7 Basic Steps to Investing Invest in Property?
The first step in becoming a property investor, is simply take the first step.
And that takes confidence and courage.
You must first cultivate the right mindset to successfully invest in property.
Gaining the correct knowledge and education will give you the confidence to get involved in this potentially rewarding form of investment
Steps To Successful Property investment
1.Write an action plan clearly defining your investment goals
Set a time frame for when you will start.
What resources you will use to educate yourself in property investment.
The cost and type of property (unit, townhouse, house, constructed or off the plan)
The eventual number of properties or value of your property portfolio.
2.Research
Your starting point is research. It’s probably the number one strategy in being success in the property market.
You must research the marketplace. Get an overall feel to what is happening, but choose
One or two suburbs and get to know them like the back of your hand.
To achieve this, speak to the local real estate agents and cultivate relationships.
Let them know you are a player in the marketplace.
Attend all the auctions in these suburbs.
Read the newspaper ads and monitor the sales prices. Check out the post auction ads as well, this will give you an indication of what selling prices are being achieving.
Use the internet to do research. There are many sites that specialize in the Investment Property Market.
You can also subscribe to services that will give you historical sales prices for individual suburbs.
3.The Basics
Buying at the right price (below market value) should always be your goal.
It’s been said that you make your profit when you buy.
4.Timing
Recognising property cycles (easier said than done) is important. You will want to try to buy at the low point (at the lowest price) and sell when the market is rising.
Things such as supply and demand (is there a shortage of desirable properties but an abundance of buyers)
The economy, interest rates, employment levels, the stock market all can influence the property market. It goes back to keeping your eye on the ball through knowledge, education, and research.
5.Location
As a general rule you would only buy in know l capital growth areas. This is generally inner-city up to 10 kms from the CBD but not always.
Again, supply and demand come into the picture. Also, the features and design of the property.
Remember just because a property is in a growth area, it may not be a good buy, so do your research.
6.Demographics
Demographics is like a customer profile; it tells you about the characteristics of your potential property buyer or renter.
Their wants and needs. What will be, in demand and more importantly, where! It’s the baby boomers, young professionals, empty nesters (children left home).
These individuals are now favouring inner city, living with its close amenities (transport and employment) and lifestyle attractions, (cafes, nightclubs, entertainment centres)
This creates strong demand and possible short supply.
Formulate a criterion (property type) that appeals to the above individuals and focus on these types of properties.
7.Taxation benefits
Generally new properties will give you the best depreciation deductions.
You can claim depreciation on both the building and fittings and fixtures.
If an expense can be shown to have? contribute to producing taxable income, you maybe able to claim it against your taxable income.
The above expenses can usually be offset against your income (check with your accountant) and reduce your tax bill.
Part of your investment strategy would be to surround yourself with a network of property investment advisors, such as an accountant, solicitor, and mortgage broker.
Do you need help in choosing an Investment Property?
Tell us your investment goals, your price range, preferred property type and area.
We have a large list of developers with a wide range of Investment Properties. This is a FREE Buyers Agent Service and there is No Obligation CALL Gary ON 0411328016