Do Your Math: Understand The Cash Flow Strategy
Before you step on the property investment ladder, it is essential to analyse your cash flow strategy. A negative cash flow strategy means outgoings will surpass rental earnings. A positive cash flow indicates the generated income of the investment property should be higher than the loan repayments and other outgoings.
You can always approach the property investment specialists in Adelaide to help you strategize.
Choose The Right Property At Right Price
Are you buying a holiday rental, apartment or house? The type of property you buy will decide the amount of rent you will receive.
Investing in real estate is typically all about capital growth, so selecting a property that is more likely to grow in value is the most crucial decision you will make. Hence, buying at the right price is undoubtedly critical.
Choose The Right Location
A lot of experienced investment advice supports that real estate investing is all about the location. Look for a desirable suburb that has substantial potential growth in the future. You should also look at the proximity to shops, schools, public transportation, health care and other amenities, which will also impact rent.
Find A Good Property Manager
A property manager is a licensed real estate agent who is an expert in their field. Their job is to keep things organized for you and your tenants.
He or she should give you advice on your right & responsibilities as a landlord and property laws. They will also take care of maintenance concerns, though you should approve all incurred expenses in advance.
Identify Your Target Tenants
The type of investment property you buy should engage your target renters. Suppose you are purchasing a property near a university. Students are more likely to be your renters. However, when you buy a property near parks and schools, couples with children are more likely to be your prospective tenants.
Use The Equity From Another Property
Leveraging equity in your existing investment property or home can be an efficient way to buy an investment property in Adelaide. Equity is the difference between what you owe on the mortgage and what your property is worth.
It may increase your borrowing power, which will also increase your tax deductions.
Consider Long-term View And Manage Your Risks
Remember that real estate is a long-term investment and should not depend on property prices escalating right away. It is essential to find the right balance between enjoying life and financial stability. Hence, it will help if you analyse future market trends.
Most property investors overlook the importance of engaging the real estate research companies leading to potential errors. Market research and planning are two vital elements that need expert’s guidance to make a sound decision.
While interacting with Rick Nieuwenhoven, Chief Executive Officer at the Nieuvision Group & Professionals Modbury, we asked his opinion on “the importance of engaging investment property specialist.“
Well, you can do it yourself, but it can be open to errors.
I will share one example with you; I have done 20 years of tax returns for people, the most common mistake I see is people live in a house in a suburb and go, “I love this suburb, I am just going to buy here.” That’s an emotional decision and not a logic-based decision.
Another thing to think about is that there are research companies like ours, and then there are companies. And one perfect example is a business that I saw today where a former cameraman is selling an investment property program.
Now, I don’t understand what financial knowledge a cameraman has and all that sort of stuff. But when you look at a company like ours. We have years and years of industry experience, all under one roof about mortgages to taxation, real estate, investment real estate, and general real estate. It is all under one roof, which creates efficiency for you.
So, you can deal with one company, have everything handled for you and make it nice and practical.
