Property is a solid, low risk investment and over time, a portfolio of property can build your wealth. Here are a few tips you may like to consider:
- Property investing is a business, and it should be remembered as such. It is important not to let your emotions get the better of you. We recommend that you do not invest in properties you would want to buy for yourself.
- Have a thorough understanding of the numbers before you begin investing. At position realty, while we are not in the business of financial advice, our agents are well versed in rental returns, rent achieved in different areas and property management.
- Like all investments, property prices can fluctuate. As a general rule however, prices double every seven to ten years, however economic conditions must always be considered.
- We recommend diversifying your investments in terms of both geographic location and type of property. This can protect your portfolio from markets with prolonged flat or stagnated periods.
- Get to know the areas you are considering investing in. Factors to keep in mind when selecting areas are population growth, employment, and mid-to-long term capital growth. Also think about local amenities such as schools, transport and shops.
- Depending upon your investment strategy, bear in mind that new or renovated properties maximise depreciation and tax savings, and also provide minimal maintenance. Properties can, however, be updated inexpensively, so the strategy you opt for may depend upon your own preference and approach to property.
- The market is constantly changing, so follow our blog, and read auction results, Domain or the Sunday papers.
- Finally, it is important not only to select a property manager who you can maintain a good working relationship with, but also one who is competent and proactive in managing your investment. Our team at position realty recognises the importance of this and takes pride in this approach.