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PropertyApproach.com was established by private property investors as a resource centre for those looking to enter into property investment and property domain name investing.

There are many ways to make (and lose) money from property investing. The information provided by PropertyApproach.com is simply an overview of a few strategies that successful property investors have used in the past.

Buy and Hold

With this strategy the concept is simple, buy a property and then hold it for a significant time frame. Your return is created from the value of the property rising over time, and relies on previous property trends of long term market value increase continuing. You can benefit financially from the equity that can be created over time, and /or by leasing the property to tenants at a rate higher than your repayments (helping cash flow).

Often investors are required to negatively gear a property. For negative gearing to be successful you need capital gains exceeding your total annual income loss. When choosing your property you need to decide what your goal is, whether capital gains or income returns, as it is rare to find a property that offers the two.

There are many many factors to decide on when choosing a good investment property for a buy and hold strategy. There are those factors which most investors say will help the success of your property investment (such as location, number of bedrooms, good infrastructure etc.), and there are those factors that impact your personally. For example your may want to do some renovations at some point in time, so accessibility may be important. You may also wish to occupy the property, so factors such as access to family and lifestyle need to be considered. A good idea is to write a list of what is important to you.

You should never buy an investment property under the buy and hold strategy based on emotion or gut feel. You need to do your homework and understand how you are going to make money from the property, study the past trends in the areas you are looking to invest in, find out what future infrastructure is planned, know the market that will lease your buy your property and their needs, and make sure you can afford the repayments now and in the future. Fortunately there are many resources and experts out there to help you make the right investment for you.

Buy and Sell (Trading)

Under the Buy and Sell property investment strategy the aim is to buy below market value and sell at a higher price in the short term. You make your money in the purchase.

The other ways of raising market value in the short term are from buying in high growth locations, and through increasing value to the property through developments or renovations.

Renovations

Renovations can be a great way of building value into your property under either a short term trader investment or a longer term buy and hold strategy. Renovations can range from a simple coat of paint to knocking out a wall to create an open plan living space. Remember the number of bedrooms is important to value and marketability, so never "lose" a bedroom in a renovation, preferably gain one. Older properties often lack vehicle access and parking. Especially in inner city properties, the ability to add off street parking can be a big value-add. Look for what is "missing" in a property that you can easily fix. Light is a major consideration - older properties often lack exposure to sunlight, and changing this through adding windows and decks can dramatically improve a property. Remember the premium you get will depend on desirability, so spend your renovation dollars wisely.

Wraps (Vendor Finance)

Another way to sell real estate is under what is called Wrapping, Vendor's Terms or Instalment Sales Contract. This is where rather than having a balance due in 60 days it is split into a series of periodic payments that the purchaser must repay over an agreed period of time. Once the purchaser makes their final repayment the title is transfer into the purchaser's name.

The idea is that wrapping is a low or no-money-down strategy that enables an investor to earn great returns for a relatively small risk. The investor acts as the financier and less like a property manager / landlord. Expenses in a wrap become the responsibility of the person accepting the vendor's terms.

The wrap laws in each State are different so it is important that these laws are read and followed before starting a Wrap investment strategy.

Lease Option

There are two aspects to a Lease Option investment strategy.

1. The residential lease on a property. The rental charged under the lease should be at slightly above market prices due to the circumstances of the transaction and unlike a normal residential lease, the tenant is to pay for all repairs and direct expenses.

2. The option that enables the tenant to purchase the property at an agreed date and price. A start-up fee is usually charged for this option which is then taken from the purchase price if the option is exercised. If the option is exercised then a portion of each rental payment is applied against the purchase price.

If the option expired and is not taken up then the start-up fee is forfeited and all the payments received under the agreement are simply as rental payments.

Again there are laws surrounding this real estate investment strategy which will need to be read and followed.

Flip Strategy

A flip is a rather common investing strategy where you sign an agreement to buy a property and then sell your interest to a third party before settlement of the deal.

The success of the investment relies on being able to find someone interested in purchasing it from you

What is best for you?

Any investment advice is dangerous if the circumstances of the investor is not considered. There is no "right" or "best" way to invest in property. The first consideration is how risk-adverse you are, or can afford to be. Are you trying to build wealth rapidly from a low base, or to preserve wealth? The more you borrow, the greater the potential return, but the higher the risk. Most investors who lose money do so because they are forced to sell, either because they cannot meet the payments or due to a change in personal circumstances such as a divorce. Try to ensure you are never in a "forced sale" situation by ensuring you can meet repayments for a period without tenant income or from other sources so you have time to market properly if you want or need to quit.

It is a good idea to list your strengths and weaknesses as an investor, then choose a strategy that gives you an edge. Do you have a flair for renovation? Are you good at tenant management? Are you a good negotiator? Do you like or hate daily involvement? Choose a strategy that suits your circumstances and gives you an edge over the hundreds of other investors and you will greatly increase your chance of success

Find out how to get your business found online through our Advertising Strategies.

DOMAIN NAMES FOR SALE

GLOBAL DOMAINS
BigViewRealestate.com
CBDRealestate.com
CliffTopRalestate.com
CourtYardProperty.com
ExecutiveShortStay.com
GlamRealestate.com
Go2GreatProperty.com
HillProperty.com
HolidayRentalsProperty.com
HomeToRenovate.com
HotBuyRealestate.com
InvestmentBuys.com
LandBankRealestate.com
PropertyApproach.com
PropertyLegals.com
PropertyStatistics.com
QuayRealestate.com
RealestateInvestmentDeals.com
RealestateProvider.com
RenovationDeals.com
ShortStayProperty.com
ShortStayRealestate.com
ThamesRealestate.com
TreeTopsRealestate.com
WordWideWaterSide.com
FinanceTracking.com
PropertyRegistrations.com

ASIA PACIFIC DOMAINS
NewZealandCoastalProperty.com
NewZealandLifeStyleProperty.com
NewZealandResidentialProperty.com
NZ-Property.com
PropertyMelbourne.com
NSWRentals.com
VicRentals.com
SouthYarraProperty.com
SouthYarraRealestate.com
DocklandsRealestate.com
DocklandRealestste.com

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