The road to strategic property investment is a personal one, and there is no one-size-fits-all formula for expanding a real estate portfolio. To be successful, you must first establish and work toward goals that are appropriate based on your own circumstances.

Below, we'll walk you through some of the most important property investment techniques and approaches so you can make well-informed decisions regarding your long-term financial security.

Ensure your financial freedom and make the best out of your investment. Contact us for expert guidance.

Long-term property investment: Where to begin?

Every property acquisition strategy begins with thorough planning. You're not only looking to make a long-term investment in real estate, but you're also keeping a tight watch on the risks, the requirements, and your own financial investment capacity. As for what you should look into, below are the most crucial property investment recommendations you need to know.

1. Evaluate your financial standing
Property investment should be affordable, so carefully weigh the property cost against your current finances. Investing will cost you money at first but will eventually win you money. Pay attention to avoid risking your money and making impulsive choices.

3. Get familiar with the market
To obtain a good understanding of property investments, you'll need to fully grasp the market. Steer your focus towards the criteria that the market sets for property investing.

Comparing property investment strategies

Capital Growth Strategy
Buying a home that improves in value over time is part of the capital growth plan. The strategy is beneficial when purchasing pricier properties located in a more affordable area. 

Advantages:

-Long-term capital growth

-No need for investing any time or effort, just wait

-Use of negative gearing deduction (if rental income is downgraded)

Disadvantages:

-Payment out-of-pocket to cover a percentage of mortgage repayments

-Risk of capital growth being based on speculation

Cash Flow Strategy
This strategy is best suited for investors who want to make profit off of the property as soon as possible to maintain a positive cash flow, usually through rental income. 

Advantages:

-Solution to troubles by claiming negative gearing

-Income making you a stronger borrower

Disadvantages:

-Capital growth is minor

-Equity requires a long time

Renovation Strategy
This strategy requires you to locate a property you’d like to invest in. The property might need renovations in order to boost its value before you rent or sell it. 

Advantages:

-Value added to your property (regardless of the market climate)

-Great odds for selling property fast and profiting from it

Disadvantages:

-Renovations require a lot of money 

-No guarantee that property’s value will be higher than renovation costs

Your future property investment

There is no scarcity of property investment advice available, and sorting through it all to find what works for you can be difficult, especially if you're just getting started.

To learn more about investing in property or your future, give our Fast Repay Home Loan team a call to schedule a one-on-one consultation with our broker experts. 

Disclaimer: Information included in this post is of general nature, it has been prepared without taking into account your specific situation. It is not intended to be and does not constitute financial advice, investment advice, trading advice, or any other advice. You should not make any decision, financial or otherwise, based on any of the information presented here without undertaking independent due diligence and consultation with a professional accountant or financial adviser.