The top 3 property investment strategies in Australia

Hi, everyone, it's Jane Slacksmith here. In today's video, I want to share three examples of the most common types of property investment strategies that are popular in Australia right now. Now, we've all heard of the buy and sell strategy. The buy and sell strategy is essentially a strategy that is executed in a short term turnaround time. So it's when someone buys a property, they sell it. Now, there's often a step in between, that is where the success actually happens. Now, the problem with this strategy is that it is a very difficult one to achieve a larger sale price unless the property was originally purchased at a much lower market rate in the beginning. So by the time the sale is completed, the majority of the profit could be eaten up with the buying costs, the selling costs, and all those government taxes. So what's that step in the middle that I hear you ask? Well, it's renovation, of course, or adding value to the property. Now, doing some kind of renovation on the property can help lift the value, allowing you to aim for a higher sale price. Now, my goal with renovations is to make at least $2 back for every $1 that I spend. And some of the most popular shows on TV that are talking about doing renovations on houses and selling for a profit right now are not really what happens in reality, because what happens in the Australian property market is a lot of people don't actually understand the biggest danger. And the biggest danger is that people quit their day jobs with a view of renovating full time without fully understanding how accurate they have to be with their feasibility study done up front. And this could spell disaster for your end result and for your bank balance. Renovating to sell properties is a very advanced property investment strategy and one that is tricky to finance on an ongoing basis because it's very difficult to get a loan when you are technically unemployed. So you need to consider all of these things before you actually embark on this type of strategy. Now, the most common type of strategy that we're all familiar with in Australia is the buy and hold strategy. And it's essentially what the majority of Australian homeowners already do their buy and hold a property on, on average, according to census, for 10.5 years. Now, the good news is that over 90.3% of Australian homes now are worth more than what they were purchased for originally. The downside of this strategy is that it can take many years for those properties to gain the value. And unless you understand what makes an area grow in value, this could actually be a very slow weight wealth. Choosing the right location will help you get into a profitable position soon. So when you decide to sell, then you can sell successfully and you can sell a property that not just people want, but a property that is going to get you a whole lot more value. And then there's short term leasing. Now another way to increase your income is to open your property to short term rental markets like Airbnb. Now, thousands of people over the world have found success in renting out rooms or entire houses to holiday makers. In betweeners, staycationers, business people, everyone seems to be using short term leasing at the moment. Now while this strategy has success with some, it can also be quite tedious and unpredictable if not executed correctly. Short term leasing relies heavily on the features of specific locations such as proximity to the city, to beaches, to public transport. So location once again is key. And houses also obviously need to be furnished. You know, have wifi access and all the mod cons. The cost of cleaning and preparing the properties between short term tenants can also affect your income and end up costing you quite a lot, especially if you have this outsourced by someone else. And there's so many companies doing that today. Now there's also changing government regulations around short term leasing. You need to be up to date with those for your state because it may not be worth the risk for you. Okay, that's it for this video. I've got lots more information about other property investing strategies over on my website, YourPropertySuccess.com and if you sign up for my newsletter, you'll get access to even more information. And don't forget to hit the like button on this video and subscribe if you want to hear more about how to build a successful property portfolio in Australia and learn how to build a decent nest egg for you and your family. And as always, here is to your property success.