The Portfolio Approach: Part 2

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The Portfolio Approach

Ironfish’s powerful investing system helps people systematically build a multi-city property portfolio over time.

  • A geographically diverse portfolio of different property types helps investors take advantage of different property market cycles.
  • No one suburb, city or state is always the best place to invest.
  • Each property type, such as houses, apartments and townhouses, has its own unique advantages and disadvantages.
  • Most investors realise this, however, they lack the time, knowledge and expertise to create a truly diverse portfolio. This is why Ironfish developed the Portfolio Approach strategy.

portfolio-approach

Buy into capital city property cycles at the right time

Smart investors understand economic conditions differ from city to city, resulting in up and down cycles of activity. Even though over the mid to long-term property is a consistent performer, it makes sense to take advantage of buying into the right city at the right time.

Do you know which cities are now entering potentially strong growth cycles?

Stay under each state’s Land Tax-free threshold

Each of Australia’s states and territories has different rules for how tax is levied on the unimproved land value of investment properties. With all your investment properties in one state, you may exceed that state’s land tax threshold, and incur a sizable tax bill.

Knowing your tax-free threshold means you can reduce your land tax burden by buying properties in different cities. A diversified portfolio has clear taxation advantages.

Land Tax free thresholds – State by State
QLD NSW VIC SA WA
$600,000 $482,000 $250,000 $323,000 $300,000