Strategy Education

Selecting the right property strategy is essential to achieving your desired goals. An example of strategy is your suburb selection. If you pick the right property but located in a poor performing suburb, your returns are likely to disappoint. Another example is owning a property that has provided significant capital growth, but because the rent does not cover expenses, you may be forced to sell a good asset to meet short term cash needs.

STRATEGY IS KEY TO A SUCCESSFUL PURCHASE

BUY TO LIVE AND FOR INVESTMENT

$862,000
2 bed, 2 bath, single garage

Janet and Richard found it difficult to afford their own home, whether an apartment or house. The same budget set aside for weekly rent could not fund the purchase of the same quality of home. They looked at the strategy of purchasing something more moderate to live in (within similar budget to weekly rent) while benefiting from capital growth. Read further to find out how we helped them.

EXISTING VS. NEW PROPERTY

$365,000
1 bed, 1 bath, 1 car apartment

$465,000
2 bed, 2 bath, 1 car apartment

Purchasing property that is brand new can be exciting. For some investors it offers the potential for less maintenance problems and the purchase price is fixed. Our clients Jane and Chris wanted to purchase a property while saving up a deposit. Initial savings were $20,000 and their target was to save $80,000 over 12 months. Both Jane and Chris preferred to be invested sooner, rather than wait to purchase an existing property. Read more about how we helped them.

TO RENOVATE OR DETONATE. POSITIVE CASH FLOW

$598,000
3 bed, 1 bath, single garage

$120,000
2 bed, granny flat

Several property experts specialize in finding old, run-down properties to renovate or detonate and add value through rejuvenating the asset. This can be very luctrative if you select the right suburb, street, and property. There is much potential for pitfalls. Timothy wanted to purchase an older house in a growth area in Sydney within a budget of $750,000. This property needed minor renovations and knock down of wall between kitchen and dining area on a 750sqm block of land.

POSITIVE CASH FLOW VS. NEGATIVE GEARING

$425,000
4 bed, 2 bath, double garage

$350,000
3 bed, 3 bath, 2 car

How many books, seminars, speeches or new articles have you read that tell you positive cash flow property is the key to a successful property purchase decision? It can definitely be a smart strategy for some investors. For others, it could lead to a false sense of security and long term financial stress. Lisa purchased a positive cash flow property in the Gold Coast ($405,000) and in Chinchilla, QLD ($350,000) prior to starting with us at Find Your Property. Both offering good rental yields of 5% and 7%. Her goal was to own positive cash flow properties in order to generate a passive income for financial freedom. Read more about whether she is able to achieve her goals.