There are an unlimited number of strategies when it comes to property investing.
You can build, develop or buy an existing property.
Todays article looks at 8 Ways To Manufacture Profit Into Your Investment Property. Some are low involvement strategies, while others require more involvement, more work, and more finance.
- Buy and hold
The lease active way to make money from your investment property is to buy and hold.
This strategy is simple. Buy a high quality property in a great location and wait.
A renovation on an existing house is a great way to manufacture growth into your property portfolio.
It may cost you at the time, but the benefits of a renovation can help when it comes to re-valuation, re-sale and rental return. A renovation can help turn a negatively geared property into a positively geared property.
- Dual Occupancy
A simple way to increase the rental return on a property is to turn it into a dual occupancy, or dual living property.
This could be as simple as adding a granny flat onto the back of existing block of a house or changing an existing floor plan.
In most situations a dual occupancy property will create a substantial increase in cash flow, as the property can be advertised as two separate dwellings, with the house still remaining on one title.
This is a great option to look into if you are planning on building a new property, or knocking down and rebuilding.
Duplexes are on two separate tiles which can means you have the ability to rent and to sell each dwelling individually.
Subdivision is the first of the more advanced property investment strategies and will requires more effort as you start to work with councils, etc.
Subdivision’s can be very profitable if you buy a single house on a large block and apply for the block to be split into two.
- Townhouses / Villas
This is a more sophisticated option for a developer.
Rather than subdividing a block or building a duplex, you are building a small townhouse complexes of 4 – 30 townhouses.
Once you’ve experimented with a range of other investment strategies, some investors choose to get into medium to high-density development.
Medium to high-density developers build units and apartment blocks. Most developers choose to sell the majority of the units individually and keep a few for themselves.
There is a lot more risk associated with this type of investment strategy, as it requires a large financial outlay initially during the development stage before any returns are made.
This refers to changing the zoning of the land rather than the actual structure.
For example you may choose to rezone a factory from industrial to residential, then use that space for living or to rent out.
This is a good way of increasing the value of a property, it can be costly going through the legal procedures involved to get it all approved, however once it is done and the rezoning is approved it can mean a greater return on investment.
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