Property Investment

10 TIPS For First Time Investors
 
Property investment is not difficult. The key to success is having a plan and getting as much market information as possible in order to make objective decisions. Here are ten handy tips for first time investors. 

1 Take control by keeping up with trends in property values and the latest financial information.

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2 Pay off your home loan, or a large proportion of it, first.

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3 Hold your investment property for the long-term plan and benefit from the regular booms that occur in property. Reinvest any tax rebates by making extra repayments into your investment loan.

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4 Buy structurally sound houses or units and ensure new tenants do not have a consistent history of damaging previous rental properties or not paying rent.

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5 Be aware of property market cycles. In Australia there is a boom in the real estate market every five to seven years, which means there is a market slump in between.

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6 Discuss your financial position and your desire to invest in property with an independent expert in taxation accounting. The benefits of property investment may vary according to personal income levels and your age.

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7 Don’t let tax dominate your investment decision. The best investments work regardless of the tax benefits.

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8 Keep up the maintenance on your investment property. Neglected properties do not appreciate in value as fast as other properties. It is also more difficult to lease out neglected properties, which results in loss of rental income.

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9 Buy investment properties with your head not heart. Be guided by what a tenant would value in a property.

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10 Buying investment properties in areas, which are familiar to you. But keep an eye out for opportunities in other suburbs, towns, or even cities, where the property cycle may be at a more beneficial point for investing.

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