We’ve said before property investment is not for the faint-hearted; you need to go into it with your eyes wide open, and equipped with knowledge to ensure that, for you, it is a success – because, you might be surprised to know that many investors don’t reach their goals.
Statistics show that around half of all investors sell their investment property within five years, and 90% never increase their portfolio past one or two properties.
There are many ingredients that make up the property investment pie, and we recommend carrying out your own due diligence and tapping into the resources we have created for you at Invest Approved.
You can always contact your Invest Approved Agent and request a sample property pack. Each property pack contains key information that will demonstrate the level of research we complete on every property that is certified Invest Approved. Just click here to contact your Invest Approved Agent
One of the key questions many rookie investors ask is, capital growth versus cash flow?
Here at Invest Approved, we strongly believe in investing in cash flow positive properties in areas where there is strong demand…and the capital growth will follow. We firmly advocate for cash flow AND capital growth, whereas some advisors prefer one over the other.
Team ‘cash flow’ suggests you should invest in property that has capacity to generate high yields to achieve a positive cash flow, leaving you with money in your pocket each month after all expenses, including mortgage repayments are met.
Team ‘capital growth’ favours a strategy to invest for capital growth over cash flow; in Australia investment properties with higher capital growth tend to have lower rental returns. The focus here is on long-term capital appreciation allowing you the ability to refinance to purchase additional properties and grow your portfolio, and therefore wealth.
It can be difficult for entry-level investors to obtain a cash-flow positive investment when starting out; the capital growth strategy focuses on asset accumulation, to build up equity and position yourself (over time) to be able to finance the accrual of a second property, and so on…The real rewards are definitely heightened for the long-term players.
However, with some of the eastern seaboards regional areas absolutely booming, propelled in part by an influx of intra and interstate lifestyle-driven migration, from downsizers to workers embracing new opportunities outside capital cities, and the affordable housing that comes with it – the paradigm is shifting.
Our focus at Invest Approved is very much around both capital growth AND cash flow positive returns…you can have your cake and eat it too, but you need to get the recipe right.
To learn more about strategies to help you achieve the right balance check out the Invest Approved Strategies to find out more about our approach and how we can you grow your wealth through property.