How to invest in property
Category Property News
Investing in properly is an undertaking that can be both risky and rewarding. While the latter is the desirable result, it takes savvy thinking and due diligence to avoid the former. But you can’t climb to the top of the property ladder without getting your foot up onto that first rung, so here are 5 essential tips to help to get moving in an upward direction…
1. START SMALL
Property investors with a proven track record of success will often advise others to opt for smaller flats and apartments because your pool of potential tenants will be wider. That means your rental returns will be simpler to safeguard. It can be dangerous to buy a bigger property that you then struggle to rent out. Bachelor flats and one and two bedroom units are easier to fill and that steady stream of rental income is what will allow you to take that next step up the property ladder.
2. AVOID IMPULSE BUYING
Never rush into a property purchase. Do your homework keeping in mind that making a bad property decision can have devastating consequences. Keep a clear head and do not be pressured into making an offer that you are not fully prepared to follow through on. Rather err on the side of caution. Take your time and do your own research. You need to carefully study the pros and cons associated with any new property that you have your eye on.
3. FOCUS ON WHAT WORKS
A tried and tested way to make money in the property market is by focusing on what you can do to make an existing property more valuable (without spending too much money). This can be accomplished by renovating bathrooms and kitchens which will instantly increase both rental returns and your overall property price when you’re ready to sell.
4. WHEN OTHERS ARE ZIGGING IT MAY BE TIME TO ZAG
Don’t make the mistake of placing all your attention on trendy neighbourhoods. It can be extremely difficult to find value in those areas. Look at buying in less fashionable locations because you can get excellent results in those suburbs. When it comes to sound property investing, don’t get hung up on the ‘right address’. Instead, you need to shift your focus to getting the right returns.
5. LOOK AROUND YOU
Try not to fall into the trap of buying a property in a place you are not fully familiar with. Choose instead to invest in your own area where you know the lay of the land. You have a much better chance of spotting a great bargain in your own neighbourhood and then, once you’ve made your purchase, maintaining your investment is a whole lot easier too. Managing a property that is situated hundreds of kilometres away is tricky and time-consuming.
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Author: Berman Brothers Properties