There is much talk these days about property investment-and for a good reason. Property values have been rising for years now, and it's no secret that real estate is a sound investment. But before you jump into the market, there are a few things you need to know. So here are the basics that every would-be investor should understand.
What Is A Property Investment, And Why Should You Do It
Property investment is the purchase of property with the intention of earning a return on that investment. You might want to invest in property for several reasons: to generate income through rental returns, capitalise on price growth, or achieve tax benefits.
Property investment is a great way to build your wealth over time and can be a more stable investment than shares or managed funds. It's important to remember, however, that property investment is not without risk. For example, you could lose money if the property you buy doesn't capitalise in value as much as you expected or if your tenants don't pay their rent. So it's essential to research before investing and only to choose properties in areas you know well.
What Makes A Good Property Investment
There are a few things you need to look for when buying a property for investment purposes:
● A good location is key. The closer the property is to amenities and transport links, the more desirable it will be to tenants. Look for areas that are growing or in high demand.
● The right tenant mix is also essential. Make sure there are plenty of renters in the area who can afford the rent you're asking for.
● The property should be in good condition, so you don't have to spend too much on repairs and renovations.
● It's also essential to think about your own needs and goals. For example, do you want an investment that will provide regular income or give you capital growth over time?
How Do You Find The Right Investment Property For You
Once you've decided what you're looking for in an investment property, it's time to start looking for deals. There are a few ways to go about this:
● Look online: many websites list available properties for sale or rent.
● Talk to estate agents: they'll have access to all the latest listings and can help you find properties that meet your criteria.
● Look at local newspapers: new developments or off-the-plan apartments will often be advertised here first.
● Attend auctions: this can be a great way to find discounted properties or those sold quickly because of financial difficulty.
How Do You Finance Your Investment Property
There are several ways to finance an investment property: cash, a home loan, or a mortgage from an investment lender.
If you're using a home loan to finance your investment property, it's important to remember that you'll need a deposit of at least 20%. You'll also need to prove to the bank that you can afford the repayments, so make sure you factor in the cost of rent when working out your budget.
Conclusion
So, if you're looking for a long-term investment that has the potential to give you a great return on your money, property is definitely worth considering. Of course, it's essential to do your research and talk to
experts on conveyancing
before investing in any property – but with the current market conditions, now could be an excellent time to get started.
