is an exceptionally good strategy for those that have the lifestyle suitable to living in
Buy + Sub-divide + Sell or Hold
Fantastic opportunity for those not faint-at-heart. Serious profits can be made by buying land capable of subdivision and doing what the previous owner was unable to do.
You need a large amount of capital (i.e. cash) behind you as, particularly in the current environment. The banks are simply not willing to lend serious money to even the most experienced property developer.
Buy + Build + Sell or Hold
This strategy is similar to the“buy and subdivide and sell” strategy and once again not for the fainthearted. On the upside, there is good profit to be made, particularly for those able to be involved in the building process themselves. Adding real value by building or improving a property is one of the most fundamentally sound ways to make profit.