16 Sep Getting Into Property Investment? 5 Quick Tips to Getting Started
To set things straight, property investment simply means purchasing a real estate property with the intention of earning on the return of investment through sell out or lease out.
Normally, people purchase a house so that they and their family have a place to live. However, investing in real estate has become increasingly popular over the last 50 years and has become a common investment option. The growing trend now is securing a home loan and have somebody else pay for the mortgage by renting it out.
Indeed, real estate has proved to be an avenue for creating wealth or even growing your savings. However, sometimes investing in real estate can be intimidating for beginners due to fear of the unknown.
Below are five simple advises you can take note if you plan on investing in a property.
- Define your goals.
Begin with the end in mind. Why do you want to invest in the first place? What do you wish to achieve with real estate investing? What are your short-term and long-term goals? Quick tip: take note of your goals and post them where you can always see them. This way, you always have the mind set in achieving these.
- Check your finances.
List all your assets and incomes to find out how much cash you have to invest. If you think you don’t have enough, you can always secure a loan.
- Get pre-approval.
Consult your trusted finance broker to work on your pre-approval. Applying for multiple pre-approvals can get you a negative mark on your credit file. Also, working with a finance broker can help you find out if you are qualified for a loan, especially if you are not confident you’re financially ready to invest.
- Find your niche.
Once you get the ball rolling, determine what area you can be an expert of. The real estate industry is a competitive market so standing out is a quite a challenge. Quick tip: know your local market. Find out what they like and what trends you can tap. Is it going to be high-end properties for young professionals? Or affordable homes for millenials perhaps? Whatever it is, be sure to research, study, and get yourself familiar with your chosen ‘niche.’
- Stay focused.
Investing in a property can get too overwhelming. Sometimes, you might get too attached to a certain property. Quick tip: purchase a property with your head, not with your heart. Real estate is not a sentimental business. You should always be on the lookout for profits and not let the visual appeal of a property take your judgment.
Most importantly, don’t give up. Don’t wait to buy real estate. Buy real estate and wait. Investing in a property is one great way to grow your savings. Getting into property investment is a smart way of making your money work for you, instead of working to make money.
Your full financial needs and requirements need to be assessed prior to any offer or acceptance of a loan product.
Corporate Credit Representative (486927) is authorised under Australian Credit Licence 389328.