There are a couple of things that are essential to property investment success. The first is having the right team of professionals on your side. The second is choosing the right properties to meet your long-term goals. Fortunately with The ReinGroup Investors, the first item helps with the second.
There are a lot of factors to consider when choosing the right investment for your fledgling trust or established portfolio. Not only do you want real estate that will help you meet your goals, you also want to diversify your holdings to avoid risk. If one neighbourhood or type of property fell out of favour, you wouldn’t want to have all your eggs in that basket.
By spreading your holdings over different geographical areas and in various types of real estate, you could stand a better chance of retiring comfortably and setting up your family for life.
House or apartment?
When you say ‘different types of property’, the main variation that comes to mind for most people is buying a unit or a freestanding house. These two categories of real estate have different costs associated with them, and different benefits too.
While an apartments might have extra levies to keep track of, they are generally more secure, well-located and low maintenance. Houses can be more expensive to buy and maintain, but they generally tend to appreciate at a better rate than attached dwellings – people like the feeling of owning land!
However, neither of these types of property is the ‘right one’ for everyone. A well-managed and balanced portfolio might have both, to spread risk and also maintain a good balance between rental yield and long-term capital gain.
How would you gear that?
For many, property investment is only possible through negative gearing. And many people start out in the real estate game by using the equity they have built up in their home. But is gearing the only way to invest?
Some properties will return a higher rental yield, but will stubbornly refuse to appreciate in capital value – and this can be good for your portfolio in some circumstances. Cash flow can be essential in some circumstances, especially when you are nearing retirement and would like a passive income to support your lifestyle. These types of property can also cost less to buy in the first place.
When it comes time for divestment to free up capital, some retirees choose to pick up a few income-earning rentals at lower prices and live off the extra funds they bring in. It’s also a good way to transition into your golden years. If you’re not ready to hang the hat just yet, but don’t want to work full time, keeping tabs on a rental property or two can be a good way to generate income and stay active.
Choosing the right investment to start
Getting off the ground can seem like an insurmountable task, especially for the younger generation. However, talking to ReinGroup Investors could open up possibilities you didn’t even know existed. We provide a whole range of professional services through our extensive network that can help you with property selection, portfolio management and more.
So which is the right investment to start off with? It could be any of the following:
- Cheap and cash-flow positive
- Negatively geared for long-term gain
- In a strata scheme for added ease of maintenance
- Freestanding and established to seek capital gain
- In a capital city, to go for high yields
- In a small town opting for dependable stability
- Brand new to save on maintenance and depreciation
- Falling down and need of renovation
As you can see, the options are extensive, and there’s more to it than we can cover here in any great detail. And once you start combining some of the factors mentioned above, you can see how diverse property in Australia can be.
So, how will you know which of these options is best suited to you? By seeking professional help and guidance. Talk to ReinGroup Investors about your goals (or what they might be), and let us help you to form a complete picture of where you are now, where you are going – and how to get there.
By taking advantage of the services on offer from the entire range on professionals within ReinGroup Investors Circle of Safety, you can put yourself in a better position to reach your aims today than you were yesterday. So, before you start checking out real estate websites and calling estate agents, let us help you formulate a solid plan of attack. Together, we can assess the options available to you and how they fit into the bigger picture.