One simple lesson I urge prospective investors to remember is the value of the property as a long-term investment. As the saying goes, it is a marathon, not a sprint.
If you are setting your sights on purchasing property to seek short-term profit, it is important to consider the influence of supply and demand. Recent CoreLogic RP Data shows an increasing amount of stock entering the market over the next 24 months, meaning an aim for a quick sale could be affected by a market full of choice.
Whilst media hype can tend to emphasise property bubbles and impending market crashes, it often fails to report on the normal, cyclical nature of the property market. Ups and downs are inevitable therefore investing over the long term with careful consideration will help to eliminate the risks of short-term volatility.
For example, the effect of mining booms in the Australian market has been significant. What were once lucrative areas to purchase property are now falling behind in comparison to the wider Australian market as the booms have slowed down.
As always, I encourage extensive research of the area you wish to purchase in before making any final decisions. Also, try not to overextend yourself when purchasing the property. Budget carefully and take into account the potential for movement in interest rates.