People’s biggest mistake when discussing property investment in Australia is not clearly understanding their financial goals. Most people want to be financially independent or wealthy but are unsure how to do that. They don’t know how much passive income they will need to make enough money to quit their job and live comfortably as their investments grow.
So, what are your financial goals? As you sit down, write out your financial goals. The easiest way to accomplish this is to consider your current salary and how much you can afford to support yourself. You can use that information to set your financial goal and adjust as necessary.
Finding the perfect residence at an affordable price
Because real estate investing is primarily about capital growth, choosing a property that will appreciate is the best decision you can make. It is essential to buy the property at the right price.
It is harder to price real estate than shares. Shares are easy because the company’s actual value is obvious. You may be able to purchase an asset for less than its actual market value if you’re persistent and competent. Do your research, find out the selling price in your area, and then you will be able to estimate a property’s market value. You’ll soon know if you have a deal once you see it.
Avoid buying property in unfamiliar areas, especially if a real estate agent approaches you about purchasing an overseas or interstate property. Property prices can sometimes be exaggerated because many real estate agents are paid high commissions. If you find a house you like but don’t know its true value, we recommend you contact another lender. This knowledge can be used as a powerful negotiation tool.
Although you may not be aware, mortgage lenders and insurers have valuable information about various real estate developments and areas. This data can help you avoid buying the wrong investment property. No matter what you do, don’t buy an investment property solely for tax benefits. Instead, focus on making a suitable investment.
It is very different from purchasing a property for your primary residence and using it as an investment property. When choosing the property type, you must consider different factors, such as an apartment, a house or duplex, and the location (a town or suburb). Finding a property that will increase in value at the right price is crucial. Real estate investing is all about capital growth.
Don’t be surprised if it takes longer than expected. Australian Property Monitors provides information about potential property growth in different suburbs in Australia. You should conduct an in-person survey if you are considering buying interstate. Many websites and real estate brochures exaggerate the importance, cleanliness, and openness of the area or buildings.