Successful investments are not made in one day. In fact, it is a roller coaster of ups and downs in an investment journey. In order for you to learn the workarounds of the financial world, ample time and a lot of research is required. And that does not include the possible mistakes you will make along the way.
Whether you are already a property investor or preparing to become one, there are some things you need to think about. If you ask the experts, here’s what they would likely tell you:
Invest for the Long Term
When investing in real estate you need to be aware that this should be a long term strategy. By treating a property as a long term investment you are able to maximise your profit and minimise any losses. The ideal scenario would be that you are able to choose when you sell the property rather than having to sell at a trough in the market.
Aim for an Investment with a Continuous Cash Flow
Look at ways for your property to be positively geared. Ensure your property is achieving the maximum rental return and speak with your property manager for ways to increase the return. It is important that your investment works for you. Ensure you have the best interest rate and complete a health check each year with a good mortgage broker.
Capital Growth is important but it is also important that your property is eventually positively geared.
Continue to do your Research
Talk to experts in the know on a regular basis such as experienced investors, buyer’s agents, sales agents, property managers, mortgage brokers and property research companies. Learn about what is happening in the market and specific areas. Understand the suburb demographics, vacancy rates, tenant demand, planned infrastructure and past price growth and predictions. It is essential that as a property investor you continue to know the market in which you have invested.