There are a few things to consider with property investment: your strategy, the type of property, the location and the timing.
First off, let’s talk about strategy. How do you actually plan on making money from your investment? Are you aiming to get high capital growth or high rental yields? Or maybe you are more interested in redeveloping your property to make your returns?
Once you figure out where you want to make your money you can start looking at the properties and areas that will work for you. Of course this is the part where you really have to do your research. If, for example, you want a high capital growth then you will want to try and find an area that is yet to “boom”. If you are going to make money from doing renovations then be sure not to overcapitalize and plan out a strict budget. There is nothing worse than spending a whole heap of money on renovations and not getting it all back.
Your aim is to find a property that will have the smallest amount of risk for you but the greatest amount of reward at the end (unfortunately though it’s often the big risks that get the big rewards). For example it may seem genius to buy in a speculated mining town but this may end up falling through so there is a big risk. If you are starting out in property investment you are probably better off with smaller risks to start off with.
If you don’t know much about property investment then it will be a big help to you if you have mentors to help you along the way and good financial planners to give you advice. There are some good financial tips at mortgagechoice.com.au to give you a bit of info to start with.
Earning money from investment properties will probably seem complicated at first but with a bit of help and once you know how everything works you’ll be building up a portfolio in no time.
Obviously having a good working knowledge of the area you are looking into always helps too, so if you are looking into areas around Fairfield, get in touch with us and we will be happy to share our local knowledge with you.