Property Investment for Beginners
Over the last few years, property prices in Sydney have been at their peak, impacting investment accessibility for many Australians, especially first-time buyers. The property landscape has been influenced by various factors, from Sydney’s exponential growth to increasing employment opportunities. Investment into this highly lucrative market raises many questions, such as – what do I need to know before investing?
As property developers in Sydney, we have listed the top 3 tips for investment:
1 – Think long-term
In the words of Warren Buffet, “someone is sitting in the shade today because someone planted a tree a long time ago.” If investing with the end goal of financial security, financial freedom, or an additional income stream, investing in properties that will reap long-term rewards is essential for individuals and families. To do this, it is important to research areas in which you wish to invest, and determine if there are any upcoming action plans or government investment in the near future, contributing to property value increases.
2 – Think ahead
We all understand the premise that if we fail to plan, we plan to fail. Property investment is complex and dynamic. For this reason, it’s many facets should be considered and weighed out, before actioned. Investors must ensure that their investment strategy is aligned with their investment objectives. For instance, if investing in a home to lease to potential tenants, investors must consider initial outlay; the cost of any renovations or refurbishments that may be required; their estimated rental income; the gearing ratio and more. Another example is investing to redevelop. For instance, if acquiring a block of land, what is the greatest way to maximise the potential of the area? Is it enough to build townhouses, or should you consider a dual occupancy? If so, will individual property types be rebuilt and sold, or rented? Having a solid plan is crucial before making the decision to invest, as many questions and considerations will rise, along with financial implications.
3- Think professional
One of the most valuable commodities is information. In this day and age, we are fortunate enough to have access to invaluable resources, opening us up to a widespread network of industry professionals, experts and advisors. Before investing, it is essential to research and seek guidance where needed. There could be many unanswered questions or factors not considered from tax claims and perks to adequate due diligence and understanding agreements before entering into them. Surrounding yourself by a network of people and resources that can direct and suggest, will build the confidence you need to ensure you are making the correct investment decision.
Entering into the property market is a strategic and lucrative investment avenue if carefully considered beforehand. Property investment provides ample opportunity, security, financial benefits and more. One of the greatest opportunities is living in Sydney, a booming market with ample potential.
Read more about the advantages of investing in Sydney on our blog.