When market conditions are right investing in property can seem like a good option when you’re looking to build a nest egg for yourself and your family. As with any investment opportunity, getting it right the first time can be a daunting and challenging prospect. Most property experts suggest that first time investors become acquainted with the basics of buying, maintaining and re-selling property. As well as ongoing education and research, they also suggest that they get in contact with reputable property investment services companies to help give them the support and information they will need during the process. Let’s look at some of the other helpful tips to keep in mind if you are considering going into property investment in the future.
Most people start out with the idea of investing their money with a certain goal in mind – maybe they see themselves retiring early, or being able to supplement their income with a string of rental properties. These are good, long-term goals that can help provide strategic direction when big decisions have to be made. When you’re first starting out, however, you’ll probably be urged to create a series of short term goals (such as rental income over 2 years) or, in the case for an off the plan property, an increase in property value once the project has been completed.
One of the best long-term property investment strategies is to look at capital growth over 10 or 15 years. According to the Housing Industry Association (HIA), property prices in the major capital cities have risen an average of 83% over the past 10 years (thanks in part to a booming Perth, which experienced 147% growth). The HIA considered Sydney’s average of 31% growth over the past decade to be an indication that prices were currently going through a “catch-up” phase[i]. As a first time property investor it is a good idea to educate (yourself) on the factors affecting the market, as well as short and long-term goals that will be practical for you.
Look At A Range Of Property Options
One of the best tips as part of property investment for beginners is to broaden the range of property you look at as an investment. Looking at each type of property – from houses in outer suburbs to inner city apartments, townhouses and off the plan developments – and reviewing it in terms of your goals is a sensible strategy. Doing your own homework into the pros and cons of each type of investment as well as getting expert assistance will ultimately help make your decision the right one. One important tip for first time investors: try to keep a professional outlook when you look at property options. One of the worst mistakes that first time investors make is falling in love with a property and buying it without really considering their short or long term goals. Don’t overlook major issues such as lack of transport links or a lack of schools in the area just because you like the style of architecture of the property or fall in love with the kitchen!
Investigate Investment Loans
Thanks to a surging property market and increased competition between banks and other lenders, there is now a myriad of different investment loans that you can choose from as a first time property investor. Many people like to apply for investment loans with the bank where they have existing accounts and other loans. While it can be more convenient to do this, don’t forget to review all the options and features of the loans to find one that is right for you. Most investment loans come with different features such as interest-only repayments, the ability to split the loan and a line of credit facility.
Doing your homework on short and long-term goals, with the help of expert assistance from property investment experts such as Ironfish can greatly increase your chances of not only buying the right property at the right time, but buying it for the right reasons too.