INVESTMENT TIPS Top 5 tips when investing in property 1. Choose property that will grow in value Properties in locations close to the CBD, leisure facilities, schools, public transport and beaches (where possible) are more likely to gain value in a good market and less likely to lose value in a down market. 2. Choose property that’s attractive to tenants Any property you purchase should be in reasonable condition (or able to be upgraded for a reasonable price), have good sized bedrooms, off-street parking and good positioning away from noise and main roads. Look for something that suits the majority of tenants in the area to ensure your property is always attractive to renters. A property that is always tenanted means a stable income stream. 3. Create a buffer by refinancing When your property has grown in value, it’s sensible to create an emergency buffer zone by refinancing. This will ensure you can continue to make mortgage repayments even if unforeseen expenses or loss of rought to you by Medfin Page2 of 2income (such as losing your job) occur. Don’t find yourself in a forced-sale position, as you won’t get the best price and you may have to pay capital gains taxes and other expenses. 4. Property investing is all about time in the market Many people try to wait until the market is at a low before buying. Long term investors know that timing the market is for speculators not investors. If you can afford to buy and hold on to your asset, now is always the right time to buy. 5. Build a team of professional advisors You can’t do everything yourself. Working with professionals who are experts in their field can make a difference of tens of thousands of dollars to your long term returns. As a starting point, every investor should have an accountant, mortgage financier, financial advisor, valuer, building inspector and buyers’ agent.
Posted on: Tue, 07 Oct 2014 01:37:39 +0000