With the current market climate, investing in property just makes sense. Say it louder for the people in the back.
We know Australia has plenty to offer for the savvy buyer (of course, in some states more than others), but with such a diverse range of states and suburbs, there’s something for everyone. This being said, it can be tricky to get ahead without a well-considered strategy and an assessment of the best properties to suit your unique situation.
This is where we come in. We’re here to support you from strategy to execution to living the dream, and this guide is your first step to joining (or re-joining) the market ladder.
Should I dive into property investment?
Property investment is relatively easy to understand, especially with the help of one of our property mentors. As long as you exercise your due diligence, you don’t even have to have a deep understanding of real estate guidelines and frameworks to be able to buy.
There’s no doubt that 2020 certainly proved to be a fascinating year in the market, and as a result, it created opportunities (some never seen before) in various markets and house types across the country.
We keep hearing that Australian interest rates are at an all-time low, and house prices in some areas have decreased – some quite significantly (we’re looking at you, South Australia) – so it’s the perfect time for first-time investors to enter the market.
Our team got together to discuss the best tips we could give you. We wanted to share real solutions to real questions you may have, as well as provide hot tips to ensure you meet and exceed your goals.
This is what we came up with:
Decide on your strategy
First of all, consider what your strategy will look like.
For some people, their plan might simply be to buy somewhere and hold it for a long period of time, sitting on it quietly or renting it as it increases in value over time (also known as appreciating). Perhaps you’ll check out the sparkly new development on the outskirts of the city, or maybe you heard about the new town being touted as the ‘state’s second capital’.
Either way, engaging a mentor may be crucial to ensure you establish realistic goals, set rational budgets, and delve deep into trends to ensure financial security for the duration of your ownership.
Think carefully, choose wisely
We know buying real estate can be tricky, as suburbs and regions vary drastically in terms of availability, cost and demand. Generally, however, you can use these rules to choose wisely with good outcomes. Look for houses that are:
- In an area that has a history of experiencing high capital growth
- Close to transport, facilities and schools (great for young families!)
- Close to beaches, rivers or parks
- In good condition, ensuring any major renovations have building permits
- Unique and/ or adaptable (eg. space for a study or another bedroom)
Use your brain, not your heart
It’s easy to forget that investing and owning a home are two different things. When we search for our home, we’re searching for space for our furniture, room for our pets, areas for the kids, etc.
However, when we invest, we need to use our heads and remember that the house is not a home – it’s a business. We recommend remaining detached from the house realising that the strengths of the home are as an investment only.
If you have any questions, concerns, or queries, contact one of our friendly team members today for an expertly detailed consult. We’re here to help!