So many property strategies – which one is the best?
When I first looked into real estate investing, I considered all the different strategies out there, but found they all had their shortcomings:
- New properties have buildings that depreciate most in value and have low land component. Isn’t it the land that appreciates, making new properties lower growth?
- Old properties need too much maintenance and won’t fetch a high rent, what a headache!
- High cash flow properties often come at the cost of growth and to grow your wealth, you need to keep buying and get into more debt (higher risk)
- High growth properties often come at the cost of lower rent return, so you can only service so much property on your limited income
- Property development can help you add huge value to properties but you may need large sums of cash to get a project going, or be extremely creative and work hard to generate a deal.
Well, I was utterly bewildered in trying to choose the best approach to investing, and was pretty disillusioned with almost being duped into buying a house-and-land package in the middle of no-where by a project marketing company.
But instead of giving up, I decided that since I couldn’t find a simple way to buy great investment properties confidently, that’s when I decided to dedicate my life and my career to becoming a property expert myself!