subject: Property Investing Strategies In Australia [print this page] Investing in real property is a skill that needs to be honed with careful study and supported with the right strategy which involves three things:
* your investment objectives
* time frame and
* risks
To arrive at the right plan, experts recommend a careful consideration of several factors which include the following:
Project Details: This entails knowing what type of project you are buying into, who the competition is and what their strengths and weaknesses are, as well as the current trends affecting the location of the project.
Economic condition: Find out about the economic plans of the country or area where you intend to invest because these will tell you how much infrastructure support your prospective investment is going to get from government. A booming economy will also usher in more inhabitants and create a demand for rental properties and home sales.
Political stability: The political situation of a country is very important because it will determine how much infrastructure and investment support your property can get from the government. An unstable government can affect the price of your investment because of lack of infrastructure policies and worse, civil unrest.
Purpose of property: How you intend to gain out of your property should be consistent with its location. If you want to earn rental income, then you should choose to invest in areas with increasing property values and individual incomes because these are where the demand for rentals is highest. If your strategy is to buy and hold then an investment in areas with growing business activity is your best bet.
Access to transportation: Coastal towns with good roads and nearby airports are good areas for property investing. Property value is more likely to grow when it is accessible.
Short term strategy: This is typically between 18 to 36 months and usually involves buying low and selling high for fast returns as in the case of off-plan units.
Medium term strategy: Involves holding real estate property for a period of 2 to 5 years where income is generated by renting it out either in a holiday or seasonal rental or a long term lease. The investor in this type of strategy must consider matters like spending for taxes, maintenance and upkeep of the property. Depending on your analysis of the project, your investment plan may result in a lower capital gain in favor of recurring monthly income in the meantime.
Developing the best property investing strategy can be difficult if you are not in touch with current situation, trends and consumer behaviour that experts have an eye for. Educating yourself before plunging right in will go a long way in protecting yourself against losses.
by: Alicia Swift
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