Property investing in the current Australian market should involve a combination of strategies to make the most out of your money. While investors tend to focus on one strategy like negative gearing, renting and renovating, with the current state of the market, it’ll take a lot of time and effort for your investments to make you rich.
Conducting market research is always crucial in property investing. Learning the local demographics, economic trends, competition and developments in the area help you determine the ideal strategy for it and when to use it.
Leading property investor Jennie Brown who has more than 20 years of experience in real estate investments offer some resources where you can learn a great deal about the properties you like:
- RP Data (www.rpdata.com)
- Residex (www.residex.com.au)
- Real Estate Institute of Australia (www.reia.com.au)
- Realestate.com.au
After learning all there is to know about your prospective investment, you’ll have to decide whether it’s a deal worth pursuing using Jennie’s “Three Cash Levels” criteria.
Pitty Cash Deal : This type of deal generates less than $20,000 in profit or even a possible loss scenario.. This requires a substantial cash outlay and loss of time and effort “micromanaging” the deal. Deals like negative gearing where you buy and hold property before selling it at a high price, some renovations, wraps and rentals fall under this type.
Petty Cash Deal: This type of deal is expected to earn between $50,000 and $100,000 in profit, requires less time and effort on your part because you can manage the transaction at a distance. Examples are some renovations, splitter blocks and strata.
Patty Cash Deal: This is the kind of deal you should be looking out for because you stand to earn over $100,000 in profit, turnaround time is between 1 and 2 years and this can be managed at a distance. Examples are subdivision and development.
While Jennie’s techniques still require some action on your part, her approach works even if you don’t have enough time and money to start this business. Successful investment entails selecting the best deals and combining leveraging and partnering to deliver those deals..
Leveraging allows you to do more deals with less effort, giving you more time to do the things you enjoy while partnering involves teaming with the right person for finance or joint ventures.
Get more secrets in property investing from Jennies’s free mini course on “Investing in Property for Profit”
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