8 Top Tips for Investing in Property

Property investment is acknowledged by so many experts (as well as those of us that are not quite experts) as being one of the most safe, secure and lucrative forms of investment. In the long term, investment properties provide owners with solid returns and the opportunity to use equity from their property or properties to increase their asset base.

However, the purchase of an investment property should not be done a whim; it is important that investors carefully consider and evaluate their options in order to make the most from their money.

What should you consider when investing in property?

1:  Research is essential

Significant homework and research is critical before making the sizable financial commitment that is required to enter the property  market. Not only should you research the types of property/properties in which you are interested, you also need to understand the property market and the trends it follows.

Seminars, publications and advice on property trends can be useful, but it is imperative that you get this information from trusted, credible and authoritative sources.

2:  Ensure that you have loan pre-approval

Without loan pre-approval, finding the investment property of your dreams is far from ideal and oftentimes, heartbreaking. Only when you have loan pre-approval do you know precisely how much you can spend on your property investment and the most realistic account of your borrowing capacity. Far too many potential buyers believe that they know this and are then incredibly disappointed when they are not able to obtain a loan for as much money as they had assumed would be available.

3:  Visit properties

Only by inspecting a number of properties will you get an accurate feel for what is around and the amount that properties are actually worth. You need to be confident and experienced and by going to a number of inspections, you will better appreciate properties that do and do not represent good value.

4:  Property type

It is important to decide on the type of property in which you want to invest. Apartments, houses, townhouses and duplexs all have their advantages and disadvantages, but it is well worth knowing which type of property best suits your needs and having your purchasing decisions informed by this.

5:  Age of property

New and more established properties are often vastly different and therefore require different things and commitments from their owners. It is important that you decide whether old or new is best for you, in terms of the funds, time and expertise that you have available and your ultimate property investment ambitions.

6:  Location

Remember that when purchasing an investment property, it is always wise to buy in a location that is sought after by tenants and is close to shops, transport, services, schools, parks and other amenities. Well-positioned properties are almost invariably less difficult to rent out and they enjoy higher rental returns.

7:  Understand your financial position

It is likely that you have particular financial goals and things that you want to achieve from an investment property. It is always advisable to speak with a financial advisor or accountant about this and to increase your understanding of how property investment will affect your financial position – in both a positive and negative sense.

Of course, it is also imperative that you know and understand the terms of a loan, the commitment you are required to make and how your personal situation will be affected.

8:  Minimise stress

Although investing in property can be stressful, confusing and anxiety-provoking, it is helpful to remain as calm and cool as possible. Seeking the advice of experts can help all investors to feel more confident and assured that they are making well-informed financial decisions.

Investing in property is a great way to make money in the long term. While it can also be daunting, following tips for successful property investment can lead to good outcomes and a more complete understanding of how your life will be affected by the commitments made to investment properties.

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