Naive people think investing in properties is easy, they say all you need to do is buy a nice house in a nice area, then watch the money role in. Well, if that was indeed the case, why aren’t they doing it? Our experienced real estate agents know the challenges people face when making a property investment, and have come up with some tips on what you should and shouldn’t do when thinking about investing in property.
Do write down your goals
What do you plan to achieve from this investment? Do you want to rent it out, keep it for the future, or flip it for a quick sale? How much do you expect to gain from it, and what return on investment percentage are you happy with? Once you have set a definitive goal, finding the right property for your needs becomes a hell of a lot easier.
Don’t do it alone
No matter how much experience you have in property investing, or how small the investment may seem, we never advise anyone to make a purchase on their own. Seek the advice of a professional realtor, ideally someone from the local area who can offer you independent advice. There is always someone who knows a little more than you, and two heads are better than one.
Do have a plan B
During the last housing boom in United States, many real estate investors bought properties with only one thing in mind, to sell at a higher price when the market peaked. Unfortunately for them the market took a huge nose dive, and since most investors didn’t have a plan B, many of them ended up losing everything.
Always have more than one plan for your investment, the housing market is a wild beast that changes moods without warning. For example if the market conditions change for the better, it may be a good time to sell your property for a better price than to keep on renting. If the conditions are bad for selling, perhaps consider renting in the short term, until the market picks up again.
Don’t get emotionally attached
Investing is a business and you should treat it like one, if you fall in love with a property because it reminds you of your childhood or some other fond memories, don’t weigh these factor in when buying. Remember you won’t be living here and the people who are, won’t be feeling so nostalgic about it.
Think with your head and not your heart. This ties in perfectly with our advice about not doing it alone, getting a second opinion is usually always a good thing. Sometimes you might not even be aware that you’ve gotten emotionally attached to a property, until you get a second unbiased opinion.
Once you sign the dotted line, there’s no going back, no second chances. Do your homework right the first time and it will drastically increase the chance of your investment being a success. The realtors at Assent Agents have been helping people in Queensland for decades on finding the right investment properties based on their goals. If you have any questions or would like further help on finding your next investment property, feel free to give us a call or pop in-store for some helpful advice.