6 Ways to Profit from Property Investment Strategies

Tuesday, June 18th, 2019

Goal-setting

When it comes to setting achievable financial goals, they need to be realistic, practical and relevant to your lifestyle.

Making a decision to invest in a property that’s negatively geared might seem like a positive option but if your income is low and your tax savings are negligible, the truth is that there are better ways to make money from investing in property.

Creating sensible financial goals that you can make work is the best foundation for a strong and healthy financial future.

With goal-setting in place, you can utilise these 6 profitable investment property strategies and win.

1. Hold on to property

Effective property investment is best done with long-term success in mind. Yes, you may have heard stories of friends who flip properties and profit but, to play it safer, buying and holding property for longer periods of time is always recommended to protect you from the property sector’s inevitable peaks and troughs.

Experts have long attested to the theory that property doubles in price every seven-10 years and when you do your research of years of property price analysis, you’ll see that there is a lot of truth in this philosophy.

2. Improve and refurbish

That worst house on the best street that’s ripe for some cosmetic and functional renovations and refurbishments offers good prospects for profit-building property investment.

It’s your choice about whether you tackle works yourself or call in the professionals but it’s important to do your research to make the right decision.

Taking on renovation work beyond your capabilities can be stressful, unsafe and time-consuming. Usually, it’s a mix of your own hard work and support from qualified tradespeople that produces the best possible outcomes – both for your peace of mind and your budget.

3. Subdivide and prosper

Planning a subdivision takes time and money.

The end result, though – a property that is split into multiple blocks with individual titles – can reap good rewards, if done well.

For many investors, living in a main, existing house, while building an extra dwelling at the rear or side of the block can offer a good solution. It means you can live your life while still working on your development and then, when the new dwelling is complete, you even have the option of moving in to that one and renovating the original house (or developing with a matching aesthetic).

It’s important to realise that Council approval processes do not always go as you planned and you run the risk of being stuck with a property you can’t make work. When it’s done right, though – it’s wonderful. This strategy can lead to impressive profit and the bite of property investment bug that makes you want to do it again…and again.

4. Dual-occupancy

The alternative to a council subdivision approval for two titles on one block, is to turn one property into dual occupancy.

Think about remodelling a four-bedroom house into two two-bedroom apartments by adding an extra kitchen, living zone and bathroom.

Dual occupancy development means you can get multiple sources of income from just one property and one title – something that helps your rental yield blossom.

5. Re-zoning

Instead of changing the structure of a building you might want to buy, rezoning is about changing the way the property is classified. If you are successful in rezoning a property from residential to commercial, or from industrial to residential, the value of the property may increase.

It’s not for the faint-hearted, as it can require lots of waiting time and legal fees but, if you have done your research to find a property that has a great chance of having rezoning approved (look for others in the area), it can be an incredibly profitable way to invest in property.

6. House and land packages

The good old outer-suburban house & land package can offer good prospects to make first-home buyers’ property-buying dreams come true – and can be a perfect way to jump into the property investment world in a way that is reasonably stress-free. Choose your area wisely and have a clear plan about how you envisage making the investment work for you (will you live in it, or rent it out?). Look for corridors of genuine growth that will go up in value and hold on for as long as possible before selling and, really, you can’t go wrong.

 

For more information about finding the right finance to suit your property investment goals, our lending professionals at Loans Actually are here to help.


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