Research longer-term trends

Property investment is an investment for the long term. As Brendon Hulcombe, CEO of valuation firm Herron Todd White points out, there are too many costs and taxes in buying property to make a lot on short-term horizons.

It’s important that you’re wary of how things may change over an extended period of time, rather than just over the next 12 months.

This means researching the existing and evolving longer term trends and forces shaping a location and region such as price movements, rental yields, gentrification and the evolution of the suburb.

You should also be aware of the property cycle – whether prices in the location you may buy are falling, rising, bottoming out or peaking – and also if there is a different outlook for apartments over houses.

Ideally you should try and buy at the bottom of the cycle.

This article is fromProperty Observer's free ebook Top 10 Property Investment Tips