What kind of property investment strategies are there?
After all the complexity and hassle of buying your own home, you probably feel like you can do just about anything. You understand the property market and home buying process a lot better, so you should have no issues now that you want to invest. Right?
While there's no doubt you're older and wiser, don't be hasty. There are a lot of subtleties involved in entering the real estate game, such as choosing the right investment strategy. Before you make a commitment to any property investment loans, consider some of the different strategies you could undertake.
Wrap it up
Wraps are also called vendor finance sales contracts. For most properties, the regular sales procedure sees buyers put down a 10 per cent deposit and taking care of the rest within 60 days with the help of a lender. Wraps are a little more flexible. The difference between the house price and the deposit is paid in instalments over a certain period of time worked out by both parties
Fix her up and sell her off
Also known as flipping, the quick pace of this strategy means it may not be the best approach for beginners. It involves buying a property, swiftly renovating it to increase its value and selling it off as fast as possible to make a return. At this point you would move on to the next property. This way is time-intensive however, and many turn it into their full-time job to succeed. You'll also have to factor in the cost of capital gains tax.
Come together, right now
If you're looking for something that will give you a little more security and dampen risk, you could try getting home loan refinancing as a group. Go in with friends or family to purchase that investment property. You'll individually need less money and fewer resources, and it should make the management of the property much simpler.