Investing In The Property Market
The goal in investing is to make your investment grow and generate profit from it. But it’s no easy feat, a lot have fallen into the property trap because they entered the market with insufficient knowledge and research. The property market is not as simple as people think. There’s a lot of complexity and factors involved that could make or break your investment. Here are some tips that could guide you in your first steps on the property market:
Get Organised
Before anything else, your finances should be ready. Getting your finances in check like having a pre-approved loan will give you a wider ‘negotiation range’ or when the contract for the sale of the property you are interested to invest in is unconditional to financing. Once your funds are ready you are now ready to start your research and determine your target market and strategy.
Research
Researching your target market and location is key to growing your investment. You should have at least a basic idea of how a certain market performs over the others. This can give you a base idea on where to invest. For example, if you are looking for a property where there is a high rental return, you should focus on apartments near universities, hospitals, shopping districts, cafes, parks, etc. If your goal is a higher capital growth, you should research areas which have proven records of capital growth and sustainability.
Check For Potential
Once you have identified your target market, it is now time for you to search for properties in that area or suburb and also check the potential of that property for growth and renovation. The basics you should watch out for is a clean kitchen, bathroom and toilet. These are the most commonly used facilities at home and these is where you should focus your attention to and do perform renovations or upgrades as soon as possible. You also need to be very careful about the type of property you will be investing in a specific market. A decorated mansion in the middle of an industrial area will surely fail.
Property Inspection
Have a professional inspect your prospective property. Prioritise the condition of the property and also check for pests before moving on to the development stages of your property. Doing this in the early stages will help you identify potential problems in the future and will also give you a broad picture of the final result after you have added your personal touches on the property.
Hire A Property Manager
When everything is set and your property is ready to be sold or leased in the market, you should hire a licensed property manager. This is where people tend to miss out and decide to handle their property privately. Having someone trained and qualified to manage your property for you will save you a lot of headaches in the future.
