Investing in (residential) property
can be very lucrative and profitable. If you get it right…. And getting it right is the key. If there is one thing I would like you to remember it is this: Before you jump in, make sure you take professional advice. I have seen too many people with an investment property 5 years down the track that has not increased in value and no significant rent increase. That becomes a noose, not an asset. Here is my (by no means exhaustive) list of questions I recommend you ask.
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About the area:
Am I buying in the right area/what makes this the right area. Am I buying the right type of property for that area. Am I buying for the right demographic in that area. Am I buying for the right price in that area. What infrastructure plans have been committed to (not just planned!) for the area.
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Statistics:
What is the supply/demand situation for this type of property. What is the job/employment forecast. What is the vacancy rate for this type of property.
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Strategy:
What timeframe am I holding the property for. What is my exit strategy. When/if I sell, who is my most likely buyer. How should I structure my finances. Which bank/lender is right for me. Am I getting all my tax benefits. What will my cashflow be.
Investing in (residential) property
can be very lucrative and profitable. If you get it right…. And getting it right is the key. If there is one thing I would like you to remember it is this: Before you jump in, make sure you take professional advice. I have seen too many people with an investment property 5 years down the track that has not increased in value and no significant rent increase. That becomes a noose, not an asset. Here is my (by no means exhaustive) list of questions I recommend you ask.
-
About the area:
Am I buying in the right area/what makes this the right area. Am I buying the right type of property for that area. Am I buying for the right demographic in that area. Am I buying for the right price in that area. What infrastructure plans have been committed to (not just planned!) for the area.
-
Statistics:
What is the supply/demand situation for this type of property. What is the job/employment forecast. What is the vacancy rate for this type of property.
-
Strategy:
What timeframe am I holding the property for. What is my exit strategy. When/if I sell, who is my most likely buyer. How should I structure my finances. Which bank/lender is right for me. Am I getting all my tax benefits. What will my cashflow be.
