Identifying a great investment is the beginning of building your property portfolio. There a number of things to look out for when you are thinking of investing. There a few golden rules which could help you with making decisions:
Due Diligence: You need to do your research and do it thoroughly because paying the right price is at the top of the list! Research the current market climate and learn the market trends, find out what other properties in the area sold for – you can gain valuable information by talking to people and through sites such as realestate.com.au and domain.com.au or even google! When building your investment property (or even your new home), land is the key factor so check the numbers add up and don’t overspend for the area .
Location, Location, Location: Yes, we have all heard it before – many times! If you are building a new home or investment property then research the area, what current or future infrastructure is near-by or planned? Are there any schools or shopping centres? What are the transport options? Where is the nearest hospital and how far is it from major business centres? Most people want to live as close to work and schools as they can so if you are looking at a target rental market these are some of the things which will impact on the rental return on your property.
When to Invest: It’s never a good idea to follow the pack. The real estate market goes through cycles so if you can avoid the market highs do so – its always best to get in when the cycle is on the low side if possible. Be a smart investor and jump in before everyone else does!
Number Crunching: Consult with a financial advisor! Check all your facts and figures and make sure you and your advisor go over your finances so can you be sure you have the right investment plan in place. Property values rise and fall depending on the current market so you need to be wary of when and if you may want to -or have to sell and how the market trends can influence this decision. For investment purposes you need to look at long term and the financial gain versus the financial outlay, what your tax implications are, what depreciation you can claim etc – take the time to understand the implications these can have.
Above all do your due diligence because the more information you have the better your investment/s will be.
If all the numbers add up go the OJ way and contact us at OJ Pippin Homes to begin building you investment portfolio!