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Property investment strategies
Finding your way in property investment
Each property investment strategy has its own goals, whether it's generating immediate income, building long-term wealth, or taking advantage of tax benefits. On this page, we break down key concepts so that you can find the approach that best aligns with your aspirations.
Cash flow
Boost your earnings now: focus on positive monthly returns
If you're looking for a strategy that puts money in your pocket today, focus on cash flow. This means finding an investment property with strong rental yields where the rent covers all your expenses and leaves you with extra cash each month. Look for properties with strong rental demand and low maintenance costs. This path is ideal if you want to boost your income or support your current lifestyle.
Capital growth
A capital growth strategy in property investment focuses on purchasing properties that are expected to increase in value over time, providing investors with significant financial gains when they sell.
If you're investing for the long haul and are comfortable riding out market ups and downs, focus on capital growth. Numerous factors affect capital growth. Properties in desirable locations with good infrastructure and amenities tend to appreciate more. A strong economy, low-interest rates, and high demand relative to supply can also drive up property values. Finally, new infrastructure projects, like roads or shopping centres, can significantly boost nearby property values.
Balanced approach
Balanced cash flow and capital growth
Want a bit of income today and wealth tomorrow? A balanced property investment strategy might be for you. This involves finding properties that offer decent rental income and have the potential to increase in value. These properties are often found in established suburbs with good amenities and future development plans.
Negative gearing
Negative cash flow and positive capital growth
This strategy involves making some short-term sacrifices for bigger gains down the road. You might choose an investment property with high growth potential, even if it means your expenses are higher than your rental income initially. This is where negative gearing comes in – using the property's losses to reduce your tax bill. This path requires careful planning and a good understanding of how it all works, so it's important to get expert advice.
Rentvesting
Live where you love, invest smart elsewhere
Rentvesting is a strategy where you rent where you want to live, but buy an investment property in a more affordable area. This allows you to get your foot on the property ladder and start building equity, even if you can't afford to buy in your dream suburb just yet. It's like having your cake and eating it too – you get to live where you want, while also investing in your future.
However, there are a number of tax implications to this arrangement that you should understand, so it’s best to sit down with a financial advisor before buying.
Why invest with Frasers Property?
Our projects are strategically located in suburban growth corridors and in-demand urban locations. Benefiting from significant infrastructure investment and masterplanning, these neighbourhoods are both attractive to residents in the short-term and offer growth potential over the long-term.
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All opinions, estimates, forecasts, links to external websites, conclusions and recommendations and underlying assumptions contained within this webpage are made and expressed by Frasers Property Australia in good faith, in the reasonable belief they are correct and not misleading as at the date of publication. This publication and its content do not represent financial or other professional advice and should not be regarded as such. Before acting on any information provided, you should fully consider the appropriateness of the information, having regard to your objectives, financial or taxation situation and needs and, if necessary, seek appropriate professional advice.