Principles of effective Investment Strategies

 

EFFECTIVE PRINCIPLES

 

* Understand the Purpose for your investment, link this purpose to a goal, over which you want ownership and personal commitment to achieving

* If you know what your “Why”, it is then that you will understand what ‘Investment Vehicle’ will help you effectively move towards your goal

* Invest where both the Government and Industry are investing into infrastructure and industry, creating new jobs

* Invest in locations with a growing population placing pressure on supply of dwellings to own or rent

* Invest in locations which are primarily owner occupied*

* These locations have lower rental competition and tend to be better looked after than typical ‘investor hotspots’

* Invest in a property which also appeals to an Owner Occupier for future resale purposes

* Work with a knowledgeable person you will get to know like and trust, who will save you time, stress and ultimately money

* Use their due diligence and market research whilst undertaking your own research and due diligence, so that you can come to your own informed decision

* Keep in mind that the vast majority of property is not investor grade property; learn to identify which is investment grade

* Get to know and understand the numbers which will be driving your investment, as this will assist you in not making an emotive decision over an investment decision

* Use Other Peoples money to Leverage into your Investment (the Banks money) where you only invest 10% or 20% yet achieve growth on 100% of the asset

* Use a tenant to help you grow and create further wealth

* Use the Tax man to help you grow wealth through tax deductions on tax you are going to pay away anyway

* Take advantage of Compounding growth

* The investment decision you make today will be with you for the life of the investment and will determine when and if you can secure your next or next investments

* Commit to yourself and your goals by taking action in securing a property which ‘best fits’ your own requirements and matches the purpose of your investment

* Avoid reading newspapers, focus on Industry Reports

* Research locations outside of where you live to take advantage of other property cycles and rental yields

 


Quote of the Day :

“Borderless Investing … an astute strategy employed by astute investors to capitalise on other market cycles.”


 

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