Generally speaking, there are two types of investors: passive investors and active investors.
Passive investors have a lower risk profile. Their strategy is to build an investment portfolio that grows over time, utilsing the benefit of capital growth, which enables them to consolidate and clear their debts at the end of at 15-year period.
Active investors, on the other hand, usually have a higher risk profile.
They are looking to manufacture growth prior to growth occurring in the marketplace they’ve invested in. They also speculate on short-term high return outcomes.
Neither type of investor is ‘better’ – the right strategy (and investment and risk profile!) for you will always be the one that suits your goals and financial circumstances.
But you need to ensure your goals are specific, measurable, achievable and realistic.
If you are looking for ways to be a little more active in your investment style, a good place to start is by looking for properties with a twist.
Some potentially low cost options for properties with a twist could be purchasing a duplex pair and strata titling.
Or looking for properties with a bad configuration – i.e. a two or three bedroom property with a large living space – you could then reconfigure to add an extra bedroom or bathroom.
Another popular and great wealth-building option is to look for a block of land with a house, with zoning to allow you to split the block and sell off the land. Or to add another dwelling on the new title you’ve just created.
Susan, a We Find Houses client in Western Australia did just this.
Susan was looking to become a bit more proactive with her investments and wanted to purchase an investment property with a twist.
We were able to help find Susan a house on a block of land with two titles. The only problem was the house was built over the middle boundary between the titles.
With our help, Susan got a variation of title and moved the boundary line so the house was no longer over the top of it.
There was still plenty of space on the newly defined block, which Susan then built a duplex pair on and sold off.
Susan is now reaping the benefits of going the extra distance to really find a property with a twist.
Her wealth has improved significantly and she is also empowered to continue being proactive with her investing to find those properties with a twist.
If you’d like to become more proactive with your investing, book in for your strategy session. We Find Houses can help define your strategy and show you ways to get the most out of your situation.
Call 1800 600 890 or email firstname.lastname@example.org to get started.