Before you even consider buying an investment property in Perth, you have to consider your strategy. If you’ve started looking at properties without understanding your strategy and knowing what you’re hoping to achieve, you need to take a step back and develop that strategy.
Here are four key factors to consider when developing your property investment strategy.
- Strategy goal
What’s your goal? What are you hoping to achieve? It’s not as simple as it sounds. It’s not just “to make money” or “build wealth”, but how to and what to focus on to get there? Do you want a solid rental return? Do you want long-term capital growth? Do you want to renovate or subdivide? Is it combination of these? Are you thinking short-term or long-term? Do you want more free time and to work less? Do you want to retire early? Do you want to travel the world?
- Property type
Your strategy type will impact your property type. Makes sense. If you’re after steady cash flow, you might focus on low-maintenance apartments in small blocks nor new houses on cottage blocks, to set and forget. If you’re focused on capital growth, you should look for well-maintained older houses in great growth areas. If you’re looking for a balance between cash flow and capital growth, you might focus on low-maintenance townhouses or villas in strong growth areas. If you’re after an add-value or development opportunity, you’ll be focused on properties with potential to renovate, or subdivide and build a duplex, triplex or quadruplex.
- Investor type
Yes, that’s you. And yes it makes a difference. Which strategy is best suited to first-time investors, seasoned pros, or self-managed super funds?
- Long-term or short-term
Where are you at in your investment strategy? What’s the plan? To generate some short-term cash flow? To set and forget? To be in it for the long haul until retirement?
So, what’s your strategy?
Understanding and evaluating these four critical factors will help determine which property investment strategy is right for you. And if you’re not quite sure about them or what will work best for you, it might be worth talking to Property Wizards or reading our free 4 Strategies to Success for residential property investment tool.
It outlines in simple bullet points, the key aspects of each strategy – strategy goal, land/building ratio, property type, benefits and who it is best suited to.
Download it here.
We think you’ll find it very handy.
If you want to learn even more about property investment in Perth, why not read our free Get Ready to Invest in Property eBook.
It takes you through five simple steps to help you understand strategic property investment and how to make it work for you.
So if you’re ready to learn some great insights into getting started in property investment, download your free Get Ready to Invest in Property eBook here.