Strategy

Potentially this is one of the last topics on most property owners minds. We all know how this goes, as we used to do it ourselves. We decide that we want to buy a property for around whatever our budget will allow. Let's say our budget is $400,000 and without much thought towards ‘how does this purchase fit into our overall investment strategy?’ we head out and buy a unit close to where we live. Easy enough – job done.

Let’s rewind that situation back to the beginning and see what other considerations the client could be take into account before the search for the property even commences. In our view the property purchase is generally the last stage of the process. In many instances purchasers will simply buy a property and adopt the ‘hope and see’ approach. This is not a strategy of an investor who is planning on ensuring they are successful. The ‘hope and see’ approach generally ends in the investor selling the property after becoming disillusioned with the whole process.

Addisons prefers to prioritise the strategy stage and let this strategy dictate what type of property you buy and where. Considerations for your strategy should include:

  • Is this a cashflow strategy that allowsyou to build a multiple property portfolio
  • Is there the opportunity of expanding the asset through manufactured growth
  • Is there the opportunity of improving the appeal of the property to tenants
  • Is there the opportunity of maximising the rental return of the property
  • Identifying the underlining property fundamental of your investment area
  • Ensuring you are purchasing the property in the most tax effective structure
  • Will the bank accept the property as acceptable security

Some banks will limit what they will lend you on particular properties and other banks won’t accept the property at all for residential purposes. Some examples of this include properties under 40 sqm, Company title properties, Rural Properties operated as a ‘Going Concern’, Display Homes currently being used as a builders display home, Development Sites, Properties located within 50 metres of High Voltage Transmissions Line, Serviced Apartments and Student Accommodation.

Other considerations for your strategy should include these simple principles:

  • Advice from unbiased and independent property and finance professionals
  • Regular monitoring and review of your position
  • Mitigate risk to minimise failure
  • Cashflow is equally important as capital growth
  • Research extensively

Addisons is well positioned to ensure we take into consideration all the abovementioned points to enhance your success. Our client centric approach adopts a holistic view to ensure the selected strategy is aligned with your investment goals. Act today and start your wealth creation journey with the team that will be by your side, every step of the way.

With your strategy set, our aim is to help you achieve it, assisting you every step of the way – let us help.

Addisons is a full service property and finance company that empowers property investors to achieve their financial goals. Clients have the ability to utilise any of the services on an individual basis or as a complete package. Other services include: Financial health checks, property management services, buyers agent and vendor advocacy.