In the dynamic world of property investment, having a well-defined strategy is not just an advantage; it’s a necessity. A good investment strategy will empower you to set the foundation for long-term, sustainable growth.
This guide is dedicated to helping you understand the importance of having a clear, actionable property investment plan and how we can guide you through this journey.
A property investment strategy is your personalised roadmap to achieving your goals in the real estate market.
It outlines the steps you’ll take to buy, manage, and potentially sell properties to build wealth. While the overall plan should guide your decisions, it’s flexible and can be adjusted as you gain experience and the market evolves. To be truly effective, your strategy should consider various factors like current market conditions, your financial aspirations, how much risk you’re comfortable with, and your investment timeline.
Navigating the real estate market without a strategy is like sailing without a compass.
Strategic planning empowers investors by providing a clear roadmap that guides their decisions and actions in the property market. This not only enhances the potential for higher returns but also minimises risks associated with property investments.
Selecting the right property for investment is crucial for building a successful portfolio. It requires careful consideration of various factors that can impact your returns.
While some resources, like this one on Queensland’s potential for property investment, can provide a general outlook, choosing the specific house requires a more tailored approach.
This is where Panvest Property can help you buy with confidence. We present only the very best investment properties where we can prove to buyers that there are great underlying fundamentals that point to future growth. This gives buyers confidence in their purchasing decisions. All properties sourced through us are analysed by our in-house Property Analyst. We don’t rely solely on chance; instead, we leverage deep market insights and extensive experience to identify properties with the best potential for growth in value and rental income.
Our selection process prioritises factors like location, property type, vacancy rates, population growth, job creation, infrastructure spending current market trends, and future urban developments to ensure every property we recommend is well-positioned for long-term success.
Before any property is purchased it is wise to have an overall strategy; an entry strategy, exit strategy, and finance strategy. This forces you to stop and think about what your goals and needs are and then work out the best way to make it happen. You should review your strategy every two years to ensure your strategy is up to date and that your investment scenario is always maximised.
Consider what your goals are for the short, medium and long term. Some considerations could be:
When crafting your property investment strategy, it’s important to understand the various approaches available. Here’s a breakdown of some popular options to consider:
Rentvesting is a property strategy that allows you to get a foot in the property market by buying an investment property where you can afford it while still being able to rent close to your family, friends, work and life. The best of all worlds.
A “Buy & Hold” Strategy is exactly as it sounds. A strategy where you purchase a property and hold it for the long term.
This approach involves leveraging the equity you’ve built up in your existing home to finance an investment property. As you make mortgage payments on your primary residence, the value of the property increases, creating equity.
An entry strategy refers to the plan and approach taken when initially entering the real estate market. It helps investors make informed decisions and set the foundation for a successful investment journey.
First, identify what your budget for investment is. Have you spoken to a bank or mortgage broker? Have you considered how your property investment will affect your current expenses and lifestyle? Do you need a negative or positively geared property to achieve your goals? How many properties do you need to reach your goals? Which sort of property can help you achieve your goals? These considerations will guide you in selecting the most suitable state, region, and suburb for your strategy and budget.
We can help explore the advantages and disadvantages of various housing options, ensuring you feel confident in your purchasing decisions. Additionally, we can estimate entry and holding costs to help you create a reliable budget. You will also need to specify a desired rental return to assess cash flow accurately.
Consider the duration of your investment carefully. Understand how Capital Gains Tax (CGT) will impact your property upon sale and evaluate the reasons for eventually selling. This planning will help you make informed decisions when the time comes to exit your investment.
Working with your Mortgage Brokers, determine the best type of loan for your strategy. Decide whether a variable or fixed-interest loan suits your needs. Evaluate if an interest-only loan or a principal and interest loan is more appropriate. Additionally, consider how to use your offset account effectively to minimise interest payments and maximise loan repayment.
An offset account is an everyday bank account that is linked to your home loan. Any income and savings can be deposited into the account and the balance is then offset against the amount owing on your home loan.
Negative gearing is one strategy that could be considered in the right market; with the right interest rates, deposits, and strategies. Keep in mind that negative gearing would reduce your overall borrowing capacity if you were hoping to create a portfolio of properties.
Assistance from Mum and Dad can come in many forms, each with their pros and cons, but generally, with the right guidance, this could be the strategy to set you up on the path to success.
Panvest Property goes beyond simply providing information.
Panvest Property presents quality new home builds in areas highlighted for growth. We help provide valuable insight and opportunities to empower you to make informed decisions.
Ready to take the next step? Contact Panvest Property today and unlock your property investment potential!
