There are a lot of misconceptions about property investment. Many assume that it’s reserved for the rich or those with a lot of property savvy, but in truth most people have what it takes to climb the property ladder.
Before you do take that leap though, there are a few things worth considering.
Finances – Obviously, your finances will play a major role in what you ultimately choose to invest in. As with buying an owner-occupied residence, the first step for someone considering property investment is to talk to a lender and discuss borrowing options and organise a mortgage pre-approval.
Having a pre-approval will give you a solid idea of your budget and help speed up the loan process when you find a property.
Unforeseen costs – There can be some unexpected costs in property investment. A tenant may require upgrades or repairs, or there may be a period of time where a property isn’t being rented. For these reasons, it’s important to consider all potential costs involved with owning a property and have a financial buffer to cover any unforeseen expenses.
Location – Whether or not a property grows in value in the years to come will come down to where it is located. Identifying the next property hot spot isn’t always easy, but there are a number of ways to identify whether or not an area will experience significant growth. You will need to do a lot of your own research to suit your particular investment plan but take a look at things like population and employment growth, vacancy rates and infrastructure plans to get an idea of whether a market is headed.
Property management – A good property manager can be worth their weight in gold and will take away a lot of the stress involved with owning an investment property. Your property manager can help with attracting and retaining tenants, managing maintenance and legal issues, tax assistance and they can make recommendations on how to increase the value of your investment.
It’s always a good idea to chat to people you know about their experiences in property investment and try to get advice where you can. Property investment isn’t for everyone, but it can be a very lucrative investment for those who do it right.
For those who would like to talk about investment opportunities in the Fairfield area, please feel free to give us a call at Professionals Fairfield Real Estate.