Investing in real estate can be lucrative, but don’t go into it if you are looking for a get-rich-quick scheme. Investing in real estate can help you build wealth for retirement or provide you with a way to assist your children in their quest for the Australian Dream of owning a home.
Real Estate investment can also lead to problems and whether you are an experienced investor or just starting out, it is vital you protect yourself so any investment you make is profitable and secure.
Avoiding these errors will go a long way to making sure real estate investment works for you.
A successful investment requires planning. Taking the time to create a sound financial strategy is important to ensure the investment will be profitable. You should consider whether you have enough equity and/or assets to purchase a property. The property market fluctuates through cycles that includes downturn and cooling – these can impact the amount you may have to outlay or repay. A properly structured budget helps you make sure you have the financial strength to support the investment you wish to make. This budget should be structured to include four to six months, enough for repairs as well as money to cover professional services such as lawyers or accountants fees.
Another key to success is to make sure you get as much detail as you can about the property in which you wish to invest. Find out the property history, or if it’s a new development find out about the developer. Research the area to get an idea of the local market and the amenities the area provides. The property must fit into your budget plan as well as meet your overall investment strategy.
It is important you are aware of the legal requirements and taxes involved with property investment. If you are unsure, seeking professional advice for this is advised. This is one area where your own research needs to be supported by someone who knows.
While there are pitfalls to real estate investment, by ensuring you are prepared you can avoid them.
Another great strategy is taking advantage of the experience of Accrue Real Estate. The team at Accrue know the Melbourne property market and have done the research on the suburbs that provide the best opportunity. Contact Accrue Real Estate to start you property investment today.