For many people the dream of owning their own home may never become a reality, because they either don’t know how to save properly, or because they never really figured out how to get started in property investment. You can’t blame some people because, there really is a whole lot of information to take in, and a lot of stuff to learn about when it comes to investing.
For starters, you’ve got to figure out what kind of home loan you’re going to get; whether you’re going to get a low interest home loan, whether you’re going to get a fixed term home loan, whether you’re going to pay interest only – there’s a heap to take in! You really need to have your wits about you when it comes to investment and to know what you want to achieve with your home loan endeavours otherwise you might get overwhelmed and throw your hands up, thinking it’s too much to take in. You could find the information at a place like Homestart first home owners page where you’ll get the right sort of knowledge in an easy to access place, and maybe that will take some of the pressure off. If you’re still wondering about investment and a bit cautious – just looking to dip your toe in, perhaps, then take a look at these two questions here and just ask yourself them. Hopefully you’ll have more of an idea when you’re done reading! They’re just the basics, so don’t be scared.
1. What sort of property are you going to buy?
You have to buy the right sort of property; one that will be undergoing solid growth and increasing in capital growth as the years go on. This is how you’re going to continue to be able to borrow more and invest more. How to find the right property is another thing entirely, and something that you need to ensure you’re prepared for. The vast amount of research you’re going to need to do to find the right investment property is pretty staggering, which is why a lot of people find themselves veering away from investment as a whole! You need to keep your levels of interest up, which is why you should always try to get your information from a variety of sources to keep things interesting.
2. Should you purchase something old or new?
As a rule, new or off-the-plan apartments are often a great investment choice for first time investors or home-buyers. They offer a great and affordable way to enter the property market, and the apartments also offer the opportunity for people to receive some great capital growth on the property – provided that you have chosen a property that increases in value while the property is being built – which can put you at an advantage in that you’ll have some equity in your portfolio as soon as your property is completed! Then you just need to get some tenants in to rent the property and hey-presto. You might even have a positively geared property as well, which means some money in your pocket to give you a hand too for future purchases and saving.
No matter what you end up doing with your property buying strategy just remember that it all comes down to having a plan on the backburner and actually making sure that you stick to it. As long as you manage to keep your eyes on the prize, you won’t have too much of a hard time slowly but surely building up your wealth. Ultimately, a strategy is what’s going to make the difference between a successful investor and a not so successful investor, so provided you keep educating yourself and learning, you won’t be far off success.
Categories: Real Estate