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Opportunities Abound – 5 Tips for Getting Started in Property Investment

by Marquette Turner Luxury Homes

in DIY, Investing in Property, Renovation, Resources, Variety

If you’re trying to build a nest egg, property investment is considered one of the most effective and safest long-term methods of doing so. Whether you’re thinking of investing in commercial real estate or fixing up a residential property to flip in the short-term, it’s essential to be well-informed and prepared before making any decisions – successful property management takes a lot of planning, financial acumen, and a willingness to put in the hard yards. If you’ve been thinking of investing in property for some time, read on for five useful tips to help you get started:

Location, Location, Location

There’s a reason that “location, location, location” is a ubiquitous mantra among real estate agents and property managers – a property’s situation is one of the most crucial factors in determining how successful an investment may be in the future. To make the right investment choice, ensure to do plenty of research into the areas you’re concentrating on. Research factors such as capital growth, rental yield data, and demographics. Get second opinions from industry professionals before coming to a decision.

Renovation

Photo by Milivoj Kuhar on Unsplash

Organize Your Finances

The very first thing you should do before even considering entering the property market is to organize your finances. Do a thorough audit of your financial situation and determine the price range you should be looking in when you start to browse real estate websites for property. A good way of doing this is by meeting with a mortgage broker and getting a pre-approval of your investment so that you know how much you’re able to borrow before beginning your search. A pre-approval will also assist you when you find a property by speeding up the loan application process.

Account for Ongoing Costs

The expenses associated with investment properties are very different from owning private real estate, so remember to be vigilant when considering your financial situation. As well as loan repayments, you’ll also need to factor in costs for maintenance and repair, property management, council rates, insurance, interest, tax, accountants, strata fees – and the list goes on! Rather than being caught unawares in future by realizing that you haven’t allocated enough money for these ongoing fees, take the time to figure out if property investment is something you can afford. You’ll save yourself a headache later.

Stay Rational

When purchasing a home for you and your family, your decision will undoubtedly be swayed by your personal preferences and emotions. It’s easy to fall in love with the quaint, rickety staircase and art deco ceiling roses when you envision yourself living there. However, keep in mind that when hunting for an investment property, you should be looking for real estate that’ll appeal to a broad demographic cross-section, not just yourself. Remain as objective as possible when considering a property’s value and ensure all your decisions are strategic rather than emotional.

Consider DIY

Some things, like plumbing and electricity, should be left to the professionals. However, getting tradespeople to renovate your entire property can quickly become an enormous expense. You can save serious dollars on your investment budget by getting the overalls on and spending a few weekends working on your property yourself. Some areas you can focus on include painting, gardening, replacing fixtures and handles, hanging new blinds and curtains, and removing or installing flooring depending on how confident you are.

Investing in property is a big decision, but one that has the potential for significant returns in future. Before jumping the gun, make sure to do plenty of research and preparation to ensure your investment endeavours go as smoothly as possible.

 

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