There are various property investment strategies that investors can employ to achieve their investment goals. Here are some of the most common types of property investment strategies:
- Buy and hold: This strategy involves purchasing a property with the intention of holding onto it for the long term, typically with the aim of generating rental income and capital appreciation.
- Renovation: Also known as “flipping”, this strategy involves purchasing a property that requires some work or improvements, and then renovating it to increase its value before selling it for a profit.
- Development: This strategy involves purchasing a property with the intention of subdividing or developing it, either by building additional properties on the site or by changing the use of the property.
- Positive cash flow: This strategy involves purchasing a property that generates more rental income than the expenses associated with owning and managing the property, resulting in positive cash flow.
- Negative gearing: This strategy involves purchasing a property with the aim of generating a tax deduction for the expenses associated with owning and managing the property, even if the rental income does not cover all of the expenses.
- Off-plan: This strategy involves purchasing a property that has not yet been built, typically at a lower price than the market value. The investor then hopes to sell the property for a profit once it is completed.
- Airbnb rentals: This strategy involves purchasing a property specifically to rent out on Airbnb or other short-term rental platforms, with the aim of generating higher rental income than traditional long-term rentals.
It’s important to note that each strategy comes with its own risks and rewards, and what works for one investor may not work for another. Investors should do their due diligence and seek professional advice before making any property investment decisions.
