Which Real Estate Investment Strategy Should You Use?

Investment property refers to property acquired for the purpose of generating returns through rental income, potential resale of the property, or both. Investment properties can be either long-term or short-term investment projects.

A property investment consultation guides you through the process with their knowledge and expertise. Also, it is beneficial in capital growth if you buy at a good price and the property increases in value.

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There are many different strategies for making money in real estate, and many advocates are passionate about their "right" way.

Three popular strategies are:

1. Positively geared property – The gist is to buy a property that leaves money in your pocket immediately, with the rent more than covering your interest expenses and other outgoings.

Provides cash flow, which enables you to buy more. Proponents claim if you choose well the properties will also provide good capital growth.

2. Negative cash flow property -Initially leaves you out of pocket with rent failing to cover the holding costs of the property. Relies on the fact property historically doubles in value every seven to 10 years so whilst you may be out of pocket for the first few years, the increased value of the property will more than compensate for that over time.

3. Renovate and sell – The aim is to buy a property at below market value, renovate and sell within a short period of time for profit.