Most property investors will begin with investment strategies that offer greater leveraging potential. These strategies include buy and hold, renovating, etc. Lenders are most comfortable with these types of standard residential real estate securities, and usually require smaller deposit sizes. This leveraging potential makes property investing attractive to investors, hence there are a large number of Australian’s seeking to build wealth through property.
Over time though, advanced investors often delve into more sophisticated property investing strategies to accelerate their wealth creation. Typically advanced property strategies require larger deposits and provide greater risk/return options for investors. It is common for capital rich investors to seek strategies that earn greater returns (and risk) over time.
Usually advanced investors have the following characteristics:
Financing for these types of strategies usually involve different processes and reduced LVR’s to purchase.
Common advanced investment strategies include:
In other blogs, we discuss the ins and outs of each investment strategy & how to finance it.