Investing in property is probably looking to be a very attractive way to invest for many people right now. As well as interest rates sitting at an all-time low, and the Government giving incentives to help the market, other forms of investment aren’t fairing that well.

While property owners with a mortgage or other type of loan are benefiting from the low interest rates, for those who are looking at saving accounts, you might just as well stick your money under the proverbial mattress. Furthermore, the stock market isn’t looking to good at the moment either.

We firmly believe property is a solid investment that has stood the test of time. Another plus is, unlike other forms of investment, it is actually easier to understand.

No one is born an expert property investor. Yes, some people do seem to have a natural flair, but most property investors we help have started with no experience at all. They’ve usually started out in a 9-5 job, and a few years down the track, they are having the lifestyle they want to live.

So, what’s their secret to successful property investment?

Here are our seven tips to help you on your way to a successful property investment journey.

Have a vision

Be it for the kids’ education, or simply having the freedom to do things other than ‘work’ with your time, determining your reason for investing is a very important starting point. It will give you the motivation to do your research, help develop your mindset and keep you focused on the end goal.

Work out your strategy

This does require a bit of thought as there are many different strategies, and this is often, but not always, dependent on what your end goal is.

The chances are, buying one investment property, paying it off, saving up a deposit for a second investment property isn’t going to get you where you want to be. If you really are serious, look towards creating equity and cash flow.

Many investors buy a property, wait to get some equity in it, then refinance to give them the capital to buy the next property.

Most importantly, be realistic in your planning. Most people plan in five year increments, which gives them chance to tinker with and tweak their strategy along the way.

Keep the risk factor low

Knowing your budget is important, so try not to stretch yourself financially and make sure you have enough leeway in the budget or some kind of financial back up should the unexpected happen.

Location, location, location

If you’re renting out a property, it has to tick the location boxes – like good schools, access to public transport, and what job opportunities there are in the area.

Really research ‘ear-marked for growth’ areas – some fair better than others.

In the same breath, keep options open, and look at the return of investment as well as rental return. A less expensive, but larger property located just outside a popular suburb may just offer better financial returns than the smaller, more expensive but less desirable property in the next suburb along.

Know the property’s worth

There are many companies out there that market specifically to investors and whilst most of them are genuine selling a good and fair priced product, there are some who are selling properties at massively over inflated prices. You should not be holding out to find that ever evasive bargain, but you don’t want to be paying too much either.

Depreciation

Ensure you take advantage of available depreciation of the property you purchase. An hour or 2 spent on researching this vital part of property investing could easily make you several thousand dollars a year per property.

Be patient

Making money from property does not happen overnight. Short-term gains may not necessarily equate to long term goals, so our final tip is be patient.

Many Australians assume property investment is out of their league, but it actually is achievable for many, they just don’t realise it!

Talk to your financial advisor who can really talk you through options and look at ways and strategies to help you live your financial dreams.

As one of Newcastle’s longest established real estate offices, we know our property. Whether it is from an investment or homeowner’s point of view, we’re always looking at innovative ways to help you get the best from your asset.

If you want to know more about investing in property, get in touch. Simply give us a ring on 02 4954 8833, send us an email to mail@apnewcastle.com.au or pop into our Cardiff office for a chat.

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