Investor Makes $10,000 dollars Equity per Day on Project

Andrew Butterworth, a Melbourne-based stockbroker, is used to riding the boom and bust of share cycles. This experience has informed his property investment strategy, after he discovered that property has its own investment cycle.
 
Property Portfolio
 
“Thirty years experience in investments has shown me the benefit of a balanced portfolio,” he says. “My properties are spread across two cities, and across three parts of each city - inner city, middle ring and outer suburbs. I also have different types of property - two-bedroom houses, two-bedroom flats and three-bedroom houses.”
 
With a total of eight properties, he’s also been able to benefit from using a spread of finance options. “I have both fixed & floating rate mortgages, fully drawn loans and lines of credit, always with the eye to diversify risk.”
 
Risk Reduction
 
Managing risk is a key part of Andrew’s strategy, and he warns that property investors must be prepared for all kinds of problems. “Pest and building inspections are a good idea. We once had to replace a wooden floor because of termite damage.  And fire insurance and landlord’s protection insurance is a must - you never want to lose your hard won assets to a sudden catastrophe.”
 
Another way that Andrew reduces risk is to buy properties in areas with high rental demand. “Where possible we like to be near to public transport and other facilities renters might want, including places of possible employment, such as hospitals, universities, etc.  We look for ‘good bones’ in a house.  The layout should be simple and straightforward, with reasonably sized rooms. Basically the house you want to buy, renovate and find a tenant for should be located somewhere that you would want to rent if you had to.”
 
Added Value
 
After Andrew has chosen good housing stock and protected his property, his strategy is to add value with cosmetic renovations, such as a new kitchen, a coat of fresh paint and general repairs. His second property, a 1970s “rough diamond”, increased in value by $92,000 after just four weeks work, providing equity that could be used to buy more properties and build up his portfolio.

To read more of Andrew's strategy, including how he created $10,000 equity per day, and find out his 5 Top Tips for keeping your renovation projects on track and profitable, Click Here.

If you’d like to find out how to turbo charge your own property portfolio, join the Reno Kings, Geoff Doidge and Paul Eslick, as well as Justin Eslick from Investigate Property on a Site Inspection on Sunday 17^th April, 2011.  Here, you'll hear from a young man who made $250k of equity gain out of a property nobody else wanted to buy.  Places are limited.  Book Now.