Property Investment Advice

The importance of balancing capital appreciation and yield

As a QPIA (Qualified Property Investment Advisor) organisation, the best advice we can give you is to buy investment properties that are cash flow positive.

​

If you do that, you'll never have to support your investment properties with cash injections, and therefore you'll be able to continue buying more investment properties.

​

This doesn't mean that capital appreciation isn't important.

It is, and you should always look to find cash flow-positive properties in areas where you expect there to be good capital gains.

​

That way, your investment will provide you with an income and an increase in value, which means you'll be able to buy more investment properties at a faster rate than if you only bought properties that provided you with an income.

The second piece of advice we'll give you is to always adopt the highest and best use principle with respect to your investment properties.

​

This means that your investment properties are always operating at their maximum productive efficiency.

​

For example, if your property is split into two levels with separate entrances, then, most likely, the immediate highest and best use would be to let it as a dual occupancy property.

​

If there's room for three or more cars and a shared driveway, you may be able to put a granny flat out the back and rent that to another family.

​

Achieving a triple-occupancy by building a granny flat may theoretically be the highest and best use for the property, however, if you can't afford the $100k to build the granny flat, then the current highest and best use of the property is a dual occupancy.

​

The third piece of advice we'll give you is to make yourself familiar with the ABCs of real estate investing.

​

The ABCs of real estate investing covers the framework investors use to research, and buy investment properties.

Critically, the ABCs also shows you how to project cash flows for any property.

Nothing is certain in the world of investing, however the ABCs of real estate investing provides a detailed framework, which will give you the best chance of purchasing a cash flow positive property in a very good suburb if you follow the process.

​

If you would like to find out how to use the ABCs to find a cash flow positive property, you can read our series of property investment articles.

​

If you would like to elevate your property investment knowledge to that of an investment professional, you can take The Pinpoint Process property investment course.

​

If you would like more information on the value of using a buyer's advocate, our services are detailed here.

​

Or maybe you need help managing an existing investment property.

​

Or perhaps you would like a free 30-minute strategy call to put you on the path to investment property wealth.

​

Happy property investing.

​