Tips for getting started with property investment
Property is generally considered as a great investment, and a formidable wealth creation tool. However, there are no guarantees, and to succeed you must do thorough research and employ an investment strategy that works for you. By backing yourself with these tools, there is no reason investing in property can’t work for you and your family. Try keeping the following tips in mind to secure yourself a great investment property.
Work within your limits
Breaking budgets is a common way for people to decrease their chances at doing well in the property market. For newcomers and seasoned investors alike, nothing is more important than creating a well thought out budget and sticking to it. This also means having a good understanding of how much you can afford to borrow.
If you are unsure of your budget, a broker can be employed to assess your borrowing capacity, and help you on your way to an investment strategy that will work for you. With pre-approved finance you’ll also be ready to strike when the right property comes along.
Location, location, location
The location of a property should always be one of the first things you think about when looking at investing. Ideally, you want to look for a property in an area of strong population growth, high rates of employment, decent infrastructure, and future development opportunities.
You won’t want to purchase an investment property without first knowing the area. Driving around the area and noting down schools, access to public transport, shopping centres, and other resources is a great way of getting to know the local area and if it’s right for your investment property. Properties with easy access to these amenities has higher demand with buyers and tenants, maximising the likelihood of achieving solid capital growth when selling, or stable rental income on rental properties.
Understanding your prospective tenants
The type of property you invest in, and its location, will help determine which tenants you will attract. For example, areas in outer suburbs, close to schools and transport, are more likely to attract long-term tenancy agreements with a family. If you are looking for a younger working couple, you are more likely to look in a different area, with different amenities and resources. While you can never definitively know what any particular demographic is looking for, knowing what kind of tenant you would like, and catering to their needs, will maximise your chances of renting your property to a tenant you are happy with.
As with any investment strategy, there are no guarantees, however by understanding and catering to these essential aspects of property investment, you increase your chances of making good returns on your next purchase.
A pre-approved loan can be a very important aspect of successful property investments, yet it is often overlooked. Pre-approved finances help you understand your buying power, as well as giving you the freedom to capitalise on a purchase as soon as the opportunity arises.
How much will a pre-approved loan cost?
The costs associated with a property valuation can differ between suburbs and valuers. Generally, valuation prices will depend on the size and location of a property, as well as the type of valuation.
Do some online research into valuations, shop around, and make an informed decision on who to use.
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Your Guide to Property Investment
Learn how to make smarter property investment decisions.