• Why property is a good investment
• Property - Do your homework!
• Manage your property debt
• Case Study – The Business of Property Investment

• Home
• about SMTM
  • Save Money
  • Make Money
  • Protect Money
• Online Mag
  • Spring 2008
  • Contributors
  • Autum 2008
  • Winter 2008
• Store
• Media
• Advertisers
• Contact us
  • Raising a Business Login

Case Study – The Business of Property Investment

What is the difference between running a business and property investing? Nothing! Property investing is a business – and mums can make millions through it.

Imagine you’re home with the kids, and you have a few hours while they’re either sleeping, playing, or perhaps at school. Grab yourself a cup of coffee and get in a nice comfortable position at the computer. Now, all you need to do to start working on your business, is to start surfing the net looking for property to invest in! The beauty of property investing is that you can do it part time or full time, whatever suits you and your family. How perfect is that? No staff, no office, no schedule!

Mother with 14 Properties

Take Carolyn Wright as an example. She is an experienced property manager, investor and mother. She is in the property investing business part-time, and by keeping an eye constantly on the market, Carolyn has purchased 14 lucrative properties, which have helped her set up a financially secure future for her family.

Carolyn began her property journey in 1994 by purchasing a two bedroom unit in Melbourne for $69,000, which doubled in value very quickly and was sold in 1998 for $135,000. Had Carolyn not sold, the property would now be worth at least $300,000. This valuable lesson inspired Carolyn to learn more about the buy and hold strategy, which suits her lifestyle, and she now abides by the rule “Never Sell”. Carolyn looks at properties that she can “balance” in her portfolio. On the one hand, when assessing potential investments, Carolyn looks for properties that are in good areas and close to city, beaches and amenities. “I look in areas that offer high capital growth and lower yields,” She says. On the other hand, Carolyn also looks at properties in good regional areas that have a strong and growing population and infrastructure. “These areas may not have experienced as much growth, but the yields have been great.” This balanced approach also gives Carolyn diversification in terms of property styles and geographic locations.

Renovating to add value

Renovating enables you to add value to a property which can help to leverage you into further property investment purchases. Carolyn also enjoys “dabbling” in renovations by spending between 5-8% of the property’s purchase price, which usually includes painting, re-carpeting or polishing floorboards, as well as new or revamped kitchens or bathrooms, all of which she does herself. However, Carolyn understands that when it comes to specialist work, such as cabinet making, plumbing and electrical work, it’s best to call in the experts. When renovating, Carolyn uses her experience as a property manager and a business woman to understand her target market for the end product. “I believe that women make the decisions about the choice of rental property,” she suggests. “I think that most women like a nice kitchen and bathroom, so this is my area of focus. I renovate with ‘renters’ in mind. It’s best to stick with neutral colours as this usually appeals to the wider market. Forget the bright colours! Stick to low-maintenance gardens as well.”

Research and Networking

Carolyn says that research, and net-working have been invaluable tools in her property journey. “There is no right or wrong way to make money in property. You need to find the way that best suits your own situation. I would highly recommend it to any women who are keen to be Property Women and don’t know where to start, or to those who are already investing and are looking to build a support network.”

Carolyn’s Top Tips

• Don’t take “no” for an answer, and don’t listen to other people’s negativity.
• Read lots of books about investment and talk to lots of people.
• Ask questions, go to seminars, and educate yourself.
• Play it safe for your first investment to get your confidence up. Once you’ve done it once, the next time will be easier.
• Investing in property has given me “peace of mind” that the future is financially secure for my family

Property Women provides information, education, inspiration and networking specifically for women by women. To find out more, visit their website at www.propertywomen.com.au or call Judith Taylor on 1300 550 656.

about SMTM | the book | media | store | free stuff | contact us