We all have to start somewhere, and starting is the hard part as you know. So where do you start?
The very first step to property investing is researching. You need to know your market so that you can effectively compare properties and know when you have a deal or not. So take the time to do reading, researching and talking with people in the know. If you are able to, physically looking around the area you’re interested in, can help put all your research into perspective. When you are beginning, it’s probably better to limit your scope and look at 1 or 2 suburbs this will stop you getting overwhelmed, which is easy to do.
So the Fundamentals:
- Learn the Property Market – If you don’t understand the market, you won’t be able to make educated decisions.
- Set your Goals – You need to be very clear about your short and long-term goals. If you don’t know what you want, it is very difficult to get there.
- Strategy – Know what strategy you are going to follow. Don’t change your mind once you have decided what you strategy will be. If you change your mind half way, your results will be less than you hoped for. Are you a ‘buy and hold’ or a ‘buy and sell’ person?
- Know the Pitfalls – There are risks when you invest in property. Make sure you know them. Property has been a wise investment for a very long time, so know that in the long run it’s very likely you will come out ahead. But not always!
- Positive Cashflow – Looking for a positive cash-flow property is a safer bet than a negatively geared property. Especially if you are new to the game.
- Buy Below Price – You can buy at full price, but a savvy investor will get a deal – buying below market value. Remember you are not living in it.
- Buy with your Head, not your Heart – Following on from above, you are not living in the property, so don’t look for properties you love, look for properties that will give you the best yield.
- Location – Buying close to schools and shops is a pretty safe bet when looking at investment properties. Especially a first one.
So get the right advice, do the research and follow your strategy and one day you may wake up and be a property tycoon!
What do you think, what would your best advice be for a new property investor?