Success is not achieved in a day. It is no different investing in property. In order to achieve success, you need to understand the workings of the financial world, ample time and a lot of research. And the possible mistakes you make along the way will just be more learning curves.
Whether you are embarking on the property investment journey for the first time or already an investor, there are some things that you will need to consider. If you could sit down and ask an export, here’s what they would likely tell you…
Invest for the Long Term
Be aware that when investing in real estate this should be a long-term strategy. Treating a property as a long-term investment, you can maximise your profit and minimise any losses. The ideal scenario would be that you are able to choose when you sell the property rather than having to sell in a tough market.
Aim for an Investment with a Continuous Cash Flow
Look at ways for your property to be positively geared. Ensure your property is achieving maximum rental returns and speak with your property manager for ways to increase the return. It is important that your investment works for you, not you work for your investment. Ensure you have the best interest rate and complete a health check each year with a good mortgage broker.
Capital Growth is important, but it is also important that your property is eventually positively geared.
Continue to do your Research
It is important that as a property investor that you continue to research and know the market in which you have invested. Talk to experts in the know on a regular basis, learn about what is happening in the market and specific and surrounding areas. Understand the suburb demographics, vacancy rates, tenant demand, planned infrastructure and past price growth and predictions.