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The Managing Director of Buying Perth Real Estate, Clive Elliott, discusses who is ideally suited to the services of a buying agent, how a buying agency operates, and the cost of engaging us to help you.

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Clive Elliott

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0862150200

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Investing in properties can be a wise and lucrative decision that can benefit you overtime. However, when starting out, the problem of many investors is not knowing what type of properties they should buy or how they can start. Having a clear property investment strategy can help you avoid this problem. A great property investment strategy takes the investor’s current situation, financial goals, and risk tolerance into consideration. When you find the right property investment strategy for a beginner such as yourself, having cashflow and capital growth from your property will come next.

To start your journey, here are four property investment strategies that are perfect for beginners:

1. Buy and Hold

This classic property investment method is a great way to start your investment in property because it’s been tried and tested. The buy and hold method relies on capital growth that the property has the potential to earn. For this to happen, you must look for an established property that’s in an area that has a high potential to grow or to be developed in the next few years. Do your research and ask your buyer’s agent as they would know which suburbs or neighbourhoods can give you the best return on investment.

This is a low-risk property investment method that does not require that much effort from the investor. Just this year (2020), property prices in Western Australia soared as much as 15%,as reported by Reiwa West Australia’s independent industry authority. On average, Australian house prices grow by 7.25% per year.

2. Rental Properties

Choosing to rent out your properties can give you a great opportunity to regularly earn and increase your cash flow while your property appreciates throughout the years. This is a perfect investment method if you have a lot of time on your hands as it would require you to regularly fix any repairs and have the patience to manage tenants. Aside from this, having rental properties might require great upfront costs to renovate and maintain the property.

However, you need to be wary of any damages inflicted on the property by tenants. You also need to consider income loss and paying utility bills for any vacant months. Consulting an experienced Buyer’s Agency will help you make wise decisions in these areas.


3. House Flipping

House flipping is generally renovating old and lifeless properties and transforming them into something brand new with a goal of reselling it for profit. This property investment method can be challenging because you need to find a property that’s suitable for renovation at a competitive price and then to find a buyer within a certain timeframe to avoid interest costs on your mortgage. You also need to have some trade skills to avoid paying high hourly rates to all your trades people, which can add to extra expense which cannot be seen as capital expense, and add value. You’ll also need to be able to sell it for a price that’s beyond all your costs including closing fees, stamp duty, etc.

House flipping is a great way to create quick cash flow, but it can be risky because the costs that you need to pay when buying a house can eat up your profit. Consulting an experienced Buyer’s Agency will help you make wise decisions in these areas.

4. Renovate and hold

Renovating a property is another popular investment strategy because it can boost your equity and add value to the property. However, you need to plan your renovations strategically to avoid going over budget and over-capitalising. You’ll need to talk to your experienced buyer’s agent to identify which parts of the house can bring the most value when renovated and how much value it will add to the property.

Renovation can open opportunities such as rental income as well. The only thing that you need to worry about is the expensive costs of renovation and the time that it will consume to renovate your property.