Preparing to start your property investment adventure

Preparing to start your property investment adventure
Greville PabstDecember 7, 2020

GUEST OBSERVATION

Investing in property can prove financially rewarding. It often proves less volatile than shares or other investments.

With property you can earn rental income and benefit from capital growth and many property expenses can be offset for tax purposes but to ensure the property you purchase is a wise investment, it’s essential to have a clear strategy and conduct the appropriate due diligence.

When formulating your investment strategy it’s important to consider factors including whether you want to buy a house or a unit, the value of the land, the suburb’s future outlook and whether you want to buy off the plan or pre-established. For the inexperienced these considerations can be an overwhelming.

To make an informed decision and achieve the maximum value from your investment, seeking professional advice is invaluable. Engaging a buyer’s advocate to help you find and secure a property that meets your personal investment needs is one way to do this. For those not wishing to engage a buyer’s advocate, there are property investment guides available to ensure you know what to look for when considering potential properties.

Failure to conduct the necessary research can result in purchasing a property that isn’t investment-grade. In fact, most potential investors are unaware that fewer than 5% of properties on the market at any given time are specifically suited for long-term investment.

There are two simple yet strategic considerations often overlooked are opting for a property with off-street parking and avoiding main roads.

While off-street parking adds a premium to the purchase price for properties within 10 kilometres of Melbourne, it also contributes to higher rents, stronger capital growth and shorter vacancy periods. Factors such as these can be the difference between a profitable venture and a financial loss.

While there are many benefits to investing in property, to achieve the maximum return from your investment, it pays to do your research and seek independent advice to ensure you are informed and researching strategically.

Greville Pabst is CEO of WBP Property Group.

WBP Property Group’s 'The Essential Guide to Investing in Property' is available at www.wbpproperty.com.

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