All too often we see people so excited about buying or building their first home, they forget about the big picture. Even if you only plan on owning the home you are living in (and are not considering owning an investment property) a Property Strategy is an important tool that you should develop.
A Property Strategy helps you to build an approach that outlines your current and future plans. It can include information on how long you envisage living in your current home and how you will create capacity in your property for an expanding family. Your strategy may also consider factors of your retirement or future travel plans.
If you are looking at building an investment portfolio a Property Strategy will assist you in planning what type of properties to purchase, provide best value for money, and minimise costs. It will also assist you in ascertaining when to rationalise and release capital which may then be reinvested in the portfolio.
Your Property Strategy should outline your goals for:
Buying property – identifying what properties meet your current and future needs so that the right purchase decisions are made at the right time
Investing in property – capturing the benefits of investment property
Releasing property – making informed choices about when and why to dispose of property
It should also include information about the makeup of your family and your lifestyle (now and your plans for the future). And it’s important to remember for something to be classified as a property it must have value, but this may not only be a dollar value. The property may be valuable for sentimental reasons or for the lifestyle it enables the family to have. All of these factors should be considered as part of your strategy.
So think about how your home and/or investment properties meet your current and future needs. Your strategy should include where you want to be, and how you want your property portfolio to look in the next one, three and five years. You can also have some longer term goals, but ideally your strategy should be reviewed and updated at least every five years.
In any situation a strategy will assist you with sourcing the right property at the right time, for the right price.
So whether you’re looking to have one property or ten, a Property Strategy will ensure you are forward looking, and continually assessing how property can meet your existing and future needs for building your wealth through property.
Look out for our next three blogs, which will give you some ideas on what to consider if your strategy includes any of these three goals:
Goal 1: Buying or building to live in the home for five years or more
Goal 2: Buying or building to sell in the next two to five years
Goal 3: Buying or building to keep as an investment and purchase another property in two to five years