Property is one of the most stable, secure, medium-to-long-term assets. For individuals who are interested in increasing their wealth in a simple way, property investment may be the ideal vehicle.
There are a number of strategies that investors may use in order to maximise on their investment. For instance, many investors may opt to buy-and-hold the property, while others may choose to renovate the property. Dual-occupancy also its merits, while negative gearing may also be beneficial in the long run.
The buy-to-let property strategy has enabled many savvy investors to grow sizeable property portfolios over time.
Bond repayments will vary depending on the bond term.
Tell me more about the buy-to-let property strategy?
A buy-to-let strategy for property investment may provide short-term returns in the form of capital growth and rental income.
The buy-to-let strategy also has a lot of gearing potential. For investors, gearing is attractive mainly because it leads to increased wealth. This is when an investor buys a property and through the rental income he/she is able to purchase another property.
This type of investment may be the ideal starter investment, mainly because it is not too difficult to maintain. As long as all the administration is in place, this strategy can be quite successful.
It’s important to make sure that you do the necessary research before you invest.
Take a good look at your finances beforehand. It’s important to consider bond, transfer and conveyancing fees.
Buyers should be conservative when considering affordability. There are factors that are important to consider, such as monthly bond repayments, rates or levies, insurance and maintenance costs.
Keep in mind that your investment might take a few years to start paying off. But keep in mind the investment goals that you have.
You need to choose an investment strategy that will suit your specific priorities and cash flow.
