| Property investors all have different goals with | | | | and the benefit of this could be that they will |
| their investing and many different influences | | | | have more money quicker, to purchase again if |
| affect their goals for investment property returns. | | | | the market is moving up |
| Some investors buy a property and expect the | | | | - they want to live in the property themselves in |
| rent payments to purchase it for them over the | | | | a few years time and want to buy at the lower |
| years, but other investors look at investing in a | | | | price |
| property in a prime location which will put them | | | | - they want to use the negative cash flow as a |
| into a negative gearing situation, but they are | | | | tax deduction against a high personal income |
| concentrating more on the capital return they will | | | | - they could own some positively geared |
| get from owning a property in a prime position. | | | | properties and can use the positive cash flow to |
| The market has constantly moving criteria and | | | | subsidise a more valuable property |
| your view of the market at any one time also | | | | You can see how the two different investors |
| affects where you might buy a property and at | | | | would be looking for different investment |
| what price. | | | | property returns from the different style of |
| Take the example of an investor buying a | | | | investing they are doing and also that the two |
| property and using the rent to pay off the | | | | different price structures could require different |
| property. This property will be getting some | | | | purchasing strategies. |
| principal paid off with the mortgage repayments | | | | Over the years an investor's view to property |
| and in due course there will be an equity value in | | | | investing will most likely change due to the |
| the property that the owner can use to purchase | | | | circumstances at the time and that is why |
| another property. This method of build a property | | | | property business plans are so important because |
| portfolio is a slower way of doing it but it could | | | | tabs will be kept on your changing personal |
| well suit an investor whose personal | | | | circumstances, on the changes with your |
| circumstances, knowledge in the market place, | | | | property and adjustments can be made after due |
| financial commitments and so on require this | | | | consideration if you so wish. |
| slower strategy. At a later date their situation | | | | Some investors I know keep on buying in a |
| may well change and then their property | | | | certain price bracket and have accumulated 50+ |
| investment business plan will probably change too. | | | | properties at the lower end of the market, |
| In this second situation the investor buys a prime | | | | whereas others I know have started at that level |
| position property and there could be several | | | | and over time have increased the value of each |
| reasons why they may do this. Here are some of | | | | property they have purchased and are now |
| those reasons that may cause the investor to | | | | buying properties in the $900,000 to $1.2M mark. |
| purchase a more expensive property: | | | | Each investor has their own property investment |
| - they have the funds or equity available to use | | | | strategies and plans when building their property |
| on a more expensive property | | | | portfolio and so they should to get the best out |
| - they understand that prime position property | | | | of their property investing. |
| prices rise quicker than average house prices do | | | | |