Investment strategy overview
The finance world is not exactly known for its transparency.
And with so many lenders out there it’s difficult to know the good eggs from the bad, which can feel especially concerning as taking a gamble on the wrong lender can have significant consequences. After all, putting together an investment strategy is not a low-risk endeavor, so it’s important you’re being given the best advice and working with a property investment strategist that understands you and your needs.
Your challenge is to figure out who can provide you with the options you need and who’s trying to pull the wool over your eyes. We promise you nothing but transparency. We offer our services with no fees and no surprises, call us old-fashioned, but we believe it is our job to earn your trust and business, not the other way around. We also believe in educating all investors and giving the best investment strategy advice, so that you can make the best choices when it comes to your hard-earned dollars
Why Invest in property?
Property is typically considered a safe investment because the property market tends to be less volatile than investing in stock and shares.
Property generally maintains or appreciates in value, even when other assets are on the decline. And, with the right investment strategy advice, property has the potential for capital growth, which in non-financial jargon means that the value of a property increases over time. Pair this with the steady income that a rented investment property can provide, and the tax benefits associated with different loan types, an investment property can be the golden ticket to building your wealth and securing your retirement.
But what does investment strategy involve?
In the world of finance an investment strategy is a set of rules and best practice advice that help an investor, such as yourself, select an investment portfolio.
Everyone has different profit objectives, skills, and circumstances and a good property investment strategist will take these factors into consideration when researching and making recommendations.
But which investment strategy is right for me?
There are several popular investment strategies out there to choose from, and the right property investment strategist is the best tool in your arsenal when it comes to selecting the right option for you.
- Buy and Hold
This is one of the most common investment strategies and one of the simplest to secure. As the name suggests, this strategy involves buying a property and holding onto it with the goal of reaping the benefits of capital growth. With this investment strategy, the amount of capital you will earn will depend on many factors including location, property type, time frame and the health of the property market you are in.
- Negative Gearing
One of the perks of choosing negative gearing is the associated tax benefits. In layman’s terms, negative gearing occurs when an investment property is leased out, and the income the investor makes from the tenant’s monthly rent payments is lower than the interest they are paying on the loan along with the deductible costs of property maintenance. This strategy does require the investor to outlay cash in the beginning, but by taking a loss on the property investment, they can claim the tax deduction against their income which, in turn, lowers their tax bracket, allowing them to pay less tax. A property investment strategist might recommend this option for high-earning investors who are looking for smart ways to grow their property portfolio.
- Property Trusts
A property trust is a strategy best suited for those who want to mix up their portfolio with different kinds of assets. Property trusts work by allowing investors to buy an interest in a professionally managed portfolio, like buying shares in a company. The money you invest is put into the trust and held there, and then, when the trust is dissolved, and the properties are sold, the earnings are distributed amongst the trust’s stakeholders.