There are three basic property strategies successful investors use to build profitable portfolios :-
- Buy and hold
- Buy, renovate and hold
- Buy, renovate and sell
Buy and Hold
If you consider this a method that would suit you it is important to choose the property wisely. It has been recorded that the Australia property market doubles every seven years however 
making a wise choice when you purchase will ensure consistent and high growth over the long term. This is an excellent method if you are happy to create wealth over time and should form at least part of your property portfolio.
Buy, Renovate and Hold
If you choose this method then make sure you follow some fundamental rules for renovating to add value without over spending. Adding instant value by carefully chosen improvements to a property will also increase its rental return. However it is possible to lose money with this method if you choose a buy a property that needs or you decide to do expensive time consuming renovations.
Buy, Renovate and Sell
If this method excites you I can understand why, it can be a way for you to make quick profitable returns but it also requires that you understand some basic principles. The same rules apply as above with regard to buying wisely and how you choose to renovate, also emotion must be left out of the equation. If you hold the property for less than one year the capital gains tax is more than if you hold it longer so take that into account when doing your figures.
Note: Always be aware of the tax you will be required to pay when selling an investment property.
Power Thought
‘I prosper wherever I turn’
Say this several times throughout the day to help keep you focused and positive.
Teresa and the Team at
Australia Wealth
Tags: Australian property, buy property, create wealth, home improvement
