What type of Property Investor are you?

 

Residential Property Investment Strategies Australia

 

Some say building wealth and building a property portfolio is a perfect marriage. It’s true that traditionally, investing in residential property in Australia has always been an effective means to create wealth. Let’s look at the different types of property investment strategies seen in Australia, along with the types of investors that use them. 

The Renovators

The majority of this group of property investors has opted to buy older homes, renovate and then flip. Television and lifestyle   programs like “The Block” have spurred a generation of investors intent on making quick short-term gains through renovating. Others will undertake renovations to improve the property and attract higher rents. The downside to renovating, as a property investment strategy, is that hidden issues are not apparent when you start and may result in budget blowouts

property investment strategy

Accidental Investors

Accidental Investors 

Typically, this group of property investors chooses to convert their principal residency into an investment property as it no longer suits their current lifestyle. Often people have equity in their existing home, and keep their previous homes as investments. 

The Developer 

This group of property investors have built an extensive portfolio of mainly new homes, including a range of home designs from low-cost single dwellings to dual occupancy, multi-generational homes, and duplexes. The astute developer focuses on buying land and building several residences, depending on the size of the blocks and Council restrictions.

 

With land scarce, many savvy investors find older properties on larger blocks in established areas and knock them down to rebuild a new home. In these cases, investors need to factor in costs for additional approvals for demolition and removal of existing sewer or power lines, plus subdivision costs and so on.  

The Developer

Rentvestors

Rentvestors

With some working millennials struggling to break into the property market, especially in popular inner-city districts, they’ve chosen to opt for rentvesting. This strategy is where you rent a property to live in that’s right for your current lifestyle while you own an investment property that’s right for your budget now.

 

Not only are rentvestors able to gain passive income, but they can offset expenses and build equity in their property. In the future, this group of property investors can choose to sell or borrow against the property and buy another. The disadvantages include managing rent and mortgage payments and missing out on first home buyers grants and incentives. 

 

Buying Land and Building vs. Buying a House and Investing

Except for “Renovators”, most property investors work to a long-term strategy of buying into growth areas and holding onto residential properties for several years while they wait for prices to increase in value. 

All property investment strategies have merit and depend on the property and the location’s potential for good returns. 

Your overall wealth creation goals will drive the type of investor you choose to be and your strategy.    

Usually, property investors are seeking to:

  • maximise capital growth,
  • create passive income through high rental return, or both.

To achieve these goals, you can invest in older second-hand properties or build new homes specifically for investment.

 

Build Your Investment Property with CJ Homes

 

investment property strategies

 

Suppose you’re keen to pursue investment property strategies that involves building new residential properties. In that case, CJ Homes can provide several house designs options to suit your wealth creation goals and budget.

CJ Homes is the builder of choice for savvy property investors with a proven track record in building quality affordable homes. 

In the early years as a project home builder, we solely focused on building investment properties. Today, we cater to many clients, including owner-occupied homes and property investors. 

Currently, we’re running a Fixed-Price Contract Guarantee promotion for a limited time. This promotion is an invaluable offer for property developers to build investment properties with confidence. Prices are fixed so that you can make an informed decision on the potential return for your investment property.

If you own land or are buying an older property to knock down and build new residential investment properties, we can help. Our in-house Building Designers can provide you with plans easily modified to suit your block, or we can custom design.

Looking to build or buy investment property? To find out more about how we can help to boost your investment strategy with our quality new homes, contact us on PH; (07) 3733 2244 or email info@cjhomes.com.au.

 

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