If you are looking to optimise the value of your money, investing is one of the most profitable and rewarding ventures that you can undertake.

Many Australians have taken the investment path on real estate- one of the most popular ways to create wealth provided it is properly planned and managed.

Surprisingly, there’s no secret to having a bankable property investing venture, especially when it succeeds with the right strategies coupled with a comprehensive property plan to guide you in your investments.

Determine your strategy design

Start with the basics by having a plan that follows a proven, known, and trusted strategy that has succeeded in a similar campaign because it can serve as a good guide to chart your direction and clarity towards your investment considerations.

The next step is to develop your asset base by taking advantage of capital growth than building a substantial asset to get your cash flow moving.

Follow this by lowering the loan to value (LVR) ratio of the property portfolio, which would let you earn revenues from the earnings of the real estate asset.

However, always remember that investors must be cautious in avoiding the mistake of running after cash flow positive properties and not being able to get a large asset base. Cash flow management is important, but you should not disregard that capital growth is essential to an investment.

The top-down strategy method

The top-down approach is one of the most effective strategies in property investing when choosing investment options, such as investment-grade properties that increases your portfolio by an average of 5 per cent and are often a sure-fire way of providing substantial investment returns.

Understand the economic cycle and venture at the right time 

This is the strategy where you start looking at your investment property options and seriously consider buying when you observe a balance between the appropriate property stage and the economic cycle.

Assess whether how the economy is performing and what stage of the property cycle the market is in when you start looking at the big picture of your investment options.

You must be aware of the different stages of various locations you are targeting and know which ones are going through its property cycle then monitor for developments.

Identify your location options

When possible, consider investing in large capital districts or cities with strong pillars of the economy since this is a major growth indicator and provide higher wage rates per capita. However, you need to be careful since you don’t have to time the cycle because you may not want to invest when economic activity is at its peak and you’re made to wait longer for capital growth in that area.

Consider the suburbs

You can explore options in the suburban areas of those capital cities which have a long history of capital growth beyond the average forecasts.

For instance, consider looking into suburbs with 50% to 100% capital growth achieved in over 10 years compared to other suburbs.

Another way is to establish the demographic profiles since suburbs are more likely populated by owner-occupiers who choose a location that is more relevant to their lifestyle preferences. They can afford higher premiums for products and services relative to their disposable incomes.

Narrowing down your best locations

Identify the best locations by considering the more livable streets in terms of property valuation and overall investment performance among its residents and occupiers.

This will help you evaluate all your available option so you can get down to the best property that you can bank on.

Search for properties that appeal to owner-occupiers, but take note that it must be lower of their intrinsic value that provides a better land-to-asset ratio. 

Look for unique or special properties that can increase capital growth through potential redevelopment, refurbishing, or renovations instead of waiting any longer for an existing property to provide capital growth.

Negotiating for the best price

Looking for the right price doesn’t mean it has to be the cheapest one available, instead, look for a property that matches its value and allow you to negotiate for a better price.

While a great discounted price in a well-off location can be a great bargain, it can sound alarm bells such as ownership issues or legal concerns that made the owners decide to sell the property take their hands off the problems.

Regardless, it is important to ensure due diligence when doing so to avoid costly and long-term repercussions.

When everything is in place, it is crucial to review and explore your investment goals and how to manage your revenue streams. Equip yourself with the knowledge and skills to effectively manage and achieve your investment goals. 

The sooner you get started, the faster you get to achieving your targets and be rewarded for your hard work.