First off, they are not worried about property cycles. They change their strategy according to the cycle. In fact, Boom-cycles are when they go on holiday!
Importantly, they combine the following strategies:
- They buy under market value.
They never pay retail price for properties. They ensure there is a safety buffer of at least 20% (instant equity) in case prices fall.
- They look for positive cash flow.
They don’t get bogged down in negative gearing debates. In fact, the majority of investors who negatively gear property in Australia earn less than $80k.
- They buy and sell at the right time.
Yes, you can time the market with the right technology. Contact us to find out the best technology to use.
- They add value.
The 2016 BRW Rich Listers are overwhelmingly property developers. The youngest and new entrants are worth in the $100s of millions. They buy a development site and add tremendous value. And they spend less of their own time than most renovators would.
- They use experts.
They use other people’s expertise and contacts to make it happen.