Investment Methodology
Property investment is a long-term strategy
Thinking how to invest in property? A long term plan and holding assets is vital to creating wealth. The property market is normally cyclical and fluctuations are common though historically prices have increased over the long term.
New properties
Purchasing new property typical allows for tax benefits as a result of depreciation. Additionally new homes in excellent areas are highly sought after by tenants which allows for high occupancy rates and strong rental returns. Your investment opportunity is more affordable if you maximize your tax advantages and lower your expenses.
Investing in property should be a calculated business decision
When investing in real estate it is best to think of it was an investment rather than a home that you would inhabit. These properties may not be ones that you would want to bring up a family in. The location of the property may not be to your liking.
These things need to be forgotten about when making an investment decision. You need to ask yourself the following: Will the property realize capital growth? Will the property be easy to rent? How will it fair on the re-sale market?
Things You Need to Keep in Mind
- Research on Employment and Economic Growth
- Thematic Changes
- Population and Demographic Changes
- Infrastructure and Government Spending
- State of Economy and Money Supply
- Banks' Liquidity and Lending Policies
- Deep market corrections overseas driving investors offshore (e.g. USA where the market pockets dropped up to 90% of 2006 prices)
- Currency Fluctuations (e.g. AUD/USD gained 15% YTD 2011 providing higher purchasing power to Aussie investors looking overseas)
- Rental Market
- Supply and Demand
- New property development opportunities and risks
- Investment data and charts
- Unlisted Property Funds
- Retail Property Securities Funds - key performance statistics
- Wholesale Property Securities Funds - key performance statistics
- Natural Disasters (e.g. floods in 2010 and 2011 in Australia, tsunami in Japan, etc.)
Download our FREE Investment Property mobile app and grab a FREE copy of our book 'How to Buy a Dream Home' to learn more about the best investment methodology available. For more personalized answers book an appointment with us online or ask a question now.
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