Your Property Investment Strategy for 2024
Have you ever been told just to do something as quickly as possible? Reach that goal, hit that KPI, do it ASAP…
Life can often be all about hitting targets, reaching goals, no questions asked.
Often we can be polarised by doing as much as we can in the shortest amount of time. The thing is, it can often lead to things happening without any real regard for the outcome.
And unfortunately, this is a very common concept in the property investment world. People put all of their hard earned money into buying as many properties as they possibly can, with no regard other than to hit a magic number that they think will bring ultimate success. It can also be a very ego-based thing for lots of us, we may want to look good in front of our uber-rich friend, by saying ‘hey, yep, I’ve got 5 investment properties, how good is that!?’
But does financial gain directly correlate with quantity? In a perfect world, where everything is worth the same amount, YES – but, unfortunately, we don’t live in that world.
Especially when we think about the Australian property market.
Instead, we live in a world where property prices depend on value. The value of the location, the land itself and the bricks and mortar. So, despite feeling the need to hit a certain goal, or reach a certain number of properties owned, the more important thing to look at is the idea of owning QUALITY property.
If you’ve been in the property investment industry for a little while, this may seem like a pretty obvious thing, to the point where it may feel like a cliché. But, when emotion comes into things, we can easily forget about what’s truly the best long-term decision.
This is where the idea of strategic planning comes in. With guidance, understanding and direction, your decisions can be made less upon emotion, and more through logic, strategy and confidence.
Instead of jumping into the market, buying as MANY properties as you can, as QUICKLY as you can, let’s instead look at combining the perfect mix of quality, with a quantity that works for you.
Let’s look at an example… Quality is what’s important
Let’s say you have a $2.4 million budget for property investments. This could be a number that makes us think 6 $400K apartments is the best option. But does this take into account anything other than buying in the greatest quantity possible? Yes, it’s certainly an option, and for a lot of investors entering the market, a less expensive property can be a great first step. However, without factoring in location, demographics, regional infrastructure, and growth patterns, are you really looking at somewhere of high QUALITY?
Instead, with this $2.4 million, what happens if we look at purchasing 3 houses worth $800K each? Properties in quality locations tend to be in far greater demand. And, with the rental crisis australia is facing, contributing fairly to the rental market can provide high yields for you, as well as consistent living conditions for your tenants – a win-win situation! Alongside this, an $800K property in an area of high growth and long-term equity is often one with a little bit of space, and at the end of the day, land is truly where the value lies.
Think about it – and we could get all numbers-y here, telling you about the great results we’ve seen with our clients in this price bracket – but consider the first house you lived in, or your childhood home. The chances are, especially because it’s a house on a block, it’s worth A LOT more than it was worth than when you were living there. Quality property on land that’s your very own, is a great thing to have for long term investment – and with three of them? Now that’s a great portfolio!
So what does this tell us about property investment?
At the end of the day, this situation may not exactly be you. Your budget and goals might be different. You may be looking to invest as a seasoned veteran – or a complete novice. But, no matter your situation, what’s really important to consider is what your strategy relies upon. Instead of the ego-numbers, instead make sure you focus your plan on ensuring that QUALITY is at the forefront.
As we mentioned before, quality property investment in 2024 and beyond is all about ensuring that you have a tailored plan to guide you toward your unique goals. Rather than being directed by what you think MIGHT be the best option, instead let your plan do the work for you, creating a confident, stress-free investment journey
Want to chat more about working towards your property investment goals with a Propell Property Plan?
Not sure where to start? Give us a call on 1300 776 735, we’d love to hear from you!
