Tips for first time property investors

17.1.14If you’re considering purchasing your first investment property in Sydney, there are a number of things you should keep in mind. Building a property portfolio isn’t something that can be thrown together overnight – it takes a lot of planning and research.

Entering into the world of property investment can be confusing. With a wide variety of new terms and phrases being used, it can be difficult for the uninitiated or amateur. However, taking the time to research and learn will help you to successfully purchase your first investment.

Getting enticed by a nice looking property without taking the time to look into the data surrounding the real estate market in the area is one of the biggest shortcomings of new investors.

There are various avenues for research and statistics about the property market in Sydney that will help you to make an informed decision. For example, knowing about the local market’s auction clearance rates, vacancy rates, rental yields and median sale prices will help you find the perfect property.

Furthermore, you’ll want to investigate where the major growth regions and predicted hot spots are in Sydney before committing. Having an investment property in an area without any growth potential means your capital gains will suffer.

Having a good idea about your short term and long term goals can help to give your portfolio a sense of direction. With a standard to measure your success by, you’ll be able to make informed decisions about how to proceed with your investment property portfolio.

The projected population boom heading towards Sydney, for example, could provide a great opportunity to create wealth from your portfolio in the near future. Having a good idea about where this growth will occur will aid your long term goals.

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