The three-pronged approach to using real estate as an investment

Ben and Andy from Channel 9’s “The Block”

To buy or rent? That is the question.

“Rent money is dead money,” or so they say. But does renting deserve the bad rap that it often gets? In the first section of this three-part article, I will explore a more nuanced and objective appraisal of the age-old debate. Renting isn’t an investment, of course, but an affordable rental can actually be a means of saving up for a property that you can eventually purchase and turn into an investment at a later stage.

Pay careful attention to your financial position

There’s a reason that ‘mortgage’ has its roots in the Latin word ‘mortuus’, meaning ‘dead’. For many people, the idea of failing to pay back a mortgage is a very real feeling. Sometimes — and often through bad luck and no fault of the homeowner — a person who takes on a mortgage is unable to pay back their debt, and they end up losing the house through foreclosure. It could be because they have become ill or injured and can no longer work, or it could be because they were made redundant or fired, or it could even be because they were given a bad loan that they shouldn’t have been given in the first place.

Renovating for a profit: Where to draw the line

If you’ve made the decision to buy your property, you’ll now be able to implement renovations to improve your property. If you’ve decided to rent instead of buy, then this probably won’t be a realistic option.

With television shows like The Block taking Australia by storm, it’s little wonder that there are now countless Australians asking themselves whether they have what it takes to turn that “dump down the road” into a polished jewel. You might be thinking, Hey, if two school teachers with no prior renno experience can flip a house for an extra half a million in just three months, what’s stopping me?

Looking to lease out your property? A quick guide to avoiding empty houses

Ideally, no property investor wants empty houses. For many investors, receiving rent from tenants is an excellent way to supplement income or offset a mortgage payment. Now that you’ve renovated your house to your liking, I’ll cover several important points that need to be considered when leasing out a property.

First impressions