In this two part series we look at some of the fundamental steps to successful property investment, from creating a realistic long-term strategy and choosing the right locations to the importance of getting professional assistance when you need it.
1. Property Investment For The Long Term
One of the most important aspects of having property investments is creating and following a sensible long-term strategy. Property experts suggest that creating an investment plan that spans, 10, 15 and 20 years is the best way to ensure you are maximising your assets as well as protecting yourself against any short term fluctuations in the market. We all know that property values can go up and down depending on economic factors and trends, however it has been shown that residential property outperforms other investments such as Australian shares over a 10 to 20 year period.
2. Reviewing Your Property Investment Options
So many people know they want to get into the property market as an investor, but are not sure where to start – for example, what type of property should they look for, where are the best locations to search in, what kind of price bracket should they be looking in. Even decisions such as how many bedrooms they should be considering can be daunting when you’re purchasing property investment for the first time. The best idea is to look at all of your options from the point of view of maximising your potential returns – both short and long term – but you can also talk to property investment experts who can help your define your goals and find the right options for you.
3. Choosing The Best Time To Invest In Property
You might have noticed that this point is not about the “right” time to invest, but rather the “best” time. This is an important distinction because first time investors often want to know if now is the ideal time to buy or should they wait for better conditions later on. Property investment experts know that there is no “ideal” time to buy; rather investors should make sure it is the best time for them personally, regardless of external market conditions. This means that they have their finances in order and have created a long-term investment strategy, and that they are ready to move on any opportunities that may arise.
4. Brand New And Off The Plan Versus Older Properties
This is one of the biggest decisions that property investors have to make. The sheer quality of the architecturally-designed residential apartments – both off the plan and brand new – coming on to the market makes them highly appealing to investors and to tenants alike. Combine this with the generous stamp or transfer duties on off the plan properties, low initial deposits and low ongoing maintenance costs and it is clear why more and more people are opting for this option. It is also true that the properties being developed now tend to be in desirable areas that tenants are attracted to – in inner city locations, close to transport and entertainment – rather than older properties that may be located in suburbs further away.
5. Targeting A Certain Type Of Tenant
This point leads on from the last. Smart investors always understand the type of tenant they want to attract, and they understand the type of property that will attract them. Part of having a successful property investment is the ability to always find and retain tenants – you don’t want to find that your property sits empty for months while you lose rental income. As an example, brand new architect-designed properties near major city centres tend to attract a young professional demographic who will pay a premium for certain amenities and features such as gyms and concierges.