Are you thinking of investing in duplexes? Want to become a smart property investor? Need expert property investment tips or advice on how to go about it? Well, this post gets to do just that. Read on to learn of smart property investment tips from expert duplex builders.
When it comes to sound investments, nothing beats property investment. Yes, property investment is high up with the rest. In fact, it is even better than investing in listed stocks. Despite this fact, however, many investors don’t fully benefit or profit from their investment. One of the main reasons why this happens is investors doing it the wrong way. The key with just about any given property investment is approaching it the right way. While there are many ways of approaching it, seeking expert advice is a preferred option for just about every property investor.
If you are an investor seeking expert advice before making your property investment you’ll find this post very useful. Why? Well, in this post we’ll be sharing with you smart property investment tips from expert duplex builders. The tip will be highlighting are;
- Clear Goal
- Lifetime Costs
- Borrowing Power
- Growth Areas/High Areas Of Yield
Have A Clear Goal
When thinking of property investment, it is important that you have a clear goal. You need to be very clear as to why you are choosing to make an investment. Are you investing to accumulate wealth? Are you investing in order to build your retirement fund? Or are you investing so as to generate a passive income? Make sure that your objective or goal is clear right from the beginning.
While still on matters having a clear goal, make sure you keep your emotions don’t affect your decision. Instead, make your decisions based on numbers. Once you are done, look at numbers and see whether they align with your goal or objective. This way, you will be able to tell whether an investment is right for you or not.
Know Your Property Investment’s Lifetime Costs
Knowing the lifetime costs of your property investment is very important. As an investor, always ensure that you know all the lifetime costs that are associated with your land investment. One sure way of getting this information is through experts or firms. This doesn’t necessarily mean that we can’t or won’t share with you common lifetime costs associated with land investments. That said, common lifetime costs include;
- Insurance (This also includes landlord insurance)
- Land & Income Tax
- Property Management Costs (This also includes maintenance costs)
- Council & Water Rates
What’s Your Borrowing Power?
Before embarking on any given property investments make sure you are aware of your borrowing power. What’s borrowing power you ask? Well, it is the amount of money you can borrow and actually or easily be approved for. Once you’ve gotten this figure, you’ll be able to easily make financial plans. When seeking out loans, it is advised that you seek a loan pre-approval. What this does is speed up the process of finding a property to invest. You can easily get your hands on a certain investment before it goes off the market without necessarily having the money with you.
While still on matters borrowing, it is important that you know your ideal loan structure. When doing so, experts advise you to focus on two key areas, variables and fixed interest rates. Additional information you should seek to know when it comes to borrowing is how much you need to save for a deposit. You should also find out if you can use your existing home as equity when borrowing.
Plan For Risks
Another thing you should be aware of when thinking of embarking on property investment project is a risk. In particular, you want to make sure that you’ve carefully planned for risks. Currently, there are several risks involved in property investment. One risk that many investors must face at some point in their investor journey is a financial risk. This type of risk is brought about by a number of things. For instance, it can be brought about by unexpected maintenance, natural disasters, and prolonged vacancies.
Why is it important to plan for such risks? Well, it helps you build a buffer for these risks into your budget. What this result to is you not defaulting on any of your loans in the event your investment is affected.
Growth Areas & High Areas of Yield
Investing in growth areas or high areas of yield can result in huge guaranteed capital gains. That said, you should as an investor, look to investing in growing communities. This puts you in a nice place to enjoy capital gains in future. Furthermore, your property’s value increases by the day.
the value of your property is bound to increase over time. Whether it’s a home or land, you can expect a growing community to increase its value with time. If you are not sure about growth areas in your neighbourhood, we’d advise speaking with an expert.
While thinking of growth areas, it is important that you think of your tenants as well. To be exact, think of things that your tenant would want to have. These include things like amenities as well as recreational sports activities. In Australia, tenants are likely to move in a home if it’s near parks, medical facilities, schools, transport links and so on. This is according to a survey by Satterley.
While growth areas are very important in property investment, high areas of yield are equally important. What are they you ask? Well, these are areas with high rental yields. In other, the monthly/annual rent in these areas is high. What this means for investors is that they’ll be able to fetch a high rental income from their investment. If you are not sure how to go about it, you can use online reports specifically generated for this. Additionally, you can contact an expert to guide you through.
There you have it, smart property investment tips from expert duplex builders. For additional information or advice on how to go about with your property investment, get in touch with Duplex Invest. You can do this by dialing 1800 600 098.