Property Investment Strategy

Strategy Before Property

Investing in Property, Not Just Buying Property.

Anyone can buy a property. At properT network, we help investors make strategic Investment Property decisions based on their objectives, circumstances and long-term goals.

PurposeStrategyPropertyPerformancePortfolioRetirement
The Difference

Buying Property Is Not the Same as Investing in Property.

Buying a property is a transaction.

Investing in property is a strategy.

A property can look attractive because it has a strong rental yield, appears inexpensive, is in a popular suburb or has an appealing capital growth forecast.

But that does not automatically make it the right investment for a particular investor.

“We don’t start with a property and try to make it fit the client.”

We start with the investor — understanding what you want to achieve and what role property needs to play in your broader strategy.

Think Beyond Property #1

Property #1 Should Help You Think About Property #2.

Property investment should not necessarily be viewed as a series of isolated purchases.

When considering Property #1, it is worth understanding how its cash flow, equity potential and overall financial characteristics may affect your ability to consider Property #2.

Starting PointProperty #1
Financial CapacityCash Flow + Equity
Next OpportunityProperty #2

There are no guarantees that a property will increase in value, improve cash flow or enable another purchase. Lending policies, interest rates, income, debt levels and individual circumstances all matter. The principle is simply to consider today’s purchase in the context of tomorrow’s strategy.

Cash Flow Matters

Yield Should Serve the Strategy.

Capital growth gets a lot of attention in property investment. But cash flow can be equally important, particularly for investors looking to build a portfolio.

Borrowing capacity is influenced by more than the value of the property. Income, existing debt, living expenses, interest rates and lender assessment of rental income can all affect an investor’s capacity.

Not

“What is the highest yield I can get?”

But

“What level of yield and cash flow does my strategy require?”

01

Rental Income

Understand the property’s rental income and how it may contribute to the overall investment strategy.

02

Cash Flow

Consider holding costs and the property’s potential impact on your broader financial position.

03

Borrowing Capacity

Understand how the investment may interact with income, debt and future lending capacity.

Investment Grade Property

What Makes a Property Worth Considering?

Once the strategy is established, the property can be assessed against the fundamentals that matter.

Location

Employment, infrastructure, transport and amenity.

Supply

Current and future property supply.

Demand

Population, housing and rental demand.

Rental Market

Depth and sustainability of rental demand.

Cash Flow

Income and ongoing holding costs.

Capital Growth

Underlying economic and demographic drivers.

Property Quality

Construction, configuration and functionality.

Price

Value relative to comparable opportunities.

Resale Appeal

Potential future buyer demand.

Portfolio Fit

How the property fits the broader strategy.

NO.

Can be a successful investment decision.

A Different Approach

Not Every Property Should Be Purchased.

Sometimes a property looks attractive but does not fit the strategy.

Sometimes the yield is not sufficient. Sometimes the capital growth fundamentals are not compelling. Sometimes the property may compromise future borrowing capacity.

And sometimes there is simply a better opportunity elsewhere.

The objective isn’t to buy property. The objective is to invest successfully in property.

Our Approach

Strategy Before Property. Property Before Purchase.

We put the property in its proper place in the investment decision-making process.

01

Understand

Your objectives, circumstances and goals.

02

Strategise

Determine what role property should play.

03

Research

Identify suitable markets, locations and property types.

04

Shortlist

Identify properties that potentially fit the strategy.

05

Assess

Evaluate numbers, risks, fundamentals and portfolio fit.

06

Due Diligence

Test the assumptions before committing.

07

Acquire

Purchase when the strategy and property align.

08

Review

Continue assessing the portfolio as circumstances change.

Ready to Invest?

Don’t Start With the Property. Start With the Strategy.

Before you start looking at properties, let’s first understand what you are trying to achieve. At properT network, we take the time to understand your objectives, circumstances, budget, existing portfolio and long-term goals before identifying Investment Property that may fit your strategy.

Book a Strategy Discussion