Investing in property has become a national pastime in Australia. An investment property should be about multiplying your wealth and securing your financial future. You have to keep in mind that whether or not the investment will help you reach your financial goals depends on how effectively you manage your investment. If you’re wondering what makes a good property investment in Australia, these tips will help you find out the things you need to do in order to set up yourself up for success.
Choose the right property at the right price.
Most properties that have a high value in terms of investment are located in the large cities of Australia. Investing in real estate is generally about capital growth, so choosing a property that’s more likely to increase in value is the most important decision you’ll make, so buying at the right price is absolutely critical. Remember that location is the key. If you want to invest in a property, consider buying properties that offer easy access to amenities like public transport, recreational areas, park, schools, restaurant, etc.
Start budgeting and stick to it.
Investing in property is a proven and tested path to long-term wealth, however, you should also make sure that you can afford to maintain your mortgage repayments over the long term. You won’t want to have to sell your investment property until you’re good and ready, and if you’re to encounter some financial stress, this can force you to offload the property at the wrong time. Sticking to a budget will help you understand where and how you’ll spend your money, so it’s a great idea to start budgeting even before you start finding a property.
Look for a competitive property manager.
Your property manager will personally (and daily) oversee your investment, so you need someone who’ll do the best possible job. They can help you with ongoing advice, help in managing your tenants and get the best possible value for your property. You should find competent property managers so you can build a portfolio and maximise cash flow. They should be able to give you advice on property law, particularly your rights and responsibilities as a landlord – as well as those of the tenant.
Take a long-term view and manage your risks.
Keep in mind that property is a long-term investment so you shouldn’t rely on property prices that rise straight away. The longer you can afford to commit to a property, the better. As you build up equity, you can consider purchasing a second investment property – don’t be too greedy, but find the right balance between financial stability and enjoying life. Financial security is very important but life isn’t just about mathematics.
Finally, be aware that unlike shares or managed funds, you can’t just sell a part of your investment property if you need money. To sum it up, be cautious, but consider that record migration levels and rental property shortage are crucial factors favouring investing in property.
For more investment tips, consult the top real estate professionals in Australia today.