Making money through property in Australia: Top real estate investment strategies
The most common way people make money in Australia is investing in property. There are ways to directly or indirectly profit from real estate, such as collecting rental income or making profits from business activity that depends on the real property. If you wish to create your own capital growth and maximise your chances of success, choose the right investment strategy. Have a clear idea about where you are going and what you are looking to accomplish. In this article, we will explore the most prevalent property investment strategies used by Australian investors that you can adapt to your needs.
Buying a home as an investment
More often than not, the path toward retirement and financial independence involves acquiring property. It is estimated that approximately 70 per cent of Australians own their own homes. Millions of people invest in property and it does not seem like home ownership rates will decline any time soon. A home can become a great source of income. Buy property in order to live in it. Besides the emotional and lifestyle advantages, the home value will grow with time and you do not have to pay tax on capital gains. All it takes is a little bit of real estate know-how to transform your home into an investment property.
Renovate to flip
According to the experts at Vision Strategy Management Australia, many individuals from different walks of life have invested in property with great results. You can make good money flipping houses. All you have to do is to buy a house to renovate it and sell it. If you are skilled at house flipping, you can turn it into a lucrative investment model. Attention needs to be paid to the fact that house flipping looks easy, but it is not in the least simple. Do not pay too much for the real property and get a good idea about how much the repairs and upgrades will cost. Only spend your money on improvements that add value.
Defence housing represents a government initiative that offers accommodation to members of the Australian defence forces, as well as their families. Landlords rent the properties for a certain amount of time, which can vary from 3 to 12 years. Determine if it is the right investment for you. Investing in defence housing is not the same thing as investing in typical real estate. However, this is not necessarily a bad thing. The rent is paid regardless if the property is occupied or not and the DHA bridges the gap between tenants and landlords. If you cannot decide on a property investment strategy, seek expert advice. Professionals can offer advice on property selection, finance structuring, ownership structures, taxation, and much more. Visit their site for more details.
Australian investors purchase blocks of land and hold them until they go up in value. When the time is right, they make the sale. Buying land is a great idea. In addition to the fact that it is a limited resource, people will always need a place to live or work. Consider buying a block of land and dividing it into 2 or more sections. If you do not sell the blocks, build a dwelling yourself. You can earn you a stable rental income and you can take advantage of capital growth.