Looking outside the box

While the market is currently rebounding strongly, housing and tax policy changes mean the environment has become much harder for residential investors.

Veteran property investor Jeff Brill says this all means that investors who have the goal of living off the cash-flow from their portfolio need to look outside the box and search for high yielding properties.

Anyone can make money and grow a residential portfolio in a growing market, but when the wave is going in the opposite direction then investors need to look more broadly in their real estate selection, he says.

“For example if someone had only $400,000 to spend, they would be restricted to small towns and, if they are lucky, a do-up in a bad area that every investor out there will be salivating on.”