PROP062 Property Flipping vs. Long-Term Investment (675 words)

There’s more than one way to invest in property. Are your financial goals more suited to being a long-term landlord or a short-term property flipper? Read this guide to the advantages and challenges of each strategy, before consulting your financial adviser for more detailed advice.

Australians have long been in love with the idea of owning residential property. Traditionally regarded as simply providing a secure home, two further views have gained ground in recent years: property as a long-term investment in passive income, and property flipping as a short-term path to rapid capital gains. Both approaches have merit as well as drawbacks.

Long-term property investment: slow and sure, with a bit of help from the tax man . . .