Property investing strategies, topics and specialties

Things you should know before investing in property

This section contains resources and strategies for successful property investing. It’s up to you to choose which strategy suits you, they all have their pros and cons.
In a 2010 article Wealth Magazine (no longer available) “Scam Alert”, highly regarded property investment adviser, Margaret Lomas, warned about unsubstantiated claims concerning:

  • Wraps
  • Renovating
  • Buying overseas
  • Investment Clubs
  • Contracts with a ‘rebate’More than one company
  • Cash flow mortgages

These forums and sites might help you understand the industry and choose your strategy:

  • InvestChat (now part of PropertyChat) is a forum where you can chat with and ask questions of investors and expert members.
  • PropertyChat (replacing Somersoft Property Investors Forums) where you can ask investing questions and investors share their experiences, tips and resources.
  • Investopedia (USA) – definitions etc

Here’s our top pick of property investment topics and strategies

How to get started in property investing | Property Investing Courses

How to spot a property investing scam Finder They say: “Not all property seminars are scams, but these 7 tips will help you separate the experts from the charlatans.7 signs of a property scam
1. Have they got an offer for you!
2. The long sales spiel
3. Build your way to wealth
4. Up-and-coming investment suburbs
5. All under control
6. All managed for you
7. Clever mortgage structure
Avoiding the property investing scams
Organisations or associations whom you can contact for advice”

Property Investment Courses I Are they Worth the Investment? PropertyChat Forum Thread

Switzer Home Loans FREE eBooks on property investing:

Property Investing Groups, Forums and Tools
Many property investing community groups, forums and others share their tips and tools, such as spreadsheets on keeping track of your investment portfolio and more. Some of these sites include:

Property Myths | Property doubles in value every 7-10 yrs, Negative Gearing
Far from the madding property crowd Margaret Lomas on false media analysis, forecasting and reporting on booms, busts and more.

Property Doubles Every 7 to 10 years

How long does it take for your property to double in value? By Nila Sweeney – interviews Cameron Kusher, Margaret Lomas, Michael Yardney

Negative gearing is really just a socially acceptable way of saying ‘I’m losing money’. So why do some push the concept so hard? by Scott Pape

Affordability/Housing affordability
Buy and Hold
Invest smart and don’t buy into buyer frenzy by Margaret Lomas – Switzer Home Loans

Buy and hold Steve McKnight

Capital Growth (vs Yield)
Creative Finance
Buying ‘wholesale’ or at a discount (e.g. foreclosures/distressed properties/mortgagee sales)

Cash backs and Rebates

Cash flow mortgages

‘No money down’

Option contracts

Instalment contracts/Rent to buy/’ Wraps’ (a.k.a. Vendor Finance/Instalment Sales Contracts)

Vendor finance – An introduction to vendor finance for real estate in Australia by Cordato Partners (lawyers)

Cons:

“We Buy Houses” claims from rent to buy promoters prompts fine” by Jennifer Duke – Property Observer

Property spruikers under investigation by state governments amid rent-to-buy and vendor finance deal concerns

Finance, Loans, Mortgages, Mortgage Brokers
Gearing
Negative gearing:

The politics of it –

Negative gearing – friend or foe? by Steve McKnight

Positive gearing

Positive cash flow

Niche properties
Apartments (serviced or not)

Commercial property Beginner’s guide to investing in commercial property; Buying commercial in confidence

Defence Housing (DHA)

Holiday homes: The lure of a holiday home

House and land packages

National Rental Affordability Scheme (NRAS) What is NRAS?

Overseas properties

Retirement properties

Student accommodation Student Housing Australia

Timeshare

Rent vs Buy
Structuring how you own a property
  • Companies

Cons: More than one company

  • Joint ventures (JVs) (see below Tenants in Common)
  • Property syndicates (see below Tenants in Common)
  • Property trusts/Listed property
  • Self-Managed Superannuation Funds (SMSF)

SMSFs and Property MoneySmart (ASIC)

The rules of SMSF property investing by Switzer Daily

5 big investment ideas for your SMSF in the year ahead by Switzer Daily

Buying property through self-managed super funds has its pitfalls by Kate Jones “SMSFs are being targeted by sophisticated fraudsters who go to great lengths to deceive, including sending information packs to victims and setting up fake websites to appear legit. In a speech at the Self-Managed Superannuation Professionals’ Association of Australia last year, Australian Crime Commission executive director David Lacey said up to 10 victims a week in Australia were losing savings from $35,000 to $4 million.”

Buying Property With A Self-Managed Super Fund (SMSF) by Real Estate Investar

  • Trusts
Tenants in Common

spending your money

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Disclaimer: The information and comments in this site are general in nature, opinion only and don’t take your personal financial circumstances into account. Our aim is purely to educate you and show you people and organisations in the finance and investing industries you may, or may not, choose to contact for personal financial advice. Any claims or comments of others are strictly those of the cited individual and not endorsed by Andrea or Best investment Gurus. Before you take any financial or investing action or buy any service or product - get your own independent financial advice, tailored to your specific needs.

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