Luke Thurrowgood | The Many Real Estate Investment Methods

 

The Many Real Estate Investment Methods

Luke Thurrowgood asserts that real estate investing may be a very profitable long-term endeavor. Several variables, including the status of the real estate market, the investment's location, the type of property, and the timing of the transaction, can have an impact on one's ability to generate a respectable return on investment.

To achieve your investing objectives, whether you want to achieve financial independence or educate your children for the future, you must have a solid property investment strategy in place. In this guide to property investment strategies, we'll highlight some of the most crucial factors that any property investor should consider before creating their property portfolio strategy.

Buy, Renovate, and Hold

Luke Thurrowgood said Real estate owned by an investor may also undergo modifications to increase the property's rentability and/or market value. This is a well-liked investment strategy for investors who want to boost the returns from their property without having to wait for market development. An investor will purchase a house, refurbish it later, and then rent it out at market rates.

To add a second source of income, they can instead build a granny apartment on the same property parcel. In either case, the investor would use the rental income to cover their mortgage and other expenses.

Acquisition, Division, and Marketing

Luke Thurrowgood Claims Investors may choose to carry out a subdivision if they don't want to rely on value growth. The investor would buy a sizable piece of land and partition it into one or more properties with separate titles.

This is regarded as a more advanced real estate investing strategy due to the different regulations and specific industry expertise. Moreover, zoning restrictions and planning regulations vary among councils, states, and territories. This is why investors who are subdividing must be aware of the local laws and regulations before they purchase the property. But if done right, this strategy can be quite successful.

What is a Real Estate Investment Strategy?

Your investment strategy is your long-term road map for achieving your real estate investment goals, according to Luke Thurrowgood. The best time to think about this is before you purchase residences, but you can adjust your plan as you go with your investments. Keeping an eye on market trends might also help you stay informed.

Which Real Estate Investment Strategy Is Best?

Luke Thurrowgood Claims There isn't a single real estate investing strategy that is better than another. The strategy that will work best for you is the one that is most in line with your goals, financial situation, personal situation, and level of risk tolerance.

For instance, if you want a strategy that is akin to a set-and-forget one, you might choose to buy and hold. One of the disadvantages of this technique is the fact that the local market and the quality of your renters both play a considerable effect in how successful it is. This implies that if rents in your neighborhood increase, your returns—which are mostly out of your control—will fall.

Should You Make a Real Estate Investment Now?

Others contend that because property values often increase over the long term, yesterday was the best day to invest in real estate.

Luke Thurrowgood said As a result, it makes more sense to ask yourself if now is a good moment for you to buy a home rather than to think about investing in real estate. A big part of being ready is being able to afford your new investment in the long run and still have money left over for all of your other obligations.

When you have everything planned out and are ready to commit both financially and emotionally, that is the time to buy a house.

What Type of Real Estate Is Most Profitable?

Luke Thurrowgood says Because it will depend on your circumstances and the position of the market at the time of purchase, there is no simple answer to this question. To choose which form of investment property will be the most beneficial for you, you must weigh the advantages and disadvantages of each in the context of your specific situation.

Residential real estate units frequently have a lower potential for capital growth than single-family homes. Buying an attached property may often mean paying extra costs like body corporate or strata fees. But, investing in real estate has drawbacks as well, including higher entry costs, lower earnings, and higher maintenance costs.