Popular Property Wealth Creation Strategies in Australia
TENX Wealth Australia has a team of investment advisors who can help you explore popular investment property strategies.
Frequently Asked Questions
Many successful property investors in Australia were once beginners, and most of them learned hard lessons in investments.
If you are a beginner in the market and you want to reduce the risk of losing your money or even your property, you may follow these baby steps:
- Assess your current financial stage
- Select an investment strategy that is suitable to your circumstances and goals
- Choose a target market
- Establish your investment property criteria
- Build your investment team
- Secure financing
- Raise money for down payments and backup fund
- Develop a plan to find investment deals
- Allocate enough time to manage your investment
There are many real estate investment strategies that you can use to build your wealth in Australia, such as:
- Cash Flow Positive Strategy
- Negative Gearing Strategy
- Dual Occupancy Strategy
- Property Syndication Strategy
- SMSF Property Strategy
Each strategy has its own pros and cons, and the best strategy is the one that is most suitable to your personal circumstances and investment targets.
There are different ways to buy an investment property with zero down payment, some of these are such as:
- Apply for seller financing
- Assume another mortgage
- Apply for a cash loan
- Join a property syndication
- Leverage other properties
These unconventional strategies involve complexities and requirements so you should carefully assess each option
The typical down payment for an investment property is 20%. If you want to purchase a $200,000 rental unit, you need to make an initial payment of $40,000 and apply the balance through a mortgage loan.
You may look for mortgage investment deals that require a lower down payment, but you may have to pay Lenders Mortgage Insurance (LMI).
Aside from the down payment, you also need to consider closing costs such as appraisals, tax certificates, recording fees, origination fees, interest, zoning fees, and more.