Entering the property investment market is like stepping into another world; a place with a unique lingo, possessing phrases and concepts to wrap your head around. Luckily, if you take the time to learn the intricacies it can be an extremely lucrative avenue to pursue.
For those looking into securing their first property investment loans, there are a number of things to keep in mind that could help you avoid making an mistake.
Skipping due diligence
Taking the time to investigate the local market is a great place to start your property investment career. Look into details such as the local median house price, auction clearance rates, rental demand and yields to paint a portrait of how viable real estate in any particular area could be.
From this, it is easy enough to generate a plan that uses all these details as the basis for an investment plan. After all, property portfolios don't grow overnight – there is a lot of planning that goes into real estate success stories.
Not identifying a strategy
One common mistake that an investor can make is to jump straight into a market without developing an action plan. Investors need to take a good hard look at both the short-term benefits and the long-term ramifications of a specific investment. Come up with a strategy for your property, whether it's to do it up and sell it or tenant it for a few years.
Coming up with a strategy will also help you to decide on your investment finances. This is an essential part of making your property work for you, with a wide range of variations and options available to you.
All of this can be incredibly confusing for newcomers. Therefore, getting in contact with a financial professional could be the best step to take towards beginning a profitable property portfolio.
DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.