Are you confused about what property investment strategy you should use? After all, there are a lot of options out there. You need to pick the right one. The one that will suit your risk profile, your time and your skills. If you get it wrong it could cost you. What works for me may not work for you. It took a business mentor to open my eyes to the two main ways that people use property as an investment vehicle and I thought I’d share that with you.
For those of you who have made the decision to stop living from pay cheque to pay cheque, or are facing a less than stellar Superannuation fund payout in years to come and are considering getting into investment, a word of warning. While it’s great that you want to take control of your future (well as much as we can control), if you haven’t sat down and defined your investment strategy you may end up just throwing your hard earned cash away.
So what is an investment strategy and why do you need one? Well settle back and I’ll tell you our story of investment, what I found when investigating different options for investment and how we developed our investment strategy. Perhaps you might find inspiration to start your journey.
There is always a toss-up about whether to do something yourself, and potentially save some money, against getting a professional in to do the job.
We have completed a fair bit of cosmetic renovation work over the years. I am a mean hand with the paint sprayer, painting the inside of a house in a couple of hours and husband extraordinaire has learnt many tricks over the years in hanging doors and finishing those fiddly corners of the skirting boards so they sit neatly. In the past we have always done the majority of the work ourselves. It has been enjoyable and saved us money at a time when we weren’t earning a lot and had more spare time. Lately however, we have found there are other things we would prefer to do rather than spend our weekends painting and tiling.
This latest project is vastly different to others we have tackled, those past projects were cosmetic renovations, where we focused on improving the look of a place by painting, replacing floor coverings and tidying the gardens. Over time, we have took on more complex renovations, employing tradesmen to install new kitchens, revamp bathrooms or polish the floors in some of our rental houses. The more we have used outside tradesmen, the less profit there is in the deal, or at least that is what it looks like. Read more
Yep, it’s that time of year again where we all reflect on what has happened throughout the previous year and where we want to be this time next year.
Although I’m not a big one for New Years Resolutions, I do think it is good to set goals and January is as good a time as any to set them.
It is usually a quiet time for me work-wise so it makes good sense to set a bit of time aside to look at what I need or want to do in the coming year.
I find writing down my long-term goals is effective. Actually, I find writing down my medium and short-term goals effective too, as my mind tends to get a bit scattered and I can easily lose focus. Everyone seems to have different ideas of what long and short term goals are. When I talk about long-term goals, I am talking about where I want to be in two to five years time. My medium term goals are my six to twelve month targets, and my short term goals are anywhere between 6 weeks to three months away. But always, always, they are written down. Read more