Planning is about bringing your future into the present so that you can take action now.
So, do you have a plan in place? Because if not, you’re not
ready to buy your next investment property.
You see, creating an investment strategy is the first
essential step when you set out on your property investment journey.
You need to document a proven property investment strategy that aligns with your risk profile, goals, and time frame.
You should develop a substantial retirement income, in other
words, a cash flow for future years.
Your plan is not to beat the short-term averages, but to
build a substantial asset base in the long term, which means steer clear of
"get-rich-quick schemes.”
Winning strategies lend themselves more to the tortoise pace
of slow and steady.
By way of example, two long-term strategies you could
consider for your next investment property are simply "buy and hold” or BRRR -
buy, renovate, rent, refinance, and repeat.
Buy and hold involves leveraging the complementary
mechanics of equity and time, which means you buy an asset and hold onto it long
term to allow your capital gains to give you extra equity for the next
purchase.
Once you’ve built a substantial asset base, you can then
transition into the cash flow stage of your investment journey.
Our BRRR strategy is similar, but one where you have the
opportunity to "manufacture” capital growth through renovations and speed up
the growth of your portfolio.
For example, buying a ‘fixer-upper’ in a desirable location
and then renovating with a view to increasing your property investment’s
capital and rental value.
Of course, your strategic property plan will involve much
more than that. Some of the many parts include:
- An
asset accumulation strategy
- A
manufacturing capital growth strategy
- A
rental growth strategy
- Asset
protection that takes a minimisation strategy
- A
finance strategy including long-term debt reduction
- A
living off your portfolio strategy
It’s vital, then, that once you choose your strategy, you only
look at investment properties that fit into your long-term strategy rather than
getting distracted by the many perceived opportunities in the market.
Having a written Strategic Property Plan means that you
won't worry too much about market timing.
Rather, you will concentrate on buying the best asset you can
afford and staying in the market for the long term.
Because if you have a long-term plan and if you believe that
property will continue to increase in value in the long term, as it has done
historically, then why would it matter what the price of your property is going
to do in the next six weeks or even in the next six months?
RealRenta is a platform designed to
empower property owners like you. RealRenta offers all the essential tools that
a professional property manager utilises, but at a significantly lower cost,
less than a quarter of what you'd typically pay.
With RealRenta, you can efficiently
manage various types of properties, including residential, commercial, share,
and student accommodations. Our platform makes property management accessible
and affordable, costing less than a cup of coffee per week.
We also offer a free version for you
to explore. I encourage you to check it out and see how RealRenta can simplify
your property management needs.
Jason Gwerder
Monday, 13 October 2025
