4 Best Real Estate Purchasing and Investment Strategies to Boost Your Cashflow

When it comes to investing in real estate, it’s crucial to weigh up the pros and potential risks before making any final decision. From proper marketing research to navigating great property deals, lowering your risk, and other areas, you need to play smart within all parameters to determine whether or not it’s best for your business.

I always look at real estate investing and financial goals as the peak of a mountain. When I was a new investor, the numerous choices in this industry always make me overwhelming, which is why I decided to consult a professional. After a lot of research, I reached out to Gary Golon, who carries a proven track record of constructing, owning, and managing several residential and commercial projects.

I feel his practical first-hand experience has been a lifesaver throughout my journey. And I’d be more than glad to share my lessons and property investment schemes with you to give you an in-depth understanding of how to earn better money in the real estate market.

If I put things in simple words, there are two kinds of property investment strategies:

· Buying a property or renting it out

· Buying a property and later, sell it whenever you find a profitable deal

Now let’s straight move ahead to the proven strategies that I have learned from Dr. Gary Golon:

1. Purchase and Hold Established Property

This is a well-tried and tested strategy that starts with deep research to identify valuable steps of growth in a local market. Hunt for suburbs that can be beneficial, such as world-class infrastructure, local shops, education facilities, transport network, and other amenities.

Pros: It is a low-risk strategy that may reduce your tax and doesn’t ask for extra effort once purchased.

Cons: Success lies in the property value which isn’t certain to grow over time. It also asks sizeable deposit and your money may be stuck for a longer time span.

2. Flipping Properties

This involves renovating an exhausted property and bringing new life into it, with an aim of reselling it for a profit. The major challenge is to find an appropriate that has chances of renovation and is available at cost-effective rates.

Pros: It can be a good method for effective cash flow.

Cons: It has a high cost of stamp duty and agents also charge a large amount in reselling procedures.

3. Positive Cashflow

Positive gearing/cashflow investment strategies can be a great way to diversify your portfolio. This kind of real estate purchasing involves interest, fees, and surplus cash flow each month.

Pros: It could help you purchase multiple properties, offer additional income, and build your portfolio.

Cons: You may need to pay more tax as you earn extra income. Also, capital growth and cash flow aren’t equally exclusive when investing.

4. Subdivison

This is an excellent choice for experienced investors that usually handle councils and development process. You need to find a large block of land and subdivide it into two or more blocks, which can be sold further as two individual blocks for long-term investment purposes.

Pros: This can bring additional value by diving the blocks.

Cons: It can be difficult to find properties that are large enough to subdivide. Also, council charges can be high and the procedure could be time-consuming.

Property Investment amid COVID-19

Many investors have postponed their property investment plans due to the COVID-19 pandemic, decline in renting charges, price falls, and increased vacancy. While this seems a suitable concern, the best opportunities may arise when everyone is looking at a different side.

I expect to see economic recovery and a rise in demand for property, again. And this could be a great time to build a real estate investment strategy and set up your future portfolio. Don’t rush – do proper research and work closely with an expert to determine what’s best for your business.