It’s no surprise that property investment attracts more people every year. It’s a safe investment if you get it right and it can be a lot of fun. So, if you’re thinking about investing in property, follow these 7 tips.
- Plan in Advance
Planning is everything when you’re starting out in property investment. If you go into your first investment property without a solid, detailed plan of action, you’re going to run into problems pretty quickly. Before you buy the property, you should know exactly what you want to do with it, what kind of person you want to rent or sell it to, and how much you’re going to spend.
- Don’t Let Your Emotions Take Over
It might sound harsh, but there’s no room for emotions and sentimentality in the property investment business. You should view this as a business because that’s what it is. You’re not looking for your dream property; you’re looking for a property that will make you some money. So, don’t worry about your opinion of the house, think about what your target renter or buyer would think.
- Explore Off the Beaten Track
How you hunt down your properties is an important thing to think about. Don’t just stick to traditional estate agents, that’s not where you’ll find the best bargains. Keep your eyes peeled for online adverts and don’t rule out the possibility of finding a bargain at a property auction. All manner of properties go under the hammer, so get into the habit of attending auctions.
- Remember the 1% Rule
If you’re buying to let, keep the 1% rule in mind. So, what’s the 1% rule? It means that you should be making at least 1% of your outlay on a property every month. So, if you spend $120,000 on a property, you should be taking at least $1,200 per month in rent. This is the fundamental rule of renting out property.
- Always Keep Tenants in Mind
If you have a specific target renter in mind, they should be at the centre of every decision you make. Make sure the property you buy would appeal to them. For example, if you’re targeting young families, buy a property in a safe area near a school.
- Consider Professional Help
A lot of first-time property investors can be tempted to go it alone and act as if they already know it all. But the reality is, a bit of help from a professional can go a long way, especially if you’ve never invested in property before. Visit http://www.InvestmentProperty.com.au if you want to find out more about how companies can help guide you.
- Don’t Be Afraid to Take on a Project
Becoming a property investor is a full-time job, and it’s not easy. And sometimes the best opportunities are those that take the most time to undertake. You can pick up cheap properties quite easily, but they’ll be problems to contend with. You’ll have to spend a lot of time returning it to its former glory. But the profit margins can be huge, so don’t rule it out.
Investing in property is a big challenge. But it’s also a lot of fun. Follow these tips, and you’ll find success in no time.