When you’re browsing the internet you can’t help but notice that people who are interested in real estate and investment property tend to ask the same questions. Of course the topics vary depending on whether the investors are first timers or experienced investors with property portfolios, however the themes are very similar – from timing or purchases and types of property to invest in to other issues such as the best locations. In this two part series we’re going to look at 8 of the most common questions that property investors are asking at the moment.
1. Should I Buy An Investment Property Now?
This is probably the most common question among people looking either to plunge into the property market for the first time or to buy additional properties. Professional property investors – those who actually make a real living from property – don’t have to ask the question, as they already know that any time is the right time to buy into the market, as long as you are taking a long-term approach (at least over a 10 to15 year period), are financially capable of servicing the loan and the ongoing maintenance costs. Waiting for the “right” time to enter the market might mean you end up missing amazing opportunities.
2. What Are The Best Areas To Buy An Investment Property?
This question is a little like the last in that no area or suburb is “ideal” for investment property, however there are certainly factors that will help make your property more successful than others. For example, choosing an apartment in an inner city location that is close to all amenities and transport, will mean that you are more likely to find high value tenants and more likely to benefit from capital gains over the long-term.
3. Should I Consider An Off The Plan Property?
Off the plan properties have gained a lot of publicity recently thanks to an influx of investment capital and interest, especially in the main capital cities. There are many reasons why off the plan developments have become the darlings of investment property, including substantial discounts and deductions in stamp or transfer duties. The increase in capital gains for off the plan properties has also been well documented. If you are considering ways to maximise your investment dollars, then talk to an off the plan expert like Ironfish to see how you can benefit.
4. I Want To Buy More Than One Property. Is This Possible?
Most people who get into investment property have an ultimate goal of owning multiple properties, with the equity in one helping to finance new investments. Most professional property investors suggest that the best way to begin is to purchase one property, pay down the mortgage for a few years (and benefit from negative gearing and other tax deductions) and then use the equity to buy new property. It is possible, however having a sensible long term strategic plan can make all the difference to getting you started and keeping you on track.