By Gideon Ogbonna
Whether you’re thinking of becoming a landlord, or you’ve already taken the plunge and bought an investment property, one thing’s for sure: property investment is a proven performer when it comes to wealth creation.
Do you want to own a property that pays dividends both now and in the future? Then it’s time to brush up on these key tips to guarantee a successful investment!
1. Think long-term
The property market moves in cycles, meaning it has highs, lows and steady patches. “Always ensure you are comfortable with the possible pros and cons of property investing and think hard about how they match your goals.”
2. Keep up the research
Read property-related and investment articles – both before and after you buy. Talk to people in the know, such as experienced investors and property research companies, about areas you are contemplating buying in. Compare suburbs’ rental yields, resident demographics, tenant demand, existing and planned infrastructure, past price growth and predictions and everything in between. It’s vital that you continue to keep researching the market after you become a landlord, so you’re always up to date about the latest trends and cycles.
3. Choose the right loan
There are dozens of different property loan products available to you, so it’s important that you consider your financial situation and investment strategy. Remember, a professional mortgage broker can help you compare a range of different home loans so you can narrow down your options.
4. Meet an expert
Many investors shy away from using buyers’ agents, but they can be a very valuable resource. After all, buyers’ agents know the market and can be a great source of advice, and for negotiating with sellers and their agents. Best of all, if you’re buying the property as an investment, their fee may be tax deductible.