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Strategies for Maximum Returns on Your Real Estate Investment

Not every property purchaser immediately has what it takes to make the best returns. However, you might achieve your goals by trying the strategies below:

Blog / General / 2023 November 03, 2023

Investing in real estate is about more than choosing a property you like and hoping you’ll make more in rental income than what you pay in costs. It’s about making strategic decisions that maximise your returns and constantly reviewing those strategies to ensure they set you up for future success. Not every property purchaser immediately has what it takes to make the best returns. However, you might achieve your goals by trying the strategies below:

Involve Experts

You might be an expert with money, but that doesn’t mean you’ll be a property expert. Surround yourself with people who are. For example, you might book building and pest inspections Gold Coast residents use to ensure a Gold Coast property is sound. You might also align yourself with accountants, real estate agents, and property managers to enjoy professional advice. The more people you involve in your investment journey, the more experience you can benefit from to make sound buying decisions.

Spend Time On Research

As tempting as it can be to jump right into a sale when you see an apartment listed for a bargain price, take the time to research your local market first. Review property values, trends, and development areas with the most potential.

You might even look at up-and-coming neighborhoods and the demand for resold homes or rental properties. The more you know about the area you intend to buy in, the more informed your decision can be.

Diversify Your Portfolio

You might already be diversifying your portfolio by purchasing real estate to offer earnings alongside your stocks and ETFs. However, you can diversify your portfolio further, even under the same real estate category. The more variety you have, the more potential downturns you might weather in the future.

Rather than buying all commercial or all residential properties, you might explore a mixture of commercial, residential, serviced apartments, and vacation properties. These all have great earning potential at different times. As a result, you might enjoy excellent returns on one investment type when the other is performing poorly.

Renovate Wisely

House flipping has long been a lucrative investment option for those with a few DIY skills. However, not all flipping ventures will prove profitable if you don’t know what to look for. It’s important to focus on those that can add the most value in rental returns or a sale, such as a kitchen upgrade or enhanced kerb appeal. You may decide to stay away from properties that will be endless money pits, such as those with pest damage, plumbing woes, and foundation problems.

Take Advantage of Tax Benefits

There are several tax benefits worth exploring as a real estate investor. If you receive rental income, you may be able to deduct mortgage interest, depreciation, repairs, and land tax. If you intend on selling, you may even be able to get out of paying the total amount of capital gains tax (CGT). The Australian Taxation Office provides a 50% discount if you own a property for more than a year before selling it.

Maximising the returns on a real estate investment can be challenging for beginners. However, it might be easier than you think after performing research. Explore some of these strategies above, and you might be on your way to turning a profit before long.

Investing in real estate is about more than choosing a property you like and hoping you’ll make more in rental income than what you pay in costs. It’s about making strategic decisions that maximise your returns and constantly reviewing those strategies to ensure they set you up for future success. Not every property purchaser immediately has what it takes to make the best returns. However, you might achieve your goals by trying the strategies below:

Involve Experts

You might be an expert with money, but that doesn’t mean you’ll be a property expert. Surround yourself with people who are. For example, you might book building and pest inspections Gold Coast residents use to ensure a Gold Coast property is sound. You might also align yourself with accountants, real estate agents, and property managers to enjoy professional advice. The more people you involve in your investment journey, the more experience you can benefit from to make sound buying decisions.

Spend Time On Research

As tempting as it can be to jump right into a sale when you see an apartment listed for a bargain price, take the time to research your local market first. Review property values, trends, and development areas with the most potential.

You might even look at up-and-coming neighborhoods and the demand for resold homes or rental properties. The more you know about the area you intend to buy in, the more informed your decision can be.

Diversify Your Portfolio

You might already be diversifying your portfolio by purchasing real estate to offer earnings alongside your stocks and ETFs. However, you can diversify your portfolio further, even under the same real estate category. The more variety you have, the more potential downturns you might weather in the future.

Rather than buying all commercial or all residential properties, you might explore a mixture of commercial, residential, serviced apartments, and vacation properties. These all have great earning potential at different times. As a result, you might enjoy excellent returns on one investment type when the other is performing poorly.

Renovate Wisely

House flipping has long been a lucrative investment option for those with a few DIY skills. However, not all flipping ventures will prove profitable if you don’t know what to look for. It’s important to focus on those that can add the most value in rental returns or a sale, such as a kitchen upgrade or enhanced kerb appeal. You may decide to stay away from properties that will be endless money pits, such as those with pest damage, plumbing woes, and foundation problems.

Take Advantage of Tax Benefits

There are several tax benefits worth exploring as a real estate investor. If you receive rental income, you may be able to deduct mortgage interest, depreciation, repairs, and land tax. If you intend on selling, you may even be able to get out of paying the total amount of capital gains tax (CGT). The Australian Taxation Office provides a 50% discount if you own a property for more than a year before selling it.

Maximising the returns on a real estate investment can be challenging for beginners. However, it might be easier than you think after performing research. Explore some of these strategies above, and you might be on your way to turning a profit before long.



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