Property Investments.7 Steps to the Ideal Property Investment!

The first step in becoming a property investor,is simply take the first step. And that takes confidence and courage.

You must first cultivate the right mindset to successfully invest in property.

Gaining the correct knowledge and education ( like which is the best home loans )will give you the confidence to get involved in this potentially rewarding form of investment

Steps To Successful Property Investment

1.Write an action plan clearly defining your investment goals

Set a time frame for when you will start.

What resources you will use to educate yourself in property investment.

The cost and type of property ( unit,townhouse,house,constructed or off the plan )

The eventual number of properties or value of your property portfolio.

2. Research

Your starting point is research. Its probably the number one strategy in being success in the property market.

You must research the market place. Get an overall feel to what is happening, but choose

one or two suburbs and get to know them like the back of your hand.

To achieve this speak to the local real estate agents and cultivate relationships.

Let them know you are a player in the market place.

Attend all the auctions in these suburbs. 

Read the newspaper ads and monitor the sales prices. Check out the post auction ads as well, this will give you an indication of what selling prices are being achieving.
Use the internet to do research. There are many sites that specialise in the Investment Property Market.

You can also subscribe to services that will give you historical sales prices for individual suburbs.

3. The Basics

Buying at the right price (below market value) should always be your goal.

It's been said that you make your profit when you buy.

4. Timing

Recognising property cycles (easier said then done) is important. You will want to try to buy

at the low point ( at the lowest price ) and sell when the market is rising.

Things such as supply and demand ( is there a shortage of desirable properties but an abundance of buyers )

The economy, interest rates, employment levels, the stock market all can influence the property

market. It goes back to keeping your eye on the ball through knowledge, education and

research.

5. Location

As a general rule you would only buy in known capital growth areas. This is generally

inner-city up to 10 kms from the CBD but not always. 

Again supply and demand comes into the picture. Also the features and design of the property.

Remember just because a property is in a growth area, it may not be a good buy, so do your research.

6. Demographics

Demographics is like a customer profile, it tells you about the characteristics of your potential

property buyer or renter.

Their wants and needs. What will be in demand and more importantly, where!

It's the baby boomers, young professionals, empty nesters ( children left home ).

These individuals are now favouring inner city living with it's close amenities ( transport and

employment ) and lifestyle attractions.( cafes, nightclubs, entertainment centres )

This creates strong demand and possible short supply.

Formulate a criteria ( property type )that appeals to the above individuals and focus on these

types of properties.

7. Taxation benefits

Generally new properties will give you the best depreciation deductions.

You can claim depreciation on both the building and fittings and fixtures.

If an expense can be shown to have contribute to producing taxable income , you maybe

able to claim it against your taxable income.

The above expenses can usually be offset against your income (check with your accountant) and reduce your tax bill.

Part of your investment strategy would be to surround yourself with a network of property

investment advisors, such as an accountant, solicitor and mortgage broker.

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