As I have been speaking a lot lately about the current climate resulting in real estate investment becoming an increasingly attractive option for many, I thought it may be timely to pass on some tips for the first time property investor. After years at Century 21, and working in real estate, there are a few important steps that spring to mind when someone mentions they are considering investing in property.
As always, speak to your local expert at Century 21 about your property needs and wants, and seek financial advice if required, but here are a few tips to begin with.
Educate yourself! There is nothing like information sought first hand to know what you're dealing with. Read books, read relevant magazines, and speak to people whose advice you trust. Find out as much as possible about any investment you are considering and make sure you really understand the pros and cons of the choosing a particular investment asset or strategy. Take the time to weigh the advantages and disadvantages of the investment you're considering against your financial goals.
Establish a clear strategy for yourself. Your investment strategy is going to dictate what type of property you end up purchasing, and where you look for it. Also make sure you understand and are comfortable with the risks associated with any investment you are considering. Like any investment, investing in property carries risks, and generally the higher the risk the higher the returns but you need to ensure you are happy with the risks you are taking. Be wary of pressure selling techniques and high pressure seminars spruiking investment properties - some sales people can be extremely persuasive and persistent, so it's best to avoid these situations to begin with.
One you have decided on a strategy and an area, or areas, get back to the research! Make sure you thoroughly understand the areas you're interested in.
Once you've found a property, try to remove emotion from the decision. It's difficult at times, but it needs to be done and to help maintain perspective, ensure you obtain a building inspection report and a property valuation before signing anything.
And when the deal is sealed, learn to love your paperwork. Easy to say and difficult to do, but to look after your investment assets, it is wise to read and keep all the documents you receive about your investment property.
Happy investing!